New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-04
$1OO;OO0,O()O
For i. S. Seen
In Rate Raise.
Increased Treasury Revenue
Estimated From Added In
come Derived From High
or Transportation Taxes
Wage Award Will Help
Officials Believe Employees
Will Contribute Oversize.
600. 600 in Income Lew

WASHINGTON, Aug. 3 tBy The AS
sociated Press Increase revenues.
officially estimated 8, 500 900 900 an
rually. will accrue to the Treasury as
result of the advance in transporta-
ton rates allowed the railroads. The
added income For the government. Off
Gals SAID tonight. would be derived
from increased transportation taxes
when are paid ny the nubiic-as we'll
as through operation OF the income
and excise provisions Of the revenue
laws.
year ended June 30 aggregated an
fortunately S25l goo 600 This sum
was made up from the per cent tax
on freight charges amounting to S125.-
aooo0V, TIE per cent tax ON passenger
tickets supplying SI00 100000. and the
per cent tax on Pullman charges
producing $500 goo
S6O,750 coo on Road Taxes
Should railroad traffic continue at
its present volume all Of these amounts
would be increased correspondinglv
With the advance permitted by the In
terstate Commerce Commission in IT'S
officials Of the Bureau of Internal Rev
snue calculate the additional taxes will
aggregate $3.50 600 on freight. Sis
100000 on passenger and $500 900 on
Pullman charges.
Another source o. revenue would be
from income taxes LEVIED against ehe
railroad corporations. Railroad execu-
tives expect many OF the carriers to
earn sufficiently large returns 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 expects to obtain q
large portion OF the remaining 100000
900 Of their 100000 600 estimate. ON
Gals placed the amount from income
taxes conservatively at $30,000,00O q
yssr.
Revenue From Wage Award
The wage award Of $500 900 600 q
year, one Of the causes for q rate ad
vance. also will result in producing a
certain return to the government. for
its places most Of the railroad en-
ployees within jurisdiction of the in
come tax laws. Amounts levied on
most Of the workers will be small. but.
Il was pointed out. the railroad labor
army numbers more than 100000 per
lieved, the taxes would aggregate 3
substantial amount probably 10000
900 or more"
officials are studying the indirect
effect the rata increase will have on
revsnue produced by the excise and
miscellaneous taxes. Practically all
Of the excise taxes are based on per
centage OF the selling prices-as the
so-caIlsd luxury tax-and they regard
It as certain that more revenue will
be forthcoming SIS the prices Of com
mod.ties move upward.
The Increase Effective August 2e
New freight rates and passenger
fares will be made effective August 28
instead OF en- August 20 for passenger
fares and August 25 for freight tariffs.
railroad officials announced tonight.
At the same time it was announced
that the American railroads would ask
the Canadian Railway Commissioners
for permission to make the new rates
effective on transportation from the
tinted States TO the Dominion.
Decision to postpone the putting
INTO effect Of the advanced charges
from the dates announced yesterday
was reached tonight after tariff ex-
perts OF the carriers had Informed AL