The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1920-08-04
new TARIFF
FACTS
More Than Standard Return AL
lowed by Government Un\eE
Federal Control M,
EXPERTS BUSY ON +. 5. 7,
scHBDULBK
New Tariff Will Become EFec-
tive on September l, It sa1s
Planned

Oh Ocptemper i, lt tsk& 3&.
Planned
/ washington. Aug. / - (By theS NJ.
lsociated Press )--Rate incre&ises
granted the railroads by the Iuksr-
state Commerce Continuation are} DE-
Eclared TO give carriers an annual let
Income Of fs$1,1S4,00D.0 900 or $24l, d8.-
900 more than the standard returnH
lowed by the government based Jon
lth& averaxe Of the period preceding
Ifederfll control. g.3s
T This sum Is $4,000. 900 more than,
the roads made In their record Year
|of I9l6, but is $as,0OO. 900 less than
1.-THE total Of $1,2s3 10000 net operat-
ling tllcome which they sought in lre-
lsenting their applications to the cknf-
| mission.
rate experts of the carriers will
set to work tomorrow on the tremen-
dous task OF preparing the new tarifr
lschedule which 1t is planned to file
IN time for the increased rates..
freight, passenger and Pullman Ito
become effective September L. ION
that date the government guarantee
of the standard return of $893, DOT, 900
annually will expire under provi-
sion of the Transportation Act limit
ing this guarantee to six months after
the carriers were returned to have
| the control.
Experts OF the commission and the
carriers also will undertake to figure
the actual money return which will
1 dc, fs-<>x - S~~
creases granted. which are about&33
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.
Npe actual increased amount to be
received BY the roads has been
roughly estimated at $500, 900. but
untl the new. tariffs are put into ope-
ration the exact ampunt is proble-
irhtical. With passenger fares N
creased one fifth and Pullman
charxes advanced one half passe nxcfs
travel probably will be reduced. y
! Hased on the present passenger
traffic these increases are expected to
yield the roads a return OF $277 .000,-
900, all of which was sought to help
absorb the wage advance to railroad
workers which the railroad labor
board has informed the commission
will work out at $618,00O.0 900 instead
of the s600,000. 600 first estimated.
che carriers have figured the in
crease at $625, 200. but for the
purpose OF the rate case the commis--
sion used the boards figures.
The estimated net operating income
OF $1.134.000,000 which the roads are
! to receive as result Of the fare
raises represents per cent on the
aggregate value of the railroad pro-
perties. which was placed by the COM
mission at $18,900, 100000 or $i.140.-
100000 less than the carriers esti-
mate. OF the total income received
by the roads, one-half Of per cent
of the aggregate value. or $4,000, ,OG0
must be set aside annually for addi-
tions and betterments.
Thus the actual net OF rating in
come going into the treasury OF the
From this must be deducted taxes and
other fixed expenses not included in
operating expenses before the actu-
al net income Is determined.
Should the commissions decision
result in producing more than the 6
per cent return on the aggregate val
ue allowed under the Transportation
Act. one half OF the excess would un-
der the terms of that act be placed
in the reserve funds of the roads and
the other half turned over to the In
terstate Commerce Commission to es-
tablish revolving fund to be used for
making loans to the carriers Or for
purchasing equipment TO be leased TO
them.
The estimated net income to be re-
ceived by the three groups Of roads
is fixed at G per cent of the valuation
placed on those groups by the COM
mission. On valuation Of $500, ,000,-
600 the Eastern roads would receive
S52S.000.000. They asked for a re-
turn Of 400, 900 and are receiv-
ing a standard return from the gov
ernment of $354.7O0 900, or .approxi-
mately $500, 100000 less than they
sought.
The valuation of the Western roads
Including those I'm the new mountain
Pacific territory set up by the COM
mission for the purpose Of the rate
decision, Is placed at $500, 900. 900.
The Western roads thus would re-
,ceive an estimated net operating in
come of $486,000.000. or about $5S,-
100000 less than the $537.80O. 900
which they sought The standard re-
turn they are now receiving is $401,-
900, 600.
Southern roads were valued by the
commission at $4,000, 0O0, 900 so that
their net operating would be $780, !
600. 900. This is $4,000. 900 less than
the. standard return Of $13S,O0O, 900.
The commission explained that the fl
nancial condition Of the Southern
carriers as whole was more favor
able than that OF the roads i'm the |