The Covington leader. (Covington, Tenn.) 18??-current, 1920-08-05
BILLION AND HALF
RATE RAISE GRANTED

Washington, July S1.-Authority
for the railroads Of the country 70
increase their revenues by approx
mately one billion and A half dollars
was granted today by the Interstate
Commerce Commission. Freight
rates will be advanced about one
third, passenger fares one-fifth and
Pullman echarges one-half.
Coastwise and inland steamship
lines and electric railway companies
also were granted permission 20 IN
crease their freight rates in proper
ton to the increases granted TO the
railroads serving the same territory.
No estimate Of the aggregate amount
to result from these advances has
been made.
The rates, which are to continue
in force until March /, 1922, will be-
come effective upon five days notice
by the carriers to the commission and
the public, and they must be IN
operation before January /. Since
the government guarantee expires
September /, the carriers are expect
ed to bend every effort to put the
advances into effect by thai date.
Increases granted by the commits
sion are designated to offset the
5000, 100000 wage advance awarded
BY the railroad labor board and to
provide the per cent. net income on
the aggregate value of the railroad
properties as permitted under the
transportation act. The aggregate
value of all the railroads was esti-
mated by the commission at $18,9OO,-
900 as against a book value OF S2O,-
040,000,000 given by the carriers.
The 20 per cent. increase in pas
senger fares, excess baggage charges
and milk transportation rates and the
so per cent. surcharge on Pullman
fares authorized by the commission
will be general the country over
Freight rate increases will vary ac-
cording to territory, with 40 per
cent. in the east, % per cent. in the
south. 35 per cent. in the west-that
is, from the Mississippi river to he
Rocky mountains-and 25 per cent
in the Mountain Pacific territory
from the east of the rockies to the
Pacific coast not including Alaska
The commission in lis 36-page de-
cision made no attempt to compute
the amount of increased revenues the
: carriers would receive by reason Of
the rate advances. 1t did say, how
ever, that the increases were JUST
, fled in view of the rapidly changing
conditions as to prices and the neces
sity for providing adequate trans
portation facilities during and aftel
the period Of REIMBURSEMENT.
From figures submitted to tn
! commission by the carriers wher
their application for the increase wa
made it was unofficially estimated
that apportionment of the advances
would work out at about 81 ,285, 300,
900 on freight, $685., 100000 on pas
senger, $43, 100000 on Pullman, 81,
100000 on milk and $1,400,000 ex
! cess baggage charges.
! On the same calculations y the east
:. sern roads would get the great par
Of the total increase, receiving ap
proximately S873,930000 as com
! pared with $3.50 ,483 900 for tn
western lines, including those in tn
Mountain-P Pacific territory. and S135,
! 298,00 for the southern carries,
!. The increased charges on freigh
! alone were estimated as equ1llinI
! a levy of $12 per capita per an an
for every man, woman and child i
the country, basing the nation
population at 105,0O0,000 fer 1920
! recently made by the census bureau
The increase in passenger, Pull
man and excess baggage rates wer
exactly those asked by the roads
Freight increases requested wer
1915 for the eastern roads 32.03 70
| the western roads and 1891 for tn
| southern roads, the total estimate
| 10 yield $1,356,000,090 The east
ern roads thus were granted .25 Q
one per cent. more than they sought
| the western roads approximatel
| what they sought, bat lie 55ather
roads received approximately IA pc
CEN. less than they requested.
A summary of the rate increase
/ authorized by the Interstate Con
9 merce Commission is as follows:
!, Freight Rates-Southern territor'
!. Is per cent. increase; eastern terri
tory, 40 per cent; ives ern TERRITORY
35 per cent. including the roads b.
! tween Mississippi river and Rock
! mountains; far west, between Rock
!, mountains and Pacific coast, rs pc
+ cent. increase.
b Passenger Ra5es-20 per cent. il
/ crease, general throughout the cour
= try.
Pullman Fares-5O per cent. sui
charge general throughout the cour
try.
Z Total increased revenue. annroX