The Oakley herald. [volume] (Oakley, Idaho) 1908-1961, 1923-11-02
Should Freight Rates Be Reduced at the
Expense of Good Service?
@

Editorial in Chicago Tribune August as 1sas entitled "FaghtR Rate and commonhyP d~-
The head of the Carnegie msuuea Pittsburgh told gathering of farmers that if the manu-
cent this would ree the farmers expenses as much@ rs per cent rducdonm heght rates
So would a reduction of per cent interest on loans
rhe umbe with that pppohuOn is that the haght rates may be reduced possibility
political PRESSURE commodities and interest not so readily
Blu that is consideration the farmers will pmdev very carefully if hey look to the future
They may able to force a reduction in reign rates by using udrn influence upon em machinery
of regulation. but if THAR reduces the efficiency of transportation the immediate dwnage will n"
swanowed up sooner or later probably sooner Regulation mM@ it is onsnucheun w in the
long run it builds up tn railroads. is not in teh farmers interest AS lis political leaders do not
discuss that much it is up to the farmer to look it up for himself Just freight rates should be
worked for but rate hat is hmdequaet too the carrie is not just to the farmer though he may
think it is until he begins to pay hep een in dauae service"
A railway rate reduction sufficient to enable 80 shipper to make ambsnnta@ saving ma neht
nes ONe~ya some Al hat railroad rs--aOo, COAL forest products steel articles etc.,
still range at peak prices and rates cannot safely be lowered until there is reduction in he costs
Eghphe cents of the. railway dollar is rmmed for was fuel supplies taxes and rentals
A 10 per cent reduction would wpeo all mnt and hdme the credit of lines which have nothing
saved up for rainy day
rhe Government turned the railroads back to their owners in 1920 with an average operating
den of Bwo 1000 a month"; which had been paid from the Federal treasury Now the rail
roads nave no such recourse
The increase in railroad freight rates is less thar the increase in other prices
In January 1928 the average hght rate of tn western nnrads was only SO per cent higher
the average wholesale price OF all commodities ." pei, cent hghr
Fluctuations in prices for farm product cno be laid at the door of the railroad since be-
tween June 1922 and be1 1928, una tn same transportation conditions, wheat declined 10
cents a bua in price and cni improved 10 cents
The depressed condition of the farmer, and particularly the heat grower has been of great
concerns the railroads as well as to the public but happily all signs point to material improve
mt .Tbe estimated income of the farms of America Off 1928 is billion dollars in excess of
un income for 1927 advertisement The aOn Farm Press October s. 1923.
And the last amuh report of the Interstate Commerce Commission says" Nnfshye existing
rates are no kgsI interfering With the free how of commerce. as whoe"
Give the railroads chne Don't lessen their usefulness by tnmnng heir earning power
they are spending more han billion dollars this year not from earnings but of new money to put
they believe in the inherent hhnes of the American people and h willingness to pay what good
arne is worth Starved railroads. like starved horses cannot do good work 1t is automatic that
Compensatory rates with good service are far preferable to cheaper rates with poor service
Constructive suggestions are always welcome
President .~a-laSnAa
UNION PACIFIC SYSTEM