Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-03
HIGHER PASSENGER
FARES TO co INTO
EFFECT AUGUST 20
Boost Pullman, Baggage
and Milk Charges al
Same Time.
FREIGHT RATES WILL BE
ADVANCED AUGUST rs
Speedy Action Necessary to
Stop Drain on the
Treasury.
TAXES TO MEET DEFICITS
Guarantee to Roads and Federal
Operation Costs Country
Billion and II Half.
TAxEs TO MEET DEFICITS
Operation Costs Country
Billion and Il Half.
NY A..oe,ated rr-...l

WASliINGTON. Angus, 2.-N G "
passenger fares probably viii be-
come effective August 20 and ad-
ranccd freight rates August %. ac-
cordins % program outlined to-
night y" Alfred T. Thorn. genera.
council for the Association OF Rail
way Executives. after II meeting. In
which :. II. Ingalls,, vice prcsiden, of
the New York Central; Edward Cham
hers. Of the Atchison. Topeka and
Santa Re. and benjamin Campbell.
OF the New York. New Haven and
Hartford. took part
simultaneously with the effective
ness ~ passenger fares. the Increased
charges for Pullman travel and the
new rates on excess baggage and milk
also vii! be pat In force.
Railroad rate experts have begun
the preiara;ion OF blanket rate schcd-
ules increasing the transportation
costs on percentage basis These
VIII be presented to the Interstate
Commerce Commission i've days prior
to the proposed effective dates. The
rate sheets Viii be supplemented by
printed tariffs containing rates for
all territories ana Oh all commodities
Ing out the mul,itudinous details can
T, be- accomplished. un,n this work is
done. local rail- officials Will compute
the new rates and charges for their
respective territories on the basis Of
The existing rates plus the percentage
increase authorized by the commits
zion.
Stop Drain on Treasury.
IL n,I If mn t1pt
rates into effect would be unusual.
railroad officials pointed to the sug-
Ecstion OF the commission that the
higher charges bc put In force "at as
early y date Us practicable"
BY putting the increased rates into
effect prior 10 September !. the drain
on the Treasury under the guarantee
provisions OF the transportation act
likely VIII be ended before expiration
7of the EovNrnmcnts guarantee Of
earnings To the roads. officials csti-
mated today that by September !.
the guarantee provisions would have
cost the government approximately
$3.50. 100000. for the six months since
the passage OF the present railroad
law.
The government has been obligated
To continue the S75ooO.OOO monthly
rental payment which was in effect
during the Federal control. as well
as 10 meet deficits. not covered by
tho rental amount. sustained BY the
individual carriers. Included in the
charges which wili fall on the Treas
ury in these deficits is that portion
of the sGO0.00O,o0O wage award COW
cring labor costs from May to Sep
IA.
pires. This was officially estimated
ut s2oG G,oo0,O 900. Thus the American
people will pay one-third of the in
creased wages for the railroad en-
'pioyecs this year In taxes.
Huge Loss by Government.
With the amount guaranteed, the
carriers this year and the claims OF
the lines for compensation under
their contracts with the railroad ad-
ministration. the roads will have cost
the government Approximately $1,000
100000 since the President took over
the properties December 2S, 1917.
Operation OF the roads after Sep
tcmber ]. under the new rates. will
yield. according to accountants and
tariff experts of the carriers. an
annual return OF about sl,5SO. 900, CO.
While these figures were OF n pre-
l!minary sort, the railroad experts be-
= l!cved SAe freight revenues to be de-
rived under the new charges would
amount to Si,300,000, 900. and the in
come from passenger traffic, $oS3,OO0,-
900. Their estimates, II was ex-
planned, were based on the assump-
ton that intrastate rates would be
increased correspondingiy with the
advance authorized by the Federal
commission in interstate rates
The need for increases in intra-
state rates was set forth in re-
port forwarded today TO various state
railway and public utility commits
sions by the three State commits
sioncrs who sat with the Interstate
Commerce Commission during its
hearings and consideration of the
rate case.