Imperial Valley press., 1922-05-24

not be placed on a level with the
interstate rates.
The Western Pacific today indi-
Gated it would place the new rates
into effect before the formal order
is served, according to j. B. Mans
field, general freight agent.
WASHINGTON, May 24.-Freight
rates throughout the country were
ordered reduced approximately 10 per
cent by the Interstate Commerce Com
mission.
Reductions indicated will save ship
pers of the country approximately
$200,O00,00Q a year, it was Officially
estimated. Other rate cuts ordered in
lS months will push the total aboye
$600,000,000.
All freight rates steam railroads
subject to the commission s jurisdiction
were cut horizontally.
The reductions will be effective OH
or before July /.
The commission was UNANIMOUSLY III
favor of the reduction, and some mem
bers expressed belief that the cuts
would stimulate business greatly, with
out jeopardizing financial stability OF
the railroads.
Members of the commission also dis
played a belief that passenger rates
should be reduced.
The commission fixes return of 3A
per cent upon the aggregate value OF
the lines as the basis upon which rates
will be based in the future.
August Increase Slashed
The percent provision of the Esch-
Cummins law recently expired and the
commission was given the right to fix
q new rate of return.
In making the reductions the conf
mission cut nearly in half the freight
rate increases authorized August 20,
1920.
In the eastern district 40 percent in
crease of August %, 1920 was cut to
26 percent.
In the western district the previous
35 percent increase was cut to q per-
cent.
In the southern and mountain Pa
cific district the previous increase OF
25 percent was cut to 12h percent.
Interterritorial rate increases of Au-
gust 25, 1920 averaging 33 l-3 percent,
were cut to 20 percent.
The commission declared that the
cuts today, which affect all interstate
freight rates, would not decrease the
earnings of the railroads below 5H
percent rate agreed upon by the com
mission.
The commission said it was impossi-
BILE to make findings respecting electric
roads as whole and therefore held
that its rulings should apply to all
roads, other than electric lines not OPP
Grated as a part of a steam railway
SYSTEM
The cuts do not apply to milk and
cream "when the revenue from trans
portation thereof is not included in
freight revenue.
Follows Harding Conference
1t is believed here President Hard
ing and the commission found it would
be impossible in the immediate future
to. obtain an agreement from railroad
executives by which rates would be
reduced Hence it was determined to
make the general reduction.
The commission says:
REIMBURSEMENT is not complete, and
the press of equalizing prices is still in
progress, some coming up and others
going down, which will probably reach
more equal price level in the near
future.
The decision reads:
"In bringing down the rate level to
meet lowered expenses similar pro-
cess should be followed, and the reduc-
tion made generally on all commodities
in substantially equal ratio.
Almost unanimous agreement among
both shippers and carriers that rates
art too high indicates that transport
alton charges have mounted to a point
where they are impeding the free flow
of commerce and thus tending to defeat
the purpose for which they were estab
lshed, that of producing revenues