Evening star., 1921-11-26
Experimental Rate Cutting.


Like Davy Crocketts coon, railroad
freight rates have decided to come
down without the persuasion OF nre-
arms. The announcement OF lo per
cent reduction in shipping rates on
farm products for all parts OF the
country except New England Is ac-
companied by statement from rail-
way executives that it will entail a
loss of s55, 900 900 in annual revenue
wherefore editors are trying to estl-
mate the singleness of purpose IN
volved in what some of them cali a
notable concession" The rate cut is,
of course, welcomed by all the press,
gratefully. but it has number OF
angles, and particularly in those pa
pers which are closest to the farmer,
enthusiasm is tempered by the small
ness of the relief.
IF these reductions are what they
appear to be on their face" the 1lll-
nois State Journal (Sprin gfeld, re-
publican) is hopeful that they indi-
cate a solution of the problem of
freight rates by the voluntary action
of the carriers themselves" At any
rate. the railroads are applying "a
heroic remedy" as the New York Trib-
une (republican) sees it, in the ef-
fort ito check the falling off of traf-
fic which has marked railroad opera
tions in the last twelve months" bas-
ing their action on what the Buffalo
Express independent republican,
speaks of as the purely con5ecturai
increase in traffic due to the reduc-
ton" 1t is indeed an experiment,
according to the Philadelphia Bulletin
independent republican,. limited at
present to a period of six months.
and "if it shall facilitate the move
ment of the class Of freight" affected
ut will no doubt become permanent
and may be spread to other classes
of freight"
The New York World (democratic).
while declaring that that amount of
money "is a large sum to surrender
in their present financial condition."
is not so sure that it will prove to be
merely "a generous sacrifice" The
railroads have been selling trans
portation at a price that the public
could not afford to pay" the World
says, and merchants who have faced
a consumers strike because of ex-
cessive prices since the war could
reducing prices and selling more
goods" Rate reductions are merely
sin the line of intelligent self-inter-
est" comments the Lincoln (Neb.)
State Journal independent republi-
can), and because of that fact railroad
spokesmen might have spared US the
tale of their generous sacrifice in max
ing the concessions" for certainly
1.-The railroads will be better off haul
ing corn at 10 off than seeing the
corn burned for fuel" especially as
this may also mean more coal haul
ing at full rates"
And, of course, as many writers
point out, increased traffic is not all
Of the story. So far as this "volun-
tary" action of the roads in reducing
rates is concerned. the Springfield
Union (republican) brings out the
fact that reduction could come about
in no other way as matters now stand,
because under the transportation act
the Interstate Commerce Commission
must fix rates to enable the roads
to earn at least 5 Y per cent on their
investment value" and the commits
Therefore. "the only governmental
agency that can compel a correspond
ing reduction in costs is the Labor
Board" and 'ff the voluntary rates
are allowed to stand. it becomes a
question whether it is not the legal
duty of the Labor Board to reduce
the cost of operation By declaring
that "they are not financially able to
make this reduction and ARE de-
pending on the people to grant them
relief from high wages and labor
COSTS" the Rochester Democrat and
Chronicle (republican) believes the
railroad executives have merely pass
ed "the onus of the whole problem to
the Labor Board" The New York
Post independently, however, feels
that this action shows that the roads
ARE in earnest in their desire to help
restore the cost Of doing business to
a workable basis" but it insists that
the "corollary of such reductions
must of necessity be Corresponding
reductions in railroad wages" for,
since earnings are still materially
below the fair return contemplated
in the transportation act" it is evil
dent that this sort Of thing cannot
go very far without compensating
savings in operating expenses" At
the same time. the Elmira star-Ga-
haps they had better not be too ur-
gent now in maintaining that a 10
per cent reduction on some kinds Of
freight entities them to out wages 20