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Show KNOCKING RAILROADS UNCALLED FOR. Freight rates on American railroads are the lowest in the world. The average rate on a ton of freight carried one mile in our country is approximately 1 . 1 cents. For an equivalent service English Eng-lish railroads receive more than three times as much, and French md German roads about four times as much. Despite these facts, demands for still lower rates continue. Crippling railroad service would cost the people far more :han they could hope to save by reducing rates, for freight rate reductions re-ductions which would bankrupt many railroads, would hardly affect af-fect most prices to the consumer. A case in point is the recent investigation of the bread and flour industry by the Federal Trade Commission. While the American family pays an average of 8.5 cents for a pound of bread, railroads receive but .6 cent for transportation.. Instead of making great profits, the railroads in 1924 actually paid $1.06 in taxes for every dollar paid out' in dividends. Yet they went steadily ahead bettering their service to the public, and it is estimated principal railroads spent $750,000,000 in 192 7 for permanent improvements. |