Pine Bluff daily graphic., 1920-08-01
|. [, (. ORDERS AN
 INCREASE IN RATES
 FOR ALL SECTIONS
Freight to Go Up One Third Passenger Fares One
 Fifth
DESIGNED TO OFFSET
 REGENT WAGE BOOST
Financial Conditions of Southern Carriers More Favorable Than That of Any Group, Says
 Finding

Finding
 Washington, July 31.-Authoritv for the railroads of the country to in- crease their revenues by annrov;- mately one billion and half dollars was granted today by the interstate commence commission. Freight rates will be advanced about one-third. pas Sengcr fares one-fifth and Pullman ] charges one half
 ! Coastwise and inland steamship ines and electric railway companies were granted permission to increase thelr freight rates in proportion to the increases granted railroads sery- Ing the same territory. No estimate of the aggregate amount resulting rom these advances has been made. New rates which are to continue until March 1, 1922, will become effective upon five days notice by the carriers to the commission and the public and they must be in operation before Jan- uary l. Since the government guaran- tees expires September 1, the carri- CTS are expected to bend every effort to put the advances into effect then. 1 Increases granted are designed to. offset the $600,000,OOO wage advance awarded by the railroad board and to provide the six per cent net income on the aggregate value of the railroad properties as permitted under the transportation act. The aggregate value of all of the railroads was esti- mated by the commission at $18,9OO.- 900 as against book value of $20,- 040.0O0,000 given by the carriers.
 The 20 per cent increase in passen- ger fares, excess baggage charges and milk transportation rates and the 50 per cent surcharge on Pullman fares will be general the country over. Freight rate increases will vary ac- cording to territory, with 40 per cent in the east; 25 per cent in the south; 35 per cent in the west-that is, from the Mississippi river to the Rocky Mountains 25 per cent in Moun- taln-Pacific terrtory-from east of the Rockies to the Pacific coast. not including Alaska.
 The commission, in it's 36 page de- cision, made no attempt to compute the amount of increased revenues the carriers would receive from the rate advances. It did say that the increas- es were justified in view of the rap- idly changing conditions as to prices and the necessity for providing ade- quate transportation facilities during and after the period of readjustment. From figures submitted by the car riers when their applications for the increases were made it was unoffici- ally estimated that the apportionment of the advances would work out at about 1,285 100000 on freight; $233,- 800,000 on passengers; $43 3,600,00O on Pullman; $4,500,000 on milk and $1,- 10000 excess baggage charges. On the same calculations, the east ern roads would get the greater part of the total incretase, receiving ap- proximately $873 ,930,000 as compared with $559 ,4s3 ,O00 for the western lines and $135, ,OOO for the southern car- riers. s
 The increases in passenger, Pull- man aid excess baggage rates were exactly those asked by the roads. Freight increases requested were 39.75 for the eastern roads, the total esti- mated to yield $1,136, 100000. The eastern roads were granted 25 of per cent more than they sought, the western roads approximately what they sought, but the southern roads received IA per cent less than they had requested.
 Boost Passenger Fare. | The commission said that the fi- nancial condition of the southern car riers was more favorable than that of lines in other groups. Therefore the commission held that they were bet tetr able to meet the demands upon them than some other companies and did not require as large an increase.
 "The increases authorized" said the commission, "are intended to yield the additional one-half of per cent of the aggregate value of the roads to make provisions for improvements, betterments and equipments, charge able to capital account and to report semi-annually, showing what portions of the increased revenues resulting from the increases here authorized has been devoted to that purpose"
 This one-half of per cent will ap- proximate s94,OOO,O00. The commits sion said that the carriers had stated specifically that they needed immedi- ately, at least 100000 freight cars, ,OO0 locomotives and 5000 passenger coaches. These are to be paid for out of this fund and out of moneys ad- vanced by the commission and bor- rowed by the carriers.
 The commission, in the question of aggregate values of the roads as we'll as their financial conditions, said:
 "All passenger fares and char9es may be increasead 20 per cent. The term passenger fares may be consid- cred to include standard local aud interline fares; excursion, convention z
 Continued on page Six s|