The Leavenworth echo. [volume] (Leavenworth, Wash.) 1904-current, 1919-05-30
INCREASED FREIGHT AND PAS
SfNGFR RATES DUE 10 COME
Expenses Running Behind at the Rate
of Sixty-five Million Dollars
Per Month


which the new congress, that met the
first of this week, will certainly take
up, and endeavor to solve, the follow
ing statement by John Service of the
condition of the roads, and the gravity
of the questions generally, is of more
than passing interest:
A recent statement of Director
General of Railroads, Walker D.
Hines, relative to the financial cOndi-
ton of the roads discloses that in 1918
the net deficit thru operation was
S225,000,000. The deficit for 1919
promises to be far greater. For the
first three month of the year the rail
roads ran behind to the extent of
$l92,000,000. If this rate of net loss
to the government were to be kept up
thruout the year the total loss for be
twelve month period would be $685.,
100000, or a little more than three
quarters of a billion While it is not
expected it will be that large, it will
nevertheless reach heavy total
Thus far Mr. Hines has not an
nounced that higher rates will be de-
manded. There is no escape, however,
from the fact that an enormous def
cit is being created and that the pub
lie, in one way or another. is going to
have to meet it. 1t will either have to
be met by increasing railroad rates or
by the treasury paying the amount of
the shortage and then collecting it
out of the public, either thru bonds or
taxes, or both. Whatever method is
chosen the average citizen will have
to pay the fiddler.
In all probability it will be found
impossible, or at least impracticable,
to keep on piling up the deficit, to
meet it simply by paying the money
out of the treasury and then to turn
about and demand more public rev.
enue. An increase in, rates, at least
in freight rates, and perhaps pas
senger rates, appears therefore to be
unavoidable.
This is no surprise to senators and
members of the house, to shippers
and others who have been following
the developments in railroad matters
with close attention for months past.
AS matter of fact predictions were
made last winter that it would only
be a short time until additional in
increase in rates would be sought. The
best informed members of the senate
and house interstate commerce com
mittees have been predicting for
months that rates would go higher, al
tho onerous increases in freight and
passenger rates were made some
months ago.
The effects of this prospective in
crease in railroad rates are easily
discernable. In the first place testi
mony has been reaching Washington
from every part of the United States
for many months telling of deep
seated dissatisfaction on the part of
the public with the manner in which
the railroads are administered. The
complaint extends both to service and
to high rates.
If, now, the rates are still further
increased, as it is generally believed
they must be, it is hardly necessary to
point out the situation which will be
produced. Little question exists that
the widespread dissatisfaction which
has prevailed for months will become
so intense as to result in storm OF
angry protest. Not only will ship
pers complain that they are unduly
overburdened and seriously handi-
capped but all lines of business will
share in the protest. The general
public which will find the prices of
necessaries still further advanced will
rot accept the. increases in any kindly
spirit.
Leaders in congress have for some
time been planning to endeavor to
enact permanent railroad Legislation
at the extra session of congress or,
if this were found impossible, to get
measure so fully under way that it
could be put on the statute books next
winter From all directions there
arise evidences that the public wants
the railroad question settled.
If, as expected, rates are still fur
Their increased the demand for action
by the house and senate will, of course,
be intensified. Under the stress of
growing public demand the house and
senate, without doubt, will make a
special effort to expedite the railroad
measure and put it thru at the extra
session if any way can be found to
do it,
The spectacle presented by the
railroad administration is one which,
as already indicated, brings no sur
prise to those familiar with all that
has passed since the railway control
measure was damned thru congress
under pressure from the White House
without due opportunity for its care
Ell fo,.,,aulafion II ic fraouantly said