New-York tribune., 1920-05-04
Ask
/ 30 Per Cent
| Freight Raise
80. East of Mississippi
'',s ',,d North of Ohio and
po,omac Unite i'm Plea
ior Increased Revenue
! uove May Be Extended
|h;eI,er Cost of Materials
and Labor Are Cited by
President of New Haven


r,;Irosds east of the Mississippi and
.,.h Of the Ohio and Potomac have
.s..ed ~ to ask for so per cent increase
freirht rates, according to E. G.
..L,ard. vice-president of the New
~ New Haven & Hartford Railroad.
those roads, said Mr.. Buckland in
statement made public at Hartford,
I c,,, last night, cover what is known
the official classification territory.
.. Saelared they would demand no in
.,ssss in express passenger rates. but
tsss. tbe Interstate Commerce Commits
:ar might see fit to raise some COM
n,,tion fares which are so low as to
Eve the lines Improbable.
TSs 20 per cent boost. he added, was
,.sSed because OF increased costs Of
l.sor and materials since the outbreak
: tse war. From other sources it was
l S,,rned that these lines, at the sug-
.as.;on OF the Interstate Commerce
i gS,rmjssion, recently filed with that
Nv a resume of their status and
.,sjs. and that similar steps are about
be taken by the lines in the South
A. and Western territories.
Hearings May Be Held
Local railroad officials expect that
! .,arings will shortly thereafter begin
ssfore the commission to determine
ssst' increases are necessary 20 yield
,se carriers a return of at least per
,sat on their property investment.
Although the transportation act
,oydes that = per cent is a fair
rturn on the actual value OF railroad
,-operties, it is understood that efforts
vii be made by the companies to have
tie additional L per cent allowed by
/ he law for Improvements and equip
l nent made a part of the return.
Mr.. Buckland's announcement is in
4 srpreted to mean that the railroads
4 viii attempt 10 show that a rate in
tease OF 80 per cent will be necessary
% assure this s per cent profit.
The boost may be still further in
ceased by the decision of the Rail
+ rad Labor Board on the wage de-
lands OF the trainmen now before it.
It is assumed that the property
d rues Of all the railroads in the coun-
ry is $4,000 100000 A 6 per cent
h r.qrn on this investment would yield
/ .eproximatelY $1,000 10000 year.
/ The 2.sndard return last year was
II tsS51OO,OOO, with the actual net in
/ come said to have been only S516,-
1 G0OOO
According % figures given out by the
] -aroaGs, the net operating income of
the lines fer the three years prior to
/ he entrance of the United States into
the war averaged about $945, 100000.
Six months after the beginning of
Federal control there was an increase
IN passenger fares from 2 and 21s
cents to ) cents a mile, and approx
nately % per cent increase in freight
ra.es
4 The advance in freight rates was in
i addition to a per cent increase which
was left pending from the Is per cent
4 case instituted by the railroads and
4 which had not been determined on Jan
uay /, 1918. The total increase in
4 freight rates put into effect during the
! var by the government was probably
i .ot mors than 81 per cent. producing
ever $1,000 100000 in gross income.
Earning rover Declined
Operating expenses during Federal
4 control, however. increased by the ad
! ditlon Of approximately $3.50, 900 in
J wages and $500, coo, 600 for fuel, mate
/ rails and supplies, with the result that
| tne let operating income last year was
only S5l6,000,00O.
n other words the earnings of the
4 carriers when they emerged from
1 Federal control was less than so per
cent Of what it was at the beginning,
l and this earning power was not equal
to that recommended by the trans
portatlon act, as The standard return
represented only about 5.22 per cent
On the property value of the railroads
as Of June 30 1917, and less than 5
Yer cent as of January /, 1920.
survey of the local conditions
Irow'ng out of the unauthorized rail
iosd strike showed that while the pas
'tnger service on all the lines was
S0ou1 normal, freight movements were
i bae muddle. Partial embargoes
dc SUI IN force on many Of the roads
anu shipments into or out of the port
San only De effected with great diff
| guy and delay Railroad men say this
i due mainly to delay at Western
.ancaon points, where the insurgents
us still troublesome.
Inc squeeze here is felt most by the
smoer, cement and coal dealers, who
,..4plaln that practically no shipments
" tnese products for general distribu-
soa are reaching here. The lack Of the
NV TWO materials has brought build
,.n ,,S operations here almost to a stand
M!l, throwing hundreds of men out of
The strike on the coastwise vessels
as served to aggravate conditions
.ssn 1000 and dry goods dealers suf,
LING ling most in this instance. large
mIPments m;I Of dry goods from Southern
~ %'l districts have been in the holds
mossi ,esSe!s here for weeks awaiting re.
Sa,lroad managers declare that mer
,bs gs geing rapidly employed to take
T .ss, .%s pace Of those still on strike and
.i,n,.1 Ga. decided Improvement in tht
/ A. I,4suOh a. Will be noted in few days
1 H." ".sSsent' - 1t was stated, not more
| a w per cent of the total amount
! hDs ss,gnt m usually handled here wa: