The Barre daily times. (Barre, Vt.) 1897-1959, 1922-05-24
FAIR EARNING
ON THE VALUE
IS 5A PER CENT
Passenger Travel and Pull
man Charges Are Not
Affected BY the Decision
Nor Will Agricultural
Products Be Changed

Washington. d. O.. May 3D. Reduc-
t;on in freight rates averaging about
10 per cent were ordered to-day by me
interstate commerce commission N
decision resulting from its inquiry IN
10 the general rate structure q the
naticn.
The commission fixed the cut IN raj
rates At Ia Der cent in eastern terri
tory, IL - per cent IN western
territory. and ~ IL per cent IN the
southern and mountain Pacific terri
tories. All reductions ordered are 81
fective July and constitute great
q cut than was generally expected.
The commission in ordering the de.
creases- which are on horizontal
basis-held that the nations railroads
are entitled to earn ia per cent on
the value OF their property rather than
the 6 per cent under the transportai'
tion act Of 1920.
transportation charges on passenger
travel and Pullman charges were iei'
unaffected by the decision.
Agricultural products will not be al
fected BY the reduction granted under
the commissions order to-day The
reduction of l6 IL per cent made in
western hay and grain rates last fall
and the voluntary 10 per cent cut
made III all agricultural products By
railroads january ] viii be sub
stituted for the decision on these COM
modities.
The order Of the commission hxlng
rhe new level Of rates defined the per-
centages OF reduction as follows:
~Iu the eastern grouup, also between
points in Illinois territory and between
Illinois territory and the eastern
group, 90 per cent instead Of 10 pei
cent authorized in the decisions last
cited. The rate increases OF 1920.
~ln the western group and between
the western group and Illinois terri
tory p $40. per cent instead OF the
81 per cent SO authorized.
I'm the southern and mountain
Pacific groups II $40 instead OF the
q per cent 80 authorized,
ION the nter-territorial traffic ex-
cept as otherwise provided herein 20
per cent instead Of the 3S l-3 per cent
so authorized.
Commissioner Potter in a separate
opinion concurring with the majority
declared that the fixing Of the per
centagcs mentioned-is in effect a
requirement that present rates and
charges shall generally speaking be re-
duced ten per cent certain reductions
heretofore made to be treated as part
OF such ten per cent reduction
The majority opinion reviewed the
recent history Of rate regulation and
set forth summaries OF arguments
made by shippers in favor Of reduc-
tions and carriers against reduction. II
expressed the conclusion that "as--
sumption that railroaod rats can OF
should be stabilized on the present
high basis is futile"
The majority further said that
until the public is convinced that
there is little likelihood of immediate
further material reductions in prices
or transportation charges. confidence
necessary TO normal business viii q
that extent be impaired.
Explaining the reason for adopting
horizontal method of reducing freight
rates the commission said that whils
alterations in price levels had un.
equally affected different commodities
"the needs Of commerce cannot bt
met II rates are to huctuate Will
market prices Of commodities lts
conclusion was that reduction should
he made generally upon all com.
modities in substantially equal ratio