New-York tribune., 1921-05-27
Many Rail Rate
Schedules Cut.
Says Chambers
Vice-President of Santa Fe
Informs Senate Inquiry
Thousands of Readjust-
ments Are Now i'm Force
IL e I'M owe Discrimination
No General Reduction in
Freight Tariffs Until Ex-
penses Fall, He Asserts
From The Tribnne's Ipaslin oton Bureau

From The TribWne's Wdsftih1to Bureau
WASHINGTON, May 26.--Before the
Senate Interstate Commerce Committee
in the course of the railroad investi-
CATION to- day, Edward Chambers, vice
president of the Atchison, Topeka <
Santa Fe, asserted that thousands of
rate readjustments have been made by
the carriers. The purpose of these Is
TO restore former relationships of rates
or remove determinations.
While there have been many such
readjustments, according to Mr.. Cham
bars. nS general reduction in freight
rates can be made, he said until operat-
ing costs have been reduced suffi ficiently
to leave net revenue that meets the
requirements of the transportation act.
MIR. Chambers said that since June,
1920. the Western trunk line COM
mittee at Chicago has considered 1900
subjects, nearly all of which grew out
of the increase in rates ordered by
1t has acted upon 1000, of which mora
than 80 per cent were reductions in
rates on raw materials, such as build
ing materials, grain, coal and lumber.
The Pacific freight tariff bureau
has made the greatest number OF
changes, the number being 10000, of
which 1000 were reductions. The
Southwestern freight bureau at st.
Louis also has made many reductions,
Most Increases in State Rates
"Most of these are reductions caused
by extending all rates in certain tariffs
TO apply from new points of origin,
said Mr.. Chambers. "The majority of
increases are in state rates awaiting
approval Of a state commission"
He added that since the increased
rates went into effect the transcon-
tinental freight bureau in Chicago has
made approximately 236 changes in
rates growing out of a hundred and
fifty conferences with shippers.
"f we should count each rate
changed it would run up into many
thousands" said Mr.. Chambers, ex-
planning that even though a change in
rate involved more than one tariff, it
was called one change.
The witness said the Trunk Line AS
sociation in New York has received
since September !, 2,472 proposals for
changes in existing freight rates, in
which 2,266 recommendation have
made, each representing approval Of
from one to several hundred changes
in specific rates. Since August 25 the
Central Freight Association, with head
quarters in Chicago, has held about
sixty conferences with shippers, as a
result of which there have been about
$500 changes in commodity rates
from origin points and 1900 destina-
ton point changes. The New Eng
land Freight Association and the South
ern Freight Association, according to
Mr.. Chambers, have authorized nu-
merous changes.
Freight Cheapest Commodity
The first witness to-day was Presi-
dent H. f. Bryan of the Chicago, Mil
waukee g. St. Paul. He said that, de-
spite the shrinkage in other commodi-
ties, freight transportation probably is
the cheapest commodity in the country
the gross earnings of the carriers fo1
hauling ton of freight one mile being
only 1.217 cents, even after the in
creased rates became effective
"ln no other business activity" said
Mr.. Bryan, "can so much service be
had for such small outlay. This is
what the railroads are doing and main.
tanning their own highway besides"
Speaking of the financial condition
of the carriers, Mr.. Byram said:
ut would seem that the need of the
immediate situation requires a reduc.
tion in operating costs, and that fue
and labor, which absorb so per cent Of
the total operating costs, should beal
the larger portion of the reduction
Fuel and other supplies already are
coming down, and the United States
Railroad Labor Board has announced
that in the near future it will order
an adjustment of wages downward
These two features of the situation are
encouraging, and with the return o.
the normal volume of traffic of the
country. the financial condition of The
railroads should be materially i'm
proved. depending largely upon the ex
tent of reduction made by the LaboI
Board in the wartime wages of rail
road nnD1ovooo N