Evening star., 1918-01-09
RAIL SYSTEM /
WILL Be ADJUSTED
One of First 0utgrowths Of
Government Operation, ills
Officially Indicated.
|. C. C. MAY Do THE WORK

|. c. c. MAY Do THE WORK
General readjustment of the countrys
complicated rate system to fit tho new
situation will be one of
the early outgrowths of government rail-
road operation. 1t was officially indicated
today. Many readjustments considered
inevitable involve material increases in
rates.
The Interstate Commerce Commissions
has been called to a number OF
low rate schedules caused by
between railroads whose rival
ries have now ceased. Consequently the
basic cause for the low rates has been
removed, and the expected result is tho
Of agitation for general
The method of accomplishing this has
not been worked out but many off,
cials believe the Interstate Commerce
Commission eventually will have to take
the Initiative in revising rates. That
would be a radical departure from the
commissions functions under private
railroad control, when it passed only
on the merits of applications or COM
plants presented by carriers or ship
pers' interests. Any increases or de-
creases in rates would have to be made
case at time and the entire process
would extend over year or more.
Not to Order Rate Changes.
The power of Director General Nc
Adoo to determine rates has not yet
been ascertained clearly. but it Is be-
lieved he would not attempt to order
rate notifications without the approval
Of the commission. Temporarily rail-
roads have been left free to conduct
their own rate questions. and since the
government assumed control, a num-
Der of applications for increases have
been received by the Interstate Conn
merce Commission.
The first rate case to come before the
director general is that involved in the
st. Louis bridge situation. and this has
been referred to, the Interstate Com
merce Commission and the advisory
council st. Louis citizens asked that
some action be taken to remove the diff
ference in rates in favor of East st.
Louis
The railroad administration received
much enlightenment today on railroads
financial needs for the coming year
from reports to Interstate Commerce
Commissioner Daniels by railroads, in
compliance with Mr.. McAdoo's request
for Information.
The reports showed that many rail-
congestion has been worst, planned ex-
tensive improvements this year to ac-
commodate war trafhc, despite their
lower scale Of earnings. These reports
will be compiled and presented to Mr..
McAdoo within few days.
Employees Seek More Pay.
Railroad employees other than those
comprising the four great brother
hoods are pressing for consideration
of their interests by Director General
McAdoo.
S. E. Heberling, president Of tho
Switchmen's Union Of North America.
saw Mr. McAdoo today for a discussion
Of the demands of yard employees for
onz ] ss fous ou
Of the 100000 railway workers, ac-
cording to Mr.. Heberling. and interests
Of less powerful groups should not be
lost sight of.
Maintenance of Way Employees, the
largest Of the railroad unions, recently
requested the federal board of media
tion and conciliation to call the atten.
tion of the director general to their
the activities of the board to mediation
in disputes affecting operating en-
ployes the request was turned over to
the Department of Labor.
The Order Of Railway Telegraphers
has been making demands for increased
wages and improved working condi-
tions on individual systems throughout
the country. The Switchmen's Union
Is the only union. besides the four
brotherhoods. which ever has presented
a demand to the transportation systems
OF the country as a whole.
Sees New Epoch in Railroadine.
A new epoch in railroading in this, ,
country has arrived largely as a re-
suit OF the experiences of the last eight
months. or since this country entered
the war, Julius 'Kruttschnitt, chairman n
of the executive committee Of the
Southern Pacific railroad. told the
Senate interstate commerce committee
yesterday afternoon.
I'VE believe that q new epoch in railS
roading has arrived" said Mr.. Krutts !;
schnitt. land that even after the war,
we will want to do things which neces-,
sity has compelled to be done. and wet
hope that the embarrassments which !
have prevented the doing OF thesSt
things in the past will be removed"
Mr.. Kruttschnitt had reference to tho,
laws as applied to the rail>,
roads and the prohibition against poole
ing.
For Pooling of Rail Interests.
He came out in favor of a repeal OF
these laws, SO that the roads would be
able to pool their 1abors and their in,
terests in order to bring about efii~
cheney. He advocated that the Pubic
interests, however. be guarded by eu-
pervision of the activities of the roads
in pooling by representatives OF the
"If Congress gives authority to the
railroads to pool under government
don't you believe that
would solve the whole railroad prob
lem?" asked Senator Kellogg of Min>
nesota.
Il do" was the firm answer OF Mr..
He said that the pres
ent competitive features of rai1roadings
which have resulted in a lack Of efii-
cheney when the railroads of the coun-
try are considered as a whole, would
then be removed.
won't that have to come in any
event?" asked Senator Gore Of Okla
homa.
FOR twenty years the railroads have
lived under the commandment, Thou
shalt compete, said the witness. 1T
NAV be a little hard for them to turn
to the new command.
Thou shalt not compete.
Private Ownership Preferred.
Senator Gore wanted to know IL IL
would not be desirable to have the
.oads of the country co-ordinated into
, single great system, either remaining
still in private ownership or under gov
,rnment ownership.
Yes" replied the witness. the last
.;.ht months have done much to bring
n hA