The Waterbury Democrat., 1946-07-23

certain amount of relief, MT. Pal mer pointed out that it was made quate. He said, "The application of the higher rates authorized by the Interstate Commerce Commission effective July 1, 1946, is estimated to increase the freight revenues of the New Haven by approximately S3, 390,0OO for the last six months of the year. In making this estimate, we are assuming that freight volume for the last half of 1946 will exceed that of the first half by about ' l-2 percent. Revenue from increased freight rates this year will be at least $15,000,0OO short of meeting the recent wage increase and the 1946 increased material and fuel prices.
 Passenger Receipts Big Factor
 Tn considering our gross reven- ues," he continued, T call your at tention to the fact that the New Haven earns an unusually large proportion of it's gross revenue from passenger service. For the five months ended May 1946 the pas SSIlSCl S6l NlCC 1CNClllpS d1iAOuAItCA GO about 48 percent of the gross trans portation revenue. This means that the New Haven is faced with a lar2- CT proportion of fixed expenses in connection with handling its pas senger traffic and also that any percentage increase in gross freight revenue does not give Us nearly as large a proportion of increase in total gross revenue as it does the other carriers"
 In calling the attention of the Commission to what the New Haven might expect as a result of a com plete years operation under pres ent revenue conditions, President Palmer explained that. If the addi- tional 212 cent per hour wage ln- crease, proposed by President Tru- man May g, 1946 and accepted, had been in effect for the full year of 1946 and if the incrsaeed fuel prices had been in effect for the full year, our costs would have increased by approximately $19,500,000, and if the increased freight rates recently granted had been in effect for the full year, we estimate that they would have produced S6,500,000 in additional revenue, leaving us short about Sl3,000,000 of 1946 added wage and material costs.
 Tt will be seen" pointed out MT. Palmer, that the increased freight rates already granted fall far short A ,,1anti,a0 l quirements. To offset, we need an added increase of s13,000,000 from freight rates, or Is percent in addi- tin to that already granted effeo- tive July l. l946,'
 l New Equipment Ordered
 In referring to the New Haven $ plans to meet postwar passenger service competition, MT. Palmer stated that, " we are making every effort through added passen- ger train service to retain and de- Velop the greatest possible amount of passenger traffic. We have also ordered l80 new passenger cars which will cost S13,500,00o to re- place old equipment which, as a result or war usage and the greater competition now facing us will not meet the more exacting passenger requirements of the future. We are planning on placing substantial orders for additional passenger cars and freight cars
 In concluding his statement be- fore the Interstate Commerce Con- mission freight rate hearing, MT Palmer said, q think the foregoing facts amply demonstrate that the New Haven Railroad requires, IF the interest of sound administra ; ton of its properties, as part of the national system of transportation and in the public interest, every single dollar that is sought on its behalf in these proceedigs, includ- ing the continuation in effect, with out expiration date, of the increase in passenger fares temporarily. au- thorized.