Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-11-25
Railways Propose
Wage Reduction
And Freight Cut
Substitute for Order Of Com.
merce Commission on Oc.
tober 20 Urged By
Carriers.

Washington, Nov. IA 10 per
cent reduction in carload freight rates
on farm productions, coupled with re-
duction in railroad wages. was pro-
posed by the carriers to the Inter-
state Commerce commission yester-
day as substitute for the order OF
the commission dated October 20,
reducing rates on ha yand grain
shipments. The substitute schedules
would Be effective for an expert
mental period Of SIN months The
commission was asked to reopen its
decision of October 20, in order that
argument be given in behalf of their
proposal.
The suggested reduction on car.
load shipments, it was explained,
would cover grains, hay, cotton and
cottonseed and it's products-except
meal and oil--citrus and fresh fruits,
live stock and dairy products. The
scope of the proposed cut in wages
was not indicated, the statement
merely saying that "the benefit Of the
reduction thus obtained from the
railroad labor board shall be passed
to the public in reduced rates.
To Include Reductions.
Any reduction in rates made since
September |, 1920, would constitute
part OF this 10 per cent" under the
railroads suggestion.
"The effect of this proposal said
the application, will be an immedi-
ate reduction,in in carload rates on the
products of agriculture and the
products OF animals, but as soon as
and to the extent that reduction
in wages is obtained from the labor
board on the proposed application
further reduction in rates Except as
meanwhile put into effec) to be dis
tributed among users OF transporta-
ton in such manner as this commis-
sion may determine.
THE proposal thus deals imme-
dIa.ely with the needs OF agriculture
and undertakes to make further re-
,iuctiors not confined to agriculture
as soon as further reductions are
made possible"
Your petitioners" the application
continued, Submit that, if there is
to be a reduction in rates Tor the
benefit OF agriculture there seems
little justification for confining such
reductions to grain, grain products
and hay or to any particular section.
The economic reasons i'll favor OF
reductions apply with equal force to
other products of the farm and to
other sections.
Want Cut in Costs.
"Your petitioners, in view OF the
condition and of the special needs OF
the transportation industry, do no;
believe that any further reductions in
rates than those herein mentioned,
should be made until there is re-
dueticn in operating costs
This proposal was made by the
carriers. the application pointed ou;
to aid in the economic readjustment
and relieve the serious economic
distress OF the agricultural industry,
despite the fact that the financial
condition of the railroads does not
warrant such a move.
The net operating income OF the
railroads in 1920 amounted to
s62,0C0,000 as against a normal in
ether years of more than 5000 0O0,-
000," the application said, adding that
'even this amount of S62,W0,c00 in
oluded back mail pay received from
the government for prior years OF
approximately So4.0OO.0OO. thus
showing, when the operations of that
year alone are considered, an actual
deficit before making any allowance
for either interest or dividends