Pine Bluff daily graphic., 1920-08-04
NEW RATES BECOME EFFECTIVE AUG. 26,
 ROADS ANNOUNCE:
Advance Will Net U. s. S1OO.. OOO,0OO Yearly in
 Revenues

Washington, Aug. 3.-New freight and passenger fares will be made ef- fective August 26, instead of Augu st 20, for fares and August 25 for freight tariffs, railroad officials announced tonight.
 Decisions to postpone the putting into effect of the advance in the charges, authorized last Saturday by the interstate commerce commission from the dates announced yesterday was reached tonight after tariff ex- perts of the carriers had informed Alfred P. Thom, general counsel for the Association of Railway executives that it would be impossible to have the blanket schedules ready before August 21. Under the orders of the commission, the new schedules must be filed five days before they become effective.
 Increased revenues, officially esti- mated at $100,00O,O0O annually, will accrue to the treasury as result of the advance in transportation rates allowed the railroads. The added in- come for the government, officials said tonight, would be derived from increased transportation taxes-which are paid by the public-as we'll as through operation of the income and excise provisions of the revenue law.
 Transportation taxes for the fiscal year ending June 30 aggregated ap- proximately $231 100000. This sum was made up from the three per cent tax on freight charges amounting to $125, 100000, the 8 per cent tax on passenger tickets supplying $1OO,- OO0,O00 and the per cent tax on Pull man charges producing $6,500,OOO.
 Should railroad traffic continue at its present volume, all of these amounts would be increased corre- spondingly with the advance permit ted by the interstate commerce con- mission in it's rate decision last Sat urday. On this basis, officials of the bureau of internal revenue calculate the additional taxes will aggregate $38,550,00O on freight, SIS, 8,7OO ,OOO on passenger, and $3,5OOOOO on Pullman charges.
 Another source of revenue would be from income taxes levied against the railroad corporations. Railroad executives expect many of the car riers to earn sufficiently large re- turns under the new rates to compel the payment of income taxes for the first time since pre-war days. It is from this source that the treasury expects to obtain large portion of the remaining $40,000,00O of their $100, 100000 estimate. Officials place the amount from income taxes con- servatively at $3O,0OO,000 year. \
 The wage award of $6OO,0OO, ,OOO a year, one of the causes for rate ad- vance, also will result in producing a certain return to the government fol it places most of the railroad em- ployes within jurisdiction of the in- come tax laws. Amounts levied on most of the workers will be small but it was pointed out, the railroad labor army numbers more than 2,OOO,OOC persons. From this number, officials believed the taxes would aggregate a Substantial amount, probably $1O, 000,000 or more."
 Officials also are studying the in direct effect the rate increase will have on revenue produced by the excise and miscellaneous taxes. Prac. tically all of the excise taxes are based on percentage of the selling prices-as the so called luxury tax and they regard it as certain that more revenues will be forthcoming as the prices of commodities move up ward.