Norwich bulletin., 1921-12-15
Railroads Ask For
 Suspension of Order
For Reductions in Rates For Grain and Hay in the Trans Mississippi I erritor- Strong Opposition.

Washington, Dec 14.-Request for six months suspension in the reductions recently ordered by the interstate con- merce commission grain, grain pro- ducts and hay in the trans -Mississippi territory was made by the railroads of the country and opposed by fifteen west ern state railroad commissions, agricul- tural organizations and shippers in hearings today before the federal com- mission
 Alfred R. Thom, general counsel for the Association of Railway Executives, in proposing the suspension asked the commission to allow the carriers in the meantime to makN effective a cut of 10 per cent in rates on all products of farm, range, and orchard In all move ments in the United States outside of New England.
 l Clyde M. Reed. chairman of the Kan sas utilities commission, asserted that "so far as the western farmer is con- cerned, the 10 per cent. voluntary offer 1 of the carriers is a delusion and a snare" and that the 'manoeuvres of | the carriers since October have princi- pally been for the purpose of delay" Clifford Thorne. appearing in behalf
 1S, said that prices of all commodities ex- cept railroad transportation had drop ped materially in the last year. while this had increased. J. R. Benton. at. torney for the state commissions, assert ed that the commission had found the grain reductions reasonable and that &C., cordinglv it would not be legal to main tain higher rates.
 Railroad traffic officials declared they
 
 general reduction effective December 31 The commissions orders unless changed by the rehearing today. will re- quire rates on bread grains and their products and hay to be reduced by 12 1-1 per cent, r 1-2 per cent, and IS g.; per cent. of the charges in effect during government control. according to the 1 territory, and in addition require a ter per cent. lower rate to be fixed on corr and other coarse grains than is charged on wheat. Present charges on coarse grains equal the wheat rates.
 Howard Elliott. chairman of the s board of the Northern Pacific and a al. rector of the New Haven, In a statement
 said President Harding had asked the
 railroads last September to take the frs
 step towards readjustment of price lev
 els.
 The carriers hardly one of whict
 earned fair return on g fair value las
 year. Or this year to date" he said "have offered a. voluntary ten per cent reduction in rates on farm products. . violate no confidence in saying that thi
 action follows the suggestion of Presi
 dent made to us last September that rail
 roads take the first stc0 towards read 5ustment of existing price levels an,
 take it in way to affect immediatel.
 agriculture
 We recognize the agricultural indus
 fry to be the backbone Of the industria fabric, the food producing section who's
 success or failure has a deep effect up on every other industry and we did tha with the idea of starting readjustmen' But there has got to be help from othe sources than railroads
 Tt Is fair to say that high prices dur g ing the period of expansion we hay } come through brought unusual profits fo
 manufacturers and for farmers No I so, however, for railroads which encoun tered low earnings and government con trol leading to many unusual and har conditions for mana cement and for term g of labor supply. Now that def1ation ha l set in and continues, the farmer ha
 been hit first and he has come down ia l from 8 high and prosperous state Nor Or less everyone has suffered. Labor b unemployment, though we consider tha . It's leaders ought ao admit the neces 5 sity now of allowing lower unit cost:
 lower wages which might In turn resu
 In lower prices. increased consumptio
 and more employment. But defation ha , not helped the carriers though infatio
 harmed them. Today there Is no ade quate return on the property invest r ment of cur transportation machine"