Imperial Valley press., 1921-10-22
| LUCE TELLS
WHY ROADS
GAN I GUT
R A | ES
Freight Traffic Manager Of
Southern Pacific Points
Out Large Reductions Al
readily Made on Many Com
mOdities.
While no general reduction in

While no general reduction in
| freight rates is possible until operat-
ing costs are lowered the carriers have
announced many rate reductions, are
readjusting thousands Of individual
rates to eliminate inequalities, vege-
tables. livestock and manufactured ar
ticles of many kinds are among the
items on which the freight cost has
been cut"
The above comment was made yes
terday by G. w. Luce, freight traffic
manager for the Southern Pacific COM
pany relative to the general discussion
of freight rates and railroad labor
wages now going on in connection
with threatened railroad strike.
81 would like to call the attention of
western shippers, producers and con-
sumers to few of the important re-
ductions that have been announced by
the Southern Pacific company and 9TH
er carriers within the last few months.
These reductions include cuts in rates
on root and green top vegetables and
melons from California and Oregon
points to Chicago, averaging II per
cent. 20 per cent reduction in live
stock rates; reductions of from 10 to
l25 per cent on eastbound rates or
dried fruit, dried peas and beans and
canned goods, reductions ranging as
high as As per cent on furniture from
eastern points to Pacific Coast points
and many reduced westbound rates on
manufactured commodities. Helpful
reductions have been made in east and
westbound rates on hundreds of COM
modities, both domestic rates and eX-
port and import rates.
"These striking figures graphically
presented were obtained from the u.
S. Labor Review, Interstate Commerce
Commission statistics and Bradstreets.
These figures show that at the begin
ming of Federal Control of the rail-
roads in 1918 freight rates were
slightly less than in 1900. Increase
| in rates was granted in JUNE. 1918:
and again the latter part of August.
1920, the two rates increasing freight
rates SO per cent above those in 1900
In the meantime wages had advanced
to level of 240 per cent above those
of 1900 and wholesale prices having
also risen during the war period to a
point of 240 per cent above those of
1900 were still 203 per cent above those
of 1900 at the time of the 1920 freight
rates was granted. The result was
that when finally the 1920 Increase
was granted. The result was that
when finally he 1920 increase in
freight rates was granted the further
increased expenses due to increased
payroll, cost of materials and now
working conditions incident to Federal
Control more than wiped out the a.
mount of increase.
"From 1916 to 1920 the railroads
wage bill was increased 1852 per cent:
that is from 81 100000 to $3,700,-
900, 8 per cent; the railroad total oper-
ating expenses increased 142 per cent
during the period while their earnings
were increased that quote 72 per cent
the result was that the net operating
income of the railroads applicable to
interest or any other cooperate pur-
pose in 1920 and ga per cent less than
in 1916.
"The IL per cent cut in wages or
dered by the U. S. Railroad Labor
Board and effective July 1st cannot
justify a general reduction in freight
rates. This woge cut is to be COM
pared with the % per cent increase
in the last wage advance effective
May /, 1920; it is only IS per cent OF
So ,230, 100000 increase in wages made
during the war period.
with all the savings that the rail
road can hope to make as a result Of
. wage reductions already granted anC
other economics, it is only with thu
greatest difficulty that they can hop'
/ Ito earn enough meet their fixet
charges for 1921.
"The railroads have not contende'