The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-07-31
BIC INCREASE
IN Rail RATES
Passenger Fares Are Boosted 90
Per Cent by l. C. C. Today.
Raise of 35 Per Cent on Freight
Charges in West Allowed.
nz.. - ..,-a -.A- AHH.
MAY 60 INTO EFFECT SEPT. l
Raise Must Be Placed Before
January 1, Order States.
Surcharge of so Per Cent on
Sleeping and ParlOr Cars.

Washington, July 31.-Sweeping rate
increases were granted the railroads in
a decision handed down by the inter-
state commerce commission today
Advances of forty per cent in rail-
road freight rates in the east; 25 per
cent in the south: 35 per cent in the
west and 25 per cent in the mountain
Pacific territory were granted by the
interstate commerce commission.
Passenger fares were increased 20
per cent. the amount asked by the
railroads to help in absorbing the
s6OO.OOO.OOO wage increase granted
by the railroad labor board.
A surcharge of fifty per cent on
rates for sleeping and parlor cars was
granted together with a twenty per
cent increase in the rate on excess
baggage and twenty per cent in the
rates on milk.
The increases may become effec-
tive upon five days notice given by
the carriers to the commission and the
public and they must be put into eff
feet before January 1. 1921. Since
the government guarantee to the roads
expires on September 1, it is generally
expected the advances will be put into
force before that date.
In arriving at the increases. the
commission placed the valuation of
the railroad properties at $1S.90O,-
100000, as against the S20,616, ,0OO.-
600 estimate of the railroad execu-
tives
The average increase was approx
mately 81 per cent while the roads
asked an average of about 81 per cent.
Excess baggage rates also increased
90 per cent
unofficial estimate of $1,400,000 were
approved.
Washington, July 31-This total is
about 200,00O.000 less than the
amount for which the railroads asked
award by the railroad labor board and
I to bring their net income to the per
cent provided for in the transportation
act
! The commission authorized the ap-
plication of the general increase to the
rates on commodities. Special rates
have heretofore prevailed on the
charges therefore will be increased ac-
cording to the percentage ordered in
the various froups.
! What 1t Means to Railroads.
Washington, July 31.=The freight
increase total IS eSumated at u ,1o4,'
4 100000 on the basis of six per cent
on the $4,000. 900, 600 placed by the
commission on the properties of the
roads. The increase of 40 per cen
in the east is estimated to yield ap-
proximately s75O.OO0,O00, The 25 pei
cent granted southern roads is esti
mated to yield about $100,000,oO
while the western and nlountainPa
cific roads will get an Increased re
turn of about $284,0O0.OO0 in freigh
rates.
To the increase of s1,134oOO,O ,OOt
to the nations freight bill will b'
added an increase in passenger rate
aggregating S2S3.827.9s2; an increas'
in Pullman rates aggregating s43. .639.
344; an advance in excess baggage
rates approxtmating $1.420,99e. anC
an advance in milk rates of abou
$5,O0O,OO0.
The increases granted are designed
10 give the roads a net income of 5
per cent on their valuation and al
additional one-half of one per cent Il
make wrat the commission described
as appropriate provision for addi
tional Improvements, betterments o
equipment of a character chargeabl
\ TO capital account"