Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-08-02
EXPERTS TAKE Up
TASK Of RAISING
. RAILROAD RATES
Tariff Men Begin Work on
Reimbursement of Gen.
eraI Schedule.
By the Associated Press.

iNCdNJuSIiithl VI IHC " iiOiC '-~NN
structure of the nations transporta-
ton system was started today with a
view to putting into effect by Sep
TENDER ! the freight, passenger. Pull
man. excess baggage and milk rate
increases authorized last Saturday by
the Interstate Commerce Commission
While tariff experts are working on
the general rate schedules the car
riers will have applied to the various
traState rates to correspond to those
IN interstate rates Requests for ad-
Vances in passenger. Pullman, milk
ana excess baggage tariffs are ,,eX-
pected to be the same for all STATE S,
as the increases in these charges au.-
thorized by the federal commission
We're general for the entire country
fhey We're 20 per cent on passenger
milk and excess baggage charges and
90 per cent on rates for sleeping and
parlor car space.
In the case of freight rates how
ever. the carriers will ask the states
TO advance these tariffs to correspond
with the increases granted by the
federal commission for the territory
in which the state is located The
interstate increases authorized are 40
per cent in eastern territory, 25 in
southern and mountaineering terri
~StJ o4'N % III '"cSlcl II
Statement by Thorn.
In announcing that the applications
for intrastate advances would be made
10 the state commissions. Alfred p
Thom, general counsel of the Associa-
t1on of Railway Executives said these
increases would not enlarge the gross
income to be received by the roads un-
der the decision of the federal commits
SION, because in presenting their case
the carriers had based their estimates
on corresponding intrastate state rate
advances
The railway executives have not cal
coaated the total increased revenue to
oe derived from the rate advances, but
from their estimates presented to the
commission at the public hearings the
sum has been unofficially Appropriated
at one billion and a half dollars The
commissions decision is intended to so
nX rates as to give the roads the s
Per cent return on their aggregate value
permitted by the transportation act
Since the commission fixed the asgre-
gate value of all the lines at S1S90O-
ooe,oOO the net operating income would
De approximately s1.134, 0O0. OOO as COM
pared with the SS93,000, 900 standard re-
turn the roads have received during the
period of federal control and since.
CoastWise and inland steamship
companies and electric railway lines
are permitted under the Interstate
Commerce Commissions decision to
raise only freight rates Nothing was
said by the commission as to pas
Senger rates on the steamboat lines.
out the decision did say specifically
that the freight rate increase granted
electric railway lines was mot to be
construed as an expression of disap-
proVaI OF increases, made or proposed in
the regular manner. in the passenger
fares of electric lines"
Separate Rate Increase.
While the commission authorized
separate freight rate increases to the
railroads in the four separate terri
torres the increase on freight NOV
ing from one territory into another
VIII be 33 u per cent
Creation by the commission on its
own motion of the Mountaineering
territory was unexpected. The west
ern roads as whole had Joined in
asking Tor an increase of 1928 per
cent, out the southwestern lines later
~ the public hearing asked that they
De gwen separate treatment and a
freight increase of approximately 80
per cent The commission did not
grant this request. saying thatsit had
peen opposed by many shippers and
other carriers in the western group
The record shows" said the com
mission, that the principal railroads
serving the territory west of the Col
orado common points, especially the
so-called transcontinentaI railroads
es whole, are in a substantially bet
ter financial condition than other
carriers in the western territory. II
also shows that the rates, generally
speaking, are materially higher In
the region west of the Colorado com
mon points than in the part of the
western territory lying east thereof
Considering the whole situation, it is
our view that the territory west OF
the Colorado common points and the
traffic to and from that territory may
properly be given separate treat
ment"
Peculiar Needs in East.
The commission also said that the
carriers in New England had brought
to its attention the peculiar finan-
cial needs" of the railroads in that
territory. and in its general conciu
sions regarding the freight increases
1t said
while the New England carriers
and are subject to the percentage fol
that group, the evidence as to the
disproportionate needs of the New
England lines makes it desirable thai
the carriers give careful considera-
ton to the divisions of joint rates
accruing to those lines"
The Surcharge of so per cent or
sleeping and parlor car space is tc
accrue wholly to the railroads This
charge was opposed by the Pullman
Company on the ground that it would
reduce the travel in cars of that type
The commission held, however, thai
a charge of this character has much
in its favor" as "unQuestionably the
service is more valuable to the pas
senger and more expensive to the
rail carriers"