The Washington times., 1920-07-21

EXPERTS SUGGEST RAISES.
AS suggested here by some OF thee
authorities. the 0000o,000 can be
obtained by increasing passenger
fares in the Eastern district by one
half cent a mile and in the Western
district by one cent mile ana Dy
granting a total increase In frelght
rates Of approximately 36 per cent IN
stead OF the 28 per cent already re-
quested This plan has In view di-
viding the burden OF the S60O.OOOoOo
equally between passenger and freight
traffic.
Under the Transportation act passed
by the last Congress the railroads are
entitled to a return of per cent on
their property value. The roads have
put evidence before the commission
that additional revenues Of approx
mately Sl,0lT,0OO,O00 would be needed
to insure a return of per cent OF
the property values, this estimate not
taking into consideration the wage In
creases. The demand of the roads at
present, therefore, would be for Sl,-
617.000.000.
GREATLY INCREASE FREIGHT
According to the estimate Of the
railroad executives. by increasing the
cent throughout the country the rev.
enue of s1O17.O 100000 would be OBJ
tained. Taking this as basis Tor
review, it has been suggested TO some
Of the members OF the Interstate
Commerce Commission that every in
crease of l per cent in freight rates
would net the roads an increase IN
revenues OF approximately $50, 32l,42o'
To provide for the additional burden
har fTaiQhf
crease of approximately 10 per cent
would be necessary If the entire bur-
den was to be put on freight.
1t is known, however, that the view
taken is that the increased wage ue-
mand should not be put entirely on
freight traffic, but the passenger
traffic should bear part of 1t, and in
accordance with this view the sug-
gestion has been made that S3OoOoo,-
900 Of the wage demand should De
levied on freight traffic through an
increase in freight rates of approx
imately per cent and the other
$500. 600 900 should be obtained
through increases on passenger tares.
&c. c. Mny Not Approve.
1t is by no means certain. however
that the Interstate Commerce COM
mission will approve of the evidence
OF the railroad executive which was
offered to support the petition for an
increase in freight rates OF .S per
cent. The railroads have stated what
they regarded a fair property Value
of the roads and the commission must
decide upon this estimate before IL
can decide upon any increase IN rev.
enues. And the shippers have con-
tended that the railroads have put
the property value many millions OF
dollars in advance of what the COM
mission should really determine.
Some OF the shippers have con-
tended that the freight rates could
be increase approximately 10 per
cent instead of 90 per cent, and IN
sure the roads a return of per cent
on what Is the real property value OF
the roads.
The decision of the commission,
without doubt the most important
that has ever been made py any oouy
of commissioners, must take into con-
alteration another problem, and that
Is the possibility of declining business
in the next few years and therefore
the inevitable result, declining reVe-
nues from freight traffic and pas
senger traffic.
PROBLEMS TO DE MET.
lust how much increase in freight
rates and passenger rates the traffic
will bear without reaching the point
when 1t is nonproductive is ques-
tion. 1t Is about the same question
as arose when street car fares were
advanced from 8 to cents and some
former passengers began to walk.
would an increase of l cent mile in
passenger fares cause an immediate
and considerable shrinkage in pas
senger travel, and would an increase
of more than 80 per cent in freight
rates cause shrinkage in freight
traffic, and what would this shrink
age be? is one of the questions asked
today.
THE commission must act soon and
Ia expected to act within the next ten
DAYS. The period during which the
Government guaranteed the roads
return equal to that of the war period,