The Washington times., 1922-05-24
SHECDJLE
BECOMES
EFFECT|VE:
ON JULY |
McChord Also Favors Reduc-
ton in Passenger Charges.
Roads to Lose Vast Sum.
BY International News Service.

Convinced that there was no
immediate possibility of the vol
untary slashing of railroad freight
rates desired by President Hard
ing. the Interstate Commerce
Commission today decided unani-
mously that the rates should be
reduced approximately IA per
cent, and issued an order making
such reductions effective on July l.
Amount OF Reductions.
The reductions are: Eastern group,
IA per cent; Western group, 1875
per cent; Southern and Mountain
Pacific group, 1875 per cent; inter-
territorial traffic, 13 1-S per cent.
1t was unofficially estimated this
afternoon that the reductions ordered
by the commission would reduce the
annual revenues of the railroads by
approximately 5000, 100000.
The commission estimated that
the new rates would render the
railroads a return on the properties
of approximately SIS per cent
under honest, efficient, and
economical management and rea-
sonable expenditures for mainte-
HdHCo VI way, SlI uSluISS dllu S4Aip-
ment."
The new reductions were affected
by ordering decreases in the hori-
zontal rate increases authorized by
the commission on August 26. 1920.
Rates which have been reduced
since that date are not affected by
today's order, remaining at their
present level.
Chairman McChord Of the COM
mission agreed to the reduction OF
rates, but expressed the opinion
that the fixed return of the rail.
roads should be 5.5 per cent instead
of 5.75 per cent.
Desired End Not Attained.
81 think that the times and con.
ditions plainly demand reductions
in rates on all materials and prod.
ucts that are basic in industry and
in our existence as a People to a
level that business interests will
recognize as the lowest available
for some time to come" MCChord
said.
I'm my judgment the general re-
ductions now decreed fall short Of
full attainment of the desired end.
The record convinces me that the
articles Is now operating as a Sc
rious burden upon commerce and
should be materially reduced, and
that upon a considerably lower level
Of rates with an induced higher
level of traffic activity, not only
will the carriers secure more net
revenue, but the prosperity of the
country as whole will be greatly
enhanced. The pulse of industry
and transportation is still below
normal, although there is and has
been for several months marked
improvement"
Chairman McChord also said that
reductions on the general basis out
lined by him should be applied like
wise to passenger fares, which were
not considered in the decision
handed down today.
Eastman Favored Delay.
Commissioner Eastman, while con.
curing in the reduction OF rates. ex.
pressed the opinion that the Railroad
Labor Board and the Interstate Com.
merce Commission should act in
some degree of cooperation.
The regulation Of wages Is inde.
pendent of any action that we may
take as to rates" said Eastman. but
the regulation OF rates is necessarily
influenced by any action that the
labor board may take as TO wages.
At the present time the labor board
has the wages OF all railroad en-.
ployes under consideration: but We
are acting without awaiting its deci-
sion. and our action IN, and must