East Oregonian : E.O. (Pendleton, OR) 1888-current, 1921-08-04

TnnI IHtFR VIII w NV aA''fN'ftfNts
the ferlght rate on coal and that The
situation is such the public should pro-
coed TO buy its winter supply Is the
substance Of "A letter being sent out by
II. +. Lounsbury, o. w. r. & n. Off
cial
The following letter BY MIR. Louns-
bury is self-expanatory;
Portland, June 27th. 1921.
To General and District Freight
Agents. Travelling Freight Agents
and Local ogents.
Regardless Of efforts to get before
the consumers OF coal. assurances as to
stability Of rates for this season nj
| least. there continues a general dispo-
| sitlon on the part OF the buying public
to hold off purchases. no doubt du,
in considerable measure TO expressions
of certain officers OF the administra-
tion leading the consuming public TO
Ibelieve there will be reduction in
freight rates during the coming sea-
son.
There is nothing in the s'tuaton
TINT would Justify such belief for the
lsimple reason that freight rates can
not be reduced until transportation
costs have been substantially lover
ed. and that has not yet been accom-
piished. wrote you along similar
lines on May 9Th. and at this time re-
produce the following telegrams. eop-
lex of which have been sent 10 me by
Mr.. T.. w. Robinson. freight traffic
Manager Union Pacific system.
Utah Coal operators by Cameron
lCoal Co.. dated June 3rd 10 Hon. Her
bert Hoover. Secretary Of Commerce
y Washington. ID. c.
Government departments recently
:, advised the public that unless Goa
was freely stored during the summer
!, months. coal panic would ensue dur
!. ing the coming winter and congress
- sional committee reporting on Senate
- Bill S-B Sc. expressed similar view
/, This correct statement Of situation WA
n accepted and acquiesced In by consum'
q ing public. However, teiegraphic an
=, lnouncement of President Harding's re-
cent interview with interstate com
imerce commission was unfortunatell
unduly emphasized by newspapers ans
has resulted In serious checking Goa
storage In anticipating freight rednc'
tion. In Isah such reduction Is very
4 unlikely because state public utiliiie
II commission refused permit last freigh
~ rate increase to apply on coal movln
efa fzEnau fhi
field working only twenty to twenty
:, five per ent time and. further reduc
= tions wouId be, ,camnIetelxs sdemoraliz
= ing II not Inconsistent with polio,
70 your department would very much ap
" preclate an expression from you as Il
whether or not you have infoTmatlo
:, regarding immediate coal freight de
= creases in western states as well q
:" your views concerning summer stor
age-'n fact, permit us to suggest that
an official expression to Associated
!" Press and others from Washington al
: to whether or not any proposed
freight reduct on viii apply to coal
would result in clarifying present un,
certainty which is causing stagnatior
!. IN coal business. Continued disposi.
tion on part Of consuming public t.
delay storing coal win unquestlonablS
:, bring about serious condition this win
!, ter"
MIR Hoover's reply Of June was n,
follows
y have no information that leads
me TO believe there viii be any reduc-
ton Of coal rates this season.
II will be appreciated II you viii
bring this expression Of Mr.. Hoover's
!, to the attention OF all retailers aud
: consumers IN your respective com.
: munitles directly and through tn,
: press. We believe It to be important
In order to avoid later coal car short
!. age, congestion and possible coal short
age, that they give Que consideration
at this time to the advisability OF an
ticipating their requirements and lay
ing in a supply Of summer storage
coal for their faill and winter needs.
II. FL LOUNSBURY.