The New York herald., 1921-10-23
Commerce Commission Lowers
Hay, Grain and Feed Tariff
in West 10 to IL 1-2 P. G.
NEW REDUCTIONS COMING
Nations Economic Welfare Is
Object-High Wage No Ex-
cuse for Exorbitant Rates.
spdtoh 20 THE NEw YORK HERALD.
New York Herald Bureau, I
Washington. ID. G. Oct %


Washington. ID. c., Oct. ss
a reduction In freight rates on hay.
grain and feed in Western territory
was ordered to-day by the Interstate
Commerce Commission on the ground
that a general reduction of the cost OF
transportation is essential TO economic
Improvement in the nation. On this
basis present rates were found unrea-
sonable. because agriculture is pros
'rsted and needs relief.
The commission in reaching it's con-
clusions indicated a determination to
translate the waving of wage reduc-
tions TO the carriers into rate reduc-
ton for the people.
While the proceeding was started
before the railroad labor situation be-
came acute. the decision closely re-
fleets the Administration viewpoint as
to the relation between wages and
rates and the necessity of putting
transportation on a better basis. The
commission said:
So far as a tendency downward
in their rates can be induced and
so far as the reductions in wages
and prices which have already been
made effective can be converted
into rate reductions we are assured
that the full return of prosperity
will be fastened for both industry
and labor. The Carriers have, we
feel, themselves manifested reali-
zation OF this fact in the substan-
tial reductions in rates which from
time to time in recent months they
have voluntarily made.
Must Reduce Public's Burden.
In concurring but separate report
Commissioner Potter said:
IT Is not clear 10 me that the saw
ings made In the matter. OF wages and
other costs since we decided ex parte
"A have been sufficient to justify the
present reduction In its entirety. but
those savings, with further prospec-
tive savings. do. in my opinion. jus
tify our findings
The respective future reduction OF
wages and other operating costs are
perhaps more essential to Justify the
rate decreases than the reductions
that already nave been realized.
am led to concur in the report by
firm conviction that the Transports
ton burden on the industry and
commerce OF the country Is too heavy
and must be reduced and that as a
part OF q needed general readjust-
ment IL can be reduced with increase
OF net earnings ! believe Increase
in traffic and reduction Of operat-
ing costs may be expected and that
increased net earnings to the car
riers may be looked for
Many OF the cost factors Of railway
operations which forced higher rates
have been substantially reduced with
in the past year. The most important
item OF cost IL labor. The carriers
tell us that they are now paying ex-
travagantly high wages II we may
rely upon their statement In this re-
gard they are not operating their
properties economically and efficient
iy and therefore operating costs may
further be reduced.
We have no jurisdiction over wage
note OF the admission of the car
rers and require them to find out
whether their wage scales are too
high and TO lower them 10 they can.
Enormous Wage. Diseased.
MIR. Potter said the shippers and labor
generally are entitled to their day in
court. and the carriers are the ones TO
present their case. for carriers shippers
and laborers in all Of the country's in
dustries which use the carriers are inter-
ested IN this issue. He then reviews
what he calls the enormous increase
OF railroad wages In the last few years
as result of action OF Government
bodies. and says:
The significance Of these wage in
creases was brought out upon the
hearing in this case. where II was