Audubon County journal. (Exira, Iowa) 1884-1993, 1918-06-06
BIG INCREASE IN
RAIL RATES MADE
Freight Tariffs Are Raised rs
Per Cent by McAdoo.
PASSENGER FARES UP ALSO
Order Of Director General Follows
Closely After Granting Of Pay
Raise to 100000 Employ
ees Of Roads.

Washington.-To meet wage increas-
es just announced, and higher costs of
coal and other supplies this year Dr.
rector General McAdoo has ordered
railroad freight rates In the United
States raised % per cent and passenger
fares increased to cents mile from
the present basis Of about 21a cents.
It is estimated that the program will
bring between $SO0,OOO,OOO and $780,
100000 more revenues to the railroads
within the next year. 1t represents
by far the biggest rate increase In the
history Of railroads.
The new freight charges, which
cover both class and commodity rates,
become 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 interstate lower
rates effective on either freight or pas
senger traffic.
Travellers in standard sleeping and
parlor cars are required to pay 37a
cents mile in addition to Pullman
fares and in tourist sleeping cars 3A
cents. Pullman rates remain the same.
Communication and other suburban
rates on railroads are increased 10 per
cent. Fares on electric interurban
lines are not affected.
Special Rates Abolished.
Special excursion, mileage conven-
ton 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 gener-
al increases.
Export and import freight rates are
ordered Cancelled and the higher do
nestle rates will apply to and from
ports.
| A number Of fiat increases, instead
Of percentage additions, are ordered
for coal. coke, lumber, ore, stone, grain,
cotton, live stock, meats, sugar, bullion
and other commodities.
Coal Costs $3.50, 100000 More.
In announcing that the rate increases
are required by public interest, Direc-
tor General McAdoo referred to the
rapidly rising cost of coal, which he es-
timated this year alone at 100000, 900
more than last year, and to higher cost
Of every other material entering into
railroad transportation. Operating ex-
penses, he estimated, would be be-
tween $SSO,OOO,000 and $S6O,OOO,OOO
greater this year than the $2.S52, OOO,-
600 figure Of last year.
No part Of the increased rates is on
account Of the program of nearly q
billion dollars Of improvements, addi-
tons and new equipment this year, he
explained.
ut is earnestly hoped. said the d.
rector general, that all citizens affect
ed directly or indirectly by this increase
Of rates will support the general prin-
ciple Of such increase as an unavoid-
able war measure and accept the ad-
ditional burden in the same spirit Of
self-sacrifice in which they have ac-
copied other Inconvenience and bur-
dens and the grievous personal losses
which are part 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 lure to private
profit"
Profits Go Back to People.
IF they turn out to be more than are
needed to meet the grave public ext
gency," he added, ''they will promptly
be readjusted SO as to prevent any un-
necessary burden upon the public, but
pending such REIMBURSEMENT, the ex.
cess. if any, will be for the benefit OF
the people Of the United States as q
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 re-
duced prices for the things the rail.
roads must buy can be realized, 1t will
|
to make from time to time appropriate
reductions"
The provision that interstate rates
shall be abolished wherever substi
tute interstate rates between the
same points exist and that all shall be
raised to standard national level. de
velops the first definite conflict be
tween powers Of the federal rail.
road administration and of the state
-ailroad and public utilities commits.
sions which, heretofore have claimed
exclusive jurisdiction over inter
state rates. Railroad rate agents
will file tariffs containing the new
rates with state commissions as well
as with the interstate commerce com
mission. but state commissions are per
mitted no review under the railroad
act.
Low Rate for Veterans.
Exceptions to the three-cent rate arc
made for Sn1diorc opa ,o;,.