Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-23
GUT ORDERED ON
GRAIN AND Hay
FREIGHT RATES
Roads Must Make a Reduc-
ton Throughout the West
ern Half of the u. S. BY
Nov. 20, |. C. C. InstruCts
tBy The Associated Press.)


Washington, Oct. 22.-In a
sweeping decision involving the en-
tire railroad situation, wage scales,
depression in industry and finances,
the Interstate Commerce Commits
sion today ordered the freight rates
on grain, grain products and hay
throughout the western half of the
United States reduced by an aver
age of approximately 16 per cent.
Notice was given the carriers
that~t the commission expected the
reductions to be put into effect i'm
mediately and by November 20. at
the latest, and that the low state of
railroad earnings, which led to the
increases in 1920, should hereafter
be rectified by reductions in wages
and prices and that downward ten
dency should set for their rates.
Holds With the States.
Anticipated by statements in Of
ficial quarters bearing upon the
strike call of the railroad brother
hoods. the decision was rendered
in the case brought to the commits
sion September by twenty-four
western state and agricultural or
CARNATIONS. The commission unan-
imously held with the state petit
tioning for reductions, though con-
ceding the difficult financial situa-
ton OF the railroads.
Il The decision removes from
wheat and hay cne-half of the in
creases given the railroads in 1920
and on all other grains fixes the
rates at 10 per cent less than
those on wheat. The commission
! further ordered a new relationship
| built up in the rates on grain prod
ucts, including flour and other
commodities, to agree with the
lower level on the raw material.
The increases given in 1920 gave
the carriers a 35 per cent advance
In the Mississippi valley and vest
ern territory, and 33 1-3 per cent
advance on commodities moving
across the division line, of which
half is now taken away.
Expenses Lessened.
Dealing with the railroad finan-
cial situation, the commission
pointed to the railroad labor
boards decision of July reducing
wages about II per cent and to
changes in labor rules and work
ing conditions accomplished by the
labor board which have lc 7ened
expenses to the carriers. These.
the commission estimated. will pro-
duce a sa 'ng of about $425, 900, 900
per year.
1.-THE fact that many railroad
charges are still levied at the war
time peak" the commission de-
clared, ARE a cause of discourage
ment TO the producer who has been
unable to maintain his prices and
to the erpploye who has expert
enced reduction of wages. The
really vital concern Of the carriers
is to promote the rCiurn of what
may be deemed normal traffic and
anything which will help toward
this end is greatly to their benefit.
So far as a tendency downward in
their rates can be induced. and so
far as reductions in wages and
prices, which have been made eff
fective can be converted into rate
| reductions, re are assured that
the full return of prosperity will
be FASTENED for both industry and
labor. The carriers have, we feel,
themselves manifested a realization
of this in the substantial reductions
on rates which they have voluntar-
lily made"
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