Early Christmas

U.S. railroads last week got a $1,000,-000,000 Christmas present from the Interstate Commerce Commission. The present: a 17.6% increase in freight rates, effective Jan. 1.

The increase, which replaced the temporary 6 1/2% boost the roads got from ICC last June, was almost as much as the railroads had asked for in April. They had wanted a general 19.6% rate raise, enough to increase their annual revenues by $1 billion.' Since then the estimates of next year's freight traffic had increased. Now the railroads expect to gross the $1 billion with the 17.6% increase. If traffic holds up, and costs remain the same, the railroads expect to net $250,000,000 in 1947. (Without the increase, they estimated that they would lose $225,000,000.)

The new rates will also apply to interstate barge and shipping lines. And ICC agreed to let the railroads go on charging the 10% higher passenger fares introduced as a temporary measure in 1942.

The news of ICC's ruling sent rail stocks up one to three points the next day. Said Western Pacific's President Charles Elsey: "It's the first good news the railroads have had in a long time."

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