The Pickens sentinel. (Pickens, S.C.) 1911-2016, 1922-06-01
Freight Rate Cut Which Will
Save People s4OO,0OO,OOO
a Year Is Ordered.
SHOULD REVIVE BUSINESS
No Let-Up in Attack on Attorney Gen.
eral Daugherty-Bank Meet in
Paris to Solve International
Loan ProbIcm-Commu-
mist Outbreak in
Bulgaria.
BY EDWARD w. PlckARD

TOR some time President Harding
has been striving to bring about Il
general agreement by the railways of
the country to reduce freight rates
materially and voluntarily, accepting
the opinion OF many experts that low
or rates are essential to the recovery
of business In the United States. lie
called n number Of railway executives
to Il conference In the White House
and laid the case before them, and
they named n committee Of their mem
berSh!p to cooperate with the inter
state commerce commission In at
tempting to realize the Presidents
wishes. This looked promising until
Mr.. Harding n few days later admitted
that the railway chiefs had SO clearly
presented to him the ditlicnltics of the
situation that he was not very SAN
guinc Of success
Then the Interstate commerce com
mission by itself came to the rescue
and on Wednesday announced Il dcci-
sion In accordance with which rates
on nearly all classes and commodities
OF traffic will he reduced on July | by
amounts equal to 10 per cent OF their
excluded from the reduction arc agr.
cultural products in all sections out
side Of New England, live stock and
western grain ana grain products.
The order rcnflirmS The reduction Of
1O.5 per cent I'm the western hay and
grain rates last fall ana the cut Of
10 per cent made voluntarily by the
roads on agricultural products, Jan
nary I.
According to tho sctimntcs Of OK
pcrtS, the reductions mean q saving
of approXimntcly SI00,00O,O00 Il year
In the rnil transportation bills of the
American people. The farmers alone.
they say. Will benefit to the extent of
some $l"7 10000 year on goods that
they huy normally. The cut is OK.
prctcd to increase buying ana thus
stimulate industry and diminish un-
employment. On this there is general
agreement among manufacturers. mcr.
chnn,liscrs and bankers
Many Of the rail executives were
not only surprised by the commits
s0n's decision. hut also quite diSgrun-
tied. holding that the reduction should
have been postponed until the roads
had accumulated moro funds through
increased earnings. Others. however
admitted that the loss In freight rev.
enuc probably would be more than on
set by Increase in traffic.
The interstate commerce commission
included In its decision the determine
tion Of 5.T5 per cent as the reasonable
annual return for carriers on their
capital investments rs compared with
the 6 per cent level previously fixed.
The new figure really amounts to 6
per cent since the federal corporation
income taxes arc Subtrnctcd from
earnings before profits arc figured.
Another part of President Ilarding's
plan was II voluntary acceptance Of
reduction Of wages by the railway
brOthcrlOouS. at present there is lit
tie prospect Of this. but the railway
labor board is expected to make de-
ciSiOn soon on wage questions that
have been pending before it. the find
ing to be based solely on evidence
presented in the hearings. 1t is cst-
mated by the bureau of railway eco
nomics that railway labor board or
ders to date are saving the roads $780,.
100000 q year in reduced wages, so
much OF the freight reduction seems
already to have been unloaded.