The Idaho recorder. [volume] (Salmon City, Idaho) 1886-1927, 1922-06-09
Freight Rate Cut Which viii
Save People S400,000,0O0
a Year Is Ordered.
SHOULD REVIVE BUSINESS
No Let-up in Attack on Attorney Gen
oraI paus Meet in
Paris to Solve International
Loan Problem-Commu-
mist Outbreak in
Bulgaria.
~ EDWARD W. PicKARD

TOR some time President Harding
= has been striving TO bring about
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
az business in the United States. he
called number of railway executives
to conference in the White House
and laid the case before them, and
they named a committee of their mem
bership to cooperate with the inter
state commerce commission in at
tempting to realize the President
wishes. This looked promising until
Mr. Harding a few days later admitted
that the railway chiefs had so clearly
presented to him the difficulties of the
situation that he was not very san
guine Of success.
Then the interstate commerce COM
mission by itself came TO the rescue
and on Wednesday announced decl-
sion In accordance with which rates
on nearly all classes and commodities
of traffic will be reduced on July l by
amounts equal to 10 per cent of their
preSent levels. The chief commodities
excluded from the reduction are agri-
cultural products in all sections out
side of New England. live stock and
western grain and grain products.
The order reaffirms the reduction OF
1O.5 per cent in the western hay and
grain rates last fall and the cut OF
10 per cent made voluntarily by the
roads on agricultural products, jan
uary /.
According TO the estimates of ex-
perfs. the reductions mean saving
Of approximately s40o,0oo,ooo year
In the rail transportation bills or the
American people The farmers alone.
they say. will benefit to the extent of
some s1o7 100000 a year on goods that
they buy normally. The cut Is eX'
pectefl to increase buying and thus
4fimulate industry and diminish I'M
esnployment. On this there is general
agreement among manufacturers. mer
ehandisers and bankers.
Many of the rail executives wer'
not only surprised by the commits
xjonss Recession. but also quite diSgrun
tied. holding that the reduction should
have been postponed until the roads
had Accumulated more funds threuG'
increased earnings. Others. however
admitted that the loss in freight rev
cnne prohahlv would he more than OF
set by Increase In traffic.
The Interstate commerce commission
included in its decision the determine
ton OF 5.75 per cent as the reasonahi'
annual return for carriers on thei
rapIfal investment. as compared witt
the 6 per cent level previously fixed
The new figure really amounts To
ner cent since the federal corporation
income taxes are subrracted from
earningS before profits are figured.
Another part Of President Harding
plan was a voluntary acceptance O
4 reduction of wages by the railwa
hrotherhoods. Al present there il III
tie prospect Of this but the railwa
labor board IS expected to make a d.
cixiou soon on wage questions tina
have been pending before II, the finC
ting 10 he based solely on eyidenc
presented in the hearings. II is est
mated by the bureau OF railway ec'
nomics that railway labor board n
fers 10 date are saving the roads $500
O0o0OO a year in reduced wages,
much of the freight reduction seem
already TO have been unloaded.