Evening star., 1925-10-13
RAILROADS SEEK
MAIL PAY RAISE
Claim Space" Basis, Rath.
er Than Weight, Imposes
Greater Burden.
BY FREDERIC WILLIAM VILE.

Railroads of the United States have
struck for higher pay for carrying the
mails. They have filed formal peti-
tions With the Interstate Commerce
Commission, asking for re.examina-
ton OF existing rates with view to
their revision upward. The carriers
demand for increa sed mail pay Is CO.
incident with their pending applica-
ton for horizontal advance OF 3 per
cent in freight rates. No specific in
crease in mail rates is requested.
At present the Post once Depart
ment is paying the railroads about
S100,000.0 900 Il year for carrying the
mails. 1t has been unofficially Calcu-
lated that the increase the carriers
hope to be awarded might amount to
as much as $40 900 900. or an advance
of roundly 10 per cent. The Post OF
flee Department has OF course, the
liveliest interest in the case in the car
riers are presenting to the Interstate
Commerce Commission. 1t may mean
an eventual addition of SIC. .000. 900 to
the deficit under which the postaI
service is already operating. Due to
Increase in postal pay on January l.
1925. and anticipated drop in revenue
in the interval. it is feared that the
deficit for the current fiscal year may
pile up rs high as f39.oo0,0o0 on
$40 ,000. .0nV
200 Seeking Increases.
Practically every railroad in tine
country wants more for transporting
the mails. The case now pending he
fore the Interstate Commerce Com.
mission was begun by petition of
about 200 class l lines. The commits
sion acted on the petition in the sense
OF reopening proceedings so as to in
clude all railroads carrying the mails.
The New England lines filed n sep
parate petition. There was also a
separate petition by IS roads. mostly
short lines. in the intermountain and
Pacific coast territory. The commits
sion plans to consider the petitions Of
the Western and New England roads
separately from the proceedings ap-
plying to tn. 200 class lines
All OF the petitioninG companies de-
clare that present rates of mail pay
are Inadequate. With the exception
of the New England lines. which re-
ceived q 81 per cent increase in Dc
cember. 1923. and intermountain and
Pacific lines, increased 100 per cent
In January, 1925, virtually all roads
have been carrying mail on Il basis
unchanged since 1919. In 1920. when.
because of the consequences Of the
war. railroads were authorized to fix
higher rates for passenger and freight
traffic. they We're not granted any
increase in pay for carriage Of the
mails. The New England companies
received their advance in mail rates
on the ground that. While subject TO
heavy terminal charges like the great
trunk lines. they have only comparA-
lively short hauls, and thereby are
deprived "f the earning capacity en-
Joyed by roads which carry the mails
over long distances.
Oppose Unit" System.
The railroads base their present ap-
plication for higher mail pay on the
alleged injstice Of the unit" system
Commission i'll March, 1920. Up TO
that time mail was handled By the
railroads on the weight basis The
Commission decided TO substitute
space for weight as the unit" OF
computation. The result has been. ac-
cording to the railroads, that the Post
Office Department. especially in the
case OF so-called storage cars sent
for long hauls across the country
has so heavily loaded and overloaded
them that serious injustice is caused
to the carriers. Their contention is
that they are required to carry under.
the space-unit system about 80 per
cent more mail matter than under
the weight-unit system. without addi.
tional compensation. 1t is this in
equitabl arrangement that the car
riers seek to have altered to their ad-
vantage.
In detail. the petitioners allege that
the present loading OF the storage
units is at least twice that OF the test
period upon which the present rates
Of pay are based. The average load
ing of all units taken together is said
to be al least two-thirds greater than
the loading of the test period. The
carriers further claim that they are
providing greater trucking and
handling service at terminals. without
any substantial increase in coInpensa-
ton.
Gathering Statistics.
Both the railroads and the Post Of
flee Department are now engaged in
gathering statistics for presentation to
the Interstate Commerce Commission.
The carriers have supplied their f1g-
nreS and the post Office authorities
are checking up on them. 1t is not
probable that hearings with regard
to mail pay will be held for several
months.