Evening journal., 1922-05-24
FREIGHT RATES
CUT TOPPER CENT.
|. c. G. Orders Reduction in
Formal Decision An
nounced Today
is EFFECTIVE 2
ON JULY I
.contInued From FIrst rage. }

Continued From Flrst Fage.)
the railroad executives by which
greater rate reductions would be put
into effect at once.
The commission declared that the
cuts today which affect all inter
state freight rates would not de-
crease the earnings OF the railroads
below the s "a percent level agreed
upon by the commission.
The decision came as a surprise TO
the railroad executives whose com
mittee appointed as the result of the
/ White House dinner Saturday night,
was to meet the commission Thurs
] day for further discussion OF rate re-
ductions.
1t is believed both President Hard
/ ing and the commission found II
would be impossible in the immedi-
ate future to obtain an agreement
from the executives by which the
rates on certain specific commodities
would be reduced. Hence. It was de-
termined TO make the general reduc-
tion.
The commission stated that Its de-
cision was based upon a realization
that normal traffic may not well be
expected until the present wide
spread expectation OF rate reduc-
tions is realized or dispelled." Fur
ther the commission said:
we are OF the opinion that gem
eral reduction in the rate level as
substantial as the condition OF the
carriers will permit, will tend not
only to lessen the transportation
burden, but also to equalize and sta
bilize the conditions under which
commerce and industry are carried
on, with consequent fuller assurance
to the carriers OF realizing the fair |
return contemplated by the law"
Rate increases when granted |
were general and were justified by |
the increase in general cost OF ser
vice" the commission pointed out.
"and with decrease in that cost, a
rate decrease. also general, is justi-
fed"
The justification for decrease is
to be found in the rate structure as
a whole rather than IN individual
rates or in rates on individual com
modlties," the decision continues.
"Readjustment is not complete,
md the process OF equahzing prices
s still in progress, some coming up
and others going down, which will
probably result in a more equal
'rice level in the near future.
The needs of commerce cannot
'e met II rates are to fuctuate with
market prices OF commodities. In
bringing down the rate level to meet
owered expenses. a similar process
should be followed and the reduo-
ion made generally on all commodi-
les in substantially equal ratio.
The almost unanimous agree
nent among both shippers and car
'iers that rates are too high indi-
'ates that transportation charges
nave mounted to a point where they
ire impeding the free flow OF com
nerce, and thus tending to defeat I
he purpose for which they we're es- 4
ablished. that of producing reve-
ues which would enable the car 7
lers to provide the people of the 2
nited States with adequate trans q
High rates do not neoes- c
rily mean high revenue, for II the
lblic cannot, or will not, ship in II
'rmal volume. less revenue may p
suit than from lower rates" n
The commission said the depres- n'
on Of 1921 manifestly resulted N
ON causes other than high freight nj
tes.
But" It added. 1T does not fol- p'
W that under present conditions =
listing high rates do not tend to re- |
rd the return TO a more normal |
wv of commerce. Defation has |
ken place to a greater or lesser ex-
Mt in wages and original prices of
mmodities in nearly all branches
industry, but most transportation