Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-08-03
|llI[ RATE EXPERTS
] WORK ON TARIFFS
p,.oaring Blanket Schedules
Until Printed Forms Can
Be Completed
|rpus U. S. TREASURY DRAIN
~. .I,n Associated Press


v..hinctop. Aug. 3.--With view
a. making the increased passenger
~ w.. Effective August 20 and the ad-
r.aood a.. freight rates applicable August
~ roi,road rate experts were hard Mt
cork | today preparing blanket rate
schedules.
po;,road executives indicated today
=, ~ a,r nossible would be done to make
ina tia now ratcs authorized by the Inter
w ~ Commercc Commission effective
satoro tbe first of next month. when
~ p,", government guarantee OF a speci-
nnJ ;ncome expires. To do this it was
IVA that blanket rate schedules would
10 nsed Mt first, local representatives
~ The road working out the new
ohorses on the basis of the existing
a .ates and fares plus the territorial
ssrcentage ] permitted by the commits
sion
u. s. Asks Quick Action
While this method of putting new
.o,os into effect would be unusual,
.a;lrood officials pointed to the sugges-
,;on Of the commission that the higher
shoroas be nut in force lat as early a
dnte as practicable. -
By putting the increased rates into
Affect prior to September 1 the drain
an the treasury under the guarantee
nroyisions of the transportation act
iitelv will be ended before expiration
~ The governments guarantee of earn
mos TO the roads Officials estimated
today that by September l the guar
sntec provisions would have cost the
,overnment approximately $3.50, ,00O,-
coo for the six months since the pas
SAGE of the present railroad law.
The government has been obliged to
continue the $75, ,0O0, 600 monthly rental
nayment which was in effect during
federal control, as well as to meet
deficits not covered by the rental amount
sustained by the individual carriers.
With the amount guaranteed the car
riers this year and the claims of the
lines for compensation under their con-
tracts with the railroad administration,
the roads will have cost the government
auproximately a billion and half dol
lars since the President took over the
properties December 2S, 1917.
Operation Of the roads after Septem-
her 1 under the new rates will YIELD
according to accountants and tariff ex-
norts of the carriers, an additional an
nual re turn Of about $3.50, 900 900.
While these figures were of premini-
nary sort the railroad experts believed the
freight revenues to be derived under the
new charges would amount to 81, ,3OO,-
OOO. 900 and the income from passenger
traffic S2S3, 600, 900. Their estimates,
II was explained, were based on the
assumption that intrastate rates would
be increased correspondingly with the
L,,N In fAInr I'M
mission in interstate rates.
Roads Asked to Justify Increase
COMPLETION of "the cycle of govern
mept management of the railroad in
dustry" through increases in freight and
passenger rates was said last night by
Fairfax Harrison; president of the
Southern Railway system, to leave to
the carriers of the country the oppor-
tunity for "a constant and progressive
reduction Of rates accompanied by an
enlargement Of service
"The tremendous increase of railroad
rates authorized by the Interstate Com
merce Commission" said President
Harrison in formal statement, seems
to complete the cycle of government
management of the railroad industry.
It was necessary to carry the scale of
expenses set up by the railroad ADMIN
istration but it must cause great con-
Germ as to its economic consequences.
1T now remains for private man
agement to resume the practice Of COM
petitive efficiency and self reliant initi-
ative which distinguished the American
railroads during so many years, and to
Justify the preference of the American
people for that form Of administration
by making possible not only the success
Of individual companies, and the pros
perity of their loyal employees, but a
constant and progressive reduction Of
rates accompanied by an enlargement of
service to, the public such as may be
traced through the old fashioned rail-
road statistics.
mo one can expect this to be accom-
pshed over night, considering the prac-
tica conditions, but start can be made
at once. Relying on the cooperation
and support of the employees, the man
agement of the Southern railway sys-
TEN will make the effort"