Evening star., 1921-11-17
RAILROADS DEC|DEJ
| UPON CUT IN RATES
Carload Charges on Farm
Products to Be Reduced 10
Per Cent Within 10 Days.
by the Associated Press.

by the Associated Press.
NEW YORK, November 11.-An
Immediate reduction of 10 per cent
III carload freight rates on farm
products, for period of six months,
has been agreed upon by executives
of the railroads Of the United States.
Announcing the decision, Thomas
De Witt Cuyler. president of the
Association of Railway Executives.
stated that any reductions in such
rates made since September ], 1920.
were to he included in the 10 per
cent and that il would be put into
effect without waiting for reduction
in wages The freight rate cut Will
apply throughout the entire country.
except on traffic moving wholly
Within New England.
Cut Expected in Ten Days.
1t was expected that the new rate
would be effective within ten days. a.
the railroads. ii was said. had asked
the Interstate Commerce Commission
through their general counsel. to au-
thoriZe the change on on" days no
ticc. The reduction will cost the
railroads about s55.o0o,0o0, it was
estimated.
"The railroads have already reduced
freight rates substantially from III"
level established by the commi ssion
in August, 1920" Mr.. Cuyler's statr-
made are estimated as accurately as
can he. to involve a loss of revenue
at the rate of from S115.000.0o0 Ia
$500. .G00.0 annually. These reduc-
tionS on many roads represent loss
much greater than any responding
saving realized from reductions IN
wages already effected. The rail-
roads are. Furthermore. awaiting de
cisions of the Labor Board, which. II
is hoped. will relieve the companies
e h.. nf J11I n
uneconomical working conditions. The
railroads are not in d financial condj
tion to make this sacrifice.
LOSS May Come From Earnings.
Unless there should be some revival
in business the probability of which
is cunjecturai. the entire immediate
! loss involved in this proposed reduc-
ton in rates would be taken from the
net earnings of the railroads.
Mr. Cuyier said the railroads Were
relying on the public for effective aid
in bringing about the necessary redHc-
tions in labor and other transportation
, costs, and that they hoped for labor's
co-opcrafion. He declared the raj
roads had taken the first step to relieve
existing business depression and had
given an earnest example of their fXed
purpose to reduce rates and to reii"v"
: al the earliest practicable moment. -
far as "aSonably possible, the pubiic's
transportation burden.
The executives passed a resolution
to the effect that in the event of dis
agreement between the railroad otli-
cialS and their employees i'll conference:
on wage reductio the necessary
steps under the law would be to apply
! t6 the Railroad Labor Board for quick
action.
Will Ask RehearinE.
! 1t also was decided by resolution to
apply to the Interstate Commerce Conf
mission Tor Il rehearing of the hay and
: grain case. \ general inquiry is asked
! to ascertain whether. until a SubStan-
! tial reduction in operation and labor
I costs could be obtained, any further
rate reductions could lawfully be re-
J quired. or with due regard to the trans
portation industry. made possible.
The new rates are applicable to car
loads OF wheat, corn, oats, other grain,
flour and meal, hay. straw and alfalfa.
! manufac tured tobacco. cotton, cotton
seed and products. exec cottonseed
oil and cottonSeed meal: citrous fruits,
other fresh fruits. potatoes. other
fresh vegetables. dried fruits and vege-
tables. horses and mules. cattle and
calves. sheep and goats. hogs. poultry.
eggs, butter and cheese and wool.