Arizona republican., 1918-05-28

mission into effect, making at the same time certain additional increases for some classes of employees in order to meet practical necessities which cannot be escaped or postponed. On account of these extraordinary in- creases in operating costs, which have come about as a consequence of the war, it is estimated that for the same aggregate business as last year and under the same conditions except as to prices and wages, the operating | expenses for the calendar year 1918, will be from $S30, 100000 to SS60, ,000,- 900, more than for the calendar year 1917.
 Will Readiust Costs
 While these increased operating costs will be increased, operating
 costs will be subject to establishments
 and may be somewhat diminished yet
 on the other hand, because of the
 abnormal methods by which business must be conducted to serve the needs
 of the war, they may be substantially increased. It seems clear that the
 railroads should be made self sustain ing and that sufficient revenues
 should be provided to prevent them from becoming a burden on the fed eral treasury. The immediate praC- tical necessity is that without delay
 increases in rates should be made to provide for these increased costs of operation. At best, practically half
 of the year 1918 must elapse before
 such increases in rates can be made
 effective, although increases in op-
 erating expenses have been steadily
 effective since January l, 1918.
 Therefore, by virtue Of the power
 during federal control of the rail
 roads, which the act of congress has conferred upon the president to in itiate rates whenever the public in
 terest requires, which power as pro , vided in that act, the president by . proclamation, has devolved upon the director general. the latter has beer compelled for the reasons stated, tC , initiate substantial increase in freigh and passenger rates for practically all transportation services performed by the railroads under federal con
 troi including, of course, transporta-
 tion services within the several state: as we'll as transportation servicC across state lines. These increases are made with the approval of tho . President, and are explained in detai in the copy of order accompanyin& this announcement. The increases il , passenger rates will become effective ! on the tenth day of June, 1918. anC the increases in freight rates will be
 come effective on the twenty-fifth daI
 Of June, 1918. In making the ad vance effective on the dates specified } 8 simple form of tariff authorized b. ? the Inte-state Commerce commission , must be used and this will lead t j the temporary disregard, to some eX tent, of established . groupings ant ! | differentials.
 Remove Discrimination
 S But it is the intention to observ = such groupings and differentials a }, far as practicable and hereafter wit
 as much dispatch as possible restor e any important relationships whic
 may be for the time disturbed, an F concurrently herewith endeavor t ., remove any existing discriminatio z and bring about uniformity of rat V adjustment throughout sections wher z conditions are similar.
 II The act of congress provides tha d the reasonableness and business ( e such rates may be dealt with by tn
 interstate commerce commission, $
 that no interests affected will be de
 prived of the opportunity for flu . hearing and consideration. The aC n of congress provides that the com d mission in passing upon these ques
 tions, shall take into considerable - the presidents finding and certificat
 that in order to defray the expense - of federal control and operation,
 is necessary to increase the railwa - operating revenues.
 In this connection, it is importal - to make clear that no part of u
 increase in rates now initiated C Il account of the making of addition le and betterments or the purchase d new equipment or other eXpenditur, S. chargeable to investment account. TT l. increases initiated are solely on a( r- count of increased burdens tendir J. to diminish railway operating incom l. In the nature of things, no such fal IS reaching step can accomplish ide y equalization as between the numerol l. interests necessarily affected ar e, doubtless the commission will fir T. it proper to make establishments 10 attain a nearer approach to suC T. equalization.
 te Will Cooperate in Readjustment ts While as far as practicable u le rates as initiated are designed
 avoid unnecessary disturbance of se le ative rate basis, the director gener T. will cooperate heartily with the con