The Washington times., 1920-08-03
ADD 81 DAY TO
FAMILY BILLS
Railroad Increases Estimated
to Affect Household Budget
,-., to That Amount.
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the plant before the operation could
be completed.
Freight rates figure in every one OF
these movements and, I'm the East. this
rate has gone up 40 per cent at the
bottom OF the operation and also
catches the whole thing at every
point in between. Every time any
commodity ventures onto the railroads
IL must pay that additional 10 per-
cent and then, OF course, have that
added to and pyramfded in the fig-
uring of percentages of profit in the
manner have shown.
This is the meaning OF the freight
rate increase and IL il costs the Amer
ican people no more than 81 per fam
lily per day, they will be getting off
fairly light.
Nearly everyone can stand a little
more expense but presumably there
Is some theoretical point in the in,
crease In the cost of living compar-
able to the straw which caused the
camel so much annoyance.
The American people and the Amer
ican railroads now are entering n
crucial period in which a test will be
made which will show whether each
American family can add 81 a day to
its living costs and survive. If this
test cannot be met, there must be a
radical change in the policy of operat-
ing railroads. Our national life is
built up so closely about the rail
road structure that such a change
will reach far down, touching every
home. 1t will change tho American
standard Of living.
First of all Ii must be RENE m be red
that there is deep-seated fallacy in
the claims of some railroad 'len that
increased rates will improve their
condition. Perhaps the point Of ulti-
mate tensile strength of the American
purse has not been reached yet, but
the railroad men and the Interstate
Commerce Commission heard quite n
number Of supposedly competent wit
nesses at the hearing on the advance
rate case say that if such increases
AS were proposed were granted Gas
they have been) their particular in
dustries would go out of business
Mostly these witnesses came from the
Pacihc coast and the Pacific North
west. but there were others from the
South and other parts of the country.
INDUSTRY IS AFFECTED.
They pointed out that they are able
to pay the railroads 81 for a given
unit of transportation and still sell
their products to the public. but they
would not be able to pay S1.25 or
$40, as some now must, and find any
customers. This would mean. there
fore, that instead of getting 81 the
railroads would get nothing at all.
because the traffic, choked out by the
prohibitive rate, would not move.
This very thing has happened in some
instances in this country and there
We're plenty of witnesses at the hear
ing who said it would happen, again.
Now. II the American people md
thSX ,cssDn9t stand an increase of 81
pct sd1Y pfTd fIuily they will have to
stop buyfnggn a lot Of things. This will
mean the coming of what these wit
mes 3rs FORECAST; Certain lines of bust
nesa will disappear and the railroads,
instead Of getting the billion ana a
half increased revenue may be getting
cvcu less than they were before the
increase WAS granted. Such a series
of events spells just one thing-Gov-
crnmcnt ownership and operation of
the railroads, or, il that proves too