Railroad Rates and Revenues

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.