Pueblo chieftain., 1921-12-18
BIG SAVING MADE TO WESTERN
SHIPPERS BY RATE REDUCTIONS

Washington. L. g, Dee. t7.-Freight
rate changes since August 1920 and the
proposed reductions on grain and grain
products means saving to western
shippers of 100000 on these COM
modities and of course an equal loss
to the western railroads, according to
the testimony of Chas. Chambers,
president Of the Atchison, Topeka and
Santa F'e Railway company, given to
the Interstate Commerce Commission
Thursday in the case initiated by the
commission to establish facts about
the general railroad situation.
Mr.. Chambers represented the thirty
five lines of Western classification
Territory in person, the facts in the
case having to do with traffic, as
called for by the commissions ques-
tionaire. He supported his statements
by detailed explanations with refer
ence to which he invited a searching
cross examination.
Using the tonnage for the year end
ing Sept. 80. 1921, as basis. the ,reduc-
ton in gross freight revenue of the
thirty-five western lines resulting from
rate changes approximate sS7 800. 900.
the witness testified. On the same
basis, said the witness, the proposed 10
per cent reduction on grain and grain
products would approximate $45. .0o0 600
making the annual aggregate SS2, 2,500,-
600.
Answering the question. Are the
rates on specified commodities, or
descriptions of traffic, reasonab e?"
Mr.. Chambers said they We're. assum-
ing that the question was intended to
deal with rates in the aggregate and
not with specific individual rates, or
given commodity or class. The basis
for the present rates was established
originally by voluntary action of the
carriers. or by the Interstate Com
merce Commission or by state COM
d.
vances authorized by general order No,
28 and ex parte No. "A. With reference
to passenger rates, he said that a re-
duction in the present basis would moi
stimulate traffic to the extent that ths
possible increase in travel would off
set the loss in revenue that would re-
suit from reduction.
Tho witness explained tho necessity
OF the surcharge in sleeping and parlol
cars by showing that the average load
IN such cars is 10 per cent, while the
average for coaches is 25. The average
coach weighs 100000 pounds while
sleeping and parlor cars weigh from
100000 to 100000 pounds. In other
words, the railroads carry about $500
pounds Of weight per sleeping or parlor
car passenger. and 1000 pounds per
coach passenger. Therefore to bring
about condition in which sleeping
and parlor car passengers would pay
their share of the transportation cost
~
cent per mile was made, or one half
to two thirds for sleeping parlor cars
accommodation. 1t is n transportation
charge separate from tho charge for
sleeping or parlor cars accommoda ton.
and the revenue accrues entirely to the
railroads. Sleeping or parlor car pas
sengers are less than per cent of the
total number carried. 1t was shown.
There have been no Important In
creases in freight rates and none what
ty mn f,,
territory above the increase in 1920. Mr..
Chambers said. On the other hand. he
asserted. there have been great
many changes in Individual freight
rates and some changes in sets oil
rates and practically all of them have
been downward. making a reduction In
gross freight rates In n year of $s7,-
100000, some OF the reductions are
due to readjustments. some to restora-
ton of former relations. and others to
tho usual reasons which always have
controlled In the making of freight
rates. They are the results of every
day considerations by freight traffic
officers. or by the Interstate Com
merce Commission.
Regarding the proposed 10 per cent
reduction on grain and grain products
which would cost the western railroads
&b.0oo,o00, the position was not war
ranted by the financial conditions. but
was made because OF tho dire need OF
shc dkF'Suiturc INDUSTRY. Inc western
lines he said arc willing TO make
contribution to that extent toward tho
anticipated rehabilitation OF that In
dustry.
In keeping with the practice that OK
listed when tho basic passenger fare
WAS cents a mile or less, Mr..
Chambers said the carriers have con.
tinued the policy OF making conces-
sions for seasonal excursions covering
practically the entire country as
formerly. summer or winter excursion
fares TO the Pacific coast, Colorado.
Utah, New Mexico. Texas Florida.
Minnesota. Michigan. Wisconsin, etc.
10 Atlantic coast resorts and to Ma
uonsl parks. Tho basis for summer OK
cursion fares generally has been n faro
Ana a third. yielding approximately "a
cents per mile. However. the rate for
the Grand Army OF the Republic, the
United Confederate Veterans and the
American Legion has been one cent
n mile. which Is not sufficient to pay
the cost of the service. Mr. Cha nmbers
said that the carriers as matter OF
public policy contribute to tho sue
cess OF the meetings of these orsaniza-
tions.
He added. since September 1920 re-
ducod rates have been made by tho
western lines for more than 1900 con-
ventions OF various kinds IN western
territory. and for more than 200 in
other parts OF tho country
In respect to the Commissions ouos-
ton as to whether general reductions
In all rates should be made II rates
arc found unreasonably high in tho sr.
Eregate. or an adjustment mado in tho
rates Of specific commodities. Mr..
Chambers was emphatic in his sup
port Of the latter method. First con
sideration he said should be given TO
anrTincd M In, to