The Washington herald., 1918-05-27
PRESENT HEADS GO;
BUSINESS CASH ONLY
$500, 900. 900 Wage In
creases and Eight-Hour
Day Granted.
500, 900, 900 EQUIPMENT
AND BETTERMENTS ASSURED
Express Companies. Pullman Serv-
ice and Short Lines Taken
Over by Government.

The last days of May. 1918. will be
a history-making period for the rail-
roads of the United States. Things
that have happened or are about to
happen are:
1.-The removal Of the heads Of all
the railways and railway systems
from any connection with the opera
tion of the properties. and the putting
of Federal managers In their places.
e-The putting of all the business OF
all the railroads on a cash basis.
S-Issuance of General Order No. 2
granting an increase of wages and the
basic eight-hour day to all railway
employees. The increases in wages in
the aggregate will amount to approx
mateIy $500 00oO 900 a year.
4-Increases in freight and passenger
fates to meet the increased cost of
operation and materials.
Immense improvements.
5. Physical improvements and pur-
chase of equipment authorized at an
aggregate cost of between $4,000, OoC
and 500. 10000.
8. The taking over and operation
of the express aeoinpsnies asa part
of the Federal Railroad Administers
ton.
Z. The taking over under Federal
control OF all the shoTt-line railways
of the country. putting practically
every mile of steam-operated railway
under government control
s. The taking over and operation
of the Pullman car system mot the
plant or corporate body as part
OF the Federal Railroad Administra-
ton.
The situation that has brought about
and is bringing about these great
changes was stated by Director Gen.
eraI McAdoo. who said:
Railroads to Help Win War.
The railroads must run to win the
war. and there's not a thing going to
stop them. So far as am able. they
are going to be put upon a self-sus-
tanning basis"
Director General McAdoo declares
that his-one regret is that the increas-
es in freight and passenger rates were
not made at the first of the year. the
date on which the wage increases will
become effective. As it is. six months
will have been lost for increased rev.
enues before the new freight rates be-
come effective. and five months on the
| the great expenditures for physical
| improvements and equipment will not
he manifest in the operating revenue
before next year. and probably will
not be fully effective until 1920.
The result to he anticipated, there
fore. is that net operating expenses
for the calendar year 1918 will exceed
net operating revenue. How much
this deficit will be cannot be foretold
lat this time. 1t will be made good
Iron the revolving fund granted by
IConxress to the railroad administra-
Ition. And then II a balance on the
right side Of the ledger Is not shown
FOR the calendar year 1919, it will not
be for the want of trying on the part
Of Director General McAdoo.
Grants s-Hour Wages.
The general order putting into ef-
feet the wage increase gives full
Recognition to the basic eIght-hour
day for labor. thus going a step
further than the Railroad Wage
Commission. whose recommenda-
ions as to wage increases have been
closely followed.
The FIRST duty of the new wnre
commission created by Director Gem
eral McAdoo will be to fix new wage
scales for special classes of em-
Dloyes. These classes and day Ia
borers must be considered in con-
nection with the great demand for
CONTINUED ON PAGE TWO.