TOWARD EQUITABLE GENERAL RATE INCREASES

A provision of the 4R Act relative to rate making places new emphasis on return on investment and capital generation in formulating rate increases. This paper suggests a means by which ICC can use data generated by its one-percent waybill sample aggregated by commodity and territorial movement to make rate increases equitable in terms of the current contribution of particular commodity movements relative to others. The criteria for an equitable burden distribution is the movements' present revenue to variable cost ratio. A formula is given for this application.

  • Corporate Authors:

    Association Interstate Commerce Comm Practitioner

    1112 ICC Building
    Washington, DC  USA  20423
  • Authors:
    • Tosterud, R J
  • Publication Date: 1978-1

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00172020
  • Record Type: Publication
  • Source Agency: ICC Practitioners' Journal
  • Files: TRIS
  • Created Date: Mar 29 1978 12:00AM