The Bridgeport times and evening farmer., 1920-05-24
ELLIOTT ASKS FOR INCREASE IN
 FREIGHT RATES

nIIOHI nhALO
 Washington, May 24-Increases in freight rates of 30.43 per cent. in Eastern territory, 3o.95 in Southern territory and 2391 per cent. in Vest I ern territory ito meet the difference between the 6 per cent. return on property investments permitted un- der the Transportation Act" were advocated here today by Howard FL Hott, chairman of the subcommittee of the General Rate Committee of the Association of Railway Executives, in a statement before the Interstate Commerce Commission.
 MT. Elliott pointed out that in the Eastern territory railroads for the year ending Oct. 31 retuEied on prop erty investments Hess than one-hfth of one per cent" In the Southern territory, he said, the returns were less than three-fourths of one per cent. and in the Western territory slightly more than two per cent. For the country as whole the return was said to have been slightly more than one per cent.
 Under the conditiones of private ownership and operations of rail- roads, with governme mentaI regulation, protection and encouragement" MT. Elliott said, ttthe railroads must ob- tain earnings enough to meet all obli- gations and have sufficient credit to sustain them in competition with other forms of industry into which people put their time, brains, energy and money
 Under the new Transportation Act, he said, the two pressing questions now under discussion by the Interstate Commerce Commission and the newly created Labor Board, are the re- quests for wage increases, exceeding $1,000,0O0, a year and an addi- tional 100000 needed by the railroads to meet ''the present basis of wages, costs, interest and a sum for dividends and Improvements
 MT. Elliott declared that New England and that section of the country embracing Pennsylvania New Jersey, New York, Ohio. h. diana, Illinois and Michigan were in need of improved transportation fa- cilities- Other sections, notably the great region south of the Ohio and east of the Mississippi require large additions" to keep pace with the growth of population and industry.
 "Now there is congestion and diff cu1ty everywhere" said MT. Elliott.
 
 materials for manufacture are tied up and industry is threatened and the sluggish movement of grain and food of all kinds makes the feeding of our people more difficult and more costly"
 MT. Elliott declared that the rail road operators were just as desirous of obtaining a fair adjustment of wages for their 100000, Or more fa t,, creased revenues. He said: There is manpower, brain-power, courage, common sense and vision enough in the country to succeed if all will pull together, work long and hard and eliminate selfiahness, waste and ex- travagance.''
 In justification of the railroads position he said that the price of transportation had not increased nearly so much as the cost of pro duction. Expenses had gone up at least 100 per cent. while revenues had increased less than 40 per cent. He referred to conditions in European countries where, he said, freight rates had been raised follows: Eng land Fl per cent; France 140 per cent; Belgium 100 per cent; Italy 40 to 40 per cent; Sweden 200 per cent; Norway 150 per cent.
 '"The new Transportation Act,' said MT. Elliott, ''in fixing the rate of re- turn at five and one-half and six per cent. for a two year period might have been sufficient in the past but is wholly inadequate to meet the present. situation. The cost of new capital in the United States today, as is we'll known is in excess of seven per cent. The Bank of England discount rate is now seven per cent, rate, which only seven times in the history of that old institution has ever reached that level"
 In expressing the desire Of the railroads to help the Labor Board and the Interstate Commerce Com. mission in reaching fair and equit- able conclusions, MT. Elliott said that the officers of the companies t'as quasi public servants realize their responsibility to do tf1er part in ad- justing rightly the two s1,0o0, 100000 questions now before both bodies" They desire to obtain promptly an adjustment of rates that would meet the letter and spirit of the new law, make the railroads self-sustaining and relieve the Treasury of the United States from the necessity of constant appropriations. He said that the Association of Railway Exc cutiveS is ready and anxious to do it's part in reaching without confusion or delay Ca settlement of the major question of furnishing adequate transportation in keeping with the ;f,yd af thn hi