South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-08-01
COMMERCE COMMISSION
AUTHORIZES SWEEPING
TRANSPORTATION RAISE
Freight Rates Will Be Ad-
vanced One-third; Passen-
ger Fares One-fifth.
To BE EFFECTIVE SOON
Increases Designed to Offset
Wage Award Given
Employees.
By Associated Press

bg ASSofldleQ IresS.
WASHINGTON. July 31.-Auth-
GRITTY for the railroads OF tho coun-
try TO increase the revenues by ap-
proXimately one billion and a half
dollars was granted today by the
Interstate Commerce commission.
Freight rates viii be advanced about
one third. passenger fares one fifth
and Pullman charges one half
Coastwise and inland steamship
lines and electric railway companies
also We're granted permission TO in
crease their freight rates I'm proper
ton 10 the Increases granted 20 the
railroads serving the same territory
No estimate Of the aggregate amount
TO result from these advances has
been made
Expire March I. 1922.
The new rates which are 20 con-
tinue in force until March I, 1922.
VIII become effective uIOn five days
notice by the carriers 20 the COM
mission and the public and they
must be in operation before jan
uary l. Since the government guar
antee expires September 1 the car
riers are expected 10 bend every ef-
fort TO put the advances into effect
by that date
Increases granted by the commits
sion are designed TO offset the
$600.oO0,o00 wage advance awarded
by the railroad labor board and 20
/ provide the six percent net income
on the aggregate value OF the rail-
road properties as permitted under
! the transportation act The aggre-
gate value o. all OF the railroads
was estimated by the commission at
SlS.9O0,000 as against a book value
Of $20,04o,000,0O0 given by the car
riers.
General Raise.
The twenty percent increase in
passenger fares, excess baggage
charges and milk transLo tation
rates and the fifty percent sur
charge on pullman fares authorized
by the commission will be general.
the country over. Freight rate In
creases will vary according 10 ter
ritory with 40 percent IN the east:
26 percent IN the south. IS percent
I'm the west-that is from the Miss
issippi TO the Rocky Mountains and
% percent I'm mountain-Pacific ter
ritory-from east OF the Rockies 20
the Pacific coast. not including
Alaska.
The commission I'm It's Sc page de-
cision made no attempt 20 compute
the amount of increased revenues
the carriers would receive by reason
Of the rate advances. Il did say.
however. that the increases were
justified in view OF the rapidly
changing conditions as 20 pieces and
the necessity cor providing adequate
transportation facilities during and
after the period OF rcadlustme
Unofficial Estimate.
From figures submitted 20 the
commission by the carriers when
their applications for the increases
were made IL was unoffcially esti-
mated that the apportionment OF The
advances would work out at about
.285.3OO.O00 on freight S233,8OO.-
600 on passenger: S43,600.000 on
pullman; S4.5O0.00O on milk and ST.
100000 excess baggage charges.
on the same calculations. the
eastern roads would get the greater
part Of the total increase. receiving
approximately ss73, 100000 as com
pared with $3.50 $4,000 for the
western lines. including those IN the
mountain pacific territory and Sl35.-
29S,O0O for the southern carriers.
The increases charged on freight
were estimated as equallinE lcvF
OF s12 per capita per annum for
every man, woman and child in he
country basing the nations popula-
ton at 100, OOU,VuU TOT LsLU. EtHtl---
~ made by the census bureau
Grant Exact Raises.
The increases in passenger. pll-
man and excess baggage rates We're
exactly those asked by the roads.
Freight increases requested were
2e-5 for the eastern roads. 3--o5
for the western roads and os 81 Tor
the southern roads. the total cstl-
mated 20 yield 1885. 100000 The
eastern roads thus were granted -
Of one Iercent more than they
sought the western roads approx
imately what they sought but the
southern roads receivNt approNi-
uateIv Il percent less than they