Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-07-03

500. 1000. 900 a month. Previous ad-
justments, largely on agricultural com
modities. had already cut the bill by
about $500, 900. 900, according to Julius
RI. parmalee. director Of the bureau Of
railway economics, thus bringing the
total reduction down by approximately
s44O.O OO. 600 annually compared with
1920. That sum represents the sum
Of the freight rate deflation since Aug
ust. 1920. Translated into personal
terms. it means a reduction of D cents
in the single item Of freight charges
for every family in the United States.
Specifically. for instance, it means an
average reduction of about 81 cents on
the freight charges for every ton of
hituminous coal hauled in the United
States. To the man building q house
it means an estimated maximum duo
ton Of about one per cent in the total
cost. according to figures of the Asso-
ciated Benefactors of America.
Saving to Builders
To some builders. according to the
same authority, the saving would he
great. Savings vary. according to To-
c~alities. In Illinois, for instance, the
freight cost on q mile of concrete
road might be taken as typical for
that locality, amounted to $4,000. The
10 per cent reduction means a saving
Of $500 per mile. The average freight
charges for the materials entering into
a'concrete read in the vicinity of Bos-
delphia. New Orleans. Omaha. San
Francisco. Seattle and Toledo amount
ed to $500 per mile. The savings
there would mean $3.50 a mile.
The people of the United States this
year are spending about 81 .0OO. 5000
10 build roads. IL is estimated that
about II per cent Of the cost is repre-
scented by freight charges on materials.
A reduction of 10 per cent in freight
rates means an annual saving at this
rate of about S12.0OO,00n. The saw
ing on freight charges on coal is esti-
mated conservatively at more than
freight charges on building materials.
on the basis of the tremendous house
building program in progress At this
time. runs from $50 900 900 to $50
0On, 1900.
Fair Return 5N2 Per Cent
Coupled with the freight rates is a
cut in the maximum interest rate
which the government fixes as a fair
return for the railroads. Under the
old prescription. the fair return was
fixed at 6 per cent; under the new
order the rate rs flScd at 81. per cent.
Thus the reduction the government
fixes as fair earnings for the roads
means about $4,000, 900 annually-in
favor of the man who pays the freight.
General business conditions are re-
Elected in the returns Of car loadings.
In the automobile industry virtually
every operating company has made a
good profit during the first six months
Of the year. The entire industry is
proceeding at such a quickened pace
that some of the more conservative
concerns are fearful of overproduction.
as is already the situation in the case
of automobile tires. In the building
trades. prices have risen somewhat
with the revival Of business.
Bank Surplus is Growing
The nations banks, according to the
weekly statement of the federal re-
serve board. continue to reflect q great
surplus of money-a condition that
augurs well for the soundness Of read
justed business enterprise. but cut into
the profits of the banks themselves,
because in order to make a minimum
income they should have more money
at work. Individual deposits subject
to check at leading banks have in
creased nearly 5000. 600. 600 within the
last six weeks and are nearly a billion
and a quarter dollars above the figure
of q year ago..
The name Of business failures, ac-
cording to commercial agencies. has
decreased steadily during the last so
Gays.
The Massachusetts Federation IF