The midland journal. (Rising Sun, Md.) 1885-1947, 1922-06-02
FREIGHT RATES
CUT % PER Gent
Interstate Commerce Commiss-
ion Orders Horizontal Cut
FAIR RETURN RATE LOWERED
Business Revival Is Aim-Cutting OF
Rates Expected To Help Stabil-
ize Conditions Affecting Com
merce And Industry.


ngton.-Railroad freight rates
will be reduced on July by amounts
equal to ten per cent. of their present
levels under decision of the Inter-
State Commerce Commission just an
nounced.
Practically all classes and commodi-
ties of traffic are affected by the de-
cision which marked the conclusion of
the investigation begun last autumn
by the Commission on its own initia-
tive into the reasonableness Of exist
ing freight levels.
Agricultural products in all sections
of the country outside of New Eng
land, live stock and western grain and
grain products are the chief commodi-
ties excluded from the reduction, these
comprising the freight classifcations
upon which reductions have been re-
Gently put into effect. Passenger
charges and Pullman fares also are
left unchanged by today's decision.
With it's decision on rates, the Com
mission announced also its determine
ton OF 6.75 per cent. as the reasonable
annual return which carriers in the
future will be entitled to earn on their
actual capital investment. This COM
pares with six per cent, the reason
able return level fixed under the trans
portation act for the period expiring
March ].
DaiI dc ~ CT
to the Commission before May 81
whether they would voluntarily make
new schedules complying with the de-
cision or require the Commission to
issue its formal and detailed order for
the alteration. Though divergence in
view within the Commission was indi-
Gated by several supplemental concur
ring or dissenting opinions, the full
weight of the Commission appeared to
be thrown behind the statement made
in the majority and controlling opinion
that general reduction in the rate
level as substantial as the condition
of the carriers will permit will tend to
stabilize the conditions under which
commerce and industry are carried ON,
with consequent fuller assurance to
carriers Of realizing fair return"
On the statement of the Commission
that rail freight revenues in 1921 ap.
proximated 100000, 900, today's de-
cision will reduce the national freight
bill by $400,0O0,OO0 per year.
AS stated in technical language to
the railroads, the Commission said
that after July It would hold I'M
reasonable rates including more than
the following percentages of increase
over the rates in effect Immediately
prior to August 26, 1920" and set up
the territorial schedules as follows:
"In the Eastern group, also between
points in Illinois, territory and between
Illinois territory and the Eastern
group, rs per cent. instead of the 40
per cent authorized in the decisions
last cited Increased rates Of 1920.
"In the Western group and between
the Western group and Illinois terri
tory, 21.5 per cent. instead of the IS
per cent. so authorized.
I'm the Southern and Mountain Pa
cific groups, 12.5 per cent. instead of
the Is per cent. so authorized.
ION inter-territorial traffic except
as otherwise provided herein, 20 per
cent instead of the SO 1-3 per cent. so
authorized"
Commissioner Potter, in a concarring
decision, pointed out that the percen-
tage reductions so defined are ''in eff
feet requirement that present rates
and charges shall, generally speaking,
be reduced to 10 per cent"