The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-05-24
AVERAGE GENERAL REDUCTION
THROUGHOUT THE COUNTRY WILL
BE NOT LESS THAN TEN PER CENT
Graduating Scale Is An
nounced By the Inter
state Commerce Com
mission For the Vari-
ous Sections of the
Country To Be Efec-
tive July l

WdSnlHHIOng way Gfs-1C0uS-
ton in freight rates averaging
l about 10 per cent, were ordered
a Today by the Interstate Commerce
Commission as result OF its in
Vestisation of the country's eondi-
tion.
The ruling of the commission fixing
the new level of rates is as follows:
Eastern group, also between points
in Illinois territory and between llll-
noise territory and the eastern group,
26 per cent instead of the 40 per cent
authorized in the decisions last made
(the rate increases of 1920.
I'm the Western group and between
the Western Group and Illinois terri
tory, 81 5-10 per cent instead of the
35 per cent, so authorized.
"In the Southern and Mountain Pa
cifc groups, IL 5-10 per cent instead OF
the 25 per cent so authorized.
"On inter-territorial traffic except as
otherwise provided herein, 20 per
cent instead of 33 1-3 per cent so
authorized.
In Western territory the cut was
approximately 1872 per cent and in
the southern and Mountain-Pacific
groups approximately IL 5-1O per cent
also effective July l.
The commissions rate cut was made
horizontally and was percentage of
the general increases given to all rail-
road rates in 1920.
The commission in its decision de-
clared the general reduction in rate
levels as substantial "as the condition
of the carrier will permit" will tend
80. to stabilize conditions OF all
business.
The transportation charges have
mounted to the point where they are
impeding the free flow of commence,
the commissions decision, which or
dered far greater reduction of rates
than had been anticipated in any quar-
ter, said, "and are thus tending to de-
feat the purpose for which they were
established; that of producing reve-
nue. which would enable the carriers
to provide the people Of the United
States with adequate transportation.
Passenger rates and Pullman car
charges we're unaffected by the de-
cision, which applied to freight rates
exclusively.
The rate cut averaged approximate
ly an actual 10 per cent decrease in
rates. Only two members Of the board,
Commissioners Lewis and Cox dis
sented, holding that the adjustments
should have been made in commodity
rates rather than on a horizontal bas-
is. Chairman McChord and other COM
missioners accepted this view in a
supplemental opinion concurring with
the majority.
The cut in freight rates was fixed by
the commission at 1 4per cent in east
ern territory; 1917 per cent in west
ern territory and 1914 per cent in the
Southern and Mountain-Pacific terri
tories. All reductions are effective on
July / and constitute a greater cut
than was generally expected.
Transportation charges on passen-
ger an dPullman service here left un-
changed by today's decision.
The commission, in ordering the de-
creases-which are on a horizontal
basis, held that the nations railroads
are entitled to earn 5% per cent on
the value of their property rather
than on the approximately per cent
on the reasonable return Of the trans
portation act of 1920.
Agricultural products will not be
affected by the reduction granted un-
der the commissions order today. The
reduction Of 1S per cent made in the
western hay and grain rates last fall
and the voluntary 10 per. cent cut
made in all agricultural products by
railroads January will be substituted
by the decision on these commodities.
The majority opinion reviewed the
recent hearings and set forth sum-
maries of arguments by shippers in
favor Of reductions and carriers
against reductions 1t expressed the
conclusion that the assumption that
railroad rates can or should be stabil-
lied on the recent high basis Is fu-
tile.
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 condi-
ton will be to that extent impaired.
Explaining the reason for adopting
a horizontal method Of reducing
freight rates the commission said that
while alterations in price levels had
unequally affected different commodi-
ties the needs of commerce cannot
be met If rates huctuate with the price
of market condition"
1t believed therefore that the change
should not be made upon all commodi-
ties in substantially equal ratio.
Commissioner Potter. In a separate
opinion concurring with the majority,
declared that the fixing of the per-
centages mentioned is In effect
requirement that the present rates
and charges shall, generally speaking
be reduced 10 per cenWand certain re.
ductions heretofore should be treated
as part Of the reduction.