South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-05-28
COMMERCE BODY
UPHOLDS RAISE
Interstate Commission Orders
Rate Increase Made by
MCAd0O.

WASHINGTON. May 2S-The i'm
teTstate commerce comm iAsiOu
Mondav ordered increased railroad
rates announced bv Director Cen.
AcAdOo approved without hear
Ing and az the same time modified
ali outstanding previous commission
ORDERS which might interfere witn
the esta biisnmenf of the new rates.
Examination MonJay o. Director
Gen. NcAdoo's order raisin-
freight rates on 4 basis of - per
cent and passenger fares 20 three
cents q mile. and aDolishine all low
or intrasta,e freisht and passenger
rates. indicated that the average
Increase will be higher than IS pei
cent.
MANY Changes Necessary.
Many changes and adjustments
will be made by the railroad adj
ministration. either on its own InIti-
ative after receiving suggestions
from shippers and state or local au-
thorltIes or bv order of the inter-
state commerce commission. which
has power 10 review and modify the
schedules. This viii not prevent The
new rates from going into effect
however. passenger fares ON June 10
and freight rates on June -. for
the commission today gave as ap-
prevail 20 the rate order without
hearings This action was perfume
tory and Is not Intended 10 cut of
later complaints and hearings on
them
State railroads or rate commits
s.ons have no authority 10 change
the rates. the railroad administra-
ton holds even though many proyi-
Sions OF the new order more than
double the charses for short hauls
within states. The director general
today explained in telegram 20
chairmen OF state commissions.
however. that he viii welcome .us-
gestions for readjustment OF rates
on intrastate traffic and these viii
be referred 20 the interstate COM
merce commission for its considera-
ton in passing on specific COM
plants. state cOmmi ssiOns also may
enter formal protests direct 10 the
interstate commerce commission.
Expect Complaints.
These complaints are expected TO
result In hundreds of notifications
affecting SPECIFIC commodities or
classes. and rates between certain
communities. but probably viii not
reduce TO any great extent the total
revenue 10 be gained from the
sweeping increase. which is estimat-
ed at from 100000. 600 to $500
600. 900.
The additional charges must
eventually be absorbed M higher
prices of commodities. 10 was noted
today by shipping interests. and this
affect may be noticed particularly
for coal, brick. lumber, meat and
grain. and for materials shipped 10
market only q short distance. Anal
ysis OF the new schedules showed
that for hauls OF from five 20 fifty
miles. particularly i'm states which
have their own inrastate classih-
cations, rates viii be raised by vary
ings amounts ranging from - TO
] so per cent.
Some comfort FOR summer Naca-
tionists was derived from assurances
OF the railroad administration that
excursion rates would be reestsb-
ished though on a higher basis.
The director generals order pro-
vided for the discontinuance of all
existing excursion fares. and many
other lower rates and special passen-
ger privileges. Local excursion fares
10 SUMMER resorts viii be raised
generally about 20 per cent. Long
distance excursion rates i'm the east
will be 10 per cent YES than the
regular three cent rates. I'm the
west these fares viii be approx
msteIy % per cent above the exist
Ing rather low rates.
To Make Protest.
To was reported here during the
day that commercial travellers or
ganizauous would protest against
the three cent passenger rate which
IS from ID 20 s-t cents hi-her than
present mileage rates They viii
ask. 10 was said for sale OF mile
age books al a lower rate. ON the
ground that they are vholesale pur-
chasers OF mileage
Railroad administration officials
admit they hope 10 reduce unueces
sarv passenger travel uy high rates
and thus save facilities and labor for
freieht movement Estimates of the
amouut OF travel which may be cut
on ranged from 10 Co 20 per cent
I'm line with Director cen. Nc
Adoo's request for suggestions from
state commissions for chauEe~. pro-
tests are looked for particularly
from The states having already wei!
esta blished rate systems Among
these are Wisconsin Minnesota
Iowa Illinois Nebraska. Kansas
Georgia. oklahoma Texas. Nch.-
gan. North Dakota. south Dakota.
OREGON and Montana Few eastern