Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-05-25
FREIGHT RATES
REDUCED TEN
PERCENT july |
Interstate Commerce Com
mission Orders Horizontal
Cut in Existing Tariffs
S2OO,OOO,OOO SAVED
Passenger and Pullman Schedule Not
AHected-Decrease Made Without
President Harding's knowledge

Washington. May 25.-A reduc-
tion in existing rates of approximate
ly 10 per cent. on all classes OF
freight was ordered yesterday by
the Interstate Commerce Commls'
sion. The decrease is effective July
/ and was ordered after an investiga-
tion of transportation and industrial
conditions begun last January.
The reduction will save the ship
pers more than S200000,000 year,
according to the commissions est-
fates. Or S241 100000 according to
railway officials figures. This does
not take into consideration earlier
cuts in specific commodities, which
amount to about $l50,000.000, bring
ing the total cut in the nations
freight bill to S350,00O,OOO or $780,
100000.
Agricultural products are not af-
fected directly by the order today
The earlier reduction of l6 II per
cent in the Western hay and grain
rates and the voluntary 10 per cent
reduction on all other agricultural
products will stand so far as these
commodities are concerned. The re
Gently adjusted rates on brick will
not be further reduced nor will live
stock rates which are now less than
those prescribed in today'S order be
further cut
The commission also fixed 5.75 per
cent. as the reasonable annual return
which carriers in the future will be
entitled to earn on their actual in
vestments. This compares with 6
per cent. the reasonable return level
fixed under the Transportation act
for the period expiring March l.
The railroads are given until May
81 10 indicate whether or not they
will accept without question the
findings of the commission.
Existing passenger and Pullman
rates are not affected bv the order.
the commission holding little Or moth.
ing wculd be gained by reducing
them.
The Interstate Commerce Commits
sion's decision apparently was not
made known to President Harding,
who, at the White House conference
Saturday night with the railway eX-
cutiveS. asked them to consider vol
untary reduction in commodity rates.
Even so late as yesterday afternoon
the President let it be known that
he regarded any general reduction
i'm freight rates as improbable
1t is SOW known that the commits
sion had reached 4 decision in the
rate case before the Presidents con-
ference, but carefully guarded it's Sc
crct from the Chief Executive as
well as from all other interests
Ii also is understood that the rail-
way executives themselves had no
premature knowledge of what the
commission proposed to do. Their
committee, appointed at the PreSi-
dents suggestion. had undertaken to
work ont some sort of voluntary plan
of action. evidently assuming that
the President, if not themselves. had
forekncwledge of the commissions s
inclination and that Mr.. Harding had
nothing TO hope for in the nature Of
freight-rate relief from that quar-
ter.
That the railroads of the country
are in position to sustain the loss
Of revenue is the firm conviction of
the commission notwithstanding the
facts and argument to the contrary
presented bv the carriers during the
recent hearings.
That the railroads ought to con-
tribute at least this much to the
general revival of American bust
neSS-a revival that otherwise would
be seriously retarded-is another
conviction Of the commission SCI
forth in its report.
1t is not possible to translate the
policy pronounced bv the commission
today into dollars and cents as ap-
piled to a given shipment of house
hold goods. shoes or what not. Only
basis of future rate fixing was
laid down and the new railway
tariffs actually APPLYING the pro
posed schedules are vet to be draft.
ell and filed