Grain Rate Savings Begin to Flow

May 11, 1963 - Getting ready at the Riverside Terminal, Early & Daniel Co., Cincinnati, for loading the first interstate commercial movement of grain under Southern's multiple - car grain rates. Savings on this shipment under old rail rate were about $3,000.

Charles B. Saul, general transportation manager, Early & Daniel Co. (right) presses the control button that started grain flowing into a Southern "Big John," one of five that would be in the first commercial interstate movement under greatly - reduced multiple - car freight rates on grain for which the South had to wait 22 months because of this country's outmoded regulatory laws governing transportation. Clyde C. Cox, Southern's freight traffic manager with headquarters in Cincinnati, and Malcolm Shafer, car loader for Early & Daniel, are the others in the picture.

"Historic Grain Load Shipped by Southern" read the headline of a news story appearing May 12 in the Cincinnati Enquirer.

Southeastern Hatcheries, Inc., of Leesville, S. C., received one of the first multiple - car shipments. Transportation savings over the old rail rate were about $3,000.

At long last the consumers of grain in the Southeast were able to use the greatly reduced multiple - car freight rates which Southern had tried to put in force in August of 1961 - 22 months before the May 11, 1963 date when the first commercial load of train went into "Big John" cars at a Cincinnati elevator of the Early & Daniel Company.

Loaded to "full visible capacity" Southern's "Big Johns" will carry as much as 110 tons of feed corn.

And, at long last, consumers of grain in the Southeast along Southern Railway lines could realize transportation savings averaging about 60 per cent under the rates southern started trying to change in 1961. This first interstate shipment of 504 tons for example cost about three thousand dollars less to move than it would have in 1961.

Quickly unloaded through free - flow hoppers, the "Big Johns" unload savings for shippers and consumers as the grain is discharged into a track pit at a receiver's mill.

Other grain companies - including a number who had opposed the rates bitterly - were quick to begin using the rates and a steady stream of grain now moves in multiple - car lots in Southern trains to Southern destinations.

At 9:25 a.m. on the morning of May 11, the Clerk's office of the Supreme Court of the United States completed the "mechanics" required to make full effective the Court's decision of April 15 dissolving an injunction against the use of the rates. Early and Daniel started loading - and grain rate saving started to flow.

Southern's "Big John" cars are now bringing savings in family budgets along with their loads of grain as they roll South at a steadily growing pace.

At the Mocksville Feed Mills, Mocksville, N. C. A five-car multiple shipment in "Big Johns" is delivered by Southern. Savings, about $2,900.

Homemakers will find savings reflected in prices they pay for meat, poultry, eggs, milk and related products at their grocery stores through the econo- mies made possible by lower railroad freight rates.

One of the earliest multiple-car shipments moved into Hickory, N. C., with savings of about $2,700 in rail transportation costs.

These will lower food production costs or help pro- ducers hold the line against what would otherwise mean price increases.

Loading at the Gold Proof Elevator in Louisville, Ky. The shipment, of which this car was part, moved at savings of about $2,700 under the rail rate Southern began trying to get permission to lower in 1961.

The grain - deficit South must buy much of the grain for its cattle, hogs, poultry and flour from the grain - surplus Midwest. The food on the family table eventually reflects any savings which can be made in transporting this imported grain.

Families in the South will benefit even beyond the lowered food prices at store check-out counters. The new grain rates will help save on taxes and extend the useŁulness 0Ł charitable contributions.

In Macon, Ga., at the Birdsey Flour and Feed Mill, Saving about $2,900.

Food budgets in tax - supported schools, orphanages, hospitals, asylums, prisons and homes Łor the elderly plus those of charitable, educational and religious institutions add up to a startling total in any state or area. The passed - along savings from lowered grain - hauling rates on Southern will have an important effect on these totals.

In addition, the new low grain-hauling rates will help processors of livestock feed, producers of meat, poultry, dairy products and eggs; and manufacturers of flour and other grain food products. By getting grain delivered more cheaply, their competitive situations with respect to rivals in other sections of the country are greatly strengthened. Growth in agricultural industries - like the local fattening of beef cattle particularly - now offers greatly increased promise for strengthening the South's economy.

Technological advances in Southern's design and building of the "Big Johns" have been combined with managerial initiative in providing frill - free service at profitable ow prices. Everyone in the South is saving money because Southern was finally allowed to put its greatly-reduced freight rates on multiple-car movements of grain into effect on May 11, 1963, after 22 months of delay resulting from outmoded transportation laws.

Grain is pouring into Southern's "Big Johns." Savings for people are flowing from their use. .

And: JOBS FOLLOW THE FREIGHT!