The Mena weekly star., 1920-08-12
ID ADD Sl 4 DAY
 10 COST OF LIVING
That Is Estimate of Effect of the New Railroad Rates-E Effective Date Postponed Because of Inabil-
 ity to Prepare Tariffs.

Washington, Aug. g.. Both freight md passenger rate increases will be made effective August 26. The rail way executives decided today that new tariffs could not be completed in time to make the passenger rates ef- fective August 20 and the freight rate August 25 as tentatively decided yes terday. The new tariffs will be filed by August 21, according to the present planplan, five days notice being nee essary under the Interstate Com merce Commissions g decision of last week
 The railway executives decided to ask the Canadian railway authorities fo apply the same basis of increases approved by the Interstate Commerce Commission to joint rates from the United States to Canada. This will mean an increase sn freight rates of 70 per cent on shipments from East ern railroads in the United States to Canada, 35 per cent in the case of Western roads, 25 per cent in the case of mountain Pacific roads, and 33 1-3 per cent on joint rates from Southern roads through the Eastern or West ern territory to Canada. The Cana dian railways will file similar applica- tion respecting joint rates from Cana da to the United States.
 To Add to Cost of Living.
 Increased freight and passenger rates will mean the adding of more than $l per day to the cost of living of the average American family, ac- cording to the latest computation of Etatiscal experts. This figure is bas- ed on the rule laid down by Walker D. Hines. former director general of railroads, that to add five cents to the freight rate means an addition of 25 cents to the cost of the commodi- ties which must move by freight.
 Multiplying the estimated additional revenue by five and making a deduc- tion for passenger traffic, it is fig nred that the per capita cost of the in- creases will be close to $73 per year. On the basis of the average family of five persons the cost of each family would be $365 per year or $l per day.
 The basis for Mir. Hines theory that freight increases may be multiplied by five to compute the effect on the cost of living is that several freight move ments are involved in each manufac- fured article.
 Glenn E. Plumb. attorney for labor organizations, agrees with Mir. Hines theory that the rate increase will be multiplied several times in the cost of living. Mir. Plumb said today that the increased cost of living would much more than offset the increase in wages.
 Predicts Lower Prices.
 A. P. Thom, general attorney for the Association of Railway Executives, in discussing this question of the cost of living said that he believed the better Transportation and a higher rate of production would result tn lower prices.
 At the recent rate hearing before the Interstate Commerce Commission, a large number of shippers testified that inadequate transportation was far more costly to them than adequate transportation rates.p said Mir. Thom. s'They presented the view that if the producer cannot get his goods to mar
 
 life will be diminished. On the other hand. if the producer can get adequate transportation production will be en- couraged
 If the supply of the necessaries should be curtailed by inadequate transportation and the supply thus di- unfinished. the cost of living would in- evitably go up. On the other hand. with adequate production and boun- 6iful supply in the markets of the country the result would be to dimin- ish thee ost of living.
 While of course, the demoraliza- rion incident to the war and to the government control and management of these properties cannot be over come at once, the effect of the recent rate decision is to supply the means by which carriers win be able to make more effective efforts to get the in- strumentalities of transportation back upon normal basis and in more eff cient operation"
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