Evening star., 1946-12-07
ice Grants Boost
OF 17.6 Percent
In Freight Rates
Billion IS Added to
Costs Under Schedule,
Effective January
BY the Associated Press

Rate increases expected to add
81 900, 600, 900 to the Nations an
nual bill for rail and water
freight will 60 into effect jan
uary /.
The increase, authorized by the
Interstate Commerce Commission
will average 17.6 per cent over the
June, 1946 level. It will be slightly
less, however, than the 1876 per cent
increase asked by the class rail-
roads.
The ICC also permitted the rail-
roads to make permanent 10 per
cent rise ip passenger fares granted
on February 10, 1912. This was
scheduled to expire six months after
the legal termination Of the war.
The average overall freight rate
increase amounts to about 17.6 per
cent. For the Eastern carriers the
aggregate increase will approximate
17.9 per cent Of the basic rates
compared with ia per cent sfor
the remainder Of the country.
Deficit Was Threatened.
In applying for the increases, the
carriers contended that the combi-
nation of prewar freight rates and
postwar costs would almost wipe
out. net railway operating revenue
and produce "an enormous deficit
in net income this year.
The commission said "substantial
increases In the basic freight rates
and charges" (of rail and water car
riers) and continuation Of the in
creased passenger fares are "requi-
site" for these purposes:
/. For the carrying out Of the
national transportation policy anc
the development, coordination anc
preservation of q national trans.
portation system adequate to meel
the needs Of commerce, the poSta.
service and the national defense.
2. I'm order that freight rates and
charges shall be such as to move
the greatest volume Of trafllc while
providing adequate and efficien,
transportation at the lowest cosi
consistent with the furnishing oi
such service"
Decision Unanimous.
All members of the commission
who participated concurred in the
decision. Chairman George M. Ber-
nard, who was absent, and Com
missioner j. Monroe johnson, who
is serving as director of the Office
of Defense Transportation, did not
take part.
The commissions announcement
said majority of the Committee
of State Commissioners who sat
through consideration of the case
in a cooperative capacity agreed
"in general" with the results.
The emergency freight rate in
creases authorized by the commits
sion last June 20 will be superseded
by today's increases. The emer.
genoy increases averaged about 6h
per cent for the whole country. The
| commission estimated they woulc
| disc tllC CdlI I1clo SIOCo 1CfClluS
about $500, ,000, 600 annually.
| The increases authorized for long.
haul services are on general bash
of 20 per cent for commodities othel
than those specially treated and l:
per cent for the basic products o,
agriculture Except fruits and vege.
tables and livestock.
Elaborate System Used.
However, an elaborate system Of
maximum increases was approvet
for various important commodities
such as fruits and vegetables. This
the commission said, is intended tx
preserve competitive relations thai
a uniform percentage increase woule
disrupt"
On coal, blocks of fiat increases
varying with the basic rates, were
authorized. The railroads proposal.
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