Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1920-08-06
RAILROADS GET
s1,5OO,OOO,OO0
Rate Increase Is Largest Ever
Allowed Lines by Commerce
Commission.
PASSENGERS TO SHARE LEVY
Boost Is Allowed to Enable Roads 20
Meet Increased Cost of oper-
alton Produced by
the War.

Washington, Aug. 3.-The greatest
single advance of transportation rates
in the history of government regula-
tion was granted to the railroads Of
the United States in unanimous or
der of the interstate commerce com
mission. The award will increase the
annual revenue of the railroads by
about a billion and one-half.
The increase in rates allowed 10
enable the roads TO meet the increased
cost of operation produced by the war,
partly to rehabilitate and expand
equipment and to finance the recent
$6lS.O00000 employees wage raise,
are:
Western freight rates, 80 per cent.
Eastern freight rates, 40 per cent.
Mountain Pacific freight rates. %
per cent.
Southern freight rates. 25 per cent.
MIX rates, 20 per cent.
All passenger fares. 20 per cent.
Excess baggage charges 20 per cent.
Pullman sleeping and parIor car
rates. so per cent surcharge.
The railroads were given substan-
TALLY all the increase in rates they had
requested to enable them to earn tie
515 per cent for service and an addi-
tional one-half of per cent for Inn
provement charges, making a total Of
per cent provided by the transporia-
ton act. The roads will put the In
creased rates into effect by September
J. when the six months government
guarantee period expires.
'Tn view of the existing situation"
says the commission, sit Is important
that the increased rates be made ef-
fective at as early date as pfac-
tlcable. The increases herein ap-
proved may be made effective upon
not less than five days notice TO the
commission and TO the general public
by filing and posting in the manner
prescribed In the interstate commerce
act.
'"The authority herein granted VIII
not apply to any rates, fares, or
charges filed with this commission 10
become effective later than January 1.
1921.
"Most of the factors with which we
ere dealing are constantly changing.
1t is impossible to forecast with any
degree of certainty what the volume of
traia'c viii be.
"The general price level is chang
ing from month to month and from
day to day. It is impracticable at this
tt:ine to adjust all of the rates on lndi-
vidua commodities. The rates to be
established on the basis hereinhefOre
approred must necessarily be subject
to such readjustmerts as the facts
may warrant. It Is conceded by The
carriers that readiustments viii he
necessary. II is expected that ship
pers viii tai these matters up In the
first instance with the carriers and
the letter VIII be expected TO deal
promptly and effectively Herewith, to
the end that necessary readjustments
may be made in as many instances as
practicable without appeal to MS"
Washington, Aug. 4.--"Reasons re-
quiring an increase Of interstate rates
are very, persuasive of the need for
Increase in intrastate rates" declares
a report sent to the various state rail-
way commissions by the three repre-
sentatives~ of those commissions, who
sat with the interstate commerce com
mission during public hearings on the
1,500, 100000 railroad rate case.
REIMBURSEMENT of the whole rate
structure of the nations Transports
tion systems has bee1 started. with a
view to putting into effect by Septem-
Der 1 the freight, passenger, Pullman.
excess baggage and milk rate in
creases.