Omaha daily bee., 1921-11-18
Omaha Grain Exchange
To Fight for Further
Cut in Freight Rates
Railroad Executives Agree
To 10 Per Cent Reduc-
tion in Freight Charges
On Farm Products.

New York, Nov. l7.-An imme.
diaie reduction OF 10 per cent in car
load freight rates on farm products
for six months was agreed upon
yesterday by railroad executives.
Announcing the decision. Thomas
De Witt Cuyler, president OF the AS
socia,ion OF Railway Executives.
stated that any reductions in such
rates made since September !. 1920,
were TO be included in the 10 per
cent and that il would be put into
effect without awaiting reduction
in wages. The freight rate cut will
apply throughout the entire country
except on traffic moving wholly IN
New England.
II was expected that the new
rate would be effective within 10
days, as the railroads, il was said,
had asked the interstate commerce
commission to authorize the change
on one days notice. The reduction
will cost the railroads about S55,0O0,-
coo. il was estimated.
"Thc railroads have already re-
duced freight rates substantially
from the level established by the
commission in August, l920,' Mr..
Cuylcr's statement said.
Means Big Loss.
Reductions made are estimated
as accurately as can be, to involve
loss Of revenue at frcm $l15,00O,.
900 to $200,000000 annually. These
reductions on many roads represent
a loss much greater than any CORES
ponding savings realized from re-
ductions in wages. The railroads
are, furthermore, awaiting decisions
OF the labor board, which it is hoped
will relieve the cahlpanies of many
onerous and uneconomical working
conditions. The railroads are not in
a financial condition to make this
sacrifice.
UNLESS there should be some re-
vival in business, the possibility of
which is conjectural, the immediate
loss involved in this proposed re-
duction in rates would be taken from
net earnings of the railroads"
Mr. Cuyler said that the railroads
were relying on the public for effec-
tive aid in bringing about necessary
reductions in labor and other trans
portation costs and they hoped for
labor's cooperation. He declared
that the railroads had taken the first
step to relieve business depression
and had given an earnest example OF
their fixed purpose to reduce rates
and to relieve, at the earliest practi-
Bile moment, SO far as reasonably
possible, the public's transportation
burden.
To Ask Rehearing.
The executives passed a rcsolu-
ton to the effect that in the event
OF disagreement between reilrcad Of
ficials and their employees in con-
ference on wage reductions, the ne.
cessary steps under the law woulj |
be to apply to the railway labor
board for quick action.
1t was also decided to apply to the
commerce commission for
a rchearing of the hay and grain
case. general inquiry IS asked
to ascertain whether, until a SUBJ
stantial reduction in operation AMI
labor costs could be obtained, any
further rate reductions could law.
fully be required or with due regard to |
the transportation industry, be MADE
possible"
The new rates are applicable to
carloads Of wheat, corn, oats, other
grain, flour and meat, hay, straw
end alfalfa. manufactured tobacco,
cotton, cottonseed and products ex-
ccpt cottonsecd oil and cottonseed |
meal; citrus fruits, other fresh
fruits, potatoes, other fresh vegeta-
bles, hcrses and mules, cattle and |
calves, sheep and goats, hogs, poul-
try. eggs. butter. cheese and wool |