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Washington Post Newspaper Archive: August 01, 1920 - Page 1

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Publication: Washington Post

Location: Washington, District Of Columbia

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   Washington Post, The (Newspaper) - August 1, 1920, Washington, District Of Columbia                            Member of tfco Auocuted fteu Auoclited Pren Is exclusively entitled to tbe -aw npubllcttioa of alt newi credited to it or not otfcerwlM credited a piper and atoo the local news jraMUbed herein. The 'wuhtaKton Post U a member of the Ataoclated Prett, receiving the compute at the greatest newa-gatherlng organization. NO. DAILY AND SUNDAY ENTERED AS SBOOND-CLAS3 MJ.TTEB poaioxmea WASHINGTON. D. o. WASHINGTON: SUNDAY, AUGUST 1, 1920. -etay; BOft quite so warm; tomor- row teirV LC.C. GRANTS RAILWAYS IN RA TES; OFFSET WAGE ADVANCE ines and Railways Included. EAST IS HARDEST HIT New Tariffs Go Into Effect on Five Days' Notice. FOR SOUTHERN ROADS Advanced About One- Wrd, Passenger and Milk Rates One-Fifth and Pullman Charges Spend Part of New Revenue on Equipment, Commissioners Say Eastman's Desire for Continued Operation of Roads by TT. S. Criticized. (By the Associated Press.) Authority for the railroads of the country to Increase their revenues approximately one billion and a half dollars was granted yesterday by the Interstate Commerce Commission Freight rates will be advanced about one-third, passenger fares one fifth and Pullman charges one half Steamship Lines Also. Coastwise and inland steamship Whes and electric railway companies also were granted permission to in- crease their treight rates in proper tion to the increases granted to the railroads serving the same territory estimate of the aggregate amount to result from these advances has been made. The new rates, which are to con tmue in force until March 1, 1922) will become effective upon five days' notice by the carriers to the com- mission and the public and they must be in operation before January 1 Since the government RATE DECISION IN BRIEF in- from crease on freight rates. from increase on passenger fares. from increase on Pullman charges. from, increased excess baggage charges. Eastern roads receiye ap- proximately Western roads, Southern roads, Per capita tax on increased freight charges alone is 912 a year for every man, woman and child in the country. Freight rates advanced one- third; passenger and milk rates one-fifth; Pullman charges one-half. Freight rates advanced in East, 40 per cent; in South, 25 per cent; in West, 35 per cent; Rocky Mountain-Pacific terri- tory, 25 per cent. Total valuation of railroads as estimated by the commission and over which increases based, as es- timated by the railroads, New rates effective till March 1, 1922. Always sub- ject tf> readjustment. roads received approximately 14 per cent less thjan they had requested In connection with the increase for the Southern roads the commission said that the financial condition of those carriers was more favorable than that of the lines in either of the other groups In view of this condi- tion the commission held that they were better able to meet the demands upon them than some of the other companies and therefore did not r< quire as large an increase Must Better Equipment. The increases here authorized said the rommission, 'are intend< d to yield the additional one-half of 1 per cent of the aggregate value of the roads, to make provisions for improve- ments, betterments: and equipment chargeable to capital account The e record leaves no doubt as to the needs _ L. -4-of the country for additional expires September 1. the Carsiwo.aw I portation facilities. All carriers expected to bend every effort to put the advances in effect by that date Offset Wage Increases. Increases granted by the commis- sion are designed to offset the participating in the increases will he expected {to make appropriations for additional improvements, betterments, or equipment of a character charge- able to capital account and to make report to us semiannually showing what portion of the increased reve- nues resulting from the increases here (ton 000 wage advance awarded" by the authorized has been devoted to that railroad labor board and to provide the 6 per cent net income on the ag- gregate value of the railroad proper- ties as permitted under tbe transpor- specifically that they needed imme- diately at least 100 000 freight cars art Tie aggregate value of 2 locomotlves and 3-000 passenger purpose This one-half of 1 per cent will ap- proximate The commis- sion said that the carriers had stated all the railroads at, estimated commission at Jig 900 000 000 as against a. book value ot 000 given by the carriers The 20 per cent increase in passenger fates excels hagsaRe charges ana millv transportation rates and the 30 prr i ent surcharge on Pullman fares authorized bv the commission will be general the country over freight late increases will vary according to territory with 40 per cent in the I.ast per cent in the South 3i pet cent in the- is from the Mississippi River to the Rocky -j per cent in the mountain Pa the cast of the Rockies to the Pacific coast, not including Maaka Calls Advances Justified. The commission in its 36 page de- cis on made no attempt to compute tjif1 amount of increased revenues the c irr era would receive by reason ot the rate advances It did say how ever that the increases were justi- fied in view of the, rapidly changing conditions to prices and the ne- essity fo" providing adequate trans- ortation facilities during and after the period of readjustment From figures submitted to the com- mission by the carriers when their applications for the increases were made, it was officially estimated that the apportionment of the advances wouli work at about on freight; on passenger, 000 on pullman on milk, and excess baggage charges. "Near Billion for Eastern Roads. On the same calculations, the East- ern roads would get the greater part the total increases, receiving ap- proximately 930.000 as compared with the Western lines. Including thoae in the Mountain- Pacific territory, and for the Southern carriers The Increased charges on freight alone were estimated as equaling a levy of per capita per annum for every man, woman and child In the country, basing the nation's popula- tion at IOMOOOOO tor recently made by the census bureau. Mouthertt Oet The Im'reaaes in passenger, Pull- man and baggage rates were those asked by the roads, (or the eastern roads, 11.01 for the Western roads, and for, the roads, the total estimated to The JBastern roads thus were granted .18 of 1 pec. more than they sought; roads eppVoaii jmcfet, but Oar' passeng coaches These are to be paid for out of this fund and out moneys ad vanced by the commission and bor- rowed by the carriers The commission went at some length into the qu stion of aggregate values of the roads as well as their financial conJitiorl and said Statement by Commission. e conclude that increases as in- dicated next below may be made by all steam railroads subject to our jurisdiction serving the territory em braced in the groups hereinafter des- ignated 1 All passenger fares and charges may be increased 20 per cent The term passenger fares may be con sidered to include standard loczft and interline fares excursion convention and other fares for special occasions commutation and other multiple forms of tickets extra fares on limited trains and club car charges 2 Excess baggage rates may be increased 20 per cent provided that where stated as a percentage of or dependent upon passenger fares the increase in the latter "will automati- cally effect the increase in the excess baggage charges A surcharge upon passengers In sleeping and parlor cars may be, made amounting to 50 per cent of the charge for space in such cars such charge to be collected in connection with the charge for space, and to accrue tg the rail carriers SO Per Cent More on Milk. 4 Milk and cream are carried in passenger trains and the revenue therefrom is not included in freight revenue Rates on these com- modities may be increased 20 per cent The conclusions of the commission as to general freight increases was stated as follows "We are of the opinion and flnd that the following percentage increases in the charges for freight service, in- cluding switching and special serv- ices together with the other increases herebefote approved would under present conditions, result in rates not unreasonable in the aggregate under section 1 the transportation act and would enable the carriers in the respective groups, under effi- cient and economical management, and reasonable expenditures for main- tenance of way, structures and ments, to earn an aggregate annual railway operating Income equal, as nearly may be, to a return of B% per cent. Upon the aggregate value for the purpose! of this proceeding ot railway property of such carriers held (or and. used In the service of trans- portation and one-half of 1 per cent in addition; group, 46 per oent) Southern group, 93 per cent: Western group, so per oent, and jnountaln-Paoliie group, II per eeivt." to RcadjuBtaMnt. deelslon o{ the commission, whlah was unanimous, summed up as follows i "Most of factors with which we are dealing are constantly ehang- tag. It is Impossible to forecast with any degree of certainty what vol- ume of trafllo will be, The general prioe level Is changing from month to _____and from dfcy V iw- practicable at time to adjust all oi on Individual jties The rates to be established on the basis heretofore approved must necessarily be subject to such read- justments as the fact may warrant. It is conceded by the carriers that readjustments will be necessary. It is expected that shippem will take these matters up in the first instance with the carriers, and the latter will be expected to deal promptly and effectively therewith, to the end that necessary readjustments may be made in as many instances as practicable without appeal to us." V. S. Operation''Injected. Government operation of the rail- roads was brought into the rate case by Commissioner Eastman, whdt in an opinion, in which Commissioner Woolley concurred, disapproved the method used by the commission in arriving at its conclusions. Commis- sioner Eastman's position, declaring; that he ''injects Unta this case large political of governmental policy which are nowhere in issue here Commissioner Eastman expressed regret that Federal control of the roads was not permitted to continue at least until after the readjustment period. Statment by Eastman. It was my hope" he said, "that Federal control might be continued, because it was evident that the transi- tion back to private operation would create additional disturbance in a time of unsettlement and unrest, that existing railroad facilities could be made to do work and meet more nearly the transportation needs of the country under unified control than under the control of many sepa- rate companies, that the additional facilities which are so greatly needed could now be provided Jnore easily and more economically by public than by private capital and that disturb- ances resulting Irom both rate in- crease and labor difficulties could be reduced to a minimum if the govecn- ment retained direct responsibility for the roads Commissioner McGhord in his reply, said CONTINUED ON SECOND PAGE MINERS IN 2 STATES ORDERED TO RETURN m Farrington Declares President's Message Is Victory for Men. TO GET ADJUSTMENT Resume Work in Illinois ana In- diana Fields at to Call Conference. Springfield, Ills, July 31 (By the Associated Press) waiting for the order of International dent Tolm L. Lewis to reach any of the striking miners in Illinois, State President Frank this afternoon steped in- with a command of his own, ordering them all tb re- turn to work Monday The strike ends W4th a great vic- tory for Illinois' miners said Presi- dent Farrington "the pledge of Pres- ident "Wilson that a scale committee be caled and wage inequalities ad- justed, satistfi.es the miners' demands Word that the strike was to be ended was dispatched by President Farrington 
                            

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