Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1921-12-08
HOPE FOR REVISED
RAILROAD RATES
Interstate Commerce Commis-
sion Believes Lower Level
Is Near
FOR STEEL PASSENGER CARS
by the AsSociaiel Press

washington. Dec. S.-IlOpe is cX.
pressed by tho Interstate Commcrc,
commission in its annual report toda,
to Congress that "a substantially
d IoW"r' level of railroad rates and fares
viii b" possible with an Improvement in
d ~" volume Of traffic following tho pres e
'nt business depression and "with Il
/ further adjustment cf operating costs
IN harmony with prevailing tcndcn-
CiUS"
Freight rates. follow ing wartime in :
%,r"aSeS and som" later Establishments.
nav" not yet rCnChcd an cuuilhrium.
~" commission says, because the chief
'"'torS controlling them. "thc vaiuc Of
N"rIl"" and the =, - Of trunspUrtat ion, "
I'M ar" lin stat" Of tlux.'
II" commissions report is for the
year ended last October 81. II dis
closes that II total Of $3.50 600 900 has
h""n ordered paid To- the railroads un1rr
II" government guarantee against
IHSSrS during tn" first six months after
th"lr return to private ownership, and
l!al thCrc still is due an estimated
HIo''WO,OIm ON this account.
Railroads Claims Held Excessive
Out Of G77 carriers entitled 10 guar.
ant"r payments. the commission saws,
30 have filed claims. totalng SSlS,
IhUl.OUO, but payments of only 500,
oO'OOO have been held justified by the
commissions audit. No statement was
llhd" with respect to tho difference be-
tween IN" roads own summary Of their
oSS"S during the six months and the
governments findings. The roads which
nav" not Yet filed claims for losses. the
report adds, are short lines. and the to-
tat VIII b" relatively small"
IN ITS capacity aS supervisor of rail-
r"hd capital issues. the commission is
Hurd during the year "crtiiiratrS allow
ing roads I" issue stocks and bonds to
total of Sl.7lI 900 900, the report
says. The commission points out. how
ever, that this total represented for
IN" greatest part rcfumd.ng operations,
NOT involving new and Increased in
vcStmcnt.
Discussing railroad earnings. the
commission says the carri"r>' income
anu expenses have reflected the unset
'I"d industrial conditions and that. de-
spite tn" reduction Of the working forces
by half million men. n lowering Of
N" cost of materials and cuts in en-
pI"ycN pay, tho net earnings have not
YET reached rat" Of & per cent ON the
NhIuC nt thH properties determined for
ihr mtrd States as II whulc The q
per cent net earning rate is that roc
ngni2cd by Congress in I'll" Tran~porta-
tion Act as fair return on the invested
value:
In It's recommendations the cOmmis-
SION asks Congress t. reconsider Sec
tl"n ~ of the Merchant Marine Act,
authorizing preferential rail rates on
shipments "f commodities for export in
American bottoms. declaring that the
ultimat" effect may he merely to divert
tratflC from certain ports to others with
IlttI" or no gain in tonnage for I'nitcu
state" vessels. Operation of this
section Of th" law has been suspended
by agreement between the Shipping
board and the commission.
Steel Cars for Passenger Service
Other recommendations of the COM
mission are:
fsna"tm"nt Of law providing for the
punishment "t any person Offering or
giving n brib" 10 an cmpI"yr Of car-
ri"r with Intent 10 Influence his action
or decision with respect tu car service
and providing for the punishment Of the
guilty employee.
That III" us" Of steel cars in the pas.
H"ngcr S"rvi"" b" required and that the
I>" IN passenger trains Of wooden cars
between or in front Of steel ears be pro.
nibifCi,