Great Falls daily tribune. [volume] (Great Falls, Mont.) 1895-1921, 1920-08-02
CARR|RS GET
LESgTH ASK
INNATE BOOST
Increaes Are Designed
to Gve Over Billion as
Net Operating Income
for All Roads.
Is 34Million More Than
Reurns in Record Year
But 90 Million Less
Tlan They Sought.

Washington, Aug. 1.-(By the Asso-
ciatd Press) Rate increases granted
therailroads by the interstate commerce
commission are designed to give the
ca fiers an annual net operating income
Of 81, 1874, 100000 or $241 100000 more
than the standard return allowed by the
government and based on the average
of the three-year period Immediately
proceeding federal control.
This is S34 100000 more than the
roads made in their record year of 1915.
but is S99,00O000 less than the total
of 81, ,233, 100000 net operating income
which they sought in presenting their
application to the commission.
Rate experts of the carriers will now
set to work on the tremendous task of
preparing the new tariff schedules,
which it is planned to file in time for
the increased rates-freight passenger
and pullman-to become effective on
Sept, i. On that date the governmen ent
guarantee Of the standard return of
$S3, 100000 annually will expire under
provision of transportation act limit
ing this guarantee to six months after
the carriers were returned to private
control
Figure Money Return
Experts Of the commission and the
carriers also will undertake to figure
the actual money return which will ac-
crue to the roads from the increases
granted, which are about 33 per cent
on freight rates, 20 per cent on passen
ger, excess baggage and milk rates and
o0 per cent on charges for space in
sleeping and parlor cars. ]
The actual increase to be received by
q h1.
has been roughly estimated at 81 800
100000, but until the new tariffs are
worked out and put into operation, the
passenger fares increased one fifth and
pullman charges advanced one-half
passenger travel will probably be re
duced
Based on the present passenger traf
flc, these increases are expected to yield
return OF $227 100000 all of which
was sought to help absorb the wage ad,
vance Of the railroad workers which the
railroad labor board has informed the
commission will work ont at S61S,000,-
600. instead Of the 5000 100000 first es-
timated.
Use Boards Figures
The carriers have figured the increase
at about 1925 100000 but for the pur-
pose Of the rate case the commission
used the boards figures
The estimated net operating income
of ST, 134, 100000 which the roads are
to receive as the result of the fare
raises, represents per cent on the az
gregate value Of the railroad properties
which was placed by the commission st
S18,900. 100000 or S1,140.GO0OOO less
than the carriers estimate. OF the total
income received BY the roads, one half
Of one per cent Of the aggregate value
er S94, 100000, must be set aside annual
ly for additions and betterments.
Thus the actual net operating income
going into the treasury of the carriers
would be 81 1,OO4. 100000.
From this must be deducted taxes anil
other fixed expenses. not included in
operating EXPENSES before the actual net
income is determined. Admittedly. taxes
ard most other of such fixed expenses
have increased since the pre-war period
on which the standard government le-
turn is based.
In Reserve Funds.
Should the commissions decision re
suit in producing more than the 6 per
cent return on the aggregate value al
lowed under the transportation act, one
half Of the excess would, under the terms
Of that act. be placed in the reserve
funds of the roads and the other half
turned over to the interstate commerce
commission to establish a revolving fund
n be used for making loans to the car
riers or for purchasing equipment to
be leased to them.
The estimated net income to be re-
ceived by the three groups of roads IS
fixed at 6 per cent of the valuation
placed on these groups by the commits
SION. On a valuation Of $500 .0OU.eN,
the eastern roads would receive SON
100000. They asked for return cf
$3.50, 100000 and are receiving stand
ard return from the government ff
1854. 100000 or approximately $500
100000 less than they sought
The valuation Of the western roads
including those in the new mountain
Pacific territory set up by the commits
sion for the purposes of the rate decls-
ion is placed at 00ln00O0O.
S4s6,0Oo,0 900 In West
The western roads would receive an es-
timated net income of $4s6,0OO,OO0 or
about S5O,O0O,000 less than the S537.-
500. 900 which they sought. The standard
return they are now receiving is $401
100000.
Southern roads were valued by the
commission at 1000, 100000 so their
net operating income would be S120,-
100000, or S16,000,O00 less than the
sum they sought
TAKES GRAVEL HAULING WORK.
Special to The Daily Tribune.
Harlem, Aug. 1.--Ort Irons has &C
- NJ $ha cfa hieh