Evening star., 1921-12-08
LOWER RAIL FARES
AND TARIFFS seen
Interstate Commerce Com.
mission Hopes for "Sub-
stantial" Rate Decrease.

The hope is expressed by the Inter-
state Commerce Commission in Its
thirty-nfth annual report to Congress.
made public today. that "substan-
TALLY lower" level Of railroad rates
and fares will be possible with im-
provement in the volume of traffic fol-
lowing the present business depres-
sion and with a further adjustment
of operating costs in harmony with
prevailing tendencies"
Following wartime increases and
some later readjustments, freight
rates have not yet reached an equili-
chief factors controlling them, 1.-The
value Of service and cost of transpor-
tation' still are ''in state of hux."
$3.50, 900 900 Ordered Paid.
The report disclosed that total Of
$3.50 900, 900 has been ordered paid to
the railroads under the government
guarantee against losses during the
first six months after their return to
private ownership. and that there still
is due an estimated s105 100000 on this
account. The report is for the year
ended October 81.
Out of SIT carriers entitled to guar
antee payments, the commission says.
SAT have filed claims. totaling $8ls,-
600 900, but payments of only $685.
O0O, 900 have been held justified by the
commissions audit. No statement
ence between the roads own summary
Of their losses during the six months
and the governments findings. The
| roads which have not yet filed claims
for losses. the report adds, are short
; lines. and the total will be relatively
small"
In it's capacity as supervisor Of rail-
! road capital issues, the commission
issued during the year certificates al
lowing roads to issue stocks and bonds
to a total Of $1,715,000,000, the report
says. The commission points out.
however, that thb total represented
for the greatest part refunding opera
tions, not involving new and increased
investment.
Unsettled Conditions Reelected.
Discussing railroad earnings, the
commission says the carriers income
and expenses have reflected the un-
settled industrial conditions and that
despite the reduction of the working
forces by half a million men, a low
ering of the cost of materials and
cuts in employees pay the net earnings
have not yet reached rate of 6 per
cent on the value of the properties de-
termined for the United States as u
whole. The per cent net earning
rate is that recognized by Congress
In the transportation act as fair re-
turn on the invested value.
In its recommendations, the COM
mission asks Congress to reconsider
section 28 Of the merchant marine
act. authorizing preferential rail
rates on shipments of commodities
for export in American bottoms. de-
claring that the ultimate effect may
be merely to divert traffic from cer-
tain ports to others, with little or no
gain in tonnage for United States
vessels" Operation of this section
of the law has been suspended by
agreement between the Shipping
Board and the commission.
Other Recommendations.
Other recommendations Of the COM
mission are:
Enactment Of law providing for
the punishment OF any person Offer
ing or giving a bribe to an employe
of carrier with intent to influence
his action or decision with respect to
car service, and providing for the
punishment of the guilty employe.
That the use Of steel cars in the
passenger service be required, and
that the use In passenger trains of
wooden cars between or In front OF
steel cars be prohibited.
Amendment of the interstate COM
merce act SO as clearly to provide
whether, and, II so, how voluntary
complications of carriers may be ef-
fected pending ultimate adoption by
the commission Of a complete plan of
consolidation.