Wauwatosa news. [volume] (Wauwatosa, Wis.) 1900-1948, 1922-05-26
COMMERCE BODY
SLAsHES RATES
Orders Freight Reduction Aver
aging About 10 Per Cent.
TO BE EFFECTIVE ON JULY |
Ruling Holds Nations Railroads Are
Entitled to carr s94 Per Cent on
Value of Their Property, In.
stead of g Per Cent.

stead of 9 Per Cent.
Washington, May 25,-ReductiOn In
freight rates averaging about 10 per
cert was ordered by the interstate
commerce commission In a decision
resulting from its inquiry into the gen
eral rate structure of the nation.
The cut IN rates was fixed by the
commission at ii per cent in eastern
territory; 1915 per cent in western
territory, and 1212 per cent in south
en and Mountain Pacific territories
All reductions ordered are effective
July l and constitute a greater cut
than was generally expected
The seeming discrepancy in the rail
rate cuts is due to the fact that the
uew rates do not cover all articles;
tie new average, however, will be 10
per cent lower.
The commission in ordering the de-
creases-which are on horizontal
basis held that the nations railroads
are emitted to earn "a per cent on the
value Of their property rather than the
approximate 6 per cent fixed as a
reasonable return under the transpor-
tation act Of 1920.
transportation charges on passenger
and Pullman travel We're left unaifect-
ed by this decision.
Farm Products Previously Cut.
Agricultural products will not be af-
fectcd by the reduction granted I'M
der the commissioners order. The re
ductiou of 10la per cent made in the
western hay and grain rates last fall
aud the voluntary 10 per cent cut made
I'm all agricultural products by rail-
roads January l will be substituted
for the decision on these commodities.
The order of the commission fixing
tie new level Of rates defined the
percentage Of reduction as follows
an the eastern group, also between
points in Illinois territory and between
Illinois territory and the eastern
group, 26 per cent instead Of the
80 per cent authorized in the decisions
last cited tthe rate increases Of 1920
"In the western group and between
the western group and Illinois territory
4 81 5-10 per cent instead of the 30 PEE
cent so authorized.
"In the southern and Mountain
Pacific groups l. $40 per cent in
| stead of the % per cent SO authorized
ION interterritorIal traffic except a
instead Of the 80 1-3 per cent SC
authorized"
Higher Rates "lmpede Commerce
Transportation charges have mount
ed to the point where they are imped
ing the free flow Of commerce." said
the commissions decision, which or,
dered n fan greater reduction Of rates
than had been anticipated in any
quarter land are thus tending q lie
feat the purpose for which they we're
established, that of producing revenue
which would enable the carriers to pro
vide the people Of the United States
with adequate transportation"
Only two members Of the board
Commissioners Lewis and Cox, dis
scented, holding that the adjustments
should have been made I'm commodity
rates rather than on a horizontal
basis. Chairman McChord and other
commissioners accepted this view In a
supplemental opinion concurring with
the majority.
The majority further said that until
the public Is convinced that there Is
little likelihood Of immediate further
material reductions In prices or trans
portatIon charges confidence necessary
TO normal business will to that extent
be impaired.
Issue Was Brought Up Last Fall.
The general question Of whether
transportation charges In the United
States had attained levels too high for
business and industry to support was
brought formally before the interstate
commerce commission in the fall Of
1921, on the commissions own motion
although In response 10, nationwide
commercial and political suggestions
Farm organizations. particularly those
I'm the graln-produclng area, obtained
marked concessions about that time, to
which railroads voluntarily added a
10 per cent reduction on virtually all
agricultural products all over the Unit.
ed States except In New England.
The secretary's position contrasted
radically with that Of state commits.
sions, whose members centered a good
deal Of their attack on passenger-rate
schedules, which they alleged to be
too high for the traffic, and In reality
the cause Of low railroad earnings.
..,.~%sn -Rt - A- -,~st-