Evening journal., 1920-08-02
huge R. R. RATE
RAISEGRANTED
o Increase Revenues Bill
lion and Half
Dollars
ARE UP ONE-FIFTH;
FREIGHT ONE-THIRD

WASHINGTON. Aug. ? Authority
or the railroads OF the country TO
Increase their revenues by approx
|nately one billion and a half dollars
las been granted by the Interstate
commerce Commission. Freight rates
|Nill be advanced about One-third
passenger fares one-nfth and Pullman
|,hanges One-half
Coastwise and inland steamship
ines and electric railway companies
'also were granted permission TO in
grease their freight rates in proportion
10 the Increases granted TO the rail-
loads serving the same territory. No
Estimate OF the aggregate amount TO
result from these advances has been
made.
The new rates which are TO con-
inue In force until March 4, 1921. Will
become effective upon i've days no
ice by the acrriers 10 the comm ssl0n
md the public and they must be in
operation before January 4. Since the
government guarantee expires sep
tember 4. The carriers are expected 10
ond every effort to put the advance
nto effect by that date.
Il Increases granted by the commits
sion are designed 10 offset the $780,
10000 wage advance awarded by the
Railroad Labor Board and 10 provide
the 8 per cent. net income on the az
regate value OF the railroad proper
ties as permitted under the iranspor-
tation act. The aggregate value OF all
|of the railroads was estimated by the
commission at Sis,9OOOO0O00. as
|againtt a book value Of S200i0,O00,O0O
|given by the carriers.
The 20 per cent. increase in passen-
ger fares, excess baggage charges and
milk transportation rates and the 30
|per cent surcharge on Pullman fares
authorized by the commission will be
general the country over. Freight rate
Increases viii vary according 10 ter
ritory with 40 per cent. in the East ;
% per cent. in tue south: 30 per cent.
in the West-that Is from the Missis-
sippi River 10 the ROckey Mountains
and % per cent. in the Mountain-Pa-
cific territory-frOm east Of the Rock
les to the Pacific Coast. not including
Alaska
The commission, in its 36-pags
decision, made no attempt 10 com
pute the amount OF Increased reve-
nLsS the carriers would receive by
reaoCn Of the rate advances. 10 did
say. however, that the increases were
justified, In view Of the rapidly
changinS conditions as 10 prices and
the necessity for providing adequate
{ ansportation facilities during and
after the period OF readiustment.
From figures submitted to The
commission by the carriers. when
their applications for the increases
were made, il was unoficially esti-
mated that the apportionment OF
the advances would work out al
about 81 .2S5, 10000 on freight; S233.
$4,000 on passenger; Si3.600OOO or
Pullman; S4,5O0O00 on milk. and 81.
10000 excess-baggagc charges.
On the same calculations. the east
ern roads would get the greatest par
Of the tOtad increase, receiving ap
proximately 1913. 10000 as compared
with S559, ,4S3,O00 for the western lines
including those In the Mountain-Pa
ciilc territory. and Si35. .296,O0O FOR th
southern carriers.
The increased chargers on freigh
alone were estimated as equaling
levy Of Sf2 per capita per annum 70
every man, woman and child in tn
country. basing the nations popu
lation at iO5OO0O00 FOR 1920. recent,
made by the Census Bureau.
The increases in passenger, Pull
man and excess baggage rates wer
exactly those asked by the roads
Freaght increases requested wer