The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-05-25
AVERAGE GENERAL REDUCTION
THROUGHOUT THE COUNTRY WILL
BE NOT LESS THAN TEN PER CENT
Graduating Scale Is An
nounced By the Inter-
state Commerce Com
mission For the Vari-
GUS Sections of the
Country To Be Efec-
tive July /

Washinuton, May 24.-Reduc-
ton in freiqht rates averaging
about 10 per cent, were ordered
today by the Interstate Commerce
Commission as result of its in
vestiqation of the country's condi-
ton.
The ruling Of the commission fixing
the new level of rates is as follows:
Eastern group, also between points
in Illinois territory and between Hi
noise territory and the eastern group,
26 per cent instead of the 40 per cent
authorized in the decisions last made
(the rate increases of 1920.
'In the Western group and between
the Western Group and Illinois terri
tory, 81 5-10 per cent instead of the
35 per cent, so authorized
an the Southern and Mountain Pa
cific groups, IL $40 per cent instead of
the rs per cent so authorized.
ION inter-territorial traffic except as
otherwise provided herein, 20 per
cent instead of 33 13 per cent so
authorized.
In Western territory the cut was
approximately 1917 per cent and in
the southern and Mountain-Pacific
also effective July 1.
The commissions rate cut was made
horizontally and was a percentage of
the general increases given to all rail-
road rates in 1920.
The commission in its decision de-
clared the general reduction in rate
levels as substantial "as the condition
of the carrier will permit" will tend
- fol nf
business.
The transportation charges have
mounted to the point where they are
iupeding the free flow OF commence,
the commissions decision which or
dered a far greater reduction of rates
than had been anticipated in any quar-
ter, said, land are thus tending to de-
feat the purpose for which they were
established; that of producing reve-
nue. which would enable the carriers
to provide the people of the United
States with adequate transportation.
Passenger rates and Pullman car
charges were unaffected by the de-
cision, which applied to freight rates
exclusively.
The rate cut averaged approximate
ly an actual 10 per cent decrease in
rates. Only two members of the board,
Commissioners Lewis and Cox dis
scented, holding that the adjustments
should have been made in commodity
rates rather than on horizontal bas-
is. Chairman McChord and other COM
missioners accepted this view in a
supplemental opinion concurring with
the majority.
The cut in freight rates was fixed by
the commission at / 4per cent in east
ern territory; 1914 per cent in west
ern territory and 1917 per cent in the
Southern and Mountain-Pacific terri
tories. All reductions are effective on
July 1 and constitute a greater cut
than was generally expected.
Transportation charges on passen-
ger an dPullman service here left I'M
changed by today's decision.
The commission, in ordering the de-
creases-which are on a horizontal
basis, held that the nations railroads
are entitled to earn 5% per cent on
the value of their property rather
than. on the approximately per cent
!. on the reasonable return Of the trans
portation act of 1920.
T-icultural products will not be
am by the reduction granted I'M
der t. commissions order today. The
reduction>of 16 per cent made in the
western hay and grain rates last fall
and the voluntary 10 per cent cut
made in all agricultural products by
railroads January will be substituted
by the decision on these commodities.
The majority opinion reviewed the
recent hearings and set forth sum-
maries of arguments by shippers in
favor of reductions and carriers
against reductions. 1t expressed the
conclusion that the assumption that
railroad rates can or should be stabil-
lied on the recent high basis is fu-
tile.
The majority further said that until
the public is convinced that there is
little likelihood of immediate further
material reductions in prices or
transportation charges, confidence
necessary to normal business condi-
ton will be to that extent impaired.
Explaining the reason for adopting
horizontal method of reducing
freight rates the commission said that
while alterations In price levels had
unequaIly affected different commodi-
ties the needs Of commerce cannot
be met IL rates fiuctuate with the price
OF market condition"
It believed therefore that the change
should not be made upon all commodi-
ties in substantially equal ratio.
Commissioner Potter. in separate
opinion concurring with the majority,
declared that the fixing Of the per
centages mentioned is In effect
a requirement that the present rates
and charges shall, generally speaking,
be reduced 10 per cent and certain re-
auctions heretofore should be treated
as part Of the reduction.