Northern Wisconsin advertiser. [volume] (Wabeno, Wis.) 1898-1925, 1922-06-02
CONNIE RICE BODY
sLASHES RATES
Orders Freight Reduction Aver
aging About 10 Per Cent.
TO BE EFFECTIVE ON JULY |
Ruling Holds Nations Railroads Are
Entitled to Earn 5A Per Cent on
Value of Their Property, In
stead of Per Cent.

Washington, May 25.-ReductiOn in
freight rates averaging about 10 per
cent was ordered by the interstate
commerce commission in a decision
resulting from it's inquiry into the gen.
eral rate structure of the nation.
The cut i'll rates was fixed by the
commission at IA per cent in eastern
territory; 1919 per cent in western
territory, and 1919 per cent in south
ern and Mountain-Pacifc territories.
All reductions ordered are effective
July l and constitute greater cut
than was generally expected.
The seeming discrepancy in the rail
rate cuts is due to the fact that the
new rates do not cover all articles;
per cent lower.
The commission in ordering the de-
creases-which are on a horizontal
basis-held that the nations railroads
are entitled to earn ~ per cent on the
value of their property rather than the
approximate per cent fixed as a
reasonable return under the transport
tation act of 1920
Transportation charges on passenger
and Pullman travel were left unaffect-
ed by this decision.
Farm Products Previously Cut.
Agricultural products will not be af-
fected by the reduction granted I'M
der the commissioners order. The re-
duction of 1912 per cent made in the
western hay and grain rates last fall
and the voluntary 10 per cent cut made
in all agricultural products by rail-
roads January l will be substituted
Tor the decision on these commodities.
The order of he commission fixing
the new level of rates defined the
percentage of reduction as follows:
I'm the eastern group, also between
points n Illinois territory and between
Illinois territory and the eastern
group, 26 per cent instead of the
40 per cent authorized in the decisions
last cited (the rate increases of 1920
I'm the western group and between
the western group and Illinois terri
tory p $40 per cent instead Of the 80
per cent so authorized.
I'm the southern anC Mountain
Pacific groups, u $40 per cent in
stead of the % per cent so authorized
ION inter-territorial traffic except as
otherwise provided herein 20 per cent
instead of the 33 Is per cent so
authorized"
Higher Rates "lmpede Commerce"
Transportation charges have mount
ed TO the point where they are imped-
sng the free flow of commerce." said
the commissions decision, which or
6ered far greater reduction of rates
than had been anticipated in any
quarter, and are thus tending to de-
feat the purpose for which they were
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
sented, holding that the adjustments
should have been made in 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 sun
til 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"