Evening star., 1922-05-24

senting, remarked that the decisions
of the commission that rates be re-
duced is unanimous"
Commissioner Potter said that
during the early stages of our de-
iiberations" ii was his opinion that
80 called basic commodities" should
be given preferential reductions, but
that he had now developed by further
consideration objections to such
course.
Calculations Hard to Reach.
Calculations as to the general per-
centage of reduction effected by the
commissions decision were difficult to
arrive at. The statement by Com
missioner Potter that they averaged
generally 10 per cent was accepted,
however. as correct by the commits
sion's personnel and rate experts gen.
orally.
Though the decision, as an instance.
actually removes IA per cent from
rates in eastern territory, the IA per
cent is to be calculated on the basis
of rates in effect before August. 1920.
On August &c, 1920, they were IN
creased 40 per cent and the result OF
the mathematical calculation gives
approximately 10 per cent OF existing
rates as the reduction ordered IN TO-
ern group, where increases of 35 per
cent were authorized in 1920. the COM
mission order reduced present rates
by amounts that will make them hnal-
ly 2I5 per cent above rates In eHect
before 1920. The calculation here as
in other districts under the rate order
actually works out to make l0 per
cent reductions in present rates.
Later Changes Possible.
"The support for finding that rates
and charges should be thus reduced"
Commissioner Potter in his concur
ring supplemental decision remarked,
sis the belief that prospective rev.
enues of carriers for the year COM
mencing July l, 1922, if under the
existing rate basis, would exceed
fair return by the amount involved
in the reduction required" Mr.. Pot
ter expressed conviction that the
forecast is justified by present pros
poets" but that if it should be found
unwarranted existing rates can be
restored to the extent Whlcn tnen
seems necessary.
At the commission it was explained
that the following method of arriving
at the general 10 per cent reduction
was used:
One hundred was taken as a base,
and to that was added the 40 per cent
increase grantedS6n the eastern group
in August, 1920. The IA per cent de-
crease authorized in the decision today
is 10 per cent of 140. the total after
August 26, 1920, when rates were in
creased 40 per cent.
Previous Rate Cut.
The general question of whether
railroad transportation charges in the
United States mad attained levels too
high for business and industry to sup
mort was brought formally before
the Interstate Commerce Commission
in the fall of 1921 on the commissions
own motion, although in response to
nationwide comercial and political
suggestions. Farm Organizations and
representatives of western states,
particularly those in the grain-pro-
ducing area, obtained marked con-
cessions about that time, to which
railroads voluntarily added 10 per
cent reduction on practically all agri-
cultural products al over the ne onited
Before the commission, however, the
railroad executives, statistical ex-
perts, and attorneys, developed the
argument that railroad earnings were
insufficient to justify any general de-
creases, at least until operating ex-
penses and wage payments, as regu-
lated by the Railroad Labor Board,
had been reduced. Every major indus
try in the United States was repre-
sented in the hearings, along with
state regulative bodies, most OF whom
charges. but diverged in the degree
of urgency which they suggested for
the commissions action. The hear
ings extended over four months.
Secretary Hoover's Plan.
rJooyar ON
pearing at the request OF the Cham
her of Commerce Of the United States.
nroposed that the commission should
make over the existing rate struc-
lures on the principle of applying
proportionately lower freights to the
bniky. low-priced raw materials of
Industry and agriculture, such as
coal primary foodstuffs and ores.
Higher price finished materials and
passenger traffic, Mr.. Hoover sug-
gested, might bear the cnarges unti
developed to the point which would
allow reductions without endangering
railroad credits. Immediate and tangi-
BILE cuts, he said, probably could not
be made.
radically with that of state commits
sions. whose members centered a
GOOD deal of their attack on pas
senger rate schedules. which they al
legged to be too high for the traffic,
and in reality the cause Of low rail-
road earnings.
REPRESENTATIVES of the steel and
iron Industry asked more stringent
and Immediate action, principally
arguing that the commission should
remove the entire 40 per cent increase
mt on eastern rates on their prod
nets in 1920. The National Industrial
Traffic League, representing shippers
generally. took much the same posi-
fion. The coal industry elaborated
Mr. Hoover's proposals, asserting that
hasically coal costs Influenced prices
Of SO many other commodities that
cuts in rates on 1t, particularly upon
ficial effect. The farming interests
were not SO urgent. particularly in
view 81 the fact that agricultural
rates " es5t down while the dtscuesfpn;