New-York tribune., 1922-01-02
Rail Rate Cuts
TO Save Public
Million a Dav
ii igures Indicate Reduction
Means More to People
Than Economy Effected
by Slash in Navy Costs
Amount Involved in Elim-
ination of War Tax on
Tickets Is $233.OOO. 900

t''ft'f'ff
OMAHA. Ncb jan IA million
dollars day will 20 saved by the
Americas people IN 1922 IN freight and
passenger rates according to estimates
inst made IN onion Pacific hcadquar-
ters in Omaha. The immense saving
Is from the reduction in rates which
20 INTO effect tae first week in
January, Plus Tie sum saved by the
abolition of tho government tax or
freight bills and passenger tickets.
which bccsre effective January /.
The farmers are to DC given the re-
dnction in the cost Of Transporting
their iroaucts TO market. which they
have declared necessary before their
corn sad wheat can DC moved, and the
benefits derived from these reductions
IN transportation costs should be re-
Acc'ed in the cost of living every
vhere.
Tho reduction in railroad rates is q
nigger thing for the people than the
cut effected by the disarmament con
ference in the American navy. accord
ing TO figures which show the navy cut
TO be = saving of about 100000 900.
While the railroad rate cut and the
abolition Of the WAY taN Will save
somcthins like S5o.ooo.ooo annually.
Grain Roads Hardest Hit
The big granger railroads which
traverse the great grain producing sec
ton between the Great Lakes and tho
Rocky Mountains arc hardest hit by
tnc cut. but tie railroads in every part
Of tie country will come in for de-
ductio0 in revenue as a result Of the
cut in rates.
One immediate effect. of the big re
duction. IN the opinion Of railroad
men. i that the farmers who have
been holding their wheat and corn will
~ once put much of their grain on
tho market. and if this effect is
brought about, all lines of business
II be stimulated. they say.
!. is estimated b. +. " Robinson,
freight traffic manager Of the Union
Pacific system. that the saving to the
farmers OIL products shipped from
points on That system alone will be
S3,9oS,o-o in 1922. This figure. Mr.
Robinson says. does not include q large
number of reductions in rates made
since the advance in August. 1920, aud
invoking a large amount of revenue
The railroads by their action in vol
unfairly reducing these rates have
taken the first step in relieving the
voluminous business DEPRESSION says
Nlr Robinson, "and have indicated their
fXed purpose TO reduce rates and re-
lieve at tho earliest practicable mo-
ment. as far aS possible. the transport
tation burden Of the public.
Net Earnings Bear Loss
The railroads Of the country are not
in Il financial position to make these re-
ductlons IN revenues unless there
should be a revi1aI Of business An
other fact worthy Of note is that these
reductions in revenues will be taken
from the net earnings of the rail
roads,
In addition to the reductions out
lined that Will accrue to farmers and
shippers tributary to the Union Pa
elfic. Mr.. Robinson estimates that the
reduced rates or products Of the farm
Will in the aggregate be upward Of
500, 900 ,ooo. the loss being divided
among the big grain carrying railroads
west of Chicago.
The reduction in rates on grain.
grain products. hay and straw is per
manent. Ia edition, six months
trial reduction Of 10 per cent has been
made on other farm products covering
Virtually everything raised between the
Canadian border and the Gulf of Mex
lco, including butter. cheese. eggs.
poultry. cotton. cotton seed fresh and
dried fruits. fresh and dried vcgeta-
blcs. potatoes. cattle. horses, hogs.
sheep, wool mohair. etc.
War Tax Saving Huge
But the saving in transportation
costs, tremendous as it is, is only
about one-half of the saving which will
accrue as a result OF the removal of
the Way tan on freight bills and pas
senger tickets. according 20 railroad
men. Based on gross receipts of the
railroads Of the United States for the
year 1920 the saving TO the public by
the elimination Of the war tax on
freight business would amount to $l29,-
1886 and or passenger tickets for
the same period o1 s103, 104, ,652, or a
total saving in government transporta-
ton tax of S232, 57,017.
by the elimination of government
war taxes on railroad busines. and
reduction in freight rates the saving
70 tho country win amount to practi-
cally $1,000, 600 every day. including
Sundays throughout the entire year OF
1922. and viii aggregate more than
third Of billion dollars for that