The Eureka sentinel. [volume] (Eureka, Nev.) 1902-current, 1922-05-27
RATES CUT
ON ALL RAILROADS
Interstate Board Directs All
Lines to Put New Tariff In
Effect Everywhere - East
Gets IL Per Cent While
Coast L. Given Smaller Cut;
Fares Unaffected.

Washington, May 24.-Horizontal
and nationwide reductions in freight
rates averaging about ten per cent
were ordered to-day by the Interstate
Commerce Commission.
The cut was fixed by the commits
sion at fourteen per cent in Eastern
territory, thirteen and one-half per
cent In Western territory and twelve
and one-half per e n in the Southern
and Mountain Pacific territories. All
reductions ordered are effective July
/ and constitute a greater cut than
was generally expected.
Passenger Rates Unaffected
The commission In ordering the
decreases held that the nations rail-
roads are entitled to earn five and
three-quarters per cent on the value
Of their property rather than the APP
proximate per tent fixed as a reason
able return In the transportation act
Of 1920.
Transportation charges on passen-
ger travel and Pullman charges were
left unaffected by to-day's decision.
The commission in its decision de-
clared a general reduction in rate
levels "as substantial as the condition
of the carrier will permit, will tend
to stabilize conditions of all bust
ness.
Freight Rates Too High
Transportation charges have
mounted to the point where they are
impeding the free flow of commerce."
said the commissions decision, which
ordered a far greater reduction of
rates than had been anticipated in
any quarter. land are thus tending
to the defeat of the purpose for which
they were established, that of pro-
ducing evenu which would enable
the carriers to provide the people of
the United States with adequate
transportation"
Agricultural products will not be
affected by the reduction. The re-
duction of sixteen and one-half per
cent made in the Western hay and
grain rates last Fall and the volun-
tary ten per cent cut made in all ag-
ricultural products by railroads jan
uary / will be substituted for the de-
cision on these commodities.
Two Members Of Board Dissent
Only two members of the board,
rn.n n.fuofonAr Toufo and Cnx Ilo
sented, holding that the adjustments
should have been made in commod-
itv rates rather than on q horizontal
basis. Chairman McChord and other
commissioners accepted this view in
q substantial opinion concurring with
the majority.
Commissioner Potter, In q separ-
ate opinion. concurring with the ma
jority. declared that the fixing Of 1.-THE
percentages mentioned is in effect a
requirement hat present rates and
charges shall, generally speaking, be
reduced ten per cent-certain reduc-
tions heretofore made to be treated
as part of such ten per cent reduc-
tfon."
Up to the Public Now
The majority opinion reviewed re-
cent history of rate regulation and
set forth summaries of arguments
made by shippers in favor Of reduc-
lions. and of carriers against reduc-
tons. 1t expressed the conclusion
that the Assumption that railroad
rates can be or should be stabilized
on the present high basis is futile"
The majority further said that "un-
til the public is convinced that
there is little likelihood of immedi-
ate further material reductions in
prices or transportation charges, con-
fidence necessary to normal business
will to that extent be impaired"
Explains Horizontal" Order
Explaining the reason for adopting
a horizontal method of reducing
rates the commission said that while
alterations in price levels had I'M
equally affected different commodi-
ties, the needs of commerce cannot
be met If rates are to fiuctuate with
market prices of commodities"
Its conclusion was that reduction
should be made generally upon all
commodities in substantially equal
ratio"
Wall Street Relieved
Wall street received with evident
relief the news of the freiss. rate re-
auctions. Most of the prominent
rails stockswere conspicuously strong
at the opening of the market, gains
running from substantial fractions
to over a point were made by all the
leaders.