The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-11-14

federal control there has been only
one general inercase--ss per cent on
June IS. f9ls--and whereas for
eight months following the signing
Of the affn,stiee there was an cpor.
atins deficit of several hundred tn'l.
ION dollars, due TO perfectly natural
economic causes which only "a mir
aclc could have counteractod, since
July I the railroads have been op.
Grated At profit by the director
general. Those who directed and
managed the roads under private con.
troll protest that whereas the gov.
with an operating ratio OF IS per
cent. To do more than break even
after paying the guaranteed stand.
ard return for the uso OF these prop
critics, IL will be utterly impossible
with the present rates In forcs for
The carriers 10 be operated without
loss under private control.
"onv a short time ago formal
demand was made upon Director
General Hines that exercising the
emergency power granted under the
federal control act, he initiate rates
from which the carriers would ben
cflt-~and Of which the public would
inevitably be the victim--whon the
roads returned 60 their owners
Hines very properly replied that
such an act on his part would not
only violate the proprieties. but
that II was not In IN. public inter
est 10 increase rates. ne suggest
ed the officials OF the carriers
themselves study the situation and
be prepared 20 make recommanda-
tons for increases 10 tn. interstate
commerce commission. This they
are doing at the present time and
congress IL working on two neaa-
ur-r for the return Of tbs roads,
either Of which. II enacted into law,
will mean substantial increase In
freight rates
Mr.. Consumer Pays
"Just what the measure of this
Increase may be do not know.
The general opinion seems that IL
will amour, 20 about Is per cent.
Taking the freight revenues for the
year 1918 Of the carriers under fed
erai control as basis, this means
an added ssTs.eoo.o0o per annum
that shippers viii have 20 pay tho
railroads. Economlstn know that
the consumer pays not one tn
crease. but an accumulation 81 in
creaAcs. In a speech last June. Di-
rector General Hines said an In
- A..
rates would mean 1850 600 900 that
the ultimate consumers would have
10 pay. USING the Hines ratio. an
Increase Of ss7b.ooo. 900 In freight
rates would mean an added cost %
N.17s. GOO o0n 20 the people OF IN.
country for everything they eat.
wear or use. Assuming there are
100. 100000 pecrle IN this country.
this would mem a higher diving
cost II 40 per annum for zach
person or s.is per annun for each
family of i've
"But this Is not all, Ono. tho
government withdrew the only psz
which now acts as q check or the
vicious circle. there would newt
ably follow an orgy u price in
creaaea aud demands b. labor Tor
wage increases 20 meet these prlcca
with the result that the railroads
would. In due and early season.
have to have another advance In
rates.
II the curnmira bill II enacted I'm
it's present form. the vicious circle
will have been officially siorifisd be-
cause section OF that bin provides
that the newly created Transports.
ton board shall certify TO the inter
state commerce commission the OPP
Grating revenue Of all the rail- car.
rlers. and that whenever necessary
tho commission shall 10 adjust rates
that tho net average annual return
viii approximate So per cent. The
commission IL 70 prescribe. AZ IL does
now, how the books of the carriers
shall be kept. but the executives of
these carriers are 20 have supervi.
sion Of the collection and expeuGi-