The Hartford republican. (Hartford, Ky.) 18??-1926, 1920-08-06
new RAILROAD RATES
APPLICABLE Aug. 20
Federal Tax On Increase
To Add 100,000,000
To Treasury

Washington. Aug S.-New freight
rates and passenger fares will be
made effective August 26 instead of
August 20 for passenger fares, and
August % for freight .raffics. rail-
road officials announced tonight.
. At the same time Il was announced
that the American railroads would
ask the Canadian Railway Commits
.cioners fer permission 70 make tle
new rates effective on transportation
from the United States &c the Domin
ion.
Decision to postpone the putting
irtc effect OF the advanced charges,
authorized last Saturday by the Inter
state Commerce Commission. from
the dates announced yesterday, was
reached tonight after tariff experts of
the carriers had informed Alfred p.
Thorn, general counsel for the Asso-
citation of Railway Executives, that
II would be impossible to have the
blanket schedules ready before Au-
gust 81. Under the orders of the
commission the new schedules must
be filed five days before they become
effective.
Application OF the new schedules to
transportation to Canada. officials
said, would mean that shippers will
pay freight charges under the new
tariffs for their classification terri
tories unless the shipment passes
thru more than one group before
crossing the line. in which case the
interterritorial rate, which is to be
advanced 33 1-3 per cent, would APP
ply.
Canadian railways. IL was said, will
apply to the Interstate Commerce
n Commission for authority to make the
new charges effective on transporta-
ton from the Dominion into the
United States.
Rate Advance To Swell Treasury
. Washington, Aug. 3.-Increased
revenues officially estimated at $780,
100000 annually, will accrue to the
Treasury as a result Of the advance in
transportation rates allowed the rail-
roads. The added income for the
government, officials said tonight.
would be derived from increased
transportation taxes-which are paid
by the public-as well as thru opera
ton of the income and excise provi-
sions of the revenue laws.
Transportation taxes for the fis-
cal year ending June 80. aggregated
sum was made up from the per cent
tax on freight charges amounting to
$125, 100000, the 8 per cent tax on
passenger tickets supplying $780,
100000 and the per cent tax on
Pullman charges producing s6,500,-
geo.
Should railroad traffic continue at
its present volume, all of these
amounts would be increased CORES
pondingly with the advance permitted
by the Interstate Commerce Commits
aion in its rate decision last Satur-
day. On this basis, officials of the
Bureau of Internal Revenue calculate
the additional taxes will aggregate
in passenger and 500, 500, 900 on Pull
ls2S, $4,000 on freight s1S,7O0, 900
man charges.
Another source of revenue would |
be from income taxes levied against |
the railroad corporations Railroad !
executives expect many of the car
riers to earn sufficiently large re-
turns under the new rates to compel |
the payment of income taxes for the |
first time since pre-war days. 1t is
from this source that the Treasury ex-
poets to obtain large portion of the !
SAC, 1000 of their $780,
OO0,O0O estimate. Officials places
the amount from income taxes con-
servatively at $4,000, 1000 year.