Evening star., 1934-08-27
Petition to !. C. c. Cites
Restoration of Pay and
Mounting Costs.
INCREASE WOULD HIT
EVERY COMMODITY
Solvency Declared Jeopardized
Unless Immediate Relief Is
Given Railways.
By the Associated Press.

BY the Associated Press
The larger railroads of the country
asked the Interstate Commerce Com
mission today to authorize a $170,-
100000 increase in the Nations
freight bill.
Citing mounting costs, they pleaded
for a general increase on every COM
modify and class of freight. ranging
upward to 10 per cent on first class
freight. They said an estimated
$293, 900 900 increase in costs in 1885
would "jeopardize the solvency of a
larger number of important railway
systems" unless relief is given.
The proposed boosts touch all
manufactured products, major farm
products which of recent years have
been exempted from increases, and
products of forest and mine.
Early Hearing Asked.
The petition was filed by the asso-
citation of railway executives for all
class l carriers-railroads doing ST.
00O, 900 or more business Q year.
Similar petitions will be presented to
all State railroad commissions, the
proposal being to raise intrastate rates
also. An early hearing is asked.
The roads ask an increase of cents
per 100 pounds on grain and grain
products except in the East, where
there would be no raise; to 80 cents
a ton on coal and to As cents on
coke: 10 per cent on cotton with a
maximum of cents per 100 pounds;
10 per cent on tobacco with a maxi
mum of 4 cents, and other products
in proportion There are some excep-
tions in the Far West and in sections
where truck competition is keen.
Some rates which were raised August
20 are exempted.
The action is prompted, says the
petition, by the restoration of the 10
per cent cut in railroad wages in 1882
and increasing costs of materials. The
wage restoration is estimated to add
$100, 100000 to costs this year, in
creasing to $165 ,000,0 in 1885, and
material costs are expected to add
$137 ,000, 900 in 1885.
Retirement Cost Also Considered.
1t is known that the carriers also
are thinking of the $60,00O,O 900 a year
they say will be added to costs by
the railroad retirement act should
it be declared constitutional. This
item, however, was omitted from the
petition because court action is
pending.
In 1888" said the Executives As
sociation, railroad operating expenses
were only one-half of what they were
in 1929 and yet the railroads of the
country as whole failed to take in
enough money to cover their operating
expenses, taxes and interest charges
without any allowance for dividends
In the face of this situation the
necessity for the steps which are
being taken toward meeting rising
costs of operation is obvious.
"It is generally conceded" 1t de-
clared, that nothing is more essen
tial to business recovery than the
prompt restoration of the purchasing
and employing capacity of the rail-
roads. The money derived from the
proposed increases will speedily find
its way back to the channels of
trade. The railroads hope
that the reasonableness of their re-
quest will appeal to their patrons and
the public generally and justify their
support"
Co-0rdinator Law Hit.
The petition took a shot at the
railroad co-ordinator law. 1t referred
to a statement by the commission on
July 81, 1888, that the carriers must
make economies.
Petitioners are of the opinion, 4"
said the petition, that they cannot,
by increased savings, in view of the
various restrictions imposed upon
them, effect economies, in addition to
those heretofore effected, that will
materially offset the increase in their
operating expenses