The Alaska daily empire., 1920-08-02
s1,5OO,OOO,OOO
 RAISE GRANTED
 IS NOT ENOUGH
Decreased Intrastate Rates Similar to Interstate Sched-
 ule to be Asked
ALL SERVICE AFFECTED
Freight Tariffs up One-Third, Passenger Fares Fifth,
 Pullman Charges Half

WASHINGTON, Aug. 2.-Alfred P. Thom, General Counsel for the Asso- citation of Railway Executives, today announced that State Railroad Com missions throughout the country will be asked to grant advances in pass enge1r, Pullman and freight rates for interstate traffic corresponding tC the interstate increase authorized by the Interstate Commerce Commiss ion Saturday.
 Under the commissions ruling, the railroads revenues will be increased approximately $1.5OO, 100000. Freight rates will be advanced approximately one third, passenger fares a fifth and Pullman charges a half. Coastwise and inland steamship lines and interstate electric roads also were granted freight rate in creases proportionate to that of the railroads serving the same territory. Effective Before Sept. i.
 The new schedules are to continue in effect until March 1, 1922 and will probably become effective be- fore September 1. The increases are designed to off set the $6O0,O00O00 wage increase recently granted railroad workers by the National Railroad Labor Board provide six per cent on the aggre
 gate value of the railroad properties
 as guaranteed by the transportation
 Act
 The commission declared the in creases were justified in view Of the
 rapidly changing price conditions ana
 the necessity of providing adequate
 transportation during and after re
 adjustment from Government opera | tion.
 Given All Asked For 1 The railroads obtained virtually
 every cent asked for. In presenting
 their applications for freight rate
 increases the railroads contended be | fore the Interstate Commerce Com
 mission that 1.107 900, 900 was neces- sary to advance their income 10 the l six per cent basis permitted by the | new iebs A'hiPpN''
 state commissioners generally agreed that some advances were necessary, ! but they opposed both the total and the method of application. | Their program of advances, appll cable throughout the country did I not take into account any wage IT.
 creases made by the Railroad Labor ,Board.
 | Valuation Questioned
 An estimate of valuation of $20,- I 616 900 900 placed on the transporta- | tion systems by their owners was questioned by both shippers and state utility commissions, who con plained that the book value" was
 unreliable while the carriers con tended that their figures were con |. servative, especially because of ris inc costs of materials and equip ment Increases in passenger rates and flat freight increases instead ol !, the percentage advances, also was advocated by shippers to equalize the burden of any advance.
 Setting out the necessity Tor the increase. the railroads claimed that I the net increase of all of the coun try's roads fell from s1,056.OO OO0.Ooo | in i9l6 10 s5l0.0OO COG in 1919 while their investment was increased more
 than s2.OOO, ,O0O.OO0 Operating e1pen
 ses. the roads said. have increased l9e.1 pen cent since 1916 and revenues 36.37 pc, cent Operating expenseg
 if was added. are now 99 per cent { of the revenues against GS per cent ? in 1916.
 I Promised Savings Delayed fl Arguing for the increase the rail ], road executives said the one billion P dollars Df added revenues was neces { sary if the roads were to handle fr.ntinued on Page Thraal