Milford chronicle., 1920-07-23
$6OO,OOO,OOO RAISE
TO RAIL WORKERS
CARRIERS ALREADY PREPARE DEMANDS
FOR ADDITIONAL RATE ADVANCE
TO ABSORB INCREASE.
MAY HIT PASSENGER FARES
SOME FAVOR RAISING S3OO,OOO,0OO
BY 3 l-2-CENT-A-MILE RATE In
EAST, AGENT in WEST.

1 AS the result of the award of $780,
/ 100000 to the railway workers of the
I country by the Labor Boards findings.
announced at Chicago Tuesday, it is
I estimated that freight rates must be
raised A per cent to pay for this,
and the S1.O17, ,00o. 900 increase in rev
enue, previously asked by the carriers.
And the public must foot the bill.
The S1017.0 600 revenue increase
is required by the carriers to enable
them to earn the 1-2 to per cent
allowed by the transportation act.
The Rate Committee of the Rail-
way Executives will meet in Washing
ton to consider plan of appOrtiOning
the cost of the new wage increase be-
tween freight and passenger earnings.
Up to q short time ago the executives
wished to place the entire rate in
crease, including the cost Of added
wages. new equipment. &c, upon
freight earnings. But this idea has
been modified and it is probable that
passenger traffic will be increased as
we'll. 1t is known that the Interstate
Commerce Commission looks with Ia
yor upon this Dlal o. distributing the
increase.
Makes Total Asked S1.G17,OOO.00O
As soon as the Rate Committee has
formulated its plan. this will be pre-
sented to the commission which has
been considering the average freight
rate increase of 2S per cent or S1,017.-
100000, applied for by the railroads
under the new Transportation act.
This S1,0l7.00O,000. added to the
S600.000.000 wage rise, makes n total
of 81 ,617 100000 which the railroads
claim they must be allowed to earn
in order to maintain themselves. The
sum of 00,000.000 would De one
sixth. or 16 per cent, of the freight
earnings last year. If is per cent
were added to the % per cent already
it will be seen that the rail-
roads would ask for a "A per cent in
crease in freight rates if the new bur
den was placed entirely upon freight
tariffs.
This increase of "A per cent would
make the prices of all necessaries of (
life even higher than they are today,
and it is to escape this added cost of .
living that the railway executives and .
the commission both favor placing
some of the new cost upon passenger !
VI dAAANs 0AlPHEAo AelNG HAONNeNNA
phatically against a freight rate in
crease of 80 to 40 per cent.
No intimatiOn has been given as to
what proportion of the money need
ed will be raised from passenger fares
but it is thought that S300,000,000 of
he $600.000.000. or per cent of the
of last year. might be deriv-
ID from this source. If per cent were
'aised from passenger fares, this
would leave per cent to be added
o the IS per cent previously asked
or, total of SO per cent freight
ate increase.
Would Raise Passenger Fares
Recommendation may be made that
fares be increased half a
ent per mile in the East and Central
Vest and one cent per mile in Wes- =
ern territory. 1t is estimated that the
800, 100000 could be raised on this
asis. Experts say that S200,000.000
Ould be raised by a fiat increase Of
alf a cent all over the country. How
yer, the tendency seems to be to ad- {
Use making passenger fares in the {
Vest four cents per mile. and in other ,
ections three and one-half cents.
AE Na6N aAh SAAANNA III AAAAN~
go will cost the government about 4
200. 100000 The award is retroactive {
} May /, and the Government must {
ay the increase from May l to Sept \
when the Government guarantee h
xpires. The S600,0O0.0000 wage in /
rease brings the annual pay roll OF c
lie railroad system to S3.300,0O0,0O0 [
How the employees will receive the S
ews of the award is not known in
'ashington. The general impression e
that there will be no strike. Or S
,ials of the railway brotherhOods ana b
Mons are in Chicago. and subordi- "
ltes said that their chiefs could best ii
,nse the attitude of the workers. A
1me officials of the Interstate Com 81
cree Commission believe that the e,
sws OF the award will result in n
any men going back to work and c,
at following this return the efiicien- fc
of the railroads will be so increas- le
that the roads may not have to ask T
r as large freight and passenger al
creases as they now contemplate. m