The Sneedville news. (Sneedville, Tenn.) 191?-19??, 1922-06-09
Freight Rate Cut Which Will
Save People s400,000,000
a Year Is Ordered.
SHOULD REVIVE BUSINESS
No Let-up In Attack on Attorney Gen
srai Dauoherty-Bankers Meet In
Paris to Solve international
Loan Probiem-commu-
mist Outbreak In
Bulgaria.
BY EDWARD w. PIcKARp

EOR some time President Harding
1 has been striving To bring about q
general agreement by the railways OF
the country To reduce freight rates
materially and voluntarily, accepting
the opinion OF many experts that low.
er rates are essential TO the recovery
of business In the United States. He
called n number Of railway executives
TO n conference IN the White House
and laid the case before them, and
they named n committee OF their mem
bership To cooperate with the inter
state commerce commission In at
tempting to realize the Presidents
wishes. This looked promising until
MIR. Harding a few days later admitted
that the railway chiefs had SO clearly
presented Ia him the difficulties OF the
situation that he was not very san
gulne Of success.
Then the Interstate commerce com
mission by itself came 90 the rescue
and on Wednesday announced deci-
sion In accordance with which rates
on nearly all classes and commodities
of traffic will be reduced on July ] by
amounts equal To 10 per cent Of their
present levels. The chief commodities
excluded from the reduction are agri-
cultural products In all sections out
side of New England. live stock and
western grain and grain products
The order reailrms the reduction ~
I0.5 per cent In the western hay and
grain rates last fall and the cut ~
10 per cent made voluntarily by the
roads on agricultural products. Jan.
uary I.
According to the sctlmntcs ~ ex-
pcrts. the reductions mean saving
Of approximately Si0o.oOOOo year
In the rail transportation bills Of the
American people. The farmers alone.
they say. viii benefit To- the extent of
some sl27 .0ooOOO year on goods that
they buy normally. The cut Is *
pected to Increase buying and thus
stimulate industry and diminish IN
employment. on this thrc is general
agreement among manufacturers. mer-
chandIscrs and bankers.
Many 81 the rail executives we've
not only surprised by the commits
sian's decision. hut also quite diSgrun-
tied holding that the reduction shoild
have been postponed until the roads
had accumulated moro funds through
Increased earnings. Others. however.
admitted that the loss IN freight rev
cnuc probably would be- more than or
set hy Increase In traffic.
The Interstate commerce commission
Included IN its decision the determine
tiun of SO pcr cent aS the reasonable
annual return for carriers on their
capital Investment. rs compared with
the pcr cent level previously fixed.
The new figure rally amounts io
Ter cent since the federal corporation
income taxes are suhtrncici from
earnings before profits are figured
Another part ~ President llar,llus'S
plan was a voluntary acceptance 10
n reduction ~ wages ~ the railway
brothcrh",sl~. ~ present there Is it,
tie prospect ~ this. hut the railway
labor hrari = rNI.ryisd Q" make d.
ciS'un seven IN WAGE questions ihat
have bern pvndiuc before u. ihe fini-
inc tn o. bas,yl SOLELY "n rNi'',u-c
presented iu tho hearings. u j. '~ti-
mated ~ a.. bureau 10 railway rc"-
namicS that railway laisnr i.ari err
dsrS to date are saving the r"n'i~ >'fi-
oman year In r.duccd vaS'-> So
much of the freight reduction ~eemS
sIrcady 10 have hcen unluadctl