The New York herald., 1921-12-09
LOWER RAIL RATES
AND FARES SEEN
/. c. c. Hopeful of Traffic Re
vival With End of Busi-
ness Depression.
ROADS GET S430,000,O00
Is Part of Six Months Guar
antee Following Return
by Government.
ROADS GET S43O,OOO,OOO

WASHINGTON, Dec. s.-Hope is ex-
pressed by the Interstate Commerce
Commission in its annual report to-day
20 Congress that "a substantially lower"
level Of railroad rates and fares will be
possible with an Improvement in the
volume of traffic following the present
business depression and with further
adjustment of operating costs in har-
mony with prevailing tendencies.
Freight rates. following war time m
creases and some later readjustmcnls
have not yet reached an equilibrium. the
commission says, because the chief fac
tors controlling them, 'the value OF SER
vice. and the cost of transportation"
still are 'in a state OF flux."
The commissions report is for the
year ended last October 81. It discioses
that a total of $3.50, 600, 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 .000,-
600 on this account.
Out of 677 carriers entitled to guar
anty payments, the commission says, SAT
have filed claims totalling ss1s,00n 600.
but payments of only $3.50, ,000 900 have
been held justified by the commission 8
audit. No statement was made with G.
spect to the difference between the roads
own summary of their losses during III
six months and the Governments find
ings. The roads which have not yet filed
! claims for losses, the report adds are
short lines and the total will be "rela-
lively small"
New Stock Issues.
I In its capacity as supervisor of rail-
road capital issues the commission issued
| during the year certificates aliawing
roads to issue stocks and bonds to
| total of s1,715. 100000. the report says
| The commission points out. however. that
| this total represented for the greatest
part refunding operations. not INVOLVING
new and increased investment.
| Discussing railroad earnings, the
commission says the carriers income
and expenses have reflected the unset
| tied industrial conditions and that de-
srite the reduction of the working
forces by half a million men, a lowering
of the cost of materials and cuts In en-
! ployees' pay. the net earnings have not
yet reached a rate OF per cent. on the
value of the properties determined for
the United States as a whole. The 6
per cent. net earning rate Is that recog-
nized by Congress in the Transportation
act as a fair return on the invested
value.
In its recommendations the commits
sion asks Congress to reconsider section
% of the Merchant Marine act, aut lor
izing preferential rail rates on shY.,-
ments of commodities for export in
! American bottoms, declaring that the
ultimate effect may be merely to divert
| traffic from certain ports to others, with
! little or no gain in tonnage for United
/ States vessels" Operation of mis- sec
tion of the law has been suspended by
| agreement between the Shipptng Board
| and the commission.
other Recommendation.
Other recommendations of the COM
mission are:
Enactment Of a law providing for the
punishment OF any person Offering or
giving bribe TO an employee Of a car
rier with intent 10 influence his action
or decision with respect to car service
| and providing for the punishment of the
guilty employee
That the use Of steel cars in the pas
senger service be required and that the
use in passe niger trains of wooden cars
between or in front of steel cars be pro-
hibited.
Amendment of the Interstate Com
merce act so as clearly to provide
whether, and II so, how voluntary con-
solidations Of carriers may be effected
pending ultimate adoption by the COM
mission of a complete plan of consoli-