Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-01
ST. 100000, 900 Will Be Add
ed to Revenue of
Carriers.
PULLMAN FARES WILL
JUMP so PER CENT
Freight and Passenger Boosts
Large-Efective After Five
Days Notice.

The Interstate Commerce Commits
sion, acting on applicat tion of the
country's railways. yesterday granted
increases in freight, passenger. Pull
man and other rates which will add
approximately $1,4O0,000,000 to the
yearly income of the carriers.
The additional revenue provided by
the increased rates is about $500, ,O00,-
900 less than the railroads asked to
absorb the wage award by the Rail-
way Labor Board, and to bring their
net income to the 6 per cent of their
property investment guaranteed by
the government in the transportation
act
The rates probably will become ef-
fective before September l. The COM
mission orders that they be placed in
effect between now and January 1.
1921, after the carriers have given
the public and the commission five
days notice
Meet Carriers Demands.
Passenger fares were increased 20
per cent, and a surcharge Of so per
cent for Pullman fares was granted.
together with 90 per cent increase
in the present rates on excess bag
gage and 20 per cent in the rates on
milk. With the exception of the lat
ter rate on milk, these were the in
creases asked by the carriers par
TALLY to offset the higher pay for
their employees
The total freight increase is calcu-
lated at about s1.134 ,000,0 ,000 This in
crease is based upon 6 per cent of the
commi ssion's valuation of the car
riers' 800, 600, 900, which
is s1.716,000.O00 less than the valua-
ton made by the railroads them
selves.
Eastern freight rates will be ad-
vanced 40 per cent. yielding ap-
proximately $3.50, 900, 900.
Southern freight rates are advanced
25 per cent. to bring. about 500, ,000.-
600.
Big Increases In West.
The western and mountaineering
roads will receive about s2S4.0O0. 900
on higher rates, from an increase of
35 per cent in the west and 25 per
cent in the mountain-Pacific terri
tory.
The increased passenger fares will
yield approximately s233,S27.9S2 The
higher Pullman fare will amount to
about $43,63s,344. The increased toll
on excess baggage is placed at about
s1,420,s9S and an advance in milk
rates will yield about $5,00O,0O0.
Coastwise steamship lines are au-
thorized to increase their rates TO
the same extent herein granted the
railroads operating between the same
points in the new territory
The commission also gave electric
lines permission to increase their
freight rates by the same percentage
as was applied to the trunk lines in
the same territory. The commission
added that this was not to be con-
strued as an expression of disapproval
of increases made or proposed in the
regular manner in the passenger fares
of electric lines"
Southern ROnds in Good Shane.
The increases in passenger, Pullman
and excess baggage rates were ex-
actly those asked by the railroads.
Freight increases asked were 1915
for the eastern roads, 32.03 for the
western roads and 1891 for the south
ern roads. The eastern roads were
granted .25 of l per cent more than
proXimately what they asked and the
southern roads IA per cent less than
they asked.
In connection with the southern
roads the commission said the condi-
tion of these carriers was more ia
vorable than the lines in the other
groups. In view of this, the commits
meet the demands made upon them
and did not require so large an in
come.
THE increases here authorized" said
the commission. "are intended to yield
the additional one-half of one per cent of
the aggregate value of the roads to
make provisions for improvements. bet<
IerInenIS anu equipments, cnarSeaDte to
capital account The record leaves no
doubt as to the needs of the country for
additional transportation facilities
All carriers participating in the in
creases will be expected to make appro-
priations for additional improvements.
betterments or equipment of a character
chargeable to capital account and to
make report to us semi-annuapy show
ing what portion of the increased rev.
enucs resulting from the increases here
authorized has been devoted to that DUR
pose"
Must buy New Equipment.
This one-half of one per cent will
approximate $94.OO0.000. The commits
sion oaid that the carriers had stated
specifically that they needed imme-
diatly at least 100000 freight cars.
1000 locomotives and 5000 passenger
coaches. These are to be paid for out
of this fund and out of moneys ad-
vanced by the commission and borrowed
by the carriers.
The commission went at some
length into the question of aggre-
gate values of the roads, az we'll as
their financial condition, and said:
I'VE conclude that increases as in