Railroad Rates and Revenues

December 7, 1937

Report Outline
Predicted Early Rise in Railway Charges
Rail Carriers' Petition for Rate Advances
Course of Railroad Finances Since 1929
The Railroads and Industrial Recovery
Special Focus

Predicted Early Rise in Railway Charges

In their petition for authority to increase freight and passenger rates, hearings upon which opened before the Interstate Commerce Commission last week, the railroads urged that the case be given prompt and favorable consideration in order to relieve the strain on their finances imposed by recent wage increases and by higher costs of supplies and higher taxes. Railway Age has predicted editorially that the decision will be expedited and that such rate changes as may be authorized will go into effect by the beginning of the second quarter of 1938. In its opinion, moreover, “there does not seem any reason for anticipating that the Commission will refuse to grant approximately all the advances proposed.”

The reason why a decision favorable to the carriers is anticipated in railroad circles is that the I. C. C., in allowing on October 22 certain freight-rate increases estimated to produce additional revenue aggregating $50,000,000 annually, virtually invited the roads to make application for further rate advances.

From the facts of record [said the I. C. C.] no other conclusion is possible than that the net earnings of the railroads are now inconsistent, in general, not only with constitutional standards as to the rights of the private owners, but also with the conditions necessary for the proper conduct of the public service of railroad transportation by private enterprise.

ISSUE TRACKER for Related Reports
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May 01, 2009  High-Speed Trains Updated
Oct. 18, 2002  Future of Amtrak
Apr. 16, 1993  High-Speed Rail
Mar. 10, 1978  Future of American Railroads
Mar. 07, 1975  Railroad Reorganization
Jun. 20, 1973  Railroad Nationalization
Nov. 17, 1961  Railroad Subsidies
Aug. 24, 1960  Railroad Mergers
Jan. 01, 1958  Condition of the Railroads
Jan. 31, 1951  Railway Safety
Oct. 04, 1944  Railroad Freight Rates
Jun. 12, 1939  The Government and the Railroads
Apr. 21, 1938  Government Ownership of the Railroads
Dec. 07, 1937  Railroad Rates and Revenues
Jul. 17, 1937  Advances in Railway Passenger Service
Sep. 27, 1934  Railroad Rates And Federal Regulation of Transportation
Jan. 11, 1933  Railroad Receiverships and Reorganizations
Aug. 26, 1932  The Railroads and the Depression
Oct. 13, 1931  Wages of Railroad Labor
Jul. 09, 1931  Railroad Freight Rates
Feb. 14, 1931  The Railroad Consolidation Controversy
Sep. 19, 1927  The Problem of Railroad Valuation
Mar. 30, 1927  Railroad Consolidation and Prospective Legislation
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Mar. 08, 1926  Railway Labor Disputes Legislation
May 04, 1925  The Baltimore and Ohio Cooperation Plan
Sep. 12, 1924  National Railroad Consolidation and the Van Sweringen Merger
Aug. 14, 1924  Automatic Train Control in Relation to Railroad Casualties
May 28, 1924  The Condition of American Railroads