Arizona republican., 1921-09-13
Henry Ford's Railroad

"The Railway Age" might suspect, does not regard Henry Fords experiment in railroadng complete and it expresses doubt as to whether will be satisfactory. Yet 1t treats the experiment more fairly than previous newspapers and journals which more sympathetic with things as they are than with things Mr. Ford would have them to be; which would not welcome an innovation however advantageous it may be to the public. which would be Instantaneous to the holders railway stocks and inflated bonds.
 "The Railway Age" though pays this tribue to MT. Ford:
 "The Railway Age had its doubts as to whether even could strike the stone of railroad oper- alton and make floods Of profits immediately burst forth. He has demonstrated in the manufacturing business that in certain he is of the greatest geniuses of the His success in the automobile business has been such indicate if there any in other line of business in this country who could step into the railroad business and soon gain extraordinary results it is Henry Ford We were skeptical however. to whether it was possible within the short time he had owned the D. T. & l. for even MT. Ford to work such a miracle as was attributed to him."
 It does not account for rather try to explain away the remarkable showing Mr. Ford has made in transforming in few -eaten deficit producing road to well equipped. dividend earning road It of attributes much of the earning to MT Fords huge traffic carried over the roads en- length to its share of the through traffic over the numerous roads which cut the Detroit Toledo & Ironton.
 It points out something else that has been over looked, the increase in the rate ton mile due higher of traffic. since all freight ham, dled in the Ford factory consists largely of high grade commodities. In the last four months of last year the rate per ton mile this road one cent The rate per mile for three months ending with
 
 rate of all railways in the country is 12s cents Therefore says the Railway Age. the remarkable showing made by Mr. Ford railroader is due mainly to change in the character of the traffic.
 As to the increase of wages of the Ford railway employees, and the reduction of 20 cent in freight rates attention is called to fact that there Is no reflection of those changes the showing ending with since they did become effective until July 1.
 Concerning the request of Mr. Ford to be allowed to put lower freight rate. the Railway Age sees in that some foxiness
 Tt may be said, however. that MT. Ford Is 50 completely convinced the desirability of general reduction rates that he has proposed that ton of 20 per cent be made in the rates all rail- roads It is not purpose to impugn MT. Ford's motives but there certain important facts about this proposed reduction in rates which are pertinent The freight earnings of Detroit. & Ironton running at the rate Of approximately $s.ooo 900 year. Therefore. other things remaining equal reduction of 20 per cent in them would reduce the roads earnings by about $1,s00ooo a year. On the other hand the freight bills paid by the Ford indus tries to all the railways amount to from at least $15.000000 to t20oOo000 year. Therefore, reduc- ton 20 per cent freight rates by all the railways would reduce the freight bills of the Ford Motor company by ss,ooo.oOo to $4.o00.ooo year.. other words MT. Ford shipper would be sure to gain millions dollars by reduction in rates than he could possibly lose railroad owner Most of the other railways the country intimately connected with large manufacturing concerns which would millions of dollars annually by reduction of their freight bills."
 It Is noticeable though that all critics of MT. Ford give credit for his showing to superior busness-like methods he has introduced We have nowhere in any of the disparagng comment any aIlusion to the cost of operation of Mr. Fords railway any comparison of the with the age cost of operation of railways throughout the country.
 It is in the saving there, MT. Ford claims he has been able to convert deficits into dividends. No doubt the given by his critics been trbutory to that achievement. But when railroad owner can increase the service as MT. Ford claims to have done and Is not denied, that ought to be accepted contributory to the accomplishment.