The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-08-06
INCREASED RATE
i LATE THIS MONTH
PASSENGER FARE AND FREIGHT
TARIFFS SOON BOOSTED.
Experts Begin Preparation of Blanket
Schedules-Economist Finds
Cost of Living Safe.

Experts Begin Preparation of Blanket
| Schedules-Economis Finds
Cost of Living Safe.
Washington, Aug. 2 (By the Asso-
ciated Press).-The new passenger
fares probably will become effective
August 20 and the advanced freight
rates August 25, according to pro-
gram outlined tonight by Alfred z.
Thorn, general counsel for the AS
sociation 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 preparation of blanket rate
schedules increasing the transporta-
ton cost on a percentage basis.
!These will be presented to the inter-
state commerce commission five days
prior to the proposed effective dates:
The rate sheets in regular form will
be worked out and put in use as soon
as the physical work can be done.
Until this work is done, local rail-
road officials will compute the new
rates and charges for their respec-
tive territories on the basis of the
existing rates plus the percentage in
crease authorized by the commission.
early as Practicable"
| While this method of putting new
lrates into effect would be unusual
railroad officials pointed to the sug-
|gestion of the commission that the
thigher charges be put in force "at as
tearly a date as practicable.
Bv putting the increased rates into
leffect prior to September l 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 $685.
100000 for the six months since the
passage Of the present law.
The government had been obi
gated to continue the S75,00O,O00
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 individual carriers. Included IN
the charges which will fall on the
| treasury in these deficits is that por-
tion of the s600,000,000 wage
award covering labor costs from May
| to September 1 when the guarantee
expires. Thus the American peo-
ple will pay one-third of :. the In
creased wages for the employees this
year in taxes.
Cost to Governments.
| 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 BILL
lion and a half dollars since the
president took over the properties.
Operation of the roads after Sep,
tember / under the new rates will
Weld, according to accountants and
tariff experts of the carriers, an an
nual return of about 81, $50, ,0OO,000'
While these figures were Of pre-
liminary sort the railroad experts be-
Ilieved the freight revenues to be de.
rived under the new charges would
amount to $1,300,000,000 and the in
come from passenger traffic $685.
0OO,OaO. Their estimates, it was ex-
planned, were based on the assump-
tion that intrastate rates would be
increased correspondingly with the
advance authorized by the federal
commission in interstate rates.
r The need for increases in intra-
state rates was set forth in a report
forwarded today to various state rail
way and public utilities commissions
by the three state commissioners.
who sat with the interstate commerce
commission during its hearings and
consideration of the rate case.
Washington, Aug. 2.-Railroad
rate increase authorized by the IN
terstate commerce commission
should have no appreciable effect
on the prices of the vast majority
; of things which the ordinary con.
sumer purchases" according to an
analysis of the possible effect of the
advanced rates made public tonight
by w. Jett Lauck, economist for the
railroad labor organization. At the
same time Mr.. Lauck asserted that
"there would have been no occasion
for so large an advance" if the roads
had been better managed, made free
of "water" in capitalization and were
mot themselves the victims of prof
teers to the extent Of s500,0OO,GOC
IA year" in purchase of supplies anc
equipment.
; "Stili, there Is no occasion 10,
alarm in the prospect of an addi
: ton Of 81, 500, 100000 to the annua
, transportation bill of the country
: the statement said. provided thi:
5 item is not multiplied four or five
times before it is presented to the
, For inst