The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-10-14
20 MILLIONS IN
KANSAS SAVING
ONFREICHT RATE
Reported 20 Per Cent Reduction
Would Mean Much Here.
Every Activity Would Benefit
From Railway Slice.
START REAL BUILDING BOOM
Agricultural and Livestock In
dustry Would Prosper.
Immediate Cut a Possible SOlu.
tiOn to Unemployment.
START REAL BUILDING BOOM

Railroad authorities in Kansas have
had no direct information regarding
New York and Chicago conferences on
the voluntary freight rate reduction
plan. All of the big Kansas roads,
tho. were represented in the discus
sion of rate revisions. Until informa-
ton is handed down from generals
who attended the New York discus
sion. details of the plan for early rate
changes will not be known here
Estimates by. the public utilities
commission today are to the effect
that general 20 per cent rate reduc-
tion would mean a saving of perhaps
s20,000,000 year to Kansas The
minimum is estimated at 5000, 900.
In other words, for each 1 per cent
reduction a saving CT a million dollars
is probable. There is little at present,
tho. on which to base a prediction that
general and flat rate reductions will
be made. Class reductions by the
various roads are anticipated rather
than general slash.
Help Building Activities.
Immediate Improvement in condi-
tions is expected in the building trades
activities as a result of any cut in
freight rates. So far as the grain and
livestock industry in Kansas is con-
cerned there is relatively small bene-
fit to be had in rate revision at this
season of the year. For next year.
tho, the change would mean enormous
sums of money to the farming and
livestock interests.
Some evidence of the effect of a
material cut in freight rates on build
ing materials was given here today
Freight rates as applied to raw mater
ials have been a depressing factor in
the building activities of the state and
country during the last few months.
A considerable decrease in freight
lf1y -
ana other materials would be expected
to a. once revive building Industries
and provide work for thousands Of
meH now out of employment.
The Brick Costs.
Here is just a bit of evidence of the
eff ect of the rate slash if carried out
in accordance with eastern reports.
AT Present the average rate on brick
is ! e cents q hundred pounds. A thcu-
sand brick weigh 5000 pounds. That
means a freight rate of Sc. The
fl eight rate is the biggest factor in
the selling price of the brick. A 30
per cent reduction would deliver the
same brick at $3.50. Similar situa-
tlonS apply very largely in the trans
p1rtatton of cement and in a large
way in the movement of lumber and
either building materials.
f,Ftect on the agricultural AMI live
stock industry is shown in compara-
tive average tariffs. The average rate
on wheat from Kansas to river points
IS now about 9 cents. 20 per cent
reduction would move the grain at a
little more than cents
from the average Kansas towns to
gulf ports the freight rate on wheat
is about 80 cents bushel Cut off 20
per cent and the rate would be "a
cents-6 cents less than the present
charge for the haul. Those rates mean
a lot to state which this year pro-
duced 120,000,000 bushels of wheat.
Benefits to Stockmcn.
Stockmen would also receive ma
terial benefits under the slash. The
present average rate on livestock is
about 500 q car. Trim 20 per cent
off the tariffs and the same car of
stock would go from the feed lots and
pastures to the Kansas City market
for $50.
For several months railroad men
have rather frankly admitted railroad
rates were too high for development
of the best business and economic
conditions. There hasn't been much
tendency to argue the question even
with the regulatory bodies. But there
was a lot of argument when the exc
pense accounts were exhibited.
Until labor costs and material costs
were cut, the transportation men ar
gued, they could not cut their rates.
Now there is a reduction starting in
the wage scales of men employed by
the carriers. In consequence there Is
the prospect Of a corresponding re-
duction in freight rates.
No Figures ON Reduction.
1t is not known just when the new
rates are to be made effective.
Neither would railroad officials in To-
peka today venture a guess as to the
probable scale of reductions in KAN
sas and in the Missouri river district.
Several authorities today anticipated
that reductions would be made on a
basis corresponding with increases
granted under the interstate com-
merce commission order of 1920.
Other authorities we're inclined TO the
belief that slump IN railroad freight
rates might come only as the roads
were able to reduce their Labor ex-
penses.
Clyde M Reed, chairman of the
public utilities commission. today an-
ticipated a saving of S15,00O.000 to
$20,000,000 in freight rate expense to
Kansas If a general 20 per cent slash
should be ordered. However, he
doubted the esta blishment of a new
tariff carrying a horizontal slash. He
said he knew nothing of the New York
conference or plans which were being
worked out in the meeting.
Prospects Of a voluntary reduction
in freight rates were being discussed
while I was in Washington recently
he said today. But I know nothing
about the plans as announced by the
news services from New York ana
7ffsary