Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-11-09

The Esch-Cummins bill, known
1t became q law as the trans
portation act, terminated federal con-
troll Of railroads March i. 1920. But
the act guaranteed the railroads a
fixed income to September I, 1920,
regardless Of rates, operating ! ex-
penses, etc. Consequently, rate max
ing by the interstate commerce COM
mission began to be elective as Of
September !, 1920.
4 Under the provisions Of the trims
.portationS act the interstate commerce
into districts. 1t ascertained the az
gregate value Of all railroad property
in each district. 1t ascertained the
total traffic then being handled in
each district. 1t then fixed rates for
each district that would ear S IL
per n on the aggregate railroad
property of hat district on the basis
of traffic then being carried. When
these rates 81 ascertained It was
found that for the eastern district
they meant ar average advance of 40
per cent over previous rates. for the
southeastern district an average ad-
vance Of rs per cent; for the western
district an average advance OF IS per
cent; for the Pacific and Mountain
district an average advance Of rs per
I. @. G. IL Own Master.
The transportation act did not bind
the interstate commerce commission
TO any hard and fast rates. 1t guar
anteed no railroad a single cent. II
only prescribed the method by which
the commission should AK rates. More
over, these rates were to be- fixed on
! railroads as groups in the respective
territories. The commission still re-
NAMED its own master and judge OF
what railroad rates should be, with
all the power hitherto possessed by il
to reduce or increase any ate OF
rates, on any road or roads, upon any
commodity or commodities.
This power the commission pro
ceeded to exercise. The impression
average increase of freight rates TAX
ing effect September 1, 1920, there
have been no reductions. This i'm.
preston has been cultivated by Ger
tain classes, which for one reason o.
another, wish to leave with shipper
and with railroad employees idea.
which are absolutely contrary to tn
September l., 1920, the interstate
commerce commission has been re
adjusting rates. In an overwhelming
proportion of cases handled by tn
commission these readjustments hav'
taken the form of rate reductions
Many of these reductions have bee
of the most sweeping and the mos
radical character-so sweeping an
radical, in fact, as to wipe out tn
average advance made in rates whel
the commission sought to obtain
S IL per cent return upon railroa'
property by gre ups and territories.
i compilation of rate reductions mad
by the interstate commerce commits
sion since September L. 1920, dfs
closes the following:
Sweeping Rate Reductions.
l.. Reduction Of Z cents per 10
pounds on lumber and other fores
products from California and tn
northwest washington. Oregon
Idaho and Montana) to Chicago, th
Missouri river and territory eas
thereof, to and including Pttsburg
and Buffalo
2. Reduction of rates on graf
(both export and domestic) frol
Buffalo and Lake Erie ports to point
in the Atlantic seaboard states, al
plicable on grain moved from h wei
> by lake routes to Buffalo and LAX
Erie ports. N
8. Withdrawal Of the entire IL
crease Of 1920 rates amounting to
: per cent in territory between the Mi
sissippi river and the mountains an
Is per cent In the mountain and Pa
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