New-York tribune., 1921-11-17
Rate on Farm
Products Cut
| By Railroads
weeping Reduction Over
6 Months Period Voted
Here Brings Total to
10 P. C.. I'm Ia Months
s55,0OO,OOO Loss
Expected by Owners
Action Applies to Every
Part of Country Except
New England District

lSCW LISAdAlu OIoeAACt
Sweeping reductions for period of
Asx months in carload freight rates on
Harm products were approved yester-
Hay by executives of virtually every
Railroad of the country at a meeting
vi the Association of Railway Execu-
ikges at the Grand Central Terminal.
The cuts, which apply to every section
hi the United States except traffic NOV
ling wholly within the New England
tkrritory will bring the aggregate re-
Iductions since September !, 1920, up
Ib 10 per cent. They are expected to
HE made effective some time this week,
lis application will be made Immediately
h the Interstate Commerce Commission
10 put them in force.
| Official estimates as to the amount
1sf the rate reductions on farm products
placed the total at 55,000,000, making
Total rate cuts since the carriers were
lnturned to private ownership equal to
approximately $250,000,00o The deci-
Iisn not to include the New England
lMds in the latest move for lower
aSEess was due to their precarious
financial position under the existing
sases.
I Roads Rely on Public for Aid
T. Dewitt Cuyler, chairman of the
association, in a statement explaining
1lhe action of the meeting. declared
lhe railroads are not in financial posi-
Idon to make lower pates on all farm
1p.cdnets, but were doing so, relying
I'm the public for aid in bringing about
lnductions in labor and other costs of
Transportation.
! While yesterdays meeting was called
primarily to discuss the matter of
lmakng a general cut in the rates on
Harm products, further consideration
Twas given to the plans of the execu-
tires for putting into effect nation
wide reduction in wages.
AS formulated at present, the pro-
posed wage cuts will bring the scale of
wages back to what they were prior to
May |, 1920. In July of that year an
increase of 221a per cent was ordered
By the Railroad Labor Board for train
seryice employees, retroactive to May
IL On July ! last a 122 per cent re-
duction was ordered, SO the proposed
cut for this class of workers amounts
approximately to 10 per cent. Cuts
Proposed for other classes of railroad
employees probably will be greater, as
ny is intended to bring the general
level down to the scale now prevailing
IN other industries.
In his formal statement issued after
yesterday's meeting Mr.. Cuyler said:
The executive of the railroads Of
] the United States to-day determined to
rake, for period of six months, an
immediate reduction of 10 per cent in
aTloed freight rates on farm prod
vets, any reduction in such rates made
nnce September /, 1920, to be consti-
su,ed part of such 10 per cen-, this
!eduction to be in effect without wait
ns iof reduction in wages. This re-
aacslon is to apply throughout the en-
gre territory of the United States ex-
Wpl on traffic moving wholly within
: New England.
Freight Rates Already Cut
The railroads already have reduced
nsght rates substantially from the
asel established by the commission in
august, 1920. The reductions already
Aaee are estimated as accurately as
ssa ne TO involve loss of revenue at
,ae rate of $175,000,0OO to 5000, 100000
annually These reductions on many
.osas represent loss much greater
Ssn any corresponding saving realized
avm reductions in wages already eff
sws!.. ,,sssa. The railroads, Furthermore, are
ssailng decisions of the Labor Board
Salsh 1t is hoped will relieve the COM
Ssa'es from the expense of many oner-
AZ a.; ana uneconomical working con-
Inc railroads are not in a financial
,sspslsion to make this sacrifice. Unless
,ssre should be some revival in busi-
ses s0ss the probability of which is purely
;snnjectural, the entire immediate loss
,s,sed soved IN this proposed reduction in
;ss ;sseS would be taken from the net earn
sss ssS,' o. the railroads. In making this
s,,aaction sa.on the railroads are relying
Nun the public for effective aid in
jaihfpihg il III about the necessary reduction
tiaoor tiaa and other costs of transporta-
tsn' t;sn' ana are hoping for the co-opera-
s,s vn oI labor itself to that end. They
,s.s W.. taken the first step in relieving
s;.hg business depression and have
sn an earnest of their fixed purpose
t,.s;'uce sSeouce rates and to relieve at the
rsst rsss"t practicable moment, SO far as
bsussynabiy possible, the transportation
ssuen on the public"