The Dawson news. (Dawson, Ga.) 1889-current, 1920-04-20
"A PER CENT RAISE
IN RAILROAD RATES
,,c BOOST IN BOTH FREIGHT
AND PASSENGER CHARGES
GEMS TO BE INEVITABLE.

WASHINGTON. - Managers of
,uos+orn and southeastern railroads,
,oo+;no here this week, will consider
H. question of increasing freight
so+os needed to make the railroads
,.;old the 5 IL per cent on their value
9ssnred under the Esch-Cummins law
Fostern managers have already con-
ferred.
information and recommendations
will shortly be made by the mana
oors to the interstate commeNe
commission, charged by law with fix
ina rates at point to bring 5 IL
nov. cont The commission is expect
Cd +o nut the higher rates into effect
between now and September 1-un-
I'll then the roads are guaranteed
their income on the same basis as be-
fore the government relinquished
control
Question Causes Concern.
The extent to which it will be
necessary to increase freight rates
and possibly passenger rates is
causing concern in many quarters.
Labor costs, coal, materials and oper-
ating expenses are constantly ad-
vancing, railroad men assert. 1t is
clear the amount of increase will be
much larger than has been anticipat-
ed and that it will exert a powerful
influence against reduction in the
general level of prices.
Every article will cost more, and
the amount finally taken from the
Rocket of the consumer will be larg-
er than the actual amount of freight
Increase. This is because retailers
Ind middlemen will exact their per-
entage of profit on the higher cost
b an article to them, from whatever
PURGE the higher cost comes.
Under U. S. Operation.
railroads in 1919, under govern
at operation, earned S556,OO0,OOO
h than the amount necessary to
R 5 1-2 per cent on the total in
|sment, which is figured at $19,-
OOOO. 900. This deficit must be
ade up through higher rates. Here
Ie some of the items making for in
eased rates, as tabulated by rail-
ad economists, after canvass OF
railroads.:
Asured income.
500, 100000 to care for increased
bsts of materials.
800, 100000 to pay for coal in
eases, amounting from % cents to
BIO ton since the government
ked prices ended April 1.
ISIS 100000 for wage increases
anted in the past few months, for
ich provision must be made.
S1.10O,O0O,OOO pending wage de-
binds, to be passed on by the rail
Id labor board at once-the
ount to be allowed as yet indie
minable.
Should all pending wage demands
met, which is considered unlikely
ess it is necessary to end strikes
keep railroads running, the total
reased revenue required will be
921 100000.
Every additional hundred millions
revenue requires per cent in
base in rates. With the figure at
leteen hundred millions the rate
(rease would be 81 per cent.
The wage demands are, of course,
at increase the figure to its stag
ting total Railroad executives as
it is inconceivable the demands
luld be met completely. Yet it is
ally certain there must be some
reases.
If Half Billion.
they amount to half billion, in
ad Of the amount requested, which
considered by many a fair estl-
Fe, the percentage which freight
eS would have to be increased
lld be 40 instead of 81. Some
Ere between those two figures the
increase will fall, according to
uniformed railroad men.
ne interstate commerce commits
cannot escape action, as the law
Jus 1t to make the rates return the
per cent or more. 1t might, of
Use, as 1t is empowered, put econ
INTO effect and prevent huge
Eases to some extent in that way.
me likelihood of success in that
.uon IS considered small.
'ou0Ies of the railroads do not
win the questions of labor and
vast OUTLAWS are required to
improvements neglected during
period of government control.
~ stock must be increased,
Sge extended and terminals en-
~ The perplexing question is:
Will the money come from?
y Deen estimated more than a
a Year for a period of six
o. Will be needed to bring the
auS abreast of industry. In
ma. mas grown, while transporta-
sniIles have stood still, or even
S1%ued while the roads were OPP
The government.
TNlS OUTSIDE OF