The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1922-05-24
REDUCTION
EFFECTIVE
JULY 1ST
Commission Rules That
Rates Should be Reduced
Ten Per Cent
INTERNATIONAL NEWS sERvIcEJ
. .ASHIN6ylON Nav "a Cd

sibility of the voluntary slashing
Of railroad rates desired by Presi-
de ntHarding. the Interstate Com
merce Commission today decided
unanimously that the rates should
be reduced 10 per cent. and issued
an order making such reductions
effective on July l.
The rate increases granted to the
railroads in 1920 were ordered re-
duced as follows:
Eastern group. 40 per cent to 20
per cent; Western eroup. S5 per
oent to 21.5 per cent: southern aud
mountain Pacific group. 26 per cent
TO 12.5 per cent; inter-territorial
group, SO 1-3 per cent to 20 per
cent.
The comnEssien estimated that
tie new rakss would render the
railroads "a return on the properties
Of approximately SIS per cent ''un-
der honest, efficient and economical
nlandk ulGnl anu OAC CAPcA-
d.tures for maintenance of way,
structures and equipment"
The new reductions were effected
by ordering decreases in the hori-
zontal rate increases authorized BY
the commission on August rs, 1920.
Rates which have been reduced
since that date are not affected by
todays order. remaining at their
present level.
Chairman McChord of the commits
sion agreed to the reduction of
rates, but expressed the opinion
that the fixed return of the rail-
roads should be 5.5 per cent instead
OF 5.75 per cent
IL think that the times and con-
sitions plainly demand reductions
in rates on all materials and prod
Sc%e that 2rs basic IN industry and
Az our existence as a people to a
level that business interests will
recognize rs the lowest available
fer some time to come,' McChord
said.
In my Judgment the general ro-
ductions now decreed fall short OF
full attainment OF the desired end
Chairman McChord also said that
reductions on the general basis out
lined by him should be applied like-
wise to passenger fares which were
not included in the decision handed
down today.
Couinnissioner Eastman. while
concurring in the reduction Of rates
expressed the opinion that the labor
board shosld act IN some degree OF
cooperation
'.The reputation Of wages is in
dependent o. Anr action that we
may take as TO rates" said East
man. Bot the'regs H8n OF rates
Is necessarily Influenced by any ac-
tion that tho labor board may take
as to wages. At the. present time
the labor board has the wages OF
all railroad employees under consid-
GRAFTON, but we are acting without
awaiting its decision and our action
IA, ard must necessarily be. based
upon existing wages.
Based upon existing wages we
have not right to assume or to con-
clude that wages will or ought TO be
reduced Never rthei ess, these wages
which con stitute the chief factors
in railroad operating expenses, are
now on trial and it Is at least pos
eible that they will be reduced. If
they should be, we must either re-
open our proceedings and make
new dete erndnation, to the confusion
of industry, or the country must /
forego for time so large red9c.
ton in freight rates as would have |
been possible if we had postponed |
our decision"
Eastman said his pudgemens was
it would have been better il the |
commission had announced severail
weeks ago that it's decision would
be deferred until after the Labor |
Board had acted. Not for the ipur-
pose OF prejudging the question. of
wages or Of influencing the action |
of that body but for the purpose OF
so timing our own action that we
might be assured that the rates
which we are prescribing would sbe |
the lowest possible under the law
and the rates most likely to remain |
table for some considerable period 1
of time
Commissioner Potter said while |
the result OF future opeISttOns are j
in doubt, due to uncertainty as TO
the duration of the existing coal
strike and other factors ne was
convinced that the forecast which |
the commission was required TO
make was Justified by present pros
poets. He favored a reduction in |
passenger fares.
1t was maintained by Commission
er Lewis taat a ten per cent, reduc-
tion Will, IL the case of many COM
r.ccfties, sneite s%e pc5ceptihle tn
fuence in lowering the living costs, I
stimu ating Industry, aipeliorating
economic conditions or Bringing US
into more favorable and cqpltable
relationships at home and abroad.
Commissioner Cox while agree
ing 10 the reduction held that ''th-
amount available for reduction at
this time should be applied to agri !
cultural products, raw materials and |
basic comm odi ties which are essen |
tial to the re-estabiiehment of in
Srstrv and the empioyr1rrt OF labor