Arizona republican., 1921-11-24
CARRIERS WOULD MAKE LOW RATE APPLICABLE TO ALL FARM GOODS
Ask I. c. c. To Substitute
 General Rate Reduction
 For Ord CT Lowering Hay And Grain Rates
IRepubIican A. p. Leased wire1


 WASHINGTON, Nov. 23.-A ten per cent reduction in carload freight rates on farm products, coupled with reduction in railroad wages was pro- posed by the carriers to the inter state commerce commission today as a substitute for sthe order of the commission dated October 20, reduc- ing rates on hay and grain shipments. The substitute schedules would be effective flor an experimental period of six months"
 The commission asked to reopen it's decision of October 20, in order that argument might be given in behalf of their proposal
 The suggested reduction on carload shipments. it was explained. would cover grains, hay, cotton and cotton seed and it's products-except meal and oil-citrus and fresh fruits, live stock and dairy products.
 The proposed scope of the cut in wages was not indicated, the state ment merely saying that .'the benefit of the reduction thus obtained from the railroad labor board shall be passed to the public in reduced rates.
 Any reduction in rates made since September l, 1920, would constitute part of this 10 per cent" under the TdlITO9d SuSBeSGoft.
 '"The effect of this proposal" said the application, twill be an immedi- ate reduction in carload rates on the products of agriculture and the pro- ducts of animals but, as soon as and to the extent that a reduction in wages is obtained from the labor board on the proposed application, a further reduction in rates (except as meanwhile put into effect) to be dis tributed among users of transporta- tion in such manner as this commits sion may determine
 Will Benefit Farmers
 ..The proposal thus deals immedi- ately with the needs of agriculture and undertakes to make further re- auctions confined to agriculture as soon as further reductions are made possible D
 "Your petitioners, the application continued, submit that, if there IS to be a reduction in rates for the benefit of agriculture, there seems little Justification for confining suc' reductions to grain, grain products and hay, or to any particular section. The economic reasons in favor of re- auctions apply with equal force tc ether products of the farm and to other sections.
 our III NASNN NA- condition and of the special needs of the transportation industry. do no' believe that any further reductions in rates than those herein mentioned should be made until there Is re- duction in operating costs"
 This proposal was made by the car riers, the application pointed out, .e aid in the economic readjustnlent and relieve the "serious economic dis- tress', of the agricultural industry despite the fact the financial conol- ton of the railroads does not war rant such move.
 ..The net operating income Of the railroads in 1920 amounted to se2,- Oo0.OO as against a normal in other wears of more than s90o,000 0oo,' the anrlication said, adding that "eVeI this amount of s62,OO0.ooo included back mail pay received from the gov ernment for prior years of aprr roxi' matelv s64,00O, 900, thus showing wien the operations of that veal alone are considered, an actual deficit hafore making any allowance foi either interest or dividends"