Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-05-28
HEAVY INCREASES IN
RAILROAD RATES AND
WAGES ARE ORDERED
MCAdoo Orders Raise of %
Per Cent on Freight and 20
Per Cent on $780,
100000 a Year More

| UOUJUUO q | GdI NlUIG
WASHINGTON. May 27.-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 a mile from the present basis Of
| about 1-2 cents.
1t is estimated that the program will
bring between 100000, 900 and $780,
600, 900 more revenues to the railroads
within the next year. 1t represents by
far the biggest rate increase in the his
tory of railroads.
One hundred and sixty-four Ameri-
can railroads today are being operated
on a basic eight-hour day and nearly
1000, 900 employees are to receive in
crease in wages which will aggregate
more than s30O,000,O00 annually. Direc-
tor General McAdoo has adopted with
some notifications, the report of the
railway wage commission and ordeded it
effective as of June /.
The new freight charges, which cover
both class and commodity rates, be-
come effective June 25, and the pas
senger increase will go into effect June
10.
issued under authority granted by
the railroad act to President Wilson,
acting through the director general. the
order wipes out all intrastate lower
rates effective on either freight or pas
senger traffic.
Travellers in standard sleeping and
parlor cars are required to pay IL
cents a mile, in addition to Pullman
fares, and in tourist sleeping cars 3 IA
cents. Pullman rates remain the same.
Communication and other suburban
rates on railroads are increased ten per
cent. Fares on electric interurban lines
are not affected.
Special Rates Abolished
Special excursion, mileage, conven-
ton and tourist rates, with a few ex-
ceptions, are discontinued, privileges
such as stopovers and free side trips
are abolished, and excess baggage
charges are increased.
Both freight and passenger rates on
boat lines operated OF. the lakes, rivers
or coastwise by railroads are to be
raised proportionately with the gen.
eral increase.
Export and import freight rates are
ordered cancelled, and the higher domes
tic rates will apply to 3nd from ports.
A NUMBER of flat increases, instead
of percentage additions, are ordered for
cotton, coal. coke, lumber, ore, stone,
grain. livestock meats, sugar, bullion
and other commodities.
Existing differentials and rate rela-
tionships 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 interstate
commerce commission
In announcing that the rate increases
are required by public interest, Director
General McAdoo referred to the $780, |
600 600 or more added to the payrolls |
of railroad labor under an order pub |
lished today, TO the rapidly rising cost
of coal which he estimated this year
alone at S16O,OO0,O0O more than last |
year, and to higher cost of every other |
material entering into railroad trans |
portation Operating expenses, he esti- |
mated, would be between $3.50, 900, 900 |
and $3.50, 100000 greater this year than !
the S2,S52, 900, 900 figure of last year.
No part of the announced rates is on !
account of the program of nearly a bill |
lion dollars of improvements, additions |
and new equipment this year, he ex-
planned.
"It is earnestly hoped" said the di-
rector general, that all citizens af-
fected directly or indirectly by this in
crease of rates will support the general !
principle of such increase as an un-
avoidable war measure and accept the
burden in the same spirit of |
self-sacrifice in which they have ac-
copied other inconvenience and bur
dens an dthe grievous personal losses
which are parts Of the price that the
nation is periodically paying for world
liberty"
Mr.. McAdoo called attention to the
fact that there is no way in which
the present increases will inure to pri-
vate profit
IF they turn out to be more than
are needed TO meet the grave public
he added. they will promptly
be readjusted so as to prevent any
burden upon the public;
but pending such readjustment. the ex-
cess. if any, will be for the benefit of !
the people of the United States as
whole, and not for the benefit Of the
private railroad owners of any of them.
ITO the extent that savings can be
effected and to the extent that reduced
prices for the things the railroads must
buy can be realized, it will be the pur
pose of the director general to make,
from time to time, appropriate reduc-
tions."
Conflict of Authority
The provision that interstate rates
shall be abolished wherever substitute
intrastaee rates between the same points
exist, and that all shall be raised to
4 standard national level, develops the
first definite conflict between powers
Of the federal railroad administration
and of the state railroad and public
utilities commissions, which heretofore
have claimed exclusive jurisdiction over
intrastate rates. Railroad rate agents
will file tariffs containing the new rates
with state commissions, as we'll as the
interstate commerce commission, out
state commissions are permitted no
review under the railroad act.
Mr.. McAdoo announced that he OK
Continued on Page Q, Column A.