The Washington times., 1920-08-04
LINES
TO SEEK RAISE
Railroads Want to Have New
Schedules Applied to Do
minion Territory.
U. S. TO GAIN s10O,000,O0O
Greater Revenues Expected
From Transportation and In
come Taxes of Carriers.

New freight rates and passenger
fares will be made effective on Aug
ust 26, instead of on August 20 for
passenger fares and August 20 for
freight tariffs, railroad circles an
lnounced today.
| At the same time it was announced
that the American railroads would
ask the Canadian Railway Commits
sioners for permission to make the
new rates effective on transportation
from the United States to the Do
minion.
! CANADA TO SEEK RAISE.
| Application Of the new schedules
to transportation to Canada, officials
said. will mean that shippers will pay
| freight under the new tariffs for their
&c classification territories unless the
shipment passes through more than
one group before crossing the line, In
which case the inter-territorial rate,
which Is to be advanced 80 1-3 per
cent, would apply.
! Canadian railways, 1t was said. Will
apply. to the Interstate Commerce
tCommission for authority to make
the new charges effective on trans
! lportation from the Dominion into the
United States.
500, 600 900 INCREASE.
Increased revenues. officially esti-
mated at 100000, 900 annually. VIII
| accrue to the Treasury as a result OF
the advance in transportation rates
| allowed the railroads. The hdded
| in come for the Government. officials
said tonight, would be derived from
| ta~ u-h
are paid by the public, as well as
through operation of the income and
excise provisions OF the revenue
| laws.
| TRANSPORTATION taxes for the fiscal
year ending June so aggregated ap-
proximately 1921 100000. This sum
was made up from the per cent
tax on freight charges. amounting to
1925, ,00O,O 900; the per cent tax on
passenger tickets supplying $1OO.OOO,-
600, and the per cent tax on Pull
man charges, producing S6,50O,O0O.
Should railroad traffic continue at
it's present volume, all OF these
amounts should be increased corre-
spondingly with the advance per-
mitted by the Interstate Commerce
Commission.
On this basis, officials OF the Bu-
reau of Internal Revenue calculate
the additional taxes will aggregate
S3S,5OO,OOO on freight SIS, zoo, 900 on
passenger and $4,000, 900 on Pullman
| charges.
TO BOOST INCOME TAN.
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-wsr days.
| 1t Is from this source that the
| Treasury expects to obtain large
portion of the remaining $4,000. 900
of their S1OO,OOO,000 estimate. Off
cials placed the amount from income
taxes conservatively at $4,000, 900 q
year
The wage award of $500, ,OOO, 900 a
year, one OF the causes for rate
advance, also will result in producing
a certain return to the Government.
Howard Elliott, chairman OF the
Northern Pacific Railway Company,
| who was chairman OF the rate com
mittee Of the Association of Railway
| Executives, yesterday said IL should
be borne in mind that the rate de-
cision Is not a rubbing of an Alladin's
lamp so that communities. shippers,
travellers, employees and owners will
at once obtain their every wish.
Elliott expressed the hope that
prosperous, progressive and ambitious
communities would not assume that
the decision furnishes unlimited
money for things like elaborate pas
senger stations, grade separations and
other non-essentials. He added that
non-essential work would be post
poned until we know more about the
results to be obtained under the new
conditions.