South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-05-25

Is 20 - - peErent.
Tnter-territorial rate increases OF.
Aur 25. 1920. averaging SO Is per
cent were cut 70 20 percent
Announcements n Surprise
The announcement Of the rate cut
today. came as surprise Il had
been supposed that the administra-
ton would continue its efforts 20
reach a voluntary agreement with
/ the railroad executives by which
greater rate reductions could be put
| into effect at once.
The commission declared that
the cuts today which affect all in
terstate freight rates. would not de-
| crease the earnings Of the railroads
below the "a percent level agreed
uron by the commission.
The decision came as a surprise 20
the railroad executives whose COM
mittee. appointed az the result Of
the White House dinner Saturday
night. was 10 meet the commission
1 Thursday for the further disc ssion
OF rate reductions.
II is believed both Priest Hard-'
I ing and the commission found y
/ would be impossible in the imme-
date future 20 obtain an agreement
\ from the executives by which the
rates on certain specific commodi-
ties would be reduced Hence. il was
determined 10 make the general re-
/ duction.
To Stabilize Conditions
The commission stated that its de-
/ raarfwarfnr
that normal traffic NAV not Well BE-
expected until the present wide
spread expectation of rates reduc-
tons is realized or disrelled. Fur
Their the commission said;
s"We are of the opinion that gen
eral reduction in the rate level as
substantial as the condition of the
carriers will permit will tend not
| only 10 lessen the transportation
! burden. but also 10 equalize and
stabilize the conditions under which
commerce and industry are carried
on. with consequent fuller assur-
ance 10 the carriers Of realizing the
fair return contemplated by the
law"
Rate increases when granted
were general and were justified by
the increase in general cost of SER
vice" the commission pointed out.
and with decrease in that cost. a
rate decrease. also general. is justi-
fed"
The justification for decrease is
20 be found in the rate structure as
a whole. rather than in individual
rates or in rates on individual com
modities, The decision continues.
Expenses Down: Rates Also.
Reimbursement is not complete
and the process Of equalizing prices
is stiu in progress. some coming up
and others going down. which viii
probably reach in a more equal
prize level in the near future.
The needs Of commerce cannot
be met il rates are 70 huctuate with
market prices OF commodities.
In bringing down the rate level
| 10 meet lowered expenses a similar
process should be followed AID the
reduction made generally on all
. commodities in substantially equal
ratio.
THE almost unanimous agreement
among both shippers and carriers
that rates are too high indicates
| that transportation charges have
mounted to a point where they are
impeding the free flow Of commerce
and thus tending TO defeat the pur-
pose fer which they were establish
ed. that OF producing revenues
which would enable the carriers to
provide the people Of the United
States with adequate transportat ton.
! High rates do not necessarily mean
high revenues. for. if the public
cannot or will not ship in normal
volume. less revenue may result
than from lower rates"
Transportation Charges at Peak.
The commission said the depres-
sion OF 1921 manifestly resulted
from causes other than high freight
rates
But" it added. lit does not fol-
low that under present conditions
existing high rates do not tend TO
Ito retard the return TO a more nor
nal flow of commerce. Defiation has
taken place TO a greater or less ex-
tent i'm wages and original prices Of
commodities in nearly all branches
OF 4nu4EAAas UAA mus "a eitt-' W t.- --.i
charges are still nearer the peak
Until the public lis convinced that
there is little likelihood Of further
material reductions in prices or
transportation charges. the conf
dence necessary to normal business
will 10 that extent be impaired" the
ruling stated. The period OF defla-
ton has been in progress more than
is months: demand is reviving;
prices are showing a tendency 20
stabilize upon a level much below
that Of 1920. but above that Of pre-
war years. and conditions OF the
agricultural and manufacturing in
dustries have greatly improved In
the rast few months" the decision
said
Agree on Rate Cut Need.
. The commission was unanimous
on the need for rate reductions.
Commissioner Cox and Lewis how
ever. wrote dissenting reports as 20
the manner OF making the cuts ana
their extent. while Chairman Mac
Hord and Commissioners Potter and
Eastman expressed disa greeuent
: with other phases OF the comnnis-
3 sion's findings
Commissioner Lewis held that the
4 decrease was too small 10 be OF
much help in cutting living costs
and helping business back 70 nor
NAL
The decision OF the comm ission
that rates be reduced = unanim-
. Gus. said Lewis. Ny dissent Is linn
. tied 20 what appears 10 me 10 be IN
justified economic waste :
4 ten percent reduction viii. in the