Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1921-12-08
FREIGHT AND FARE
RATES TOO NIGH, |.
C.C.TELLsCONGRE:SS
LOWER LEVELS ARE NEEDED
COMMERCE BOARD SAYS IN AN
NUAL REPO T - EARNINGS,
HOWEVER, PRESENT RI U G Z
TANGLE.

Washington, Dec, Slope Is oX'
urcgsed by the Interstate commerce
commission In its annual report TO-DAY
70 congress that substantially low
err level of railroad rates and fares
would be possible with an exception
in the volume Of traffic following the
present business depression and with
further adjustment CT operating
costo in harmony with prevailing ten
denotes"
Freight rates, following war time
increases and some later readJust
ments, have not yet reached an cQui'
librium. the commission says, because
the chief factors controlling them,
the value Of service ana the cost OF
transportation still are in state OF
lux"
The commissions report is for the
year ended last Oct 81. 1t discloseS
that total of $430, 100000 has been
ordered paid to the railroads under
the government guarantee against
losses during the first six months
after their return to private owner
hin and that there IS still due an esu
mated slOJ 900 Coo on this account
Out of 677 carriers entitled 70 guaran
tee payments tho commission says
5f7 have filed claims, totaling SSlS,
O00, coo, but payments Of only $500
900. coo have been held justified b.
the commissions audit. Ne state
ment was made with respect to the
difference between the roads own
summary of their losses during thf
six months and the governments
findings. The reads which have not
yet filed claims for losses, the report
adds, are short llres and the total
viii be relatively small"
In its capacity as supervisor cf rail
read capital issues, the commission Is
sued during the year certificates al
lowing roads to issue stock and bonds
70 a total of s1,715, 100000, the report
says. The commission points cut
however, that this total represented
for the great part reminding opera
lions, not involving now and increased
Investment.
Discussing railroad earnings, the
commission says the carriers income
and EXPENSES reflected the unsettled
indu :trial conditions, and that despite
tho conditions of their reduction
working conditions by half million
men, lowering CT the costs Of ma
tsrials AMI cuts In employees pay the
net earnings have not yet reached a
rate of per cent on the value CT the
propertieo determined for the United
States as whole. The 6 per cen;
net earning rate is that recognized BY
congress IN the transportation act as
a fair return on the invested value.
In its recommendation, the commits
sen asks congress to reconsider sec
ticn 2S CT the merchant marine act
authorizing preferential rail rates or
shipmentp OF commodities for export
in American bottoms, declaring thai
the ultimate effect mag be merely tc
divert trnftic from certain ports to
others with little or no gain In ton
mage for United States vessels" Oper
elton of this section Of tho law has
been suspended By agreement between
the shipping board and the commits
sion
Othef recommendations or the com
mission arc: Enactment OF law pro
viding for the punishment CT any per
son Offering or giving brita to ar
"'nnloye o. carrier with intent tc
influence his action or with respect
"or service, and providing for the
punishment of the guilty employe.
mat the use of steel cars in the
passenger service be required and that
the use In passenger trains G. wooden
cars between or in front CT steel cars
be prohibited.
Amendment Of the interstate com
MERGE act 80 as clearly to provide
whether and, if SO, how voluntary con
solicitations of carriers may be affected
pending ultimate adoption by the
commission of complete plan Of con.
solidation