Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1920-08-04
Railroad Rates Now Exceed
Standard Return Allowed By
Federal Government.

granted the railroads by the inter-
state commerce commission are de-
signed to give the carriers an annual
net operating income of $1,134, 1000
600 or s241, 100000 more than the
standard return allowed by the gov
ernment and based on the average
of the three-year period Immediately
preceding federal control.
This sum is $34, 100000 more than
the roads. made in their record year
of 1916, but is 99,OoO,OOO less than
the total of s1,233,OOO,O0O net op-
Grating income which they sought in
presenting their applications to the
commissioners.
Rate experts of the carriers will
be set to work tomorrow on the tre-
mendous task of preparing the new
tariff schedules which it is planned
to file in time for the increased rates
freight, passenger and Pullman
to become effective September 1st.
On that date the government guar
antee of the standard return of
$685. 100000 annually will expire
under a provision of the transpor-
tation act limiting this guarantee to
six months after the carriers were re-
turned to private control. .
Experts of the commission and the
carriers also will undertake to figure
the actual money return which will
accrue to the roads from the rate
increases granted, which are about
33 per cent on freight rates, 20 per
cent on passenger, excess baggage
and milk rates and so per cent on
charges for space in sleeping and
parlor cars.
The actual increased amount to be
received by the roads has been rough
ly estimated at $1,500,000,0O0 but
until the new tariffs are put into
operation the exact amount is prob
lematical. With passenger fares in
creased one-fifth and Pullman charg-
es advanced one-half, passenger
travel will be reduced. q.
Based on the present passenger
traffic these increases are expected
to yield the roads return of $277,-
100000, all of which was sought to
help absorb the wage advance to rail
roads workers which the railroads
labor board has informed the COM
mission will work out S618,OOO, 1000
instead of the S6OO,OOO,OO0 first es-
timated. The carriers have figured
the increase at $625, 100000, but for
the purposes of rate case the COM
mission used the boards figures.
The estimated net operating in
come of S1,134,o00,O00 which the
roads are to receive as result of
the fare raises represents 6 per cent
on the aggregate value of the rail-
road properties, which was placed by
the commission at $1S,9O0,O00,0oO
or 81, 100000 less than the car
riels' estimate. Of the total income
received by the roads, one-half of
one per. cent of the aggregate value,
or 100000 must be set aside an
nually for additions and better
ments.
Thus the actual net operating in
come going into the treasury of the
carriers would be $1,040, 100000.
From this must be deducted taxes
and other fixed expenses not includ-
ed in operating expenses before the
actual net income is determined.
Should the commissions decision
result in producing more than the
six per cent return on the aggregate
value allowed under the transporta-
tion act, one-half of the excess
would, under the terms of that act,
be placed in the reserve funds of the
roads and the other half turned over
to the interstate commerce commits
sion to establish a revolving fund
to be used for making 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 per cent of the val
uation placed on those groups by
the commission. On a valuation of
100000, the eastern roads
would receive $52S,0O0,OOO. They
asked for return of S560,460,000
and are receiving standard return
from the government of S354,70O-
600 or approximately S200,000,0 900