Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-11-19
ROADS GUT RATES
ON FARM PRODUCTS

NEW YORK, Nov. 17.-An imme-
date reduction of 10 per cent in car
load freight rates on farm products,
for a period of six months, was
agreed upon by eff1ecutives of the
railroads <of the United States here
yesterday.
Announcing the decision, Thomas
De Witt Cuyler, president of the
railway executives, stated that any
reductions in such rates made since
September /. 1920, were to be in
cluded in the 10 per cent, and that
it would be put into effect without
waiting for a reduction in wages.
The freight rate cut will apply
throughout the entire country except
on traffic moving wholly within New
England.
1t was expressed that the new
rate would be effective within ten
days, as the railroads, it was said,
had asked the interstate commerce
commission, through their chairman,
to make the change on one days no.
tice. The reduction will cost the
railroads about $55,000,000, it was
estimated.
1.-THE railroads have already re.
duced freight rates substantially
from the level established by the
commission in August, 1920" Mr..
Cuylers statement said "The re.
auctions already made are estimated
as accurately as can be, to involve
a loss of revenue at the rate of
from SITS, 100000 to $200,000,00O an
nually. These reductions on many
roads represent loss much great
err than any corresponding savings
in wages already effected. The. rail-
roads are Furthermore, waiting de-
cisions of the labor board, which it
is hoped, will relieve the companies
of the expense of many onerous and
uneconomical working conditions.
The railroads are not in a financial
condition to make this sacrifice.
"Unless there should be some re-
vival in business, the probability of
which is conjectural, the entire i'm
mediate loss involved in this pro-
posed reduction in rates would be
taken from the net earnings of the
railroads."
Mr.. Cuyler said the railroads were
relying on the public for effective
aid in bringing about the necessary
reductions in labor and other trans
portation costs, and that they hoped
for labor's cooperation. He declared
the railroads had taken the first step
to relieve existing. business depres-
sion, and had given an earnest eX-
ample of their fixed purpose to re-
duce rates and to relieve at the
earliest practicable moment so Tar
as reasonably possible, the public
transportation burden.
The executives passed resolution
to the effect that in the event OF
disagreement between the railroad
officials and their employees in con.
ference on wage reductions, the nee.
essary steps under the law would
be to apply to the railway labor
board for quick action.
1t also was decided by resolution
to apply to the interstate commerce
commission on the hearing OF the
grain case. A general inquiry is
asked to ascertain whether, until a
substantial reduction in operation
and labor costs could be obtained
any further rate reductions could
lawfully be required, or with due
regard to the transportation indus
try, made possible.
The new rates are applicable to
carloads of wheat, corn, oats, other
grain, flour and meal, hay, straw
and alfalfa, manufactured tobacco
cotton, cotton seed and products.
except cotton seed oil and cotton
seed meal; citrus fruits; other fresh
fruits, potatoes, other fresh vege'
tables: dried fruits and vegetables
horses and mules, cattle and calves
sheep and goats, hogs, poultry, eggs
b,,+ter ana cheese and wool.