Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-08-02
RAILROADS TO ASK /
EQUAL INCREASE IN
INTERSTATE RATES
Will Demand Advance Cor.
responding With Decision
Authorized Yesterday.
na-o- Z
PRESENT RAISE GIVES NET
INCOME OF S1,134,OOO,OOO
Experts Set to Work on Task OF
Preparing New Tariff
Schedules. yeH
SOUTHERN ROADS PROSPER
Declared as Whole to BE in Better
Financial Condition Than
Other Groups. 4
Declared as Whole to BE in Better
Financial Condition Than
Other Groups. a
FBy Associated Press. ]

'.t'S.A
BY Associated pressl
WASHINGTON. August 1.-Ad-
vances OF intrastate rates freight.
passenger and Pullman to CORES
spond with the interstate increases
authorized yesterday by the Inter-
state Commerce Commission will be
asked of the various State railway
commissions by the carriers, It was
stated here tonight by Alfred p.
Ih3m. general counsel for the Assoc
'iat;on OF Railway Executives
such intrastate rate increases. Mr..
Ihom said, will not add to the total
income provided for by the Federal
commissions decision. because in sub
mittinE their estimates the carriers
calculated on basis OF increases OF
both Interstate and intrastate rates.
Applications to the State commits
sions are now being prepared by the
railroads. and it is expected by the
railway executives that the increases
VIII be granted. Should any state
commission refuse to authorize them,
however. the carriers. Mr.. Thorn said,
Will proceed under the transportatfon
act and ask hearing before the In
terstate Commerce Commission to de-
state rates are discriminatory or pre-.
judicial to Interstate commerce.
state Commission Represented.
1t was pointed out by Mr.. Thorn
that three representatives of the
state commissions sat with the Fed-
| eral commission during the Public
hearings on the application Of tho
carriers. They will make REPORTS to
the State commissions, hnd Mr.. Th ON
said 1t was thought that their optn-
Ions would have weight with the
State bodies.
Since the increases in passengcr,S
Pullman. excess baggage and milk
rates were made general for the en-
tire country by the Federal commis-
sion, the railroads Will ask for corr
responding increases In each State.
The percentage OF advances in intra-
| state freight rates which the roads
Will request. however, will corre-
spond To tho percentage authorized
in the territory In which the state
is located. Thus increases requested
| in Eastern States would be 40 per
cent; in Southern States. % per cent;
in Western States, 50 per cent and in
Mountain Pacific states, S5 per cent.
! Rate increases granted the rails
| roads by the Interstate Commercs
Commission are designed to give the
carriers an annual net operating In
| come of Sl.l34 100000. or S241. 100000
| more than the standard return al
| lowed by the government and based
| on the average of the three-year PEI
| riod Immediately preceding Federal
| control
This sum is s34.OoO.ooo moro than
Of 1916. but is S9o,0O0,0O0 less than
the total of sl,233,00o.O00 net operat-
ing income which they sought in pre-
senting their applications to the COM
| mission.
begins New Schedules.
Rate experts OF the carriers Will
set 10 work tomorrow on the tre-
| mendous task of preaaring the new
tariff schedules which it is planned
to file in time for tho Increased
! rate-freight. passenger and Pull
man-to become effective September
j. On that date the government
guarantee of the standard return Of
*S93,OoO.000 annually will expire un-
der provision of the Transportation
act limiting this guarantee to six
months after the carriers were re-
tuFHeu 10 private control.
| Experts of the commissions and tho
carriers also will undertake to figure
the actual money return which Will
accrue TO the roads from the rate In
creases granted, which are about "a
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 ba
received by the roads as a result of
the rate advances has been roughlv
estimated at $1,000. 900 600, but until
the new tariffs are worked out and
put into operation the exact umounr..
Is problematical. With passengSr
fares increased one-fifth and Pulls
man charges advanced one-haIf, pas
senger travel probably viii be re.
duced
Expects Large Incrcase.
Based on the present passenger
traNhc these increases are expected
to yield the roads return of $c77,-
100000. all OF which was sought Ia
help absorb the wage advance to
railroad workers. which the railroad
labor board has informed the com
mission will work out at s6ls, 1000, 600,
instead OF the s600.00o,00o frst int;-
mated. Tho carriers have figured tho
increase ut $s25.oOo,oO0. but for the
purposes of the rate case the com
mission used the boards figures.
The estimated net operating in.
come Of s1,1a4.oo0.ooo which tho rondy
are to receive MS { result OF the fare q
raises represents 8 per cent on tho /
aggregate value OF tho railroad prop.s
7Illf( (Continued on i5Econd- pa I. =