The county record. [volume] (Kingstree, S.C.) 1885-1975, 1920-08-05

parties.
rates August 26, according to a pro-
gram outlined tonight by Alfred P.
Thorn, general counsel for the Asso-
ciation of Railway Executives.
simultaneously with the effective
ness of passenger fares the increased
charges for Pullman travel and the
new rates on excess baggage and milk
also will be put in force.
Railroad rate experts have begun
the preparations of blanket rate sched-
ules increasing the transportation
costs on a per centage basis. These
will be presented to the Interstate
Commerce Commission five days prior
to the proposed effective dates. The
rate sheets will be supplemented oy
printed tariffs containing rates for all
territories and on all commodities as
soon as the physical task of working
out the multitudinous details can be
accomplished. Until this work is done
local rail officials will compute the
new rates and charges on the basis Of
the legislation rates plus the per cent
age increase authorized by the COM
mission.
An Unusual Method.
While this method of putting new
rates into effect would be unusual,
railroad officials pointed to the sug-
gestion of the commission that the
higher charges be put in force lat as
early a date as practicable.
By putting the increased rates into
effect prior to September 1. the drain
on the treasury under the guarantee
provisions of the transportation act
likely will be ended before expiration
of the governments guarantee Of
earnings to the roads. Officials esti-
mated today that by September l the
guarantee provisions would have cost
the government approximately $780,
900 900 for the six months since the
passage of the present railroad law.
The government has been obligated
to continue the S75,000,0OO monthly
rental payment which was in effect
during the federal control as we'll as
to meet deficits not covered by the
rental amount, sustained by the irdl-
vidual carriers. Included in the
charges which will fall on the treas
ury in these DEGREES is that portion of
the s6,OOO,0O0 wage award covering
labor costs from May l to September
l, when guarantee expires. This was
officially estimated at lS2O6, ,000 900.
Thus the American people will pay
one-third of the increased wages for
the railroad increases yearly in tax.
With the amount guaranteed the
carriers this year and the claims Of
the lines for compensation under their
contracts with the railroad admins-
tration the roads will have c.':r the
government approximately a billion
and a half dollars since che President
took over the properties.
Yield About s1,5s0, 100000.
Operation of the roads after Sep
tember under the new rates will
yield, according to accountants and
tariff experts of the carriers, an an
nual return of about 5! $4,000, 900.
While these figures were Of pre-
liminary sort the railroad experts be-
lieved the freight revenues to be Ge-
rived under the new charges would
amount to $1,000, 100000 and the in
come from passenger traffic 1898 =
100000. Their estimates, it was eN-
planned, were based on the assumption
that interstate rates would be in
creases correspondingly with the ad-
vance authorized 5y the fe1eral com
mission in the intarssate rates.
The need for increases in interstate
rates was set forth in a report for
warded today to various state railway
and public utility commissions by the
three state commissioners who sat
with the Interstate Commerce CD-
mission during its hearings and con-
sideration of the rate case.