The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-05-26
RATE SLASH HELD
INJURY TO ROAD
SUCH Is THE OPINION OF
RAIL HEADERS
VIEWS ARE EXPRESSED
Reductions Ordered By Federal
Body Do Not Please The
Executives.
[Associated Press Dispatch. ]

ASSOCIATED Press Dispatch.l
Chicago, May 25.-Oticials OF
several roads centering here today
expressed the belief that the freight
rate cut made yesterday by the In.
terstate Commerce Commission at
Washington would result disas-
trously for the roads. w. B. Storey
president of the Atchisen, Topeka
and Santa Fe said<~
ITO my mind the freight rate re-
duction ordered will do more to
check business than any other fac
tor can think OF at present. or
course, the roads will have to face
out OF the roads earnings without
some irreparable harm being done"
". J. Jackson, president Of the
Chicago and Eastern Illinois said:
"If the railroad labor board cuts
wages in line with the requests now
before it, believe the ten per cent
freight rate reduction can be met
by the road in good shape. II this
is not done, however. the lines un-
questionably will be placed in a
different position to meet the or
der and; in fact, doubt il it could
Must Be Some Mistake
ut seems impossible that such an
order shoEld have been issued" said
Samuel FELTON,. president OF the
Chicago Great Western. The pur-
ported reduction and the return
stipulated do not. jibe. There must
be some mistake somewhere"
uT -, knliaun said n
NJ. Calktns. vice. president of the
{ hicago, Milwaukee, and st. Paul.
The western roads are in no posi-
ton to stand any more rate reduc-
tons without a reduction in wages.
This road has not earned anything
like six per cent for the past
eighteen months and with this rate
reduction we probably will not bo
able to earn our fixed charges"
Charles Markham, president or
the Illinois Central, in a statement
took a more optimistic
view. He said that in the case OF
his road he believed that increased
traffic resulting from the lower
rates would greatly Offset the de.
crease and that If the labor board
cut wages the Illinois Central would
be able to withstand the decision.
VIII hG0uCC Living SVSbS
HERBERT WALKER
limited Press Staff Correspondent
Washington, May 25-The nations
cost of living will probably be re-
duced nearly one million dollars q
year as the result of the ten per
cent reduction in freight rates or
der by the interstate commerce
commission, government statistical
experts said today.
This means a saving Of SO q
year for every person in the coun-
try. The reduction will cut the
pations freight bill from three
hundred million to four hundred
billion dollars a year according to
Official figures.
The government experts who have
been following the trend OF the cost
OF living, estimate a decrease or in
crease in freight charges is more
than tripled when 1t Is finally pass
ed off to the consumer.
The department. OF justice, It
was learned today, has orders from
President Harding to see that the
rate charge "is Passed down to the
consumer Just as rates increased
during the war we're quickly pass
ed on"
The rate reduction is to become
effective on or before July l and
administration officials look for a
refe~>ion in the cost of living figures
shortly thereafter.
Railroad Rate Holiday Suggested
ASSOCIATED Press Dispatch.l
Washington, d. c., May 25.-Dec-
laration of a railroad rate holiday
during which railroads could make
their own rates without govern
ment restriction-was suggested to-
day at the treasury as a possible
solution OF the nations transporta-
ton problem. ,
High treasury officials discussing
the cut ordered Yesterday by the
Interstate Commerce. Commission,
said that industrial benefit might be
expected if the earnings power OF
the railroads under the new rates
is sustained, but that the real ans
wer to the railroad problem would
be to allow the carriers to make
rates to suit themselves.
II the transportation problem
could be attacked along the lines Of
the armament conference, and a
holiday. of government railroad rate
regulation of five years or more
declared. the belief was expressed
that the railroads could fix their
rates to meet the varying conditions
in the different sections OF the
country somewhat on a basis what
the traffic would hear" and better
railroad service and greatly i'm
proved Industrial and commercial
conditions would result.
The suggestion advanced at the
treasury was made merely as one of
the possible solutions of the nation
al transportation problem, but was
taken as significant in yisw OF the
known intention Of President Hard
transportation act some time next
winter.