The Bourbon news. [volume] (Paris, Ky.) 1895-19??, 1920-08-06
COMMISSION APPROVES NEW IN
CREASED RATES

ed by the Interstate Commerce
Commission, effective on five days
notice by the carriers to the COM
mission and the public.
The advance is 40 per cent in rail-
road freight rates in the East; rs
per cent. in the South; 35 per cent.
in the West, and rs per cent. in the
Mountain-Pacific territory.
Passenger fares were increased 20
per cent. the amount asked by the
railroads to help in absorbing the
$500 100000 wage increase granted
by the Railroad Labor Board.
A surcharge of SO per cent on
rates for sleeping and parlor cars
was granted together with a 20 per
cent increase in the rates on excess
baggage and 20 per cent in the rates
on milk.
The freight increase total is esti-
mated at $1,134, 100000 on the basis
of 6 per cent. on the $4,000, 000,-
900 placed by the commission on the
properties of all the roads. The in
crease of 40 per cent. in the East is
estimated to yield approximately
$75O,O00,00O.
The rs per cent. granted Southern
roads is estimated to yield about
$100,000,0O0, while the Western and
Mountain-Pacific roads will get an
increased return of about $284,000,-
900 on freight rates.
This total is about $20O,000,0O
less than the amount for which the
railroads asked to absorb the $780,
100000 wage award by the Railroad
Labor Board and to bring their net
income to the 6 per cent. provided
for in the transportation act.
To the increase of 81, 134 100000
to the nations freight bill will be
added an increase in passenger rates
aggregating $232,827,989; an in
crease in Pullman rates aggregating
S43,639,34 an advance in excess
baggage rates approximating 81 ,420,-
999 and an advance in milk rates of
about $5,000,000.
The increases granted are design
ed to give the roads a net of 5 " per
cent. on one-half of one per cent. to
make what the commission described
as appropriate provision for addi-
tional improvements, betterments or
VI d IdCGGI
to capital account.
The commission also gave electric
railway lines permission to increase
their freight rates by the same per
centage as were approved for truck
lines in the same territory. The COM
added that this was mot to
be construed as an expression of dis
of increases, made or pro-
posed in the regular manner, in the
passenger fares of electric lines"
Coastwise steamship lines were
authorized to increase their freight
rates 'to the same extent as herein
granted the railroads operating be-
tween the same points or in the same
territory" The commission ruled
that in construction of rail-and-lake
rates the present parity between Chi
cago and Duluth should be maintain
ed
In arriving at the increases the
commission placed the valuation of
the railroad properties at S18,900,-
100000 as against the $40, 6,O00,-
900 estimate of the railroad eXecu-
tives.
The increases may become effec-
tive on five days notice given by the
carriers to the commission and the
public and they must be put into eff
feet before January 1, 1921. Since
the government guarantee to the
roads expires September /, it is gen.
orally expected that the advances will
be put into force before that date.
The commission authorized the ap-
plication of the general increase to
the rates on commodities. Special
the charges therefore will be in
creased according to percentage or
dered in the various groups.
In their original application for in
creases, the roads divided the coun-
try into three Eastern,
Western and Southern. They asked
freight rates increases of 1915 for
the Eastern, 1858 for the Western
and 1891 for the Southern.
The commission divided the West
ern group into two, the Western and
the Mountain-P Pacific, the latter TAX
ing in the territory lying between
the Pacific Coast and the eastern
base of the Rocky Mountains.
The commission also, on it's own
initiative, applied the general in
creases to all special services per-
formed by the carriers. 1t explained
in its decision that the railroads had
not included this provision in its pro-
posal, but stated that this was due to
misunderstanding.
1t therefore authorized the in
creases to apply to switching, weigh
ing, diversion, reconsignment, light
erage frontage, storage and transfer
and such separate charges as may be
made against the shippers for any
other special services.
With respect to the prevailing
rates on commodities which are
transported under special traffic ar
engagements, the commission ordered
that the general increases should be
added to the present freight charges.
This will include the rates upon a
number of individual commodities
such as coal, lumber. cement, fruits
and vegetables, petroleum, brick and
other building material, livestock,
Westinghouse products, ore and fer
tilizers.