Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1920-08-02

cent an charges for space IN sleeping ana
parlor cars.
The actual increased amount to be re-
ceived bv the roads rs n result ot the rate
advances has been roughly estimated NJ
81 SOC, DOC, 600, but until the new tarlfs
are worked out and put into operation the
exact amount, is problematicai: WIN
passenger fares increased one-nitn anu
Pullman charges advanced one-hai', PAS
senger travel probably viii be reduced;
Based on the present passenger tratnc
these increases are expected 10 yieiu Tue
roads a return of S277 900, 900, all OF
which was sought TO help absorb the wage
advance to railroad workers, which the
railroad labor board has informed the
commission will work out at S6lS,oOo,-
600 instead of the 100000 hrst
estimated. The carriers have figured the
increase of S625, 600, 900. but for the pur-
poses of the rate case the commission
used the boards figures,
ESTIMATED NET INCOME.
The estimated net operating income
of 81. 1874. 600. 900 which the roads are TO
receive as a result of the fare raises repre-
sents per cent on the aggregate value of
the railroad properties, which was placed
by the commission ut SIS 900, 100000, or
ST l40 OOO. 900 less than the carriers esti
mate OF the total income received by
the roads, one-half of | per cent of the
aggregate value, or S94, 0C0 COO, must be
set aside annually for additions and bet
terments
Thus the actual net operating income
going into the treasury of the carriers
would be 81 .040 600, 00C. From this must
be deducted taxes and other fixed ex-
penses not included in operating expenses
before the actual net income is determined.
Admittedly taxes and most other of such
fixed expenses have increased since the pre-
war period on which the standard gov
eminent return is bPScd
Should the commissions decision re-
suit in predicting more than the per
cent return ON the aggregate value al
lowed under the transportation act, one
half of the excess would under the terms
of that act be placed in the reserve funds
of the roads and the other half turned over
10 the interstate Commerce Commission
to establish revolving fund 20 be used
for making loans TO the carriers or for
purchasing equipment 10 be leased TO
! them.
The estimated net income to be re-
/ ceived by the three groups OF roads IS
| fixed at SIN per cent OF the valuation
placed on those groups by the commission.
/ On valuation Of SS.SOO,O00,0O the east
! ern roads would receive S52S,0OO,0O0.
/ They asked for q return Of $3.50, 100000
/ and are receiving standard return from
| the government of 1854. 100000 or APP
/ proximately S20O,OO0,0O0 loss than they
/ sought
/ The valuation of the western roads,
1 including those in the new Mountain
I Pacific territory set up by the commis-
( sion for the purposes OF rate decision. IS
4 placed ut IS. 100. O00,O 600. The western
! roads thus would receive an estimated net
1 operating income Of S4S6. O00000, or
about S50O00,O00 less than the S53T,-
/ 100000 which they sought The standard
return they are now receiving IS SlOl,-
/ 100000.
4 Southern roads were valued by the
commission at 81 900, 100000, so their net
| operating income would be 100000, 1000.
/ This is SIG. 900 600 less than the sum they
/ sought and S1S.0O0.O 900 less than the
standard return Of s13S, 600 600. The
/ commission explained that the financial
/ condition Of the southern carriers as q
whole was more favorable than that Of
| the roads in the other groups.