Milford chronicle., 1920-08-06

~
The Interstate Commerce Commits
sion handed down formal decision
authorizing railroads to increase
freight, passenger and Pullman rates
approximately $1,50O, 100000 annual
ly.
The same authorization was given
to electric interurban lines and GER
tain passenger and freight steamship
companies operating mainly on the
great lakes and in the coastwise
trade. The increased Iates will add
approximately S3,000,000,0O0 to COM
modify prices generally, according to
the economic principle laid down by
former Rail Director Walker D. Hines
who declared that freight rate in
creases are reflected from three to
five fold in commodity prices. Rail-
road officials contradict this, saying
the reflection will be less than two
fold.
AS outlined by the commission in
its decision twenty per cent may
be laid on passenger fares, excess
baggage rates and charges now made
for carrying milk on passenger trains.
Authority also was granted the roads
to exact a surcharge of so per cent
of all Pullman and Chair fares, this
to go to the carriers and not to the
Pullman Company,
Freight rate increases were author
lied as follows:
Eastern territory 40 per cent;
Southern territory 25 per cent; Wes-
lern, % per cent. increases asked by
the roads were: Eastern, 80 per cent;
Southern, 25 per cent and Western
35 per cent.
The commissions order dealt only
in percentages. The estimate of ST.
100000 600 as the probable yield Of
the increases, however, is regarded as
accurate.
Increases Return Per Cent
The Commission intended the in
creases to be sufficient to enable the
roads to pay 51a per cent on their in
vestment after paying all operating
charges, including the S626,000, 900 ad-
ded to the yearly wage bill by the
railroad labor board which awarded
this amount to 100000 employees in a
recent decision. Another 0.5 per cent
was added to provide for new equip
ment and better service. The total re-
of six per cent.
The commission decided to use the |
figure $18,900, 100000 to represent the |
railroad investment. The railroads in |
their petition for increased rates re- /
ported their investment as $20,452,- 7
573,611. The commission thus pared .
S1,140,572,511 from the claims of uhe I
rail officials.
1,a ofne Foil 70
roads to pay 51a per cent of their in
vestment the Government under the
guarantee clause of the transporta-
tion act must make up the deficit out
of the public treasury. The one half of
one per cent increase added to cover
equipment and better service general
ly amounts to approximately $94,500,-
900 a year. Roads are required to file
semi-annual statements W a the COM
mission listing equipme { purchased
and explaining other expenditures for
Detterments.
Equipment Needed
App Oximately 1,OOO, 100000 persons
ride on the railroads each year. The
fund for equipment and betterment is
intended to insure their comfort. The /.
roads estimate that they now need
5000 passenger cars and 1000 locomo-
tives. Freight car needs are placed at
100000,
The commissions decision was long
awaited by shippers, manufacturers ,
and business men generally through
out the United States. 1t is intended /
to put the railroads on their feet. !
Since their return to private owner !
ship. the roads have incurred deficits !
totalling, oproximately $500, 100000, +
according to estimates here. This !
loss has piled up since March 1, when +
the Government turned the lines back =
to private management. 1t must be 2
made good by the Government.
Shippers and manufacturers in all r
parts of the country for months have r
complained of inadequate rail facili- q
ties. Many could not ship their pro- r
ducts. q
The decision followed hearings held !,
by the commission in April, May and h
June. For several weeks members of z
the commission have worked night 2
and day trying to adjust the conflict
ing claims made at the hearings by /,
shippers and railroad officials. n
New Rates Operative 10 1922 e
The new rate are intended TO be op- j.
erauve until March 81 1922. Il
The commissions decision is sort
of outline to the roads as to how far e.
they can go in fixing increases. 1t =
does not fix specifeerates on any par Il
Eicular commodity Fixing the actual II
rates is up to the individual railroad el
companies.
Neither can the railroads simply III
AXE the increased percentage allow s.
ed by the commission and apply them m
n blanket manner to existing rates. G
rhe commissions decision is chart nl
u guide which the railroads will give OF