Omaha daily bee., 1920-08-01
Freight Traffic Must Stand
Largest Portion Of Raise
Pullman and Passenger Fares
Included in Order.
Raise in Fares.
pascenoer Pate

in freight, passenger Pullman and
other railroad rates approximating
an unofficial estimate of Sl,400,00O,-
600 were approved today by the In
terstate Commerce commission, ef-
tective upon five days notice by the
carriers to the commission and the
public. -
This total is about $20O,0O0,O00
less thar the amount for which the
railroads asked to absorb the $780,
100000 wage award by the railroad
labor board and to bring their net
income to the E per cent provided
for in the transportation act.
The freight increase total is esti-
mated at $l,l34,00O,000 on the basis.
of E per cent of the $l0,o00,000,000
placed by the commission on the
properties of all the roads. The in.
crease of 40 per cent in the east is
estimated to yield approximately
$750,000,000. The Is per cent grant
cd southern roads is estimated to
yield about $lOO,OOO,0OO, while the
western and mountain Pacific roads
will get an increased return of about
S284,000,000 on freight rates.
Boost Passenger Fares.
To the increase of $1,134,OO0.000
to the nations freight bill will
added an increase in passenger ra, !,
aggregating $233,827,9S2; an iiS
crease in Pullman rates aggregating
$43,639,344; all advance in excess
baggage rates apprroxxima ting
$l,4z0999, and an advance in milk nil i:
rates of about $5,000,000 !
The increases granted are de-
signed to give the roads a net in
come of 5I per cent on their valua-
lion and an additional one-half Of
| per cent to make what the COM
mission described as appropriate
provision for additional improve
ments, betterments or equipment Of
character chargeable to capital
account"
Coast-wise steamship lines were
advised to increase their freight
rates ito the same extent as herein
granted the railroads operating be-
tween the same points or in the
same territory"
Electric Lines Included.
The commission also gave electric
railway lines permission to increase
their freight rates by the same per-
centages as approved for trunk lines
in the same territory. The commis-
sion added this was mot to be con-
strued as an expression of disap-
proval of increases made or pro-
posed in the regular manner, in the
passenger fares of electric lines"
In their original application. the
roads divided the country into east
ern, western and southern districts.
They asked freight rate increases of
39.75 for the eastern, 52.03 for the
western and 1891 for the southern.
The commission divided the western
group into the western and the
mountain-P Pacific, the latter taking in
the territory lying between the Pa
chic coast and the eastern base of
the Rocky mountains.
The commission also applied the
general increases to all special ser.
vices. 1t explained that the rail-
roads had not included this provision
in its proposal, but stated this was
due to misunderstanding. 1t,
therefore,, authorized the increases
to apply to switching, weighing di-
version, reconsignment, lighterage,
floatage, storage and transfer and
any other such separate charges as
may be made against shippers.
AS to prevailing rates on COM
modities transported under special
tariff arrangements, the commission
ordered that the general increases
should be added to the present
charges. This will include rates on
such individual commodities as coal.
lumber, cement, fruits and vegeta-
bles, petroleum, brick and other.
building material, live stock, packs
ing house products, ore and fertil-