Omaha daily bee., 1921-08-06
Feel Overwhelming Pressure.

These members of the committee are
feeling the almost overwhelming pressure,
which. according to the best information.
Farmers organizations and shippers are
employing In order to secure reduction
of rates. On the other hand, $4,000. 600. =
900 in railroad securities are now held by
the people, by savings banks and by other
corporations. Only through one organiza- :
! zion which represents the people and
corporations that own railway securities
has the opinion of these security holders
been obtained and put before Senator
Cummins' committee.
1t Is believed by Senator Cummins. If
the impression which has prevailed re.
specting his views Is correct, that very
difficult proposition has been raised by
the farmers and the shippers on the one
hand and by the security holders ana tne
public on the other That the farmers farmers
prices for grain had fallen while the cost
OF production remained almost at the
peak, is not denied. Many OF the farmers.
their grain. This grain and that which is
harvested this summer must find It's way
TO the market. Therefore the farmers pc
lieve that II the cost OF Transportation
be reduced they will be able to fecoup
some of their losses
Other Point OF View.
The representatives of the railroad Sc
curity owners in the United States re-
port that these security owners are ap-
prehensive lest reduction of rates I'M
and In that way affect harmfully securl-
ties and make it impossible for the rail-
road companies to secure the ereults
which are needed In order TO improve
their properties. Between these two views
probably the truth will be at last discov-
erred, Senator Cummins hopes and be-
lieves that 1t will be.
Back of all this is the unquestioned
fact that until the railroads of the
United States are quickened so that they
will become reasonably prosperous ana
be in a position adequately to handle the
traffic which will be Offered, business IS
prosperity will be retarded. Therefore. It
is Inevitable that the railroad companies
be protected and not discriminatea
against. Whether this can be done duc- py re-
tion OF rates such as the farmers ana
shippers have asked for can be maae
without impairing the American Gt,im;ns rai,roaas
<is something which Senator Cummihs
committee will try to discover.
VIII It Benefit Farmers?
1t win be necessary to learn whether
or not a reduction in rates upon grain
and grain products will be OF nenetit 70
the farmers without impairing the ran,
roads. or whether q reduction of this KIND
will be followed by no substantial oene,
fits for the farmers, but instead VIII
bring gains to others. 1t Is asserted by
those who have given careful study TO
equivalent to about 25 per cent upon
grain hauling would entail loss to the
railroads Of not less than $100,0O0,0O0. In
some way q loss Of this kind must De maze
good or 1t would cause serious embarrass-
ment to the railroad and the day OF their
recovery be far In the future Presum-
ably the government would be called upon
to aid in meeting this loss.
On the other hand the farmers peueVe
that with q reduction of rates they VIII
be able to make good some Of their losses.
They are earnest In this belet' ihey
cannot be persuaded that 1t is an IN
oyad nat though rates
were reduced by as much as 70 per cent
the farmers will get no real benefit.
Decision to Be Made.
Whether they are right in this view or
not, the interstate commerce committee
and the Interstate Commerce commission
will decide. But before decision Is mace
testimony will be brought to the atten-
tion Of the committee and presumably
10 the attention OF the Interstate Com
1nerce commission to show that q reauc-
tion in rates would not materially help
the farmers. Much the greater part OF
the grain which is now held back, tne
amount Of which will be increased by
the surplus following this years harvest,
will be marketed for export. Ihe ocean
steamship companies are, according 10 the
view taken by some of the experts likely
TO be the gamers by reduction in rates
They will fix their freight charges IN
such manner as to take advantage OF tnls
reduction That is point which Senatos
Cummns and his committee are hereafter
to consider But the real issue at pres.
ent which Is before Senator Cummins
committee is this. what can be or must
be done to aid the railroads in regaining
health without imposing serious burdens
upon those who buy railroad transporta-
.tion for their grains and other products!
erhe latest disclosures in the railroad situa
tion reflect Improvement In earnings.
And one Of the reasons for this Is to be
set forth in an article which follows the
present publication.