Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-05-25
FREIGHT JAM AND
INCREASED RATES
STUDIED BY |. c. c.
Higher Tariffs Are Asked for
Lines in Various Sections,
Congestion Situation Is
Given Attention

ment on the applications of the rail-
roads of the country for general in
crease in freight rates to afford the 6
per cent revenue guaranteed by the
new transportation act began today
before the interstate commerce COM
mission with the presentation of the
carriers case.
Howard Elliott, chairman of the
subcommittee of the general rate
committee of the Association of Rail-
way Executives, made the opening
presentation of the roads case,
speaking for the railroads of the
country as a whole. Frederick
Strauss, of New York, is to follow
Mr.. Elliott to present the financial
aspects of the case, and Daniel Will
lard. president of the Baltimore and
Ohio, will make the opening argu-
ment for the eastern territorial group
of roads.
Chairman Clark announced that the
railroads argument would be heard
in the order of the eastern group
first, followed by the southern ana
western territorial divisions. BY In
vitation of the commission, he SAID,
three state commissioners have been
invited to sit with the commission
during the hearing, because the mat
ter covered is intrastate as well as
interstate. The state commissioners
are 7. A. Geyer, of Iowa; R. G. Dunn
of Florida, and w. D. B. A1ney' Oh
Pennsylvania.
Thirty local committees located al
all the principal rail "gateWays' were
at work today surveying their lnol-
vidual freight problems with view
IN recommending to the interstate
commerce commission a policy 10 De
followed in the future relatlng ~
rriorities and embarSoes.
In the meantime the general eX-
change of equipment, to commence
tomorrow is expected to ease the
congestion of the roads to a certain
extent. Railroad officials, however
are of the opinion that weeks OF CO.
operation between the commission
the roads and shippers would be nee
essar VITO bring about normal con-
ditions. =
Method of fixing the valuation OF
the railroad properties on which the
government guarantee will be baseo
will be one of the questions thresh-
ed out at the hearings. All interest
ed parties will be given an opportun-
ity to present their claims both as 10
the proposed increases in rates ana
the valuation problem. Howard Ell
lott, chairman of the subcommittee
of the general rate committee of the
Association of Railway Executives,
was called to open the case for the
carriers.
Elliott Asks Increase
Increases in freight rates of 3O.43
per cent in eastern territory, $3.50
in southern territory, and 1895 per
cent in western territory, "to meet
the difference between the six per
cent return on property investments
permitted under the transportation
act" were advocated by Hr. Elliott.
The SLOT, 100000 additional reve-
nue. which the railroads are seek
ing through increased freight rates
does not take into account any in
crease in wages which the railroad
labor board may grant the 2,0OO,O0l
railway employees, Mr.. Elliott stated
Mr.. Elliott pointed out that in the
eastern territory, railroads for the
year ending October 81, returned on
property investments less than one
fifth Of one per cent" In the SOUTH
ern territory, he said, the returns
were less than three-foiirths of one
| per cent and in the western territory
slightly more than two per cent. Tor
the country as whole the return
was said to have been slightly more
| than one per cent.
Under the conditions of private
| ownership and operations of rail
roads, with governmental regula-
| ton, protection and encouragement,
| Mr.. Elliott said, the railroads must
| obtain earnings enough to meet al
/ obligations and have sufficient credit
| 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 inter
| state commerce commission and the
| newly created labor board. are the
requests for wage increases exceed
ing $1,000,000, 900 year and an addi-
| tional $1,017, 100000 needed by the
| railroads to meet the prestn basis
| of wages, costs, interest and a sum
for dividends and improvements"