Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1922-05-24
AFFECTS ALL ITEMS
WITH EXCEPTION OF
PRODUCTS OF FARMS
(By The Associated Prcss)

WASHINGTON, ID. III, May 20. Re-
ductions in freight rates averaging about
ten per cent were ordered today by the
Interstate Commerce Commission. in "a
decision which ii announces as the re-
suit Of the inquiry into the general rail-
road rate structure Of the nation. The
commission announced that Il believes
the railroads are entitled To earn five and
thrCe-fourths per cent.
The decision will not affect agricult-
ural products. The reduction Of i6'-
per cent in western hay and grain rates
made last fall and voluntary cut of ten
per cent on all agricultural products
Of January | will be substituted for a
decision on these commodities nj pres
cnt.
The general question Of whether Eail-
road transportation charges IN the Unit
cd States had attained levels too high for
business and industry 10 support was
brought formally before the Interstate
Commerce Commission in the fall Of
1921 on the commissions own motion
although in response TO nationwide COM
mercial and political suggestions. Farm
organizations and representatives az
Western states, particularly those IN the
kiAAh fitdANAhE AAN1t 1HN@AA@N
concessions about that time 10 which
railroads voluntarily added a ten per cent
reduction on practically all agricultural
products all over the United States eX-
cept in New England.
Before the commission, however. the
railroad executives statistical experts.
and attorneys, developed the argument
that railroad earnings were Insufficient
to justify any general decreases. nj
least until operating expenses and wage
, payments, as regulated BY the Railroad
Labor board. had been reduced. Every
major industry in the United States
was represented in the hearings. along
with state regulative bodies. most of
whom sought lowering Of transportation
charges, out diverged in the degree of
urgency which they suggested for the
! commissions action. The hearings eX-
tended over four months.
Secretary of Commerce Hoover. ap-
pearing at the request Of the Chamber
Of Commerce of the United States. pro-
posed that the commission should make
over the existing rate structures on the
/ principle of applying proportionateiy
lower frcights 10 the bulky. low priced.
raw materials Of industry and aEricult-
ure, such coal, primary foodstuffs.
and ores. Higher price finished mater
ials and passenger traffic, Mr.. Hoover
suggested. might bear the charges until
such time as railroad revenues had de-
vclopcd 10 the point which would allow
reductions without endangering railroad
credits. Immediate and tangible cuts. he
said, probably could not bc made
The Sccretary's position contrasted
radically with that Of state commissions.
whose members ccntcrcd good deal
of their attack on passenger rate sehed-
ulcs, which they allegc 10 bc too high
for the traffic, and IN reality the cause az
low railroad earnings.
Representatives Of the steel and iron
industry asked more stringent and inn
mediate action, principally arguing that
the commission should remove the en-
tire 40 per cent increase put on eastern
rates on their products in 1920. The
Nation Industrial Traffic league, rep
resenting shippers generally. took much
the same position. The coal industry
elaborated Mr.. Hoovcr's proposals. a.
scrting that hasically coal costs influ-
enced prices of so many other eommod-
tiles that cuts in rates on il, pArticu-
larly upon bituminOus coal, would have
a beneficial effect. The farming in
tcrests were not % urgent. particularly
in view Of the fact that agricultural rates
went down while the discussion was be-
fore the commission.
Members OF the commission rhcm-
selves found much difficulty, il was in
dicated, during the weeks after the tax
ing Of testimony ceased, In working out
line Of action. A decision expected
by April was many more weeks In the
making than even the traffic experts
and the railroad observers expected. but
it was pointed out that the record ~
testimony and the transportation sub
ject itself were of immense magnitude.
There was also suggestion that delay
might have been desired In the matter
TO allow business conditions and price
levels 10 stabilize further. and a. see
whether or not the Railroad Labor Board
might find it possible TO allow wage
cuts railroads were seeking.