Evening Republican, Volume 23, Number 264, Rensselaer, Jasper County, 4 November 1920 — $656,000,000 IS RAIL BILL [ARTICLE]

$656,000,000 IS RAIL BILL

Cost to Government of Private Operation of Railways Six Months. Washington, Nov. 4—Private operation of the railroads for the first six months after the end of federal control will cost the federal government a total of $656,000,000, according to figures made public by the interstate commerce commission. The railroads sustained a net deficit “of $206,000,000 during the six months’ period, and besides this sum the treasury must pay them $450,000,000, the amount of the guarantee provided in the transportation act. Part of the deficit Is charged to Increased pay granted to the railroad workers by the railroad labor board. When the period of the federal guarantee of earnings to the roads ended on September 1 the increased passenger and freight rates granted by the interstate commerce commission were in effect. These are designed to in•4tase the gross .revenue of the carriers by $1,500,000,000 annually.