The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1920-08-02
WORKING FOR
new RATE BY
SEPT[M MBER |
States Asked to Make Fares
Inside Them Correspond to
Rates Between Them
Revenue Not Calculated.
FREIGHT IS Different
(By Associated Press)

the nations TRANSFORMATION systems,
was started today with a view to put
ting into effect by Sept. the freight,
passenger. Pullman and excess bag.
gage milk rate increases authorized
last Saturday by the Interstate com,
merce commission.
While tariff experts are working on
the general rate schedules. the car
riers will make application to the var
1ous state commissioners for advance
in intrastate rates to correspond to
those in interstate rates.
Requests for advances in passenger,
Pullman, milk and excess baggage
tariffs arc expected to be the same
for all states as the increases in
these charges authorized by the fed
eral commission were general for the
entire country. They were 20 per cent
on passenger, milk and excess bag
gage charges and so per cent on rates
for sleeping and parlor car space.
Ask States to Correspond.
In. the case of freight rates, how
ever. the carriers will ask the states
to advance these tariffs to correspond
with the increases granted by the
federal commission for the territory
in which the state is located.
The interstate increases authorized
are 40 per cent in eastern territory,
25 in southern and mountain-PaCific
territory, and 35 in western territory.
In announcing that the applications
for intraState advances would be made
to the :-tate commissioner, Alfred +.
Thorn, general counsel of the associa'
ton of railway executives, said these
increases would not enlarge the gross
income to be received by the roads
under the decision of the federal COM
mission, because in presenting their
case the carriers based their estimates
on corresponding intrastate rate ad-
vances.
Haven't Calculated Revenue.
The railroad executives have not
calculated the total increased revenue
to be derived from the rate advances.
but from their estimates presented to
the commission at the public hearings
the sum has been unofficially approx
imated at one and one-half billion
dollars.
The commissions decision is intend
ed to fix rates as to give the roads
the six per cent return on their ag-
gregate value permitted by the trans-
portation act.
Since the commission fixed the ag-
gregate value of all the lines at $lS,-
900, 900 900 the net operating income
would be approximately $1,134,OOO,OOO
as compared with the $500 600
standard return the roads have re-
ceived during the period of federal
control and since.
Only Freights on Coast.
Coastwise and inland steamship
companies and electric railway lines
are permitted under the Interstate
Commerce commissions decision to
raise only freight rates.
Nothing was said by the commission
as to the passenger rates on the steam
boat lines, but the decision did say
specifically that the freight rate in
crease granted electric railway lines
was mot to be construed as an eX
preston of disapprOyal OF increases
made or proposed in the regular man
ner, in the passenger fares OF electric
lines"
While the commission authorized
separate freight rate increases to the
railroads in the four separate territor
les, the increase on freight MOVING
from one territory into another will
be 33 Is per cent.
Creation by the commission on its
own motion OF the mountain-PacitiC
territory was unexpected.
SO Per Cent Request Rejected.
The western roads as a whole haC
ioined in asking for an increase o.
323 per cent, but the southwestern
lines later at the public hearing asked
that they be given separate treatmen
and a freight increase OF approximate
ly 80 per cent.
The commission did not grant thi:
request, saying that it had been op
posed by many shippers and by othe1
carriers in the western group
"The record shows" said the com
mission, that the principal railroads
serving the territory west or the COLO
RADIO common points, especially the so
called transcontinenta rallroadS as
whole, are in a substantially bette
financial condition than other Garner!
il. the western territory.
eft also shows that the rates, gener
ally speaking, are materially higher il
the region west of the Colorado com
mon points than in the part of th'
western territory lying east there.
considering the whole situation, l
is our view that the territory west o
the Colorado common points ana I'M
traffic to and from the territory ma.
properly be given separate treatment
Reasons requiring an increase o
interstate rates are very persuasive
the need for increases in lntefS'at'
rates." declared a report sent to Varl
GUS state railway commissions toda.
by three representatives of those com
missions who sat with the interstate
Commerce Commission on public hear
ing on the billion and a half dolla
increase.
The increase rates permitted unde
the ruling and ex parte "A, will prob
ably go into effect. Sept. l, 1920. Tn
operating revenues of the roads unde
present rates are recognized by al
persons as insufficient.
A part Of the responsibility to NEE
the situation rests upon the stat
commission. Such increases as will b.
made in interstate rates, should,
possible, be made effective Sept. l
1920