Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-05-24
By Associated Press.

~ <ASoSSAoSCo ACbo.
Washington. May 24.-Increases in
freight rates Of s0.43 per cent in
eastern territory so.s5 per cent in
southern territory. and 23.91 per cent
In western territory, ito meet the
difference between the per cent re-
turns on property investments per-
mitted under the transportation act"
were advocated here today by How
ard Elliott chairman Of the sub-com-
mittee Of the general rate committee
OF this Association Of Railway Execu-
tixe@ In = statament before the In
terststte commerce commission. III
Mr, Elliott pointed that in the
eastern territory railroads for the
year ending Oct 81 returned on
property investments less than one
fifth Of per cent" In the southern
territory, he said. the returns were
less than three-fourths Of per cent.
and in the western territory slightly
more than 2 per cent. For the coun-
try as q whole the return was said
to have been slightly more than
per cent.
Under the conditions Of private
ownership and operation Of railroads
with governmental regulations, pro-
lection and encouragement" Mr.. Ell
liott said, "the railroads must obtain
earnings enough to meet all obliea-
dons and have sufficient credit to
sustain them in competition with
other forms Of industry"
Wage Question Pressing.
Under the new transportation act,
he said, the two pressing questions
now under discussion are the request
for wage increases, exceeding $1,00O,-
100000 a year, and an additional ST.
OH. 100000 needed by the railroads to
meet the present basis of wages,
cost, interest, and sum for divi-
dends and improvements.
Mr.. Elliott declared that New Eng
land and that section of the country
embracing Pennsylvania, New Jer-
sey, New York. Ohio. Indiana, Illi-
nois. and Michigan were in great
need Of improved transportation IA
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.
Mr.. Elliott declared that the rail-
road operators were just as cesirous
Of obtaining q fair adjustment of
wages for their 100000 or more men
as they were to receive the in
creased revenues.
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 er>cent.
In expressing the desire of the
railroads to help the labor board and
the interstate commerce commission
In reaching fair and equitable con-
clusions. Mr.. Elliott said that the Of
ficers OF the companies desire to oh.
tain promptly an adjustment of rates
that would meet the letter and spirit
of the new law, make the railroads
self-s,lstaining, and relieve the
treasury Of the United States from
the necessity of constant appropria-
ton.
Government Loses $500, 0,o0o, 900.
The governments gross loss in
operation of the railroads during
federal control was 5000, 900 ac-
cording to the final report Of Swager
Sherley, railroad administration d.
rector Of finance.
OF this total. $s77,513,ooo was
chargeable directly to the excess OF
operating expenses over revenues
and rentals for the 'class II roads
Mr.. Cherley said Smaller lines
sleeping car companies and interna.
tional and waterways added s45. .4S0,-
600 to this total.
Trying to Break Congestion.
Thirty-local committees located al
all the principal railway 'gatewaysr
were ct work today surveying with a
individual freight problems with a
view of recommending to the inter
state commerce commission policy