South Bend news-times. (South Bend, Ind.) 1913-1938, 1920-08-03
Clerks Face Big Task in Work
ing Out Details of New
Rates.
L. 5. CONTINUES RENTAL
American People Will Pay
One-Third of Increased
Wage in Taxes.
By Associated Press


WASHINGTON, Aug. 2.-The new
passenger fares will probably be-
come effective August % and the
advance freight rates August 25. ac-
cording to a program outlined Mon
day night by Alfred p Thorn. gen
eral counsel for the Association OF
Railway Executives.
simultaneously with the effective
ness of passenger fares the increased
charges for Pullman travel and the
new rates on excess baggage and
milk also viii be put in force.
Prepare Schedule.
Railroad rate experts have begun
thc preparation Of blanket rate
schedules increasing the t-ansporta-
tion costs on percentage basis.
These viii be presented 10 the In
terstate Commerce commission five
days prior 10 the proposed effective
dates. The rate sheets will be sup
piled 10y Irinted tariffs containing
rates for all territories and on all
commodities as soon as the physical
task Of working out the details can
be accomplished. Until this work is
done, local rail ofacials viii com
pute the new rates and charges for
their respective territories on the
basis Of the existing rates plus the
per centage increase authorized by
/ the commission.
While this method Of putting new
/ rates into effect would 5e unusual.
railroad officials pointed 20 the sug-
gestion Of the commission that tho
higher rates be put In force cat as
! early a date as practicable"
Strain on Treasury.
BY putting the increased rates in
/ 10 effect prior 10 September I the
strain on the treasury under the
guarantee provision OF the trans
portation act likely will be ended
before eXT iration Of the govern
ments guarantee earnings 20 the
roads. Oficials estimated Monday
that by September I the guarantee
provisions would have cost the gov
ernment approximately S50.OO0.OO0
for the six months since the pas
sage OF the present railroad law
The government has been obliged
10 continue the SO. 100000 monthly
rental payment which was In effect
I during federal control as well as 20
meet deficits. not covered by the
rental amount. sustained bv the I'm
dividual carriers Included ln the
charges which viii fall on the treas
urv In these deficits Is that portion
of the $500 .0OO. 900 wage award COW
ering labor cost from May I 10 Sep
tembcr ! when the guarantee ex-
pires. This was officIaIlr estimated
at 100000, 900. Thus the Ameri-
can people will paw one-third of the
increased wage for railroad en-
ployes this year iu taxes.
Huge Cost.
With the amount guaranteed the
carriers this year and the claims q
. the lines for corupeu 50 tiou under
their contracts with the railroad adj
ministration the roads will have cost
tho govcruunert apr rosinateIy
billion and half dollars since -ha
president took over the property.
I December 2S, 1917
Operations cf tho roads after Sep
tember T. under the new rates VIII
yield. according 70 accountants and
tariff experts ~ the carriers. an an
puaI return Of about s1.580OC0. 600.
While these figures were OF n pre-
lluinarv sort. the railroad experts
believed the freight revenues 60 be
derived under the new charges
would amount 90 $1,000 900. 900 and
the income from passenger traffic
S2s3. 600. 600. Their estimates. Q
was explained. were based on the as
sumption that iutrastatc rates would
be increased correspond with
the advance authorized hy the feder-
al commission in interstate rates.