Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-04
S10l,0)l,ODO FOR
U. S. IN RATE RISE
Increase in Transportation Tax
Expected to Aid Federal
Treasury
ADVANCE SET FOR AUG. 26
BY the Associated Press

Washington, Aug. 4.--The American
travelling public and American shipping
may expect to begin paying the in
creased passenger fares and freight
rates authorized by the Interstate Com
merce Commission August 28. repre-
sentatives of the railroads announcing
today that it was planned to put the
new rates into effect on that date.
Previous announcement by the rail-
road executives was that the passenger
fare increases would go into effect
vances August %. The blanket sched-
ules. which must be filed with the com
mission five days in advance of the
effective date, tariff experts have in
formed the executives. cannot be pre-
pared for an earlier date than August
~.
The increased rates. in the opinion
of Internal Revenue Bureau officials
and others connected with the collection
of federal taxes, will increase govern
ment revenues approximately $780,
900 900 year through additional reve-
nucs from passenger and freight trans
portation, corporation and individual
incomes and various excise levies.
Transportation taxes for the fiscal
year ending June 30 aggregated approx
imately 1921 100000. That sum was
made up from the 3 per cent tax on
freight charges amounting to S125, -
600, 900. the per cent tax on passen-
ger tickets supplying 800. 900, 900 and
the per cent tax on Pullman charges
producing SO. 6.500.000.
Should railroad traffic continue at its
present volume. all of these amounts
would be increased correspondingly with
the advance permitted by the Interstate
Commerce Commission in its rate de-
cision last Saturday. On this basis,
officials of the Bureau Of Internal Rev
enue calculate the additional taxes will
aggregate S3S. $50, 600 on freight. S1S. :,
700. 900 on passenger and $4,000, ,0OC
on Pullman charges.
Another source of revenue would DC
from income taxes levied against the
railroad corporations. Railroad exccu
tives expect many of the carriers to earn
sufficiently large returns under the new
rates to compel the payment of income
taxes for the first time since pre- wal
days. It is from this source that the
Treasury expects to obtain large por
ton of the remaining $40 900 600 oi
their 500, 1000. 900 estimate. Officials
placed the amount from INCOME taxes
conservativelv at $50 900 900 year.
Exports from the United States, In
the oninion Of foreign trade experts Of
the Department of Commerce. will not
slump to any great extent as a result
Of the increases in railroad freight rates
Some decrease is to he expected, they
declared today. chiefly because com
modities which have to be hauled a con
siderable distance to seaports undoubt'
edly will advance somewhat in price.
As factor working against American
overseas business the new freight rates
officials predicted, will take place with
the exchange situation, the collapse Of
European credit and the poverty of the
foreign nations. Since exports have
steadily increased in value, despite the
| last three factors, trade experts are con
fident the new element introduced BY
higher freight tariffs will work no Sc,
rious harm.