Arizona republican., 1920-08-02
ADDITIONAL INCREASES
 WILL BE REQUESTED BY
 INTERSTATE RAILROADS
Commerce Commission Will Be Asked to Authorize Increase to Correspond With Interstate Raise
[RepubIIcan A. ?. Leased WIrel

WASHINGTON. August 1-Ad- vances of intra-state rates-freight. passenger and pullman-to correspond with the interstate increases author ized yesterday by the interstate com merce commission will be asked of state railway commissions, it was stat ed tonight by Alfred P. Thom, general counsel for the Association or Railway Executives.
 Such intrastate rate increases. MT. Thom said, will not add to the income provided by the federal commissions decision because in submitting their estimates the carriers calculated on basis of increases of both intrastate and interstate rates. e
 Expect Favorable Report.
 Applications to the state commits sions are being prepared and railway executives expect that the increases will be granted. Should any state com mission refuse to authorize them. the carriers, he said, will proceed un6e the transportation act and ask a hea4 ing before the interstate eomma& commission to determine fWlaAt1N flse intrastate rates are discriiHfNnNNf# N# prejudiced to intrastate cdanzHkrtN
 Since the increases glA0feN # 6H general by the interstatfi &11ns4k II commissions, the railroads M&l Mkls corresponding increases in 6@4lH 8ll The percentage of advances M8M MH 4 intrastate freight rates, h9Ap0NNH Ns 1 correspond to the percentaWh &ANfHo iZed in the terrintory in H~asHrH 4Gfsn state is located. Thus ir1nnHe EHA fly quested in eastern states wnixIa tN AH per cent; in southern stak11 &f n western states 35. and in m1nmnt ns Pacific states %. ~ Billion Dollar Incremne. Rate increases granted railroads the interstate commerce commissioa are designed to give carriers an an- nual net operating income of $1,124 l 000,000, or $241, 100000 more than the standard return allowed by the gov ernment This is $34O00, 900 more than the roads made in their record year of 1916, but is $9e, ,000, 900 less than the S1,233.000.000 net operating income 1 they sought.
 l Rate experts will begin tomorrow preparing the new tariff schedules it I is planned to file in time for the in creased rates-freight, passenger and pullman-to become effective Septen- < Der l. Then the government guarantee of the standard return of SS93, ,000,0 900 annually will expire. Experts also will undertake to figure the actual money return to accrue from the increases. which are about 33 per cent on freight, 20 per cent on passenger, excess bag gage and milk rates. and 50 per cent on charges for space in sleeping and parlor cars.
 | GAPGSA AFaNCt NFAAA G~&FGG@Er The actual increase to the roads has been estimated at $1.500.0O0. .000 but at present the exact amount is prob lematical. With passenger and pull man charges advanced travel prob ably will be reduced.
 Based on passenger traffic, the in- creases are expected to yield s277.- 100000. all of which was sought 10 help absorb the wage advance to rail road workers. which the railroad labor board figured would total S61S,000.- 900. The carriers have figured the in- crease at s625, ,000.00
 The estimated net operating income of $1,134, 100000 the roads are to re- ceive represents s per cent on the az gregate value of their properties which was placed by the commission at SlS.- 300. 900 000 or s1,140. 100000 less than the carriers estimate. Of the total in come received. one-half of one per cent, or s94, 900, 900. must be set aside annually for additions and betterment.
 Thus the actual net operating fn- come would be $1.040, 1000, ,o00
 From this must be deducted taxes and other fixed expenses not included in operating expenses before the ac- tual net income is determined. -
 To Have Revolving Fund.
 Should the increase prouM@N nt@fM than the per cent return. nnf Aff 4f the excess under the traW&NnFt@sn act would be placed in the rr#A# W serve funds and the other hoHK t#NE over to the interstate comrnefoe enf mission to establish a revolwtnE Xt
 for making loans to the canEkaxN
 for purchasing equipment to be &# to them.
 The estimated net incomes A@ N4a. ceived by the three groups nE Ka roads is fixed at 6 per cent Of Ahe
 uation placed on those grompH W~ Aht commission. On a valuatf4n of # z S00,000,000. eastern roads wUuAA Nes S52S, GOO. 900.
 Value Roads at $s, 100. .0H1Q1
 The valuation of all the Wt4K&fn roads is placed at Ss100, ,000s0e4 I'll Y would receive an estimated Net @a 2 ating income of $4S6.000. 00es a@mll ( the $537 S0Q, 900 sought Tho stan@aFd d return they are now receiving is $foTs- l 0O0, 900.
 Southern roads were valued by the commission at $2,000, ,000,0Ou, so their net operating income would be sl1V,- l GOO 000