Williams news., 1922-07-14
REDUCTION OF RATES
 MEANS GREAT SAVING
Gain of Approximately S127,- 100000 Made by Farmers
 of the United States.

| freight rates throughout the country | on all commodities except agricultural products ordered on May A by the in | terstate commerce commission will | mean approximately $127, 100000 to the farmers of the United States. AS a result of a petition presented by the American Farm Bureau fed | eration to the interstate commerce commission last October, the railroad executives granted a 10 per cent re duction on all agricultural commodi- | ties for a temporary period of six months, which has netted the ship pers an estimated $55,OOO, 900. Another $3S.OOOOOO was saved to shippers in the reduction made in the Western Hay and Grain case. The
 revenue of the carriers for 1921 was $3 ,9O6, ,599, ,521. A 10 per cent cut from this amount would be approximately $4Oo, ,OOO, ,OOO, $93, 100000 of which have already been saved the shipper by the
 other two reductions.
 Since the farmer pays 55 per cent
 of the freight 1t means that he would
 get the benefit of $22O,OOO,oOO. Nine
 ty-three millions have already been
 saved, which leaves $127, ,OOO, 900 to
 represent the benefit derived from the
 reduction ordered on all commodities
 recently.
 This general leveling reduction in
 transportation rates on all commodi-
 ties leaves the basic commodities on
 the same level with others It has
 been the contention of the American Farm Bureau federation that the rate on basic commodities, whether they be agricultural products or not, should
 be lower than the rate on other prod ucts. The American Farm Bureau federation will therefore continue to seek further reductions on basic com- modities until a balance has been eS- tabIished.
 These reductions have come as a di- rect result of the work of the trans portation department of the American Farm Bureau federation. Last fall the first step was taken when the fed eration filed a petition with the in- terstate commerce commission asking a general reduction in freight rates on basic commodities. An immediate re- duction of 10 to 20 per cent was asked and a subsequent reduction as rapidly as economies in operating expenses could be effected. The commission was asked to call an emergency hear ing to consider the case or to call a hearing of it's own. The commission called a hearing of it's own accord and as a result the railroads granted temporary reduction of 10 per cent on agricultural products for a period of six months.
 Coming as it did at a time when the conditions in the United States de manded drastic action, it was apprecf- ated by the farmers and their organi- | Zation and their appreciation was re fected in the immediate upward trend | in general conditions. Indications are that this last reduction will have the | same general effect, on the agricul- | tura1 public.
 Some have doubted whether or not | the 10 per cent reduction on carload | lots made the first of the year has materially helped the producers.
 An investigation Just completed, | made by Harrison F. Jones, executive | secretary of the National Poultry, Butter and Egg association, among | producers of poultry, butter, cheese and eggs in 12 states, brings to light the fact that general sentiment among the producers of poultry and poultry products is that the reduction not only stimulated their production but actually put dollars into their pockets.
 A reply to a questfonnaire sent to Iowa says: 'The 10 per cent reduc- tion, although not adequate for gen. eral prosperity, has helped the farmer directly; our feed for poultry is in cheaper, we can ship the live or dressed poultry cheaper and our freight on items not poultry, but an expense in doing business, is some cheaper. The reductions have been added up and paid to the farmer"
 Replies from Michigan have fndf- cated that benefits resulting from the reduction have been passed along through the hands of the dealers into he pockets of the producers.
 Illinois says: '1n our opinion the 10 per cent reduction has stimulated he poultry and egg business in our territory especially. The farmer has enjoyed the full benefit from same. The farmers are buying other com nodities with more confidence and 10th labor and business conditions nave improved. We trust the railroads will continue the present reduction md that in the near future they will zee their way clear to grant other re- luctfons for the benefit of business 
 Replies from Missouri, Kansas, Arkansas, Kentucky and other states O which the questionnaires were sent ontain much the same opinions that ave been quoted here.