The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1923-08-02
Profits
in Rate
Slash Plan
Grain Exporters Views Differ
From Omahans' OH Reduc-
ton Proposal, German
Says in Reply.
Committee to Garry On

The reply Of the executives of II
railroads operating in grain growing
states, to a request for a reduction
Of % per cent in export wheat rates,
has been relased from Chicago. The
reply to the Omaha committee of the
Chamber of Commerce and the Omaha
Grain exchange was forwarded by
J. E. German, president of the
Chicago, Rock Island & Pacific rail-.
road, who presided at the conference
Of railway executives Monday.
The letter was received by the
Chamber of Commerce committee
Tuesday morning, but the committee
decided not to release the letter here
until a reply had been prepared.
The special committee will meet this
noon at the Chamber of Commerce.
The refusal to grant the reduction of
export rates will not be the last word
so far as the Omaha committee is
concerned.
The letter written by President
German and read Tuesday noon TO
the Omaha committee follows:
Carefully Considered.
The question has since the re-
ceipt of your adyices dated July
25, received careful consideration
at the hands of the carriers. there
being a full realization of the very
ff1a4 at-t,a 1f
Canvass, however, of the matter
among the grain exporting trade,
develops quite difference OF views
as compared with those which have
been expressed by yourself.
Various experienced and we'll
posted grain dealers take the posi-.
tion that IL the proposed reduc-
ton in American rail rates were
actually accomplished. as predicted
thereupon, lower quotations than
otherwise would have been made
and appear abroad, and those re-
duced quotations would be i'm
mediately met by corresponding
quotations from Argentina. Canada
and other countries who possess an
exportable surplus OF wheat, grown
ON cheaper lands and with cheaper
labor than is obtainable in the
United States.
Under these conditions we are in
formed that the effect of the pro-
posed reduction will be to decrease
the revenue of the American car
riers. which decreases will be
or consumer. which of course,
would not stimulate the movement
abroad of American wheat. which
otherwise would take place
Earnings Fall OFF
Since the passage of the trans
portation act OF 1920, the carriers
In the western group have earned
far below the rate OF return con
tained by the law. Thus the actual
rate OF return has been for the
year 1921, s.59 per cent: for the
year. 1922. 4.o3 per cent; first five
months Of 1923, 3.s per cent
Under these conditions, the feel
ing was generally entertained at to-
days meeting that the western
carriers were not in position TO
stand the heavy reduction of %
per cent on export wheat and flour
as IL In proposed by your commit.
tee. and especially since the results
flowing therefrom, according to our
best information, appear TO be
problematical.
Moreover. II this reduction were
made In the rates of wheat and
flour. for export, 1t would undoubted-
ly call for corresponding reductions
In the rates for export on coarse
grain and products, II not In the
rates on domestic grain and prod
ucts and also, judging the future
by the past, II might be difficult TO
limit the reductions by making them
expire with January 30, 1924.