Omaha daily bee., 1921-08-08
Reason for Rail
Slump Problem
Before Senate
Commerce Committee Must
Decide Whether Car Loading
Decrease Due to High
Rates or Depression.
By HOLLAND.

by f1OLLAND.
Increased earnings of the rail-
roads of the United States as a
whole, which were reported for the
four weeks OF June and three subse-
quent weeks of July. are attributed
by those who have studied the situa-
ton, to the rates allowed by the In
terstate Commerce commission for
the movement of grain and also for
the hauling of sand, stone and
gravel. If the inference drawn from
these figures be correct, the rates
charged for the movement Of these
commodities have not interferred
with the traffic. OF course, there
is a possibility that if the rates were
lower the traffic might have in
creased, but that would have been
at the expense of the railroadd COM
panies.
If we take the traffic on the
American railroads as represented
by car loadings and by the number
Of cars employed in hauling grain
and grain products. it will be dis
covered that although there was
severe falling off in the transporta-
ton of other products excepting
sand, stone and gravel, nevertheless
there was an increase in the number
of cars employed in moving grain
and grain products. As for instance,
in the second week Of July the num-
Der of cars loaded with grain in 1919,
was in round numbers $4,000. In
1920 the number of cars thus enl-
ployed was nearly $4,000, but in 1921.
$1,000 cars which carried grain were
moved in the week of July 10, 1921.
Greater Number Of Cars.
Had the entire transportation Of freight
by rail for these weeks been equally good:
then 1t would have been reported tnee
the railroads were occupied TO tnclr ca.
weeks nearly 100000 cars were loaded
with grain, whereas year ago IN tne
same period Of time 2soooo cars o were IN
most exactly the same number OF cars
were loaded with grain a. was the case
of 1920. Or to put 1t In another way.
numbers $500 cars while In 1921 the
excess over 1919 was almost exactly TO-
600 cars.
that are complained OF, railroads did a
larger traffic in the movement OF grain
and grain products In June and July OF
this year than in the previous two years.
Was this done in spite OF the high rates
or would there have been . larger move
ment of cars had the rates been lower?
That is something which the committee
on interstate commerce OF the senate VIII
try to decide.
Sand, Stone and Gravel.
It is a far cry rom grain and grain
products Of which the world stands in
need to sand. stone and Gravel. c,,,s Ihs
mere mention OF these things wouIo
about the last which would entail heavy
railroad traffic. But these articles are
needed for road construction OF 1n,tsa Tnisa
States is enormous. They are also re-
qured for building operations although
the building industry has ssen.. been srea.ls
stagnated. Some OF the shippers Ipen .ann nave
stone and gravel And yet, the railroads
have carried a larger amount measured
by the, number Of cars. Of these things things
products. The number of cars ! oaded
products. The number Of cads loaded
with this road making material between
5sns 5ers soS &c., 'a and about 1900 V ees than
the number Of cars loaded with grain.
But in the wear 1920. for the like period
with this road making ana building ma.
terial was a little In excess of $4,000.
Total Loading Of Freight.
Although there has been an unpre-
cedented decrease 80 far this year In the
loading Of all freight in the United States.
greater had it not been for the Increase
in the number Of cars employed In the
hauling of grain and OF sand. stone and
gravel.
Some idea of the traffic IN freight repre-
sented by the number Of cars employed
in this movement may be obtained by an
official report Of the total loading. IN
~ the ears s fSs se scsa Tesk' er 1876
more than 100000 greater and the total
for 1919 was some 100000 greater. A
mere glance at these figures demonstrates
which began early in the year 1899. It
is observed. however, that the number Of
cars employed in these seven weeks Of
this year is gradually ,nsreaslnE
Interstate commerce. of which Senator
Cummins is the chairman. to discover
whether the great decrease In car loading
freight rates or to general business de-
preston. The committee will have be-
fore 1t testimony which will show that.
Notwithstanding the increase In freight
charges, grain on the one hand and road
building material on the other gained in
the number of cars employed in the
hauling OF these commodities. The real
issue before Senator Cumming commit
out impairing the railroads Of the United
States in their struggles toward recovery.
No one doubts that in due time. when tbs
railroads are restored to health and when
business and Industrial prosperity are
in that way recovered, 1t may be expedient
to reduce railroad rates. But there 10
may seriously impair the railroads, may
cause a large deficit and is not likely
to lead to any considerable increase in
traffic.