South Bend news-times. (South Bend, Ind.) 1913-1938, 1921-10-23
MUST REDUCE RATES
Uncle sam Orders Roads 90 Give
Farmers Needed Reduction.

Uncle sam Orders Roads 90 Give
Farmers Needed Reduction.
WASHINGTON. oct. z2.-Federal
Seton affecting the railroad strike
stuAtion was taken today by two
departments of the government
when the Interstate Commerce COM
mission ordered freight rate reduc-
tons on grains. grain products and
hay in the territory between the
Mississippi river and the Pacific
cCast. and the department OF jus
lice issued instructions for the pro-
tectiOn OF The property OF the In
ternatioual and Great Northern
railroad in Texas. where a train
mems strike became effective at
noon.
The commissions decision, which
was I'm a case brought by p western
states and a number OF national and
local farm organizations. did not
neal directly with the impending
strike. but was considered signifi-
can't in its presentation of prospec-
tive future reductions Of railroad
operating expenses as a basis for its
alternating activity.
$50 far as q reduction downward
IN rates can be induced" the com
mission said, "and so far as the re-
auctions in wages and prices which
have already been made effective
can be converted into rate reduc-
efons. we are assured that the full
return Of prosperity VIII be has
tened for both industry and labor"
Receivers Operate Road
In the I. and @. y. railroad de-
svslopment the department OF JUS
tice took cognizance OF the fact that
receivers representing the United
States court are in charge OF tho
property and instructed the federal
marshal at Houston 20 employ such
deputies as the court might consider
necessary. At the same time IL was
indicated that no legal steps wert
Tor the moment under consideration
touching upon the call Of the five
sbrotherhoods of men in train serv-
Ave for a national strike. All di-
rect dealings with the railroad
Unions. so far as the government is
concerned. still remain in the hands
OF the railroad labor board at Chi
cago.
The rate reduction is the most
sweeping issued by the commission
in several years and on the COM
modities named. which constitute a
heavy percentage of railroad traffic
throughout the western territory
amounts 70 one-half Of the increases
allowed in 1920. These were 35|
percent in the western group terri
4ory. s5 percent in the mountain
Pacific group and SO 1-3 percent be-
tween divisions.
Ten Percent Decrease.
r The commission also ordered rates
on coarse grains, including corn.
-lts and others. fixed at 10 percent
below the level on wheat I'm the new
schedule while rates on grain prod
nets arc 70 be altered to fit the new
basis. Railroads were ordered to
have the new schedules ready by
Nov. 20 at the latest.
Summarizing it's recommendation
for the act. the commission said
that agriculture was "a basic indus
try which the evidence shows ~
a state Of financial prostration. re-
ceiving for its products prices
which approach and in some cases
have fallen below war levels" while
paying Transportation costs, many
of which are still at the war time
peak"
Railroads also are suffering from
financial depression. the commission
found. and the six percent return
upon their property declared by
congress 20 be the object of rate
making. is not being earned SEN
orally. The regulating body, how
ever. declared itself bound "to re-
ncct our best Judgment as TO the
basis which may reasonably be eX-
pectcd for the future 10 yield Z
prescribed return
Commissioner Potter. one of the
three members who concurred I'm
the action of the fun commission
witnort accounting The on'nion "th7t