The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1920-08-02
AUTHORITY FOR
AN INCREASE
Freight and Passenger Rates Con-
ferred on the Railroads by Inter-
state Commerce Commission
CAssociated Press)

fAssociated Press)
Washington, Aug. 2-"Reasons|
for requiring an increase in inter-
state rates are very persuasive of the
need for an increase in intrastate
rates." declared report sent to the
various state railway commissions by
the representatives of those commits
sions who sat with the Interstate
Commerce Commission during the
hearings on the billion and a half
dollar railroad rate case. The report
said it believed the conclusions were
juts and fair. all things considered,
and that any intrastate increases
granted should be made September
1st, when the interstate rates probab-
ly will be effective.
DUNN SIGNED 1T
Royal G.. Dunn, member of the
Florida railroad commission, and the
Pennsylvania and Ohio commission
ers signed the report.
TT MAKES BUSINESS LOOK UP
New York, Aug. Speculate and
investment sentiment on the stock
exchange is hopefully disposed fol-
lowing the sweeting rate increases
and large volume of buying orders
from all parts Of the country impart-
ed activity to initial dealings today,
with a substantial improvement in all
quarters.
RATES OF INCREASE
Washington, Aug. Authority for
the railroads of the county to in
crease their revenues by approx
mately one billion and a half dollars
was granted yesterday by the Inter
state Commerce Commission. Freight
rates will be advanced about one
third, passenger fares onefifth and
Pullman charges one-half.
Coastwise and inland steamship
lines and electric railway companies
also were granted permission to in
crease their freight rates in proper
tion to the increases granted to the
railroads serving the same territory.
No estimate of the aggregate amount
to result from these advances has
been made.
The new rates, which are to con-
will become effective upon five days
notice by the carriers to the commits
sion and the public, and they must
be in operation before January /.
Since the government guarantee ex-
pires September /, the carriers are
expected to bend every effort to put
the advances into effect by that date.
Increases granted by the commits
sion are designed to offset the $780,
100000 wage advance awarded by
the railroad labor board and to pro-
vide the six per cent net income on
the aggregate value of the railroad
properties as permitted under the
transportation act. The aggregate
value of all of the railroads was
timated by the commission at $18.-
yOO,OOO,000 as against book value
Z of $20,O40, 100000 given by the car
riers.
Passenger Increase General
The 20 per cent increase in passen-
ger fares, excess baggage charges and
milk transportation rates and the 30
per cent surcharge on Pullman fares
authorized by the commission will be
general the country over. Freight
rates increases will vary according
to territory with 40 per cent in the
east; rs per cent in the south; 80 pei
cent in the west-that is, from the
Mississippi river to the Rocky noun
tains-and 25 per cent in the Noun
tain Pacific territory-from the east
of the Rockies to the Pacific coast
not including Alaska.
The commission in its 36-page de-
cision made no attempt to compute
the amount OF increased revenues the
carriers would receive by reason Of
the rate advances. 1t did say, how
ever, that the increases were justified
in view of the rapidly changing con
ditions as to prices and the necessity
for providing adequate transportation
facilities during and after the periot
of readjustment.
From figures submitted to the
commission by the carriers when theil
applications for the increases wer'
made it was unofficially estimated
that the apportionment of the ad
vances would work out at abou
81 ,285, 100000 on freight; $233, 800,
900 on passenger; $43, 100000 ol
Pullman; $4,50O,000 on milk, and 81.
100000 excess baggage charges.
On the same calculations, the east
ern roads would get the greater par
of the total increase. receiving ap
proximateIy 1878, $4,000 as compar
ed with S559, ,4S3, 900 for the western
lines, in cluding those in the noun
tain Pacific territory, and $780, ,298,
n 900 for the southern carriers.
The increased charges on freigh
lone were estimated as equalling ;
f&;evy of S12 per capital per annum fo
every man, woman and child in tn
country, basing the nations popula
tion at 105,00O.0O0 for 1920, recentl,
made by the census bureau.
The increases in passenger. Pull