Evening journal., 1921-09-12

months OF April May and June 1921 the road handled an
average freight business OF 100000 ton-miles month
and earned from it average OF 203 month In
other words its average freight in these three
months was almost % per than in the last four
months Of 1920 while its monthly freight earn
ings were over 40 per cent greater
This large freight earnings, in spite OF big
decline the total freight handled could have been due
TO only cause and that in the average
rate And there very extraordinary increase in its
average rate per ton per mile-a thing to which public
attention never has been called before the last four
months OF 1920 It's rate cent ton per
mile average rate per ton per mile April May and
June 1920 SO cents SO per cent greater than in Sep
tember, October, November and December, 1920. The
average rate all the railways the country only i23
cents.
To what this remarkable increase in the average
rate per ton per mile due? Chiefly things: First
10 great change in the character OF the trac handled
Mr. Ford began giving his railway practically all Of his
freight business and the freight handled directly and in
directly his works largely OF relatively
high grade commodities which pay rate much higher
than the Meantime, the amount OF coal handled
by the railroad greatly decreased Coal being bulky and
cheap commodity It pays rate much smaller than the
average This change in the character OF the traffic alone
would have caused large in the railways aver
age rate.
Secondly the D. T. and has been able 10 the large
volume OF traffic originated by the Ford interests TO
hauled partly it's line partly other railways,
and the great bulk OF the D. and lis business consists
OF this through traffic Both the change in the character
OF the traffic and the divisions OF the through rates
obtained by the D. T. and have tended 10 increase ms
average rate ton mile and the only really great
change which had been made the D., T. and up to
July in the conditions which determined its average
rate per ton per mile.
But how The reduction OF 20 per cent in its
rates and the advance the wages OF its employees which
have been widely sdvertsed2 Neither of these went
into effect until July OF later and therefore neither
them had anything whatever 10 do with the increases in
the railways earnings which been so widely
plotted We shall have TO get later data than are
available before anybody say what is the eject OF
these changes in important policies.
It may be said however, that Mr. Ford is completely
convinced Of the desirabAity OF general reduction in
rates that he has proposed that reduction Of 20 per
be made in the rates OF all railroads is not pur-
pose 10 mpugn Mr.. Fords motives, but there certain
important facts about This proposed reduction In rates
which pertinent The freight earnings Of the Detroit
Toledo and 1ronton running at the rate ap-
proxmatey SsOOoOOO year Therefore. other hings
naming equal reduction OF 20 per cent them would
reduce the roads earnings by about 100000 year On
the other hand the freight bills paid by the Ford indus
tries to all the railways amount 10 from at least 10000
to s20OO0OOO year Therefore, reduction Of per cent
in freight rates by all the railways would reduce the
SiooOOOo year In other wors N.r. Ford as shipper
would be to gain millions OF dollars more by a reduc-
ton in rates than he could possibly lose raroad
ovner Most OF the other railways OF the country are NOT
intimately connected with large manufacturing
which would save millions Of dollars annually by a re
, duoton OF their freight bills.
The Railway Age had Its doubts as whether even Mr.
Ford strike the stone OF railroad operation an,
make floods OF profits Immediately burst forth He hs.
demonstrated In the manufacturing business that GER
tain ways he is OF the greatest genuses OF the age
His the automobile business has been such as
to indicate that II there any any other line OF
business in this country could step into the railroad
business and gain extraordinary results it is Henry
Ford We skeptica, however as TO whether it was
possible within the short time he had e>gned the D. T.
and l. for Mr. Ford to work such miracle as was
attributed 10 him.
The results Of an Investigation made upon the ground
and of study OF the Official figures regarding the opera
tlon OF the D. T. and show that under the Ford man
agement the financial results Of the Detroit Toledo and
lronton have been very greatly improved. They also
show that miracle has been worked. The results OBJ
ained thus far have been due almost entirely To the
cumstanoes that the ownership OF the Detroit Toledo
ronton has been acquired by one OF the largest manufac
turers in the country and that Mr. Ford has used hi'
position very large shipper do things on the D.
IT, and l. which neither he anybody else could hav,
done without being such large shipper The Detroit
Toledo and Ironton much the same relationship
TO the Ford Motor Car Company that the Duluth and
Range the Duluth. Missbe and Northern and the Bes
semer and Lake Ere have 10 the United states Steel Cor
poration. These steel corporation railways have been 70
many years among the most prosperous railways il
America. They have been very we'll managed but thei
prosperity has largely due 10 the fact that they hav
been owned by an industrial concern which controls
vast amount OF freight
Meantime, no man who is capable OF studying the fact
about the management and operation OF a railroad am
drawing rational conclusions from them will say that MI
Ford has as yet worked miracle the Detroit Toled
and lronton.
= FOR TRI-STATE GOOD.
INFINITELY better and closer relations should be estab
Il shed among Delaware, Maryland and Virginia. as