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(The document referred to was marked "Committee Exhibit 26" and is as follows:)

COMMITTEE EXHIBIT 26

1935

EMERGENCY FREIGHT CHARGES, 1935. EX PARTE NO. 115 (208 I. C. C. 4)

Decided: March 26, 1935. See later reports 215 I. C. C. 439, 219 I. C. C. 565, 223 I. C. C. 657, 229 I. C. C. 435.

Territory: All territories.

Rates: Temporary-Emergency charges on traffic generally.

Increase: On less-than-carload traffic: 1 to 11 cents per 100 pounds (dependent upon the measure of the line-haul rate involved), subject to 10 percent of the line-haul transportation charge, when less; subject also to various exceptions. On carload traffic: 7 percent of the line-haul transportation charge (subject to various exceptions when resulting in lesser charges) but in no case more than 5 cents per 100 pounds.

Reconsigning, diversion, weighing, loading, unloading, transit service, back haul, switching, lighterage, and floatage charges, and absorptions, 10 percent. No emergency charge provided for grain, grain products, certain fruits and vegetables, certain livestock, and certain other articles.

Effective: April 18, 1935.

NOTE. These increases expired generally, with December 31, 1936.

1937

GENERAL COMMODITY RATE INCREASE, 1937. EX PARTE No. 115 (223 I. C. C. 657)

Decided: October 19, 1937. See later report 229 I. C. C. 435.

Territory: All territories.

Rates: Commodity and column, principally on basic commodities.

Increases: In varying amounts on different commodities. For example: Bituminous coal, 3 to 15 cents per ton; manufactured iron and steel, 10 percent (maximum, 1 cent per 100 pounds); cement, 1 cent per 100 pounds; petroleum and petroleum products, 1 cent per 100 pounds; numerous increases ranging from 1 to 2 cents per 100 pounds when rates were specifically stated in cents per 100 pounds, and from 11⁄2 to 32 cents when ratings were changed; transcontinental, ranging from 1 to 5 cents per 100 pounds.

Effective: November 15 and December 20, 1937, generally-some earlier, some

later.

NOTE. The chief purpose of the carriers in seeking these increases was to offset the loss in revenues expected to result from the expiration, December 31, 1936, of the emergency charges authorized by prior reports in this proceeding. See previous reference to such prior reports.

Bituminous coal increases subject to expiration date of December 31, 1938. This limitation lifted (see 229 I. C. C. 435, 459).

1938

FIFTEEN PERCENT CASE, 1937-38. Ex PARTE No. 123 (226 I. C. C. 41)

Decided: March 8, 1938. See supplemental report, 226 I. C. C. 746.
Territory: All territories.

Rates: On traffic generally.

Increase: On carload freight generally: Rates and charges, including accessorial charges, 10 percent; except rates on animal products, animals (except horses, mules, etc.), agricultural products, lumber, sugar, etc., 5 percent); subject as to some articles to specific maxima; anthracite, 10 cents per ton; bituminous coal, no increase; import rates (not to exceed the increased domestic rates), horses and mules, tropical fruits, absorptions, minimum charges, accessorial charges (except protection against heat or cold), 10 percent. On less-thancarload freight: All less-than-carload rates and charges, 10 percent.

Note: The increases under Ex Parte 123 were based on the rates in effect prior to Ex Parte 115 increases. Pyramiding on the Ex Parte 115 increases not permitted.

Effective: March 28, 1938.

1942

INCREASED RAILWAY RATES, FARES, AND CHARGES, 1942. EX PARTE No. 148 (248 I. C. C. 545)

Decided: March 2, 1942. See later reports 255 I. C. C. 357, 256 I. C. C. 502, 258 I. C. C. 455, 259 I. C. C. 159, 264 I. C. C. 695.

Territory: All territories.

Rates: On traffic generally.

Increases: Class and commodity rates and most accessorial charges, 6 percent; grain, livestock, and certain other specified commodities, 3 percent; line-haul rates on coal and coke, specific amounts.

No increase on line-haul rates on iron ore (not ground or hydrated) or iron sinter; protective service against heat or cold, demurrage, dockage tippling, tollage.

Effective: March 18, 1942.

1946

INCREASED RAILWAY RATES, FARES, AND CHARGES, 1946. EX PARTE 148 (AND EX PARTE 162) (264 I. C. C. 695)

Decided: June 20, 1946.

Territory: All territories.

Rates: On traffic generally,

Increases: All Ex Parte 148 increases restored; additional increase of 5 percent in official territory; exception on line-haul rates on iron ore (not ground or hydrated) and iron sinter eliminated; additional increases in rates on coal and coke.

Effective: July 1, 1946.

NOTE. These increases expired with December 31, 1946.

Freight revenues per ton-mile, class I line-haul railways

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BUREAU OF TRANSPORT ECONOMICS AND STATISTICS,
INTERSTATE COMMERCE COMMISSION,
Washington, D. C., March 15, 1951.

MONTHLY COMMENT ON TRANSPORTATION STATISTICS

1. Report in Increased Freight Rates, 1951.-Interim increases in freight rates and charges averaging 2.4 percent for the country were authorized by the Commission on March 12, 1951, in Ex Parte No. 175, Increased Freight Rates, 1951, and may become effective on not less than 15 days' notice. The report and orders were in response to a motion of the rail carriers for an immediate increase of 6 percent (with certain exceptions and limitations) pending full hearings upon their petition for a Nation-wide increase of the same amount. The increases presently authorized are 4 percent within eastern or official territory, and 2 percent in other territories as well as between those territories and the East. Increases on fresh fruits, vegetables, melons, sugar, canned goods, and articles taking lumber rates are limited to 2 cents per hundredweight. Increases on coal and coke and grain and grain products are authorized at 2 percent in all territories, with a maximum increase of 6 cents per net ton placed on coal and coke. No increases are provided for movements of iron ore from the Minnesota and Wisconsin ranges to upper lake ports, on charges for protective service or unloading of fruits and vegetables at New York and Philadelphia, or on certain other charges.

Estimates of 1951 freight traffic placed in evidence in the hearings on the carriers' motion varied widely, and ranged from a low of about 620 billion tonmiles suggested by the carriers to a high of 687 billion ton-miles, estimated for 1951 by the Defense Transport Administration in October 1950, and referred to by numerous protestants. The authorized increases applied to the low and high traffic estimates should amount on an annual basis to between $92 billion and $108 billion in the eastern district, $14-$16 million in the Pocahontas region, $22-$25 million in the southern region, and $66-$70 million in the western district, or between $194,000,000 and $219,000,000 for the United States. A small amount should be added for increases allowed in charges. Estimated percentage increases over the base rates in effect at the date of the report giving effect to maxima are 3.0 percent in the eastern district, 2.5 percent in Pocahontas region, 2.0 percent in the southern region, and 1.9 percent in the western district. Cumulative percentage increases authorized to date since June 30, 1946, are as follows: Eastern district, 66.4 percent; Pocahontas region, 57.0 percent; southern region, 61.2 percent; western district, 55.9 percent; and United States, 61.1 percent. These estimates are based upon the assumption that intrastate increases have and will follow the same pattern as the interstate, which has not been the case in certain instances. Nor do they make allowance for the numerous readjustments in rates, downwards in many cases, which have been made since the effective date of the last increase in 1949. Therefore the estimates are somewhat overstated.

For reference purposes, the dates of the increases in basic freight rates and charges authorized since June 30, 1946, and the estimated percentage effects on freight rates are as follows:

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2. Gross capital expenditures, class I steam railways.-Estimates of the gross capital expenditures for road and equipment combined in the year 1951 as furnished by 124 out of 131 class I line-haul railways totaled $1,376.4 million. This figure is $355.4 million above the actual expenditures reported by the same roads for the year 1950 or an increase of 34.8 percent. As shown in the following table the estimated expenditures for 1951 in each of the major territories is considerably above the actual expenditures for 1950. The carriers in the eastern district and Pocahontas and southern regions anticipate expenditures in 1951 at about 47 percent above the level of 1950 but in the western district the estimated increase is only 17.7 percent.

NOTE. This release, issued as information, has not been considered or adopted by the Interstate Commerce Commission. Unless otherwise noted, the data herein given are based on reports of carriers to the Commission.

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1 Estimates for 1951 were not furnished by 7 roads in the western district whose total capital expenditures amounted to $44,803,418 in 1950.

Excluding four roads not furnishing estimates, the carriers' calculations of gross capital expenditures for the first half of 1951 amount to about $714 million as compared with actual expenditures of $475 million reported by the same class I roads for the first 6 months of 1950 or an increase of 50.3 percent. As shown in the table below, expenditures in the first half of 1951 versus 1950 are expected to show increases of 46.4 percent for road and 51.5 percent for equipment. Equipment which accounted for 76.3 percent of the total gross expenditures in the first half of 1950 is expected to represent 76.9 percent in the same period of 1951. Actual and estimated gross capital expenditures of class I steam railways, first 6 months of 1950 and 1951

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3. Railway income items—1950, 1949, and 1948.-The following table shows a comparison of selected income account items of class I roads for the year 1950 based on cumulative monthly reports with those of 1949 and 1948. Net railway operating income in 1950 was $353.3 million above that of 1949 and net income after all charges increased $345.3 million over the preceding year. Although the 1950 net railway operating income exceeded that of 1948 by only $37.6 million net income was up $84 million, partly as the result of an increase of $30.6 million in other income and a drop of $17.2 million in miscellaneous deductions from income. Total fixed charges increased but slightly in 1950 over 1948 and 1949. Dividend appropriations dropped from $289 million in 1948 to $252.3 million in 1949 but increased to $312 million in 1950.

The ratio of income available for fixed charges to fixed charges was 2.94 in 1950, as compared with 2.14 in 1949, and 2.77 in 1948. The coverage ratio in 1950 was the highest for any year of record back through 1890.

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1 Based on monthly reports of "Selected Income and Balance-Sheet Items" (Form I. B. S.).

Attention is called to the fact that the carriers' operating revenues for 1950 were augmented by accruals for retroactive mail payments covering the period February 19, 1947-December 31, 1950. If the portion applicable to the period prior to 1950 is excluded from the 1950 accounts it is estimated that both the net railway operating income and net income, after Federal income taxes, would be reduced by about $62 million. If this amount is deducted from the income available for fixed charges in 1950, the ratio of such income to fixed charges would be 2.80 which would still exceed that of any year of record.

4. Revenues and expenses of class I steam railways for January.—Total operating revenues of class I steam railways for January 1951 amounted to $848.7 million, which is, after adjustment to a 30-day month of 4 Sundays, 25.7 percent above the level of January 1950, and 10.7 percent below that of December 1950. January 1951 operating revenues were greater than those of any previous January of record.

The increase in revenues from January 1950 to January 1951 was the result of territorial increases distributed as follows: eastern district, 26.4 percent; Pocahontas region, 39.1 percent; southern region, 25.3 percent, and western district, 32.1 percent.

For the 12-month period ended with January 1951 total operating revenues increased $1,158 million over the comparable 1950 period and were $13 million above the comparable 1949 period.

12 months ended with January—

1949_ 1950_

1951-

Total operating revenues

$9, 651, 825, 000

8, 506, 654, 000 9, 664, 895, 000

Freight revenue of class I railways for January 1951 was 2.0 percent more than in December 1950, and 27.8 percent above the level of January 1950, after an adjustment to a 30-day month basis. By territories, percentage increases from January 1950 to January 1951 on an unadjusted basis were as follows: eastern district, 30.0 percent; Pocahontas region 39.8 percent; southern region, 28.0 percent; and western district, 34.4 percent. The index of freight revenue in January 1951 (1935-39 as 100) was 264.3 as compared with 206.8 in January 1950 and 228.9 in January 1949.

Passenger revenue in January 1951 was 1.4 percent below the level of December 1950, and 12.1 percent above the level of January 1950, after an adjustment to a 30-day month basis. Comparing January 1951 with January 1950, the territorial percentage increases were: eastern district, 7.2 percent; Pocahontas

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