The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1922-12-10
Ten States
w Wal1tLOWer
Rates
Reduction on Farm Products
Demanded of |. C.. c. in
Anticipation of Federal
Railroad Legislation.
Farm Bloc for l918Rates

Washington. Dec. a.-tSpocial Telc-
gram l-Antieipati possible congres-
sional railroad legislation and taking
/ President Harding at his word, IL
western states swooped down upon
the Interstate Commerce commission
today demanding reduction in rates
on farm products Headed by the
Kansas utilities commission, these
states are demanding n reduction on
rates on grain. grain products and
hay. approximating 35 per cent. II Is
estimated this reduction Will cut
off about s3s0oo 600 OF annual reve-
nue from the railroads. which now
i claim they are earning only about
haf Of the 6 per cent they are en-
titled to earn in their tentative valu-
! alton.
Hearings on tho rate reductions de-
manded will commence next Monday.
The states interested constitute the
middlewestern group. including Kan
sas. Nebraska Iowa. South Dakota.
Minnesota. Oklahoma, Missouri. Colo
rado. Wyoming and North Dakota.
The fight is In charge of a committee
made up OF Clyde Reed. chairman,
Kansas utilities commission. Thorne
Browne, Nebraska; Dwight l.. Lewis.
Iowa; J.. l.. Putnam. Minnesota. and
] j, Murphy. South Dakota.
Want 1918 Rates.
The western group insists the rates
must come down To the 1918 level.
and call President Harding's address
to congress in support of their con
tention. Farm senators and repre-
sentatives unite in supporting the de
mand. claiming the high freight rates
are responsible in large part for the
disastrous conditions that affect agri-
culture.
While the western utility groups
are inaugurating their drive for
further rate reductions, Representa-
tive Sweet and Senator Capper are
endeavoring to secure immediate con.
sideration OF their respective bills re
pealng section 15-A OF the Esoh-Cuiu-
Minis law which includes the socalled
guarantee on earnings and deprives
tie state commissions OF their right
to control intrastate rates.
Republican leaders surveyed the
situation and frankly admitted tho
prospect for railroad legislation is not
good. The La Toilette group is plan
ming an immediate drive for repeal
OF the entire Esch- -Cummins act and
the group represented by Senator
Cummins will fight IL on the grourd.
az Senator Cummins expresses IL.
that the alternative is government
ownership"
Differ on Method.
While President Harding recon-.
mended in the main, the amendments
which Senator Cummins has in mind
to propose. the president and the
chairman Of the !. c. C. differ on the
method Of putting teeth into the labor
clause.
President Harding recommends
placing upon the Interstate Commerce
commission the responsibility for flx.
ing both wages and raes. Senator
Cumm!ns adheres to the view of es-
tablishing Board of Transporta-
ton which shall have jurisdiction
over wages. acting on appeals TO be
brought up from regional boards
which shall pass on local and regional
differences. Senator Cummins Is not
hopeful of securing legislative action
on the law at this session, but ae-
knowledges frankly the chances OF
action will be even less favorable at
the hands Of the newly elected CON
gress. lie has not given up his in
tention of introducing an administra-
ton bill which will cover the sugges-
tlons made by the president, but will
probably delay the bill pending fur.
ther conference with the president on
the subject of abolishing the railway
labor board.
Seek Extra Session.
The canvass of the senate made
today developed the La Toilette group,
including Senator Cummins' new
colleague. Senator Brookhart. will
utilize the railroad question to ae-
ceutuate the name already existing III
the hope Of forcing President Hard
ing TO call. an extra session after
March 4
The Investigation of sentiment by
the leaders showed that while the ad.
ministration forces want to confine
legislation to amendment OF the pres
ent act, the La Toilette group pro
poses to wreck II completely.
Senator Brookhart is already pre-
pairing legislation aimed at the tenta-
tive valuation of the roads fixed by
the Interstate Commerce commission,
claiming that the valuation approx
mates $1,000 600 900 worth of watered
stock.