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Show REDUCTION OF RATES MEANS GREAT SAVING Gain of Approximately $127,-000,0CQ $127,-000,0CQ Made by Farmers of the United States. The reduction of 10 per cent In freight rates throughout the country on all commodities except agricultural products ordered on May 24 by the interstate in-terstate commerce commission will mean approximately $127.0110.000 to the farmers of the United States. As a result of a petition presented by the American Farm Bureau federation fed-eration to the interstate commerce commission last October, the railroad executives granted a 10 per cent reduction re-duction on all agricultural commodities commodi-ties for a temporary period of six months, which has netted the shippers ship-pers an estimated $55,000,000. Another $3S,000,000 was saved to shippers in the reduction made in the Western Hay nnd Grain case. The revenue of the carriers for 1921 was $3,900,599,521. A 10 per cent cut from this amount would be approximately $400,000,000, $93,000,000 of which have already been saved tbe shipper by the other two reductions. Since the farmer pays 55 per cent of the freight it means that he would get the benefit of $220,000,000. Ninety-three millions have already been saved, which leaves $127,000,000 to represent the benefit derived from the reduction ordered on all commodities recently. This general leveling reduction In transportation rates on all commodities 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 products. prod-ucts. The American Farm Bureau federation will therefore continue to seek further reductions on basic commodities com-modities until a balance has been es tablished. These reductions have come as a direct di-rect result of the work of the transportation trans-portation department of the American Farm Bureau federation. Last fall the first step was taken when the federation fed-eration filed a petition with the interstate in-terstate commerce commission asking a general reduction in freight rates on basic commodities. An Immediate reduction 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 hearing hear-ing to consider the case or to call a hearing of its own. The commission called a hearing of its own accord and as a result the railroads granted a 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 .demanded .de-manded drastic action, it was appreciated appreci-ated by the farmers and their organization organi-zation and their appreciation was reflected re-flected In the immediate upward trend In general conditions. Indications are that this last reduction will have the same general effect on the agricultural agricul-tural 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 productiop but actually put dollars Into their pockets. A reply to a questionnaire sent to Iowa says: "The 10 per cent reduction, reduc-tion, although not adequate for general gen-eral prosperity, has helped the farmer, directly; our feed for poultry Is shipped 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 indicated indi-cated that benefits resulting from the reduction have been passed along through the hands of the dealers Into the pockets of the producers.1 Illinois says : "In our opinion the 10 per cent reduction has stimulated the poultry nnd egg business in our territory especially. The farmer has enjoyed the full benefit from same. The farmers are buying other commodities com-modities with more confidence and both labor and business conditions have Improved. We trust the railroads will continue the present reduction and that In the near future they wHl see their way clear to grant other reductions re-ductions for the benefit of business generally." Replies from Missouri, Kansas, Arkansas, Kentucky and other states to which the questionnaires were sent contain much the same opinions that have been quoted here. |