Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-03
DISCUSS
RAIL RATE RAISES
AND LIVING COSTS

What will be the effect of the rail
rate Increases on the average Wash
ingtonian's expense budget? VIII the
higher tells on freight be offset by
| Increased production, due to better
transportation facilities, with a re-
| costs, or will higher freight rates and
passenger fares curtail trarsporte-
ton by rail, cut down production
and add to the cost Of household
cemmoditiesf
Views Of Experts.
From two experts The Star has OBJ
tanned two views on the probable
| result regarding living costs.
Alfred T. Thorn. general counsei
| of the: Association of Railway Execu-
tives. sees better Transportation.
higher production and resulting Ell
| feet of greater supplies and lower
prices.
Glen f. Plumb. who represented
organized railroad labor before the
recent rate hearing of the Interstate
Commerce Commission. believes that
the cost Of LYING viii increase T. ' the
carriers employees vii! be eaten up
| in the higher cost of living. ~,
The public must pay for the $1'4uV'-
600 900 awarded the railroads; Inc
public will eventually decide whetner
| the payment Is a good investment or
one on which there will be no return
Statement by Mr.. Thorn.
Mr.. Thom's statement follows:
"At the recent rate hearing before
| the Interstate Commerce Commission:
| a large number Of shippers tesdneo
that inadequate transportation was
for more costly to them than aoeQuate
| transportation rates. They presenteu
1 a nrndnCaT CAnnOl
| get his goods to market production
| Of the necessaries of life will be d.
| unfinished On the other hand. If the
| producer can get adequate transports
| ton production will be encouraged:
"If the supply Of the necessaries
should be curtailed by inadequate
TRANSPORTATION and the supply thus
diminished, the cost OF living Would
inevitably go up. On the other nano'
! W it'll adequate production: and ooun
! tiful supply in the markets OF the
country the result would be to dimin-
"Whife, of course, the demoraliza-
ton incident to the war and tome
tgoyernment control and management
Of these. properties cannot De Over
rate decision is to supply the means
NV which carriers will be able &c
make more effective efforts to get the
lipstrumentalities of transportation
back upon a normal basis ana IN more
cfficient operation.
tthe first step has been taken. ano
the railroad people say that tney WI,
take advantage of this opportunity
and will push forward with the grea..
est possible energy the improvement
of the transportation of the country
II ia too much to expect That the
roads can emerge at once into con
dition Of perfect organization ana ei'
ficiency.
Mr.. Plumb's Opinion.
Mr.. Plumb proves by simple
mathematical calculation tnat tne
cost of living will be increased oy
ne tp rate raise, and that this increase
viii more than Offset the $6O0.000,0oo
awarded the railroad workers in
higher pay. ,..t.
He bases his calculation on state
ment attributed to Walker D. Hines
formerly director general of the Raj.
road Administration, who asserted
that increases in rates VIII be borne
by the public three to five times over.
This, Mr.. Plumb asserts. wouia inea "a
81. 800, 600, 900. trebled. would be ST.
900. 600. 900, which is conservative
estimate, he states, of the addition to
the cost Of living
r Gives Array OF Figures.
Two million railroad workers of the
country. with their families: represent a
one-eleventh of the country,s popui1-
tion. Their purchasing power has
been increased by ssoo.ooo,ooo. Blu,
one-eleventh of the burden they mus
bear in paying higher rail rates viii
be $436, 1858, 637-$6S.636.Ss 1853 less thar
they received through higher pay
This Is taken as the conservative esti'
mate. Taking Mr.. Hines estimate thai
the public will pay five times the
amount granted the railroads, the en-
ployes will be tout" several millions
Of dollars
Mr.. Plumb believes that the rail-
roads have the bear by the tail and
want to let GO" Their aim in boosting
rates. he believes, is to set valua-
ton, officially recognized, on theil
property. They hope to dispose OF
their Investment, says Mr.. Plumb, a.
the highest valuation.