Evening Republican, Volume 23, Number 190, Rensselaer, Jasper County, 7 August 1920 — GREAT RATE INCREASE GRANTED TO RAILROADS [ARTICLE]

GREAT RATE INCREASE GRANTED TO RAILROADS

Raise Amounts to About $1,500,000,000—Levy Is Shared by Passengers. Washington, Aug. 2. —The greatest single advance of transportation rates In the history of government regula* .tion was granted to the railroads of the United States In a unanimous order of the interstate commerce comIn’ssion. The award will Increase the annual revenue of the railroads by about a billion and one-half. ' The increase in rates allowed to enable the roads to meet the increased cost of operation produced by the war, partly to rehabilitate and expand equipment and to finance the recent $618,000,000 employees’ wage raise, are: Western freight rates, 35 per cent. Eastern freight rates, 40 per cent. Mountain Pacific freight rates. 25 per cent. Southern freight rates, 25 per cent Milk rates, 20 per cent. All passenger fares, 20 per cent. Excess baggage charges, 20 per cent Pullman sleeping and pallor car rates. 50 per cent surcharge. The railroads were given substantially all the increase in rates they had requested to enable them to earn the 5% per cent for service and an additional one-half of 1 per cent tor Improvement charges, making a total of 6 per cent provided by the transportation act The roads will put the increased rates Into effect by September 1, when the six months’ government guarantee period expires.