The New York herald., 1920-01-12
Herald Bureau,
No. I.502 III street. ". W..
Warrington, ID. O., Sunday.

Washfngt0n. ID. g., Sunday. J
Robert W. Woolley, Interstate Commerce
Commissioner. declares that the return Of
the railroads to private control at the time
now scheduled will result In a substantial
increase In the present high cost Of living.
as It will mean increased freight rates.
Commissioners Woolley says he Is in
formed from reliable sources that the
railroad presidents have decided TO ask for
a general increase OF % per cent, and that
the New England railroads will nslS for
az much as 30 per cent. He figures that
the proposed increase. II It goes into effect,
will cost consumers In the United States
the stupendous sum Of si.375. oo.0C0. and In
crease the family budget of the United
states something like $215 year a family.
No increase in rates is necessary. Mr..
Woolley states, until after the reconstruc-
ton period is well under way, and things
again get normal, when the return can be
made without disturbing the entire in
dustrial and commercial fabric.
The Commissioner says he is not an advo-
cate of government ownership. but If the
railroads are turned back at the time
scheduled and before normal conditions
are restored or are in sight. 1t will mean
government ownership in the end.
President Wilson does not favor in
creased freight rates. Commissioners Wool
ley says. and he adds that Director Gen.
eral Hines has declared that an increase Is
not necessary under a continuation of fed
eral control and that efficient service can
be rendered.
Mr.. Woolley's statements are significa MT
as ho is close to tho President and was
Instrumental in having the President COM
mandeer the railroads on December 81
1917.
May Dnmpcu Enthusiasm.
Commissioner WooIley's statements may
act as a damper on tho enthusiasm Of
the railroad executives who have hoped
for the return OF their roads this spring
at tho latest, MS his comments on the
Esch and the Cummlns railroad bills, now
in conference, which he designates as
two manifestly bad bills" are the first
from official sources. and may lead to
speculation as to how far he reflects the
Presidents view on the character oe the
LEGISLATION for the return OF the roads.
This is looked upon as important, in view
of the veto power of the President
when the President issued his order
returning tho railroads to private control
on March L. said Mr.. Woolley. ''in my
opinion he served notice on Congress Ia
the effect that IL would have not only TO
act promptly but assume responsibility
to the people. Last May he indicated to
Congress that the present arrangement
speaking generally, was a mere rope OF
sand; that ii was possible for tho Direc-
tor General to maintain only semblanoe
OF morale in his organization with tho
tenure OF federal control so uncertain and
that unless Congress enacted legislation
better adapted than the federal control
act to effective administration during the
delicate reconstruction period he would
exercise the option vested in him and re-
turn the roads on January /.
1--WE all know that Congress failed to
function on schedule and that 1t would
have been disastrous to the assets Of the
roads themselves, and. incidentally. to the
whole financial situation, IL the return
had been made without adequate new Leg
islation. IL the President had merely said
he would postpone the date of return until
March Congress might have become even
more easygoing. SO. ms a practical mat
ter. it was necessary to shift the respon-
sibllity.
The railroad executives arc prepared TO
file application for a general increase In
freight rates. For months their press bu-
reaus have been trying to lull the people
Hi(o tiir DeHtl tNal IDiS increase VIII
prove benefit rather than hardship
and q peril.
what the Roads Wnnt.
II am informed that the measure of the
increase will be at 25 per cent. few days
ago an official OF one Of the leading New
England lines stated that the increase in
New England would have TO be as much
ais 80 per cent Based upon 1918 freight
receipts Is per cent increase would mean
sSIo.cooCO0 additional which the shippers
would have to pay annually. But tho ship
per passes this along II the consumer or
back to the producer OF the raw material.
who has to stand tho cost of transporta-
ton to the primary market He so states
frankly in the cases which como before
the Interstate Commerce Commission lie
makes no bones OF IL.
The consumer catches an increase IN
freight rates in the shape Of an accumu
lation of increases. He is bound TO be-
cause no is at the mercy OF tho manufac-
turer. the wholesaler. the retailer and
generally the commission man as to each
single material that enters into a finished
article and then ms to the article itself
Director General Hines stated at st. Louis
last June that the ratio was fIvefold. In
other words, he said that IL rates were
increased 100000. 600 the consumer would