Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-05-28
Former Boosted 25 Per Cent
and Latter From 2 1-2 TO 3
Cents Mile By Order Direc-
tor General McAdoo,
INCREASE IN COST or
OPERATION IS CAUSE
No Part Of the Additional Rev.
enue Is to Be Used in Carry
ing Out Improvement Pro-
gram Of the Roads.


Washington, May 81. TO meet
wage increases just announced and
higher costs of coal and other supplies
this year Director General McAdoo to-
day ordered railroad freight rates in
the United States raised 25 per cent
and passenger fares increased to three
cents mile from the present basis of
about IL cents. 1t is estimated that
the program will bring between $780,
100000 and 5000, 900, 900 more reve-
nues TO the railroads within the next
wear. 1t represents By far the big
gest rate increasa' in the history of
railroads.
The new freight charges which COW
both class and commodity. rates be-
comes effective June 25 and the pas
senger increase will go into effect
June 10.
Issued under authority granted by
day ordered railroad fgreight rates in
acting through director general, the
order wipes out all intra- state lower
rates effective on either freight or
passenger traffic.
Travellers in standard sleeping and
parlor cars are required to pay IL
cents mile in addition to Pullman
fares and in tourist sleeping cars
Ia cents. Pullman rates remain
tho same.
Communication and other suburban
rates en- railroads are increased ten
per cent. Fares on electric interur-
ban lines are not affected.
Tourist Rates are Affected.
Special excursion, mileage, conven-
tion and tourist rates with few ex-
ceptions, are discontinued, privileges
such as stop-overs and free side trips
are abolished and excess baggage
charges are increased.
Both freight and passenger rates
on boat lines operated on the lakes,
rivers or coastwise by railroads are
to be raised proportionately with the
general increases.
Exports and import freight rates
are ordered conceHed, and the higher
domestic rates will apply to and from
ports.
number of flat increases, instead
of per centage additions, are ordered
for COAL coke. lumber, ore, stone,
grain, cotton, livestock, meats, sugar.
bullion and other commodities.
Existing differentials and rate re-
lations between various localities are
TO be preserved so far as possible but
many readjustments will have to be
made later All rates are subject to
review and correction by the inter-
state commerce commission.
Increases are Required.
In announcing that the rate in
creases are required by public inter
est. Director General McAdoo refer
red to the 5000. 900, 900 or more add
ed to the pay roll of railroad labor
under an order published today to
the rapidly rising cost of coal which
he estimated this year alone $780,
100000 more than last year and to
higher cost of every other material
entering into railroad transportation.
Operating expenses. he estimated
would be between $3.50, 100000 and
$S50,00o,000 greater this year than
the $S52. 100000 figure of last year
No part of the increased rates is
on account of the program of nearly
billion dollars of Improvements, ad-
ditions and new equipment this year
he explained.
Mr. McAdoo called attention to the
fact that "there is no way in which
the present increases will inure te
private profit. IL they turn out to be
more than are needed to meet the
grave public exigency.' he added
they will promptly be readjusted SC
as to pervent any unnecessary bur.
den upon the public; but pending
such readjustment, the excess, if an,
will be for the\ benefit of the people
of the United states as whole and
not for the benefit of the railroad
owners of any of them.
Intrastate Kase Situation.
The provision that intrastate rates
fContinued on Page TwoD
s-.s 49, $780, - -