New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-01
Commerce Commission
Gives Lines a Surcharge
of so Per Cent on Rate
for the Sleeping Cars
Increase Expected
To Meet Wage Boost
Will Become Effective
Sept. L, as Guarantee
of Government Expires


WASHINGTON, July 31.-The
Interstate Commerce Commission to-
day granted the railroads of the
country authority to raise their
freight and passenger rates to levels
which will increase the revenues Of
the roads approximately $780,
100000.
The increases allowed in freight
rates vary from 40 per cent in the
East to % per cent in the South and
mountain Pacific region, or an aver
age of about one-third. Passenger
rates will be increased one-fifth and
Pullman rates one-half.
The new rates will become effective
after five days notice of the advance
to the commission, and they must all
be in effect by January l. 1t is be-
lieved they will be in operation BY
September |
The railroads received practically
all of the increase they had asked for
Shortly after tho roads were turned
back to private operation and con-
troll, they petitioned the commission
TO increase freight rates so that their
income would be increased S1,0f7,-
100000. When the Railroad Labor
Board ordered waoes Of railroad em-
ployees increased S61S 900 900 July 10.
the roads asked for further increases
in freight rates and increases in pas
senger, Pullman and commodity rates,
estimated to Yield an additional $685.
900 ,OOo
Estimated Valuation Reduced 7sg
The roads had asked for $1.643.eoe.-
0oO based on a .'book valuation" of
$4,000, goo, 900. The commission in
its order today reduced the estimated
valuation Of the roads to $4,000, 000,-
600, decrease of s1,100.000, 0oe from
the commissions own previously esti-
mated valuation of $4,000 GOO 600.
and declared that the $l,500,000 900
increase in rates that is granted Will
give the roads the same percentage
of increase on the reduced valuation
that the roads original demands
would have yielded on valuation of
9ZU,JUU,UUU .UUO.
According to the commission, the
increase granted should provide .suf-
ficient revenues for the railroads. to
receive the 5 u per cent return guar
anteed them under the Esch- Cummlns
law and an additional one-haff Of I
per cent for badly needed equipment
making the total estimated return a6
per cent on valuation of $l9,900,-
100000
New Rate District Created
The commission created a new rate
district, by dividing the former West
crn district. Under the new division,
the new Western district comprises
the roads west OF Chicago to the
Rocky Mountains, and the newly
created Mountain-P Pacific district in
/ cludes the roads in the Rocky Mountain
district and on the Pacific Coast.
Ia addition to the general inerea ses
ordered, the commission granted an
increase of 20 per cent on milk and
cream, which are generally carried on
passenger trains. Rates on other con-
modities are to be made to conform
with the increases in freight rates.
Provision is made in the commits.
sions order whereby charges for spe-
cial services, port differentials and
similar matters can be made t. con
! form with the increased rates.
The freight rate increases ay arGed
steam railroads also are made april
cable to electric roads in the comris.
sion's order.
Increases Effective Septembor
By fling new tariffs Monday. base
on the increases allowed by the core
mission, the new rates could be nsds
effective September I. Accord - 10
statements at the railway executil ri.
Offices here. this wifi be done.
In granting the increases asked =
the railroads, the commission declare
that it had no alternative under tbs
Esch-Cummins law but to approvelrates
that would provide the ~ per cen.
return guaranteed by the railroad act
Concerning the present operation OF
the roads, the commission said:
Much has been said upon the pres
ent record concerning the necessity o.
additional equipment and the efficienc,
of the present management of the ca r
rers. 1t is the view of the carriers
that existing facilities arc inadequate
and they state specifically that ths,
need immediately at least Io0,e0l
freight care, 1900 locomotives ana
5000 passenger cars.
Needed to Improve Service
Shippers are unanimously Of tn
opinion that the transportation sers
ice has been and is unsatisfactory
and many of them urge upon US tn
necessity of granting such increase,
rates as may be necessary in orde
that the service may be improved
; Others raise the question whethe
onsiderations other than nadeouae
of facilities notably, labor difficnltie
are not equally responsible for tn
admittedly poor service. Especial
during recent months a shortage q
labor at crucial points. due in part /
strikes. has contributed more larcas
than any other single factor to the ur