Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1920-08-02
RATE INCREASES
To YIELD ROADS
. BIGGER RETURNS
<>S$::::s:s. >;;;:::::ss STANDARD
Estimated Revenue viii Be
About $24t,000, 1000
More Than Amount Al
lowed By Government,
HIGHER THAN RECORD,
LOWER THAN SOUGHT
Experts viii Begin Today
Figuring New Tariff
Schedules Which Will Go
Into Effect By Sept. 1,
tsr MORNING JOURNAL SPECIAL LEASED WIRE,

tsr MORNING JOURNAL SPECIAL LEASED wiREl
Washington, Aug. l (by the AS
sociated Press. )-Rate increases
granted railroads by the Interstate
Commerce commission are designed
to give carriers an annual net op-
Grating income of 81, ,134, 00O,00 or
$24l, 100000 more than the stand
ard return allowed by the govern
ment.
This is $34,000,000 more than the
roads made in their record year of
1916, but is 500, 100000 less than
the $l,233,000,0 900 net operating in
come they sought,
Rate experts will begin tomorrow
preparing the new tariff schedules,
ii is planned to file in time for the
increased rates--freight, passenger
and Pullman--to become effective
September /. when the govern
ment guarantee of the standard
return of $4,000, 200 annually will
expire.
Experts also will undertake to
figure the actual money return to
accrue from the increases, which
are about 80 per cent on freight,
20 per cent on passenger, excess
baggage and milk rates and 80 per
cent on charges tor space in s.eep-
ing and parlor cars.
Estimated Increase.
The actual increase to the roads
has been estimated at $1.500,0O0 :
600, but at present the exact
amount is probiematical, With
passenger and Pullman charges ad-
vanced travel probably will be re-
duced
Based on passenger traffic, the
increases are expected to yield
$277, 600, 900, all of which was
sought to help absorb the wage ad-
vance to $6lS,000. 900. The carriers
have figured the increase at $625,-
600, 900.
The estimated net operating in
come of S1,134, 100000, the roads
are to receive. represents per cent
on the aggregate va.ue OF their
! properties. which was placed By
the commission at SIS, 1000, 900,
or 100000 less than the car
riers estimate. OF the total income
received, one-half OF per cent, or
$94. 100000, must be set ASIDE an
nually for additions and better
| ments.
Thus the net actual operating in
come would be $1,000, 1000.
From this must be deducted tax
es and other fixed expenses not In
cluded in operating expenses before
the actual net income Is deter
mined
Disposing of Surplus.
Should the Increase produce
more than the per cent return,
one-half Of the excess under the
| transportation act would be placed
| in the roads reserve funds and the
other half turned over to the Inter-
state Commerce commission to es-
tablish a revolving fund for. maxi
ing loans to the carriers or for
purchasing equipment to be leased
to them.
The estimated net income to be
received by the three groups of
roads is fixed at 6 per cent of the
valuation placed on those groups by
the commission. ON a valuation of
$500, 900, 900, eastern roads would
get $52S, 100000
The valuation of all the western
roads Is placed at SO, loo. 100000,
They would receive an estimated
net operating income of $4S6,o0O,-
| 600, against the 1887, S00,O 900
sought. The standard return they
are now receiving is S40l,0O0,00O.
Southern roads are valued by the
commission at $4,000 100000, so
their net operating income would
be 100000.