New-York tribune., 1921-10-14
VIII Apply to Commerce
Commission to Approve
Is to 20 Per Cent Re.
duction on All Lines
Hope for Business
Boom to Aid Idle
Rail Owners to Act Indi.
vidually if Executives
Association Opposes 1t

Freight rates throughout the country
are to be reduced 10 to 20 per cent, to
take effect almost Immediately, accord
ing to an announcement to be made to-
day by the "Standard Daily Trade
Service The reduction, to apply to
all classes of commodities on all rail-
roads, is intended to stimulate bust
ness on a scale that will solve the un-
employment problem and start boom
in building and other industries.
Official action ordering the general
rate reduction and authorizing an ap-
plication to the Interstate Commerce
Commission for reduced schedules is
expected to be taken in Chicago TO-
day by the Association of Railway
Executives. The associations execu-
tive committee already has approved
the reductions on the ground that
more than 100000 freight cars are idle,
due to present high rates.
The decision was reached here
at conference of railroad presi-
dents, merchants and big manufacture
ers. who contended that lower charges
we're all that were needed to create a
business boom. If the association fails
to ratify the recommendation of the
executive council, it is said, many Of
the roads are prepared to reduce the
rates on their own initiative.
Back to 1920 Level
"The proposed reductions will mean
general, all-around cut of from Is to
20 per cent in freight rates on all
classes and commodities of freight
moving over the rails to-day" says
the "Standard Daily Trade Service s"
bulletin, which will be sent broadcast
to-day by its editor, Clayton A. Pen
hale, At West Street. lit will bring
back to within hailing distance the
freight rates as they were before the
lnterstate Commerce Commission raised
them on an average of 35 per cent, ef-
fective in August, 1920.
"lmmediate needs of business the
country over. present transportation
charges of more than the traffic will
bear, 100000 and more idle freight cars.
shrunken volume Of business and a
shut-out. by high rates, of American
farmers and other classes to foreign
markets in the face of competition
from other producing countries are the
posed reductions
THE reductions have been worked
out carefully by the executive commit
tee OF the association, consisting of
General w. w. Atterbury, vice-prcs
dent of the Pennsylvania Railroad
chairman. and Presidents Elliott and
Storey Of the Northern Pacific and
Santa Fe lines respectively. These
three men. one of whom at first op-
posed the idea, have been SOLD on the
proposal and advocate its adoption.
his is the first time in the history
of American railroading that the trans
portatlon agencies of the country. act
ing virtually as unit, will petition the
government to allow them to lower
rates instead of increase them.
Begun in Secrecy
1T is almost certain the Interstate
Commerce Commission will not denv
the petitions. For weeks the commits
sion knew nothing of tie railroads
plans. The carriers worked in the
greatest secrecy, fearful that publicity
would slow down the wheels of indus
try-that shippers the country over
would adopt an attitude of waiting FOR
the lower rates and that business gen
orally would be retarded.
lie procedure Will be for each in
dividual road to file new tariffs with
the commission. No general. sweep
ing percentage reduction is anticipated
Each carrier, so the plan goes, is to
hle Its own new tariffs and to ask the
commission to approve them as speedi
ly as possible. 1t is the present in
tention to ask the commission to allow
the new tariffs to 60 into effect five
days from their filing. This, however.
may be changed
"Preparation of the tariffs, a work
of tremendous magnitude has been
under way on some lines for several
weeks. Such carriers undoubtedly will
file their new tariffs ahead of the
others. The result, if this course is
followed, may be somewhat spotty
situation generally for . few weeks as
respects rates, with lower rates in ef-
feet IN some sections and the old rates
effective on other lines
at is we'll that the carriers are pre-
pairing to file such tariffs of their own
volition. Should the roads decide
aSainst the proposal or their executive
committee, there are a veritablo host
Of shippers organizations ready to del
u%e the commission with petitions for
lower rates. And there is no doubt
Continued thrcc)
ATiCc.v,r R.:.,cJ, Eao.