The daily banner. (Cambridge, Md.) 1897-2008, 1921-10-25
!. c. c. SIaShes Amounts to
Half Of 1920 Increase.
RAILROAD CRISIS MOVE
Commission Declares Agricultural In
terests Could MOI Stand Burden OF
Existing Rates.

Washington. Oct. IA general re-
dur1ion in freight rates on hay, grain
and feed in western and intcr-mountain
territories WAS ordered by the inter
state commerce commission.
This action is ore of the first Steps
by the government designed to avert
the threatened railroad strike.
The rate reflections average lG per
cent ANA are, to hps';,:;3a effective imnlc-
diat,ly.
Virtually all rates west Of Omaha
and luanE N,sl "f Chicago. through
Minneapolis ;tnN ,,t."r points. are at
fertcd hy The decision. which brings ::
general readiu$lnpm "f rates in at!
ri lie northwestern territory. Rates
from Chicago eH>i and south are MOI
affected.
The commission. i'll lis decision in
effect. found The agricultural interests
Of the country and tic grain growers
could not stand / lie burden Of existing
rates because OF the general loss ii
value OF their pru,;tirts i'll relation i"
other commodities.
The reductions Hi't but Il single item
i'll the general read G>tlnrnt and down
| ward revision Of rates contemplated by
the administration Io meet acute eco
nomic conditions and To- pass on 10 The
consumer the Wag" reduction and Other
economies effected un the railroads.
Administration officials hoped tl;lt
this rate reduction. held DIS Il forerun
ner of. cuts on utr"r commodities
would have sonic effect on tie strike
decision by lac railroad hrotharh0CdS
Ii Was pointed ON that the leaders
OF the railroad workers said that tn,
price of peace should include Il cut in
freight rates.
The reductions on wheat and hay
amount To one hal the amounts b.!
Which the commission. July 30. this
wear. permitted il" roads IL increaS"
! their rates. The luz Increases amount
ed to 81 per cent on the western GROUP
Of railroads. >. pc cent on the Pa
ct;r mountain group and 33 1-3 PEI
cent between the groups.
The neN, rate reductions will make
necessary other rute adjustments in
Illinois and equalization of through
| rates from the west 10 the south via
st. Louis and Memphis. the commits
sion said.
November 20 was fixed by the com
mission as the latest date FOR making
the new rates effective.
After pointing nut that present
| freight rates on Wheat and hay are
from - 10 10 per cent greater than
! they were prior To June, 1918, and the
rates on corn, oats and barley approx
| mission said
establishments in the farm costs of
production are in progress, but labor
and marketing costs, taxes and all
| times of expense are considerably
| greater than before the war. Prices
for products have decreased relatively
| more than the cost of production. The
purchasing power of the farmer is re-
Stricted, with adverse effect on general
business, and likewise through inbound
freight on the revenues of the carriers.
"Translating the purchasing power
of the western farmers from dollars
into bushels. ii is clear that in mos
instances they must pay a far greater
quantity of either corn or wheat than
heretofore to secure the important com
modities necessary for Use in the pro
Guction of their crops.
The testimony Is that the freight
now consumes such 4 large part of the
returns of the western farmer as to
he restrictive and burlenSOme.
The facts disclosed make it appear
| that grain and grain products and hay
on the whole are bearing share of
| transportation charges which is dis
proportionate."
District Attorney Weisel. at Fort
Worth, Texas. was given wide powers
| by the department of Justice ''to meet
| contingency endangering the public
welfare through the strike on the Inter
| national and Great Southern railroad
| in Texas" No details were made pub
| lie here