The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1922-05-24
COMMERCE Commission
ORDERS NEW SCHEDULES
IN EFFECT ON JULY
Holds Railroads are
Entitled to Earn S "a
Per Cent Compared
With 6 Per Cent FIX
ed Under Transporta-
ton Act.


tBy the Associated Press }
Horizontal and nation wide
reductions in freight rates av-
eraging about 10 per cent were
ordered today by the inter-
state commerce commission.
The cut was fixed by the
commission as fourteen per
cent ir eastern territory; thir-
teen and one-half per cent in
western territory aud twelve
and one half per cent IN south
ern aud mountain Pacific ter
riior.es. All reductions order
ed are effective July ] and con.
.titute greater cut than was
gencr lily expected.
The commission In ordering
the decreases held that the ma
,ion $ railroads are entitled 20
earn ) "a per cent Of the value
of their property rather than
the approximate six per cent
fixed as a reasonable return in
the transportation act Of
1920.
Transportation charges on
passenger travel and Pullman
tchargas were left unaffected
by today 5 decision.
Agricultural products will NOT
be- affected by the reduction The
reduction of isi1 per cent made In
the western hay and grain rates
last fan and tho voluntary 10 per
cent cut made in all agricultural
products by railroads January /,
will be substituted FOR the decl-
slon on these commodities.
Mill stabilize business
The commission In rs decision
declared "a general reduction iu
rate levels "aa substantial az the
condition Of the carrier will per
init viii tend sses TO stabliiz,
condition." OF al business.
only two members OF the board
| ICommisslaner Lewis anj Cox dis
Z -snted. holding that the adjust
ments should have been mssv a.
! commodity rates rather than on d
I horizontal basis. Chairman Nc
I chord and other commissioner
accepted this vicw in "a supple
mental opinion concurrlng with
the majority
Tn. order OF the commission
] nxing the new level OF rates oe'
fined tho percentage ot redue'
ton as follows.
In the eastern group tai-r ne'
tween points in Illinois territof,
/ and between Illinois territory ane
I the eastern group 10 per cen
instead OF the 40 per cent nr-" lr
lzed IN the decisions lhst citci
n ttho rate increases ot ta-ul
"ln the western Eruup 'Hnd De
tween the western group una iiii
nois territory 2lis per cent IN
stcad VI the % per cent so au
ihoriAed.
"in tho southern and mou-.aii
pacific Eroups. ish pes cent in
stead OF the 20 per cent SO autunr
ned.
"On inter-tcrriioriai irafuc "a
cept aa otherwise provided hureil
20 per cent instead cf the % J..
per cent go authorized
Cut Averages 90 Per Cent
Exceptions 10 the general ter
ritorial decreases viii not IN
average of the cuts al npproa.
mateiy zen per cent. Instead q
close To as pcr cent, az woul
sccm apparent by mere con
alteration of the -four percentag
reductions.
u commissioner Potter in s.pn
rate opinion cuncurring with IA
majoriiy declared that the nNln
of "thc percentages mentioned
is In effect requirement tha
present rates and charges shai
generally speaking be reduced 20
percent certain reductions her,
ioioro made TO be treated a. 81
Of such ten percent reduction.
Tho majority opinion rcvicwe
the recent history 81 rate rrsdi
tiun and set furth summaries
arguments made ~ Shipper IN "a
tur of reductions ana Of carficl
asainnt Reductions. ~ rNprcasr
Site Cancellation that the ''nasumI
iun that railroad rates can q
should be stabilized on the pr
sent high basis u futile
The ma lority further said TN
| ''uniI The pubic ~ convinced mi
there IL utile hklihood of imm'
dlatr iurther material Reduction
| In prices or transportation chafk'
confidence necessary TO norm
business will 10 that extent be IN
paired"
Explaining the reason for ndoI
ting a horizontal method of rcdn
lnG rates the commission said IN
while alterations IN price lcFe
had uncquaiiy affected dilferel
commodities, the nccdB or con
merce cannot be met n rates Al
10 flucfuatt with market prices
| commodities" Is concluslou VI