The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1922-05-26
REDUCTION IN JULY
FOR FREIGHT RATES
AMOUNTS EQUAL TEN PER
CENT OF PRESENT LEVELS
UNDER DECISION OF INTER-
STATE COMMERCE CONfMIS-
SION.

Washington, May I4.-halToao
freight rates will be reduced on
July 1 by amounts equal to 10 per
cent of their present levels under a
decision Of the interstate commerce
commission announced today. Prac-
tically all classes and commodities
of traffic are affected by the reduc-
ton which marked the conclusion
of the investigation begun last au-
tumn by the commission on its own
initiative into the reasonableness OF
existing freight levels.
Agricultural products in all sec
tions of the country outside of New
England, live stock and Western
grain and grain products are the
chief commodities excluded from
the reduction, these comprising the
freight classifcations upon which
reductions have been recently put
inc ee~~ec.. Passenger charges and
Pullman fares also are left un-
changed.
The commission announced also
it's determination of 5.75 per cent.
as the reasonable annual return
which carriers in the future will be
entitled to earn on their capital in
vestment. This compares with 6 per
cent, the reasonable return level
fixed under the transportation act
for the period expiring March 1.
Railroads we're requested to sig
Nifty to the commission before May
81 whether they would voluntarily
make new schedules complying with
| the decision, or require the commls-
sion to issue it's formal and detail
ed order for the alteration.
On the statement of the commits
sion that all freight revenues in
1921 approximated $4OO,oOo,ooo,-
900 today's decision will reduce
the national freight bill by $4OO,-
100000 per year.
AS stated in technical language
to the railroads the commission said
that after July l it would hold un-
Reasonable rates Including more
than the following percentage OF
increase over the rates in effect i'm
. mediately prior to August 26 1920"
and set up the territorial schedules
as follows:
"In the Eastern group, also be-
tween points in Illinois territory,
and between Illinois territory and
the. Eastern group, rs per cent in
stead Of the 40 per cent authorized
i'm the decisions last cited. Qncreas-
ed rates of 192O.)
In the Western group and be-
tween the Western group and Hill
nois territory, 21.5 per cent instead
of the 35 per cent so authorized.
"In the Southern and mountain
Pacific groups, 12.5 per cent. in
stead of the rs per cent SO authoriz-
ed.
"In inter-territorial traffic except
hs otherwise provided herein, 20
Der cent instead of the 33 1-3 PEI
eent, so authorized. The commits
sion, after reviewing the arguments
. For and against rate reductions as
made before it by shippers, rail
roads and representatives of geo.
sraphical areas of the country, de-
klared that as rates had been push
Id up by horizontal percentage in
eases "a similar process should be
followed" in bringing them down
to meet lowered expense Of opera,
ion This conceded with the argu'
pents which President Harding ad-
anc.I before executives at din
er conference last week.
It was chiefly on this point thai
supplemental and dissenting opin-
bns were filed. Chairman McCord
nd Commissioners Lewis and Cos
dvocated sharper commodity re,
uctions. rather than the horizon
u cuts decided upon by the ma
brity. McChord likewise dissented
foi