Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-05-25
CUT IN RAIL RATES
PLEASES NOBODY
!. c. c. Acts When Harding's
Request for Voluntary Re-
ductions Is Refused
ROADS IN POOR CONDITION
BY CLINTON W. GILBERT
STAFF Correspontent Evening Public Ledger


STAFF Correspondent Evening Public Ledger
Copyright. 1879. by Public Ledger Co'npdm,
Washington. May 25.--Thc railroad
rate reductions please nobody. They
were not what President Hardinh
wanted. They were not what the va
rious intcrcats hero which were seeking
lower rates wanted. The railroads did
not want any rate reductions.
The result probably will be an effort
in Congress to obtain n modification of
the Esch -Cummins law. which VIII
permit the making Of rates by com.
inodities. instead of by the process OF
horizontal cuts and increases.
What was particularly desired here
for political and business reasons was
further reduction of rates for asri-
cultural products and rather deep cuts
on coal. iron and building materials.
No Cut on Farm Products
No cut was made IN agricultural
rates on them had already been re =
duccd. Ana coal. iron and building
materials were cut only as other things
were instead Of receiving special
| treatment to rromot" the flow Of bust O..
ness. The failure TO cut further int1
agricultural rates will prove disappoint
| ing to that strong section Of voters. the
organized farmers.
Various histories Of this decision
| have been published describing II rs q
surprise. The fact that II followed Sc
quickly upon Mr.. Harding's conference
with the railroad presidents and the
| White House announcement which Ice
people 10 bclicv" that there would b'
no cut in rates has contributed to the
idea that the Interstate Commerce Com
| mission has sprung an unexpected nc'
tion.
The fact is. Of course. that Mr.
Harding was fully informed as 10 TIT
intentions Of the commission which la'
decided that il could 90 nothing undc
the law but make q horizontal cut
He sought 10 obtain the consent Of th
railroad executives to the cuts abou
10 b. ordered and further commodit
cuts on agricultural products, coal an
building materials.
Rail Heads Declined to Make Cuts
The railroad presidents declined T.
make voluntary reductions. either sue
~ those which the Interstate tommrrr
Commission was about 10 order or N
additional commodity reductions. tn
Executive held out as consideration
il Is said. n program of modification
| in the Esch- -Cummins law which woul
, leave the railroads greater freedom q
action than they now have. but IN
railroad presidents. having had one cx
tpcriencc OF the treatment by Congrcs
of an Executive suggestion III thci
favor. that of the $500, 900 600 appro
nriations, were not sufficiently I'M
pressed to promise voluntary reduc
tlons. ., .,.,,, ,o,;,
failcd. fhc Interstate Commerce Com
! mission went ahead and announced ii
decision.
Commodities Rate Favored
/ The plan TO make rates by the CON
| moditiss instead OF horizontally III
p much support. The so-callcd r"formc'
in the Interstate Commerce Commissio
itself favor it. Secretary Hoover
understood TO have urged II strong
on the railroad presidents at Mr.. Hare
ins's dinner, and. Of course, the agr
: cultural bloc naturally supports. o'
Of the great purposes Of the bloc Is
g obtain special consideration of Il
: farmers in the making of freight rate
s But if only horizontal cuts are rossib
:. no such special consideration may
n obtained. !,
. Outside Of this decision-that I.
making Of commodity rates is prohi
Q tied by tho law which blocks the wa
e unless Congress acts to give the lnte
= state Commerce Commission the fullc
& liberty in political rate making
It present decision Of the Interstate Con
merce Commission Is important in o
other respect.
II practically rcverses the idea tn
hns guided the Interstate CONNER
Commission in the past that rates mr
Is assure the railroads a minimum retur
Five and three quarters per cent
apparently established as max'mu
" instead of minimum return FOR t
d. roads. II the roads earn more th
" that il will be signal for another c
=. in rates. If they fall below that the
~ is no indication that they will obta
= relief.
!. The decision, it is generally believe
:. will help IN business recovery.
!. fault found with it is that It Is
=. 20 shaped as to do the most good p
,o liticaly and economically.
As for the railroads themselves. tn
are, in view Of the likelihood of furth
'a congressional action. left in their
uncertainty. without adequate resourt
and in Il poor position to obtain mon
for needed betterments.
al ~ ~rk