The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-05-25
Average Freight Increase
of Thirty Per Cent Urued
Railway Executives Ask Inter.
state Commerce Commission
for Advance In Rates.
FLORIDA REPRESENTED
chairman r. C. Dunn of State
Railroad Board Is Sitting as
an Associate Member.

washington, May 24-Increases IN
freight rates of 3O.43 in easter, -,
tory 30.85 in southern tsrritc-,, -.
'i per cent In western territory to
the ollterence between the per
cent return on property investments
permitted under the TRANSFORMATIONS
act were advocated here TODAY by
howard Elliott, chairman of the sub
committe of the general rate comnit-
tee or the Association of Railway
executives in a statement before the
interstate commerce commission. p.
=. Dunn OF Florida is sitting as an
associate member of the commission.
Mr.. Elliott pointed out that in the
eastern territory railroads for the
year ending October 81. returned on
property on investments less than
one-fifth Of one per cent" In the
southern territory. he said the re-
turns were less than three-fourths of
one per cent and in the western ter
ritory slightly more than two per cent.
FOR the country as a whole the re-
turn was said to have been slightly
more than one per cent
Under the conditions of private own
ership and operations of railroads
with governmental regulation. protec-
tion and encouragement" Mr.. Elliott
said "the railroads must be obtaining
enough to meet all obligations and
have sufficient credit to sustain them
in competition with other forms OF
industry into which people put their
time, brains. energy and mo.ey."
Under the new transportation act,
he said the two pressing questions now
under discussion by the interstate com
merce commission and the newly Gre
ated labor board. are under the requests
for wage increases exceeding $1,000
100000 year and an additional ST.
017.000.00o needed by the railroads to
meet the present basis of wages.
costs, interest and a sum for divi-
dends and Improvements.
Mr.. Elliott declared that New Eng
land and that section of the country
embracing Pennsylvania. New Jersey.
New York. Ohio Indiana Illinois
and Michigan were in great need of
improved transportation facilities.
Other sections, notably the great re-
gion south of the Ohio and east OF
the Mississippi require large addi-
tions" to keep pace with the growth
Of population and industry.
Now there is a question and diTi-
Guilty everywhere Mr.. Elliott said.
Fuel building materials, and raw ma
terials for manufacture are tied up and
is threatened and the sing
gish movement of grain and food Of all
kinds makes the feeding of our peo-
pie more difficult and more costly
Mr.. Elliott declared that the rail-
road operators were just as desirious
If botaining a fair adjustment of wages
for their 100000 or more men they
we're to receive the increased revenues.
He said there is man-power. brain
power, courage, common sense and
vision enough in the country to sue
ceed if all pull together. work long
and hard and eliminate selfishness,
waste and extravaganza
THE new transportation act" said
Mr.. Elliott. in fixing the rate Of re-
turn at five and one-half par cent
for a. two-year period might have been
sufficient in the past. but is wholly
to meet the present situa-
lion. The cost of new capital in the
United States today as is well known
Is in excess Of per cent. The Bank
Of England discount rate is now Z per
cent a rate which only seven times
n the history of that old institution
has ever reached that level"
In expressing the desire OF :he rail-
-oads to help the labor board and the
interstate commerce commission in
,eaching fair and equitable conclu-
;ions, Mr.. Elliott said the officers
If the companies "as quasi public
servants realize their responsibility to
10 their part in adjusting righuy the
Y. .O0O, ,O0O, 900 questions now before