Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1917-07-01

the proposed general Is per cent. IN
crease in railroad rates.
The rate advance cases were born
Of the threatened nationwide RAILROAD
workers strike in the summer of 1916.
The first mention of an advance in
rates was made in connection with the
passage of the Adamson law which
ayerted the impending strike.
January ], 1917, found the rail-
roads in position unparalleled in
their history. They were hauling both
freight and passengers at the top OF
their driving power, working their
plants at speed and capacity exceed
ing what experts previously had be-
lieved the maximum. So much freight
had been poured in that they could not
handle it all; rails, sidings, terminals,
yards, were congested with a burden
of loaded cars. Tremendous conges-
ton ensued, especially at eastern sea
ports where ocean-carrying vassels
we're not sufficiently plentiful, and an
acute car shortage resulted.
Money was pouring in to the rail-
roads, too, faster than ever before. Re
ceipts for the twelve months nearly
reached the $4,000, 100000 mark; net
revenues .approximated $1,000, 100000.
It seemed as if the railroads were at
1.-THE dawn of a new days prospSz5sa
Then another factor, more potent than
the Adamson law and more unexpected
than the threatened strike. came into
the situation. 1t was the rising cost
Of necessities.
| Coal prices rose-in some cases more
than 100 per cent. Steel rails, steel
cars. structural steel, everything in.
iron and steel that inferred into the
operation of railroads, went up In
Price. Oil, used by some western roads
as fuel, went up, supplies and equip
ment of all sorts mounted to new high
levels. Unskilled labor threatened to
30 into other markets where pay was
better and the roads claimed they had
10 advance wages in order to keep men.
Operating costs continued to go up.
The vision of a day Of prosperity faded.
In it's place there soon came time
when the roads, though taking in
more money than ever before haid they
were not receiving as large a net re-
turn as they had received twelve
months before. The increase in oper-
ating costs, they contended, grew OUT
of all proportion to the increased bus
mess. Instead of making money, the
roads claimed they were on the verge
of losing millions at a day when they
were operating at maximum capacity.
The new moneys paid out under the
Adamson law were but small per-
centage, the railroads CLAIMED, OF the
totals paid out in higher operating
costs. A general movement looking
/ tGN dIu lGlIG1 NfA9 OSeo 49,
Within forty-eight hours after the
supreme court upheld the Adamson
!law, the machinery for rate increase
was nut in motion. Relief, the rail
roads claimed, was imperatively nee
essarv and as time was Of the essence
of the situation they sought to obtain
it with all possible speed. Dividing
Into three territorial groups. the rail-
roads sought the interstate commerce
commissions aid in meeting their diff =
culties.
The eastern roads, hit harder than
those of any other section, they claim
ed. we're the first to act. Their repre-
sentatives met quietly and informally
with the commission one night, and
Tie proceedings of that meeting, made
public the next day by the commits
sion. showed that a general increase IN
rates was discussed President Rea'
of the Pennsylvania, and other exec
utives, told the commission that the
time had come when the railroads fac
ed increased rates or heavy financial
losses.
Proceedings of the conference were
hardly published before teleerams were
received from the western railroads
saying fheir emergency was also
great q pd asking the commission 10
meet t%3ir representatives. A CONFER
ence pAas held with the western ROADS
| A conference with the southern roaoS
folIatsed and out of these and otner
conn Fences grew the formal proceed
ingsI looking to a general advance
he percentage OF the advance nao
rot besn determined during TINS
conf ference Finally all three groups
dec ded that fifteen per cent aa'
vanN "a was needed to enable them &c
med new conditions. This it was
vaMiously estimated would yield ITO"