Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1921-10-23
Grain And
Hay Rates
Reduced
Over Onc.Half Of Increase
Granted Railway Companies
In 1920 Cancelled by Com
merce Commission.
Present Charges Unjust
Chicago rribune-omaha Bee Lsasel wpss.

Chicago Tribune-omahs Bee Lsasea xlRsv
Washington, Oct. 22.-Relief to
western producers OF grain and hay
and to shippers of grain products was
granted today by the Interstate Com.
mercc commission in the case Ii.
volving rates on grain. grain pro-
ducts and hay between points in the
western, mountain and Pacific rate
groups.
The commission found that the
present rates on wheat and hay viii
be, for the future, unjust and un-
reasonable to the extent that they
include more than onc.half OF the
increase made effective August rs,
1920; that the present rates on coarse
grains will be, for the future, unjust
and unreasonable to the extent that
they may exceed rates 10 per cent
less than those prescribed as just
and reasonable on wheat.
In the western rate group, the in
crease made in the summer of 1920
amounted to IS per cent and in the
mountain and Pacific group, rs per
cent. Under the commissions ruling
the rates on wheat and hay in effect
prior to these increases will be II IL
per cent in the western and II IL
per cent in mountain and Pacific
group. The reductions in the rates
on coarse grain will be 10 per cent
less than those on wheat.
Charges Out Of Proportion.
Estimates as to what these de.
creases will cost the railroads vary
from $35, 000, 600 to $40, ,000 900 year
"Thc facts disclosed in the record
make it appear that grain, grain
products aud hay, on the whole, arc
bearing share of transportation
charges which is disproportionate,"
the commission said.
Summarizing the situation befofs
us, petitioners speak for basic in.
, dustry w.l;rI tic evidence shows ir
in state of financial prostration, re.
cciving for Us products prices which
approach and in some cases hsys
Stallen below prswar levels, but pay
ing transportation costs, many Of
which are still at the wartime peak.
"On the other hand, the evidence
shows with equal clarity that the
railroads are suffering from finan.
cial depression and that their net
earnings have been far below the
standard which has been fixed by
law, although the tendency now Is
upward"
Recovery Important.
The commission declared that
while. the high level Of freight rates
had been an obvious and tangible
circumstance which has been a tar
get of dissatisfaction" that it was
not persuaded that high rates have
been more than "a minor factor in
bringing about distress"
THE important thing at present,
however, it continued, "is not the
source Of the disease, but the means
of the recovery. Whatever part
freight rates have played at the OUT
set, many qualified to form an opin-
ion believe the present level of these
rates is one Of the obstacles in the
way of returning prosperity and like
wise one Of the obstacles to substan-
tial reduction in the cost Of living.
The facts that many railroad
charges are still levied at the war
time peak and the cost of living IN
some respects has not fallen far be-
low it are alike the cause of dis
couragement to the producer who
has been unable to maintain his own
prices. aud to the employe, who has
experienced a reduction in wages"