The Rice belt journal. (Welsh, Calcasieu Parish, La.) 1900-19??, 1920-08-07
RAILROAD RATES TO
INCREASE ON SEPT. |
Roads Authorized to Increase
All Rates by Interstate
Commerce Commission.

Washington.-Rat increases grant
ed the railroads by the interstate com
MERGE commission are designed to
give the carriers an annual net operat-
ing income of $1,134,000,00O, or SAL
100000 more than the standard return
allowed by the government and based
on the average Of three-year period
Immediately preceding federal con-
troll.
This sum is $34,OOO,OOO more than
the roads made in their record year
of 1916, but is $99,OOO,OOO less than
the total of 1929, 100000 net operating
income which they sought in present
ing their applications to the commits
sion
Rate experts of the carriers set to
work this week on the tremendous
task of preparing the new tariff sched-
ules which it is planned to file in time
for the increased rates-freight, pas
senger and Pullman-to become ef-
fective Sept. /. On that date the gov
eminent guarantee of the standard re-
turn of $893000,000 annually will ex-
pire under a provision Of the trans
portation act limiting the guarantee to
six months after the carriers were re-
turned to private control.
Experts of the commission and the
carriers also will undertake to figure
the actual money returns which Will
accrue to the roads from the rate in
crease granted which are about 80
per cent on freight rates, 20 per cent
on passenger, express baggage and
milk rates, and so per cent on charges
for space in sleeping and parlor cars.
The actual increased amount to be
received by the roads as a result OF
the rate advances has been roughly
estimated at $1,5O0,000,000, but until
the new tariffs are worked out and put
into operation, the exact amount is
problematical. With passenger fares
increased one-fifth and Pullman
charges advances one-half passenger
travel probably will be reduced.
Based on the present passenger traf-
fic these increases are expected to
yield the roads a return of SIT, 100000,
all of which was sought to help absorb
the wage advance to railroad workers
which the railroad labor board has in
formed the commission will work out
at $61S,000, 900, instead of the S600,000,-
900 first estimated. The carriers have
figured the increase of 1925, 100000,
but for the purposes of the rate case
the commission used the boards fig
ures.
The net operating income of $1,134,-
100000 which the roads are to receive
as a result of the fare raises repre-
sents per cent in aggregate value Of
the railroad properties which was
placed by the commission at $1S,9OO,-
900 or 81, lao, 100000 less than the car
riers' estimates.
OF the total income received by the
roads one-half of per cent of the ag-
gregate value, or $94,OOO,OOO must be
set aside annually for additions and
betterments.
Thus, the actual net operating in
come going into the treasury of the
carriers would be $1,04O,0OO,000
From this must be deducted taxes
and other fixed expenses not included
in operating expenses before the ac-
tual net income is determined. AID
mittedly, taxes and most other of such
fixed expenses have increased since
the prewar period on which the stand,
ard government return is based.