Grain Rate Savings

Ultra-Life Laboratories, Inc. a Selma, Ala., feed distributing firm figured it was well worth a hundred or so square inches of advertising space in the Selma Times Journal to tell readers of the newspaper: "Ultra-Life Laboratories, Inc., is proud to bring to Selma and surrounding area tremendous savings on No.2 yellow corn ...we are now shipping in yellow corn in 5 'Big John' railroad cars at one time, there by saving thousands of dollars in freight cost and of course we pass these savings on to you."

That's one example of the enthusiasm with which shippers throughout the area served by Southern have moved to take advantage of the railway's newly lowered grain freight rates. Five-car strings of "Big John" cars are moving all over the South today, absolute proof that Southern's drastically reduced rates were eagerly awaited by the people of the South.

Between August of 1961, when Southern first attempted to put the rates into effect, and May 11, 1963, when the rates became effective, shippers were denied transportation costs savings averaging about 60 per cent of the old rates. During those 22 months, grain consumers and the public were denied savings that modern railroad technology had made possible.

When the red tape was finally hacked away on May 11, Southern's big cars and the lowered rates were given a warm welcome by businesses which, like Ultra-Life Laboratories, assured their customers,"of course we pass these savings on to you."

These savings, when passed along to farmers, poultrymen and flour producers, will in turn make it possible for them to pass along further savings to the public . . . the people who ultimately consume the end products -meat, chicken, bread, etc.

Not only are Southern's shiny aluminum grain hoppers saving money, but they are also helping to solve some of the problems of supply that have in the recent past plagued the grain deficit Southeast.

As Ultra-Life pointed out in the advertisement: "We have always carried quite a supply of corn at our Selma plant, but we found that we couldn't rely on a lot of sources from the North. For this reason we 'jumped in' and began to make corn shipments to Selma in the new 'Big John' railroad cars."

So, concluded the Ultra-Life ad, the net effect of multiple-car shipments at greatly reduced rates is that an adequate supply of grain will be on hand at all times, and it can be bought for considerably less than previously.

In a Times-]ournal news story, Ultra-Life's President E. L. McKee further expanded on this by saying that one reason for his company's rapid move to "Big John" shipments was a "terrific local demand for corn." And McKee noted that "when a man wants corn, he wants a regular source of it. He wants to be sure that when his truck calls, he can pick up what he wants and as much as he wants."

A Southern Railway switch engine places the first five-car shipment of corn to arrive in Selma, Ala., ath the Ultra-Life Laboratories, Inc., elevator. Shipments such as this, said Ultra-Life, are "saving thousands of dollars in freight costs."

McKee added: "With these types of deliveries, we can assure farmers of as much corn as they want, when they want it and pass on tremendous freight savings to them by buying it in bulk."

The news article, ob~rving that streamlining of Southern's freight schedules has made it possible for dealers to deliver grain from distant points with a minimum of delay, also reported that this particular shipment was delivered to Selma from the St. Louis area "in the record breaking time of 36 hours."

In East St. Louis, Ill., at the other end of this "rec- ord breaking" trip to Ultra-Life in Selma, is the Corno Division of the National Oats Company- another organization that is participating heavily in multiple- car shipments under the new rates.

A picture in the East St. Louis Journal showing trucks lined up outside the Corno plant was captioned: "Illinois trucks with corn await unloading into Southern Railway System 'Big John' hopper cars. . ."

The caption explained that "Inauguration of the hoppers, holding 3,400 bushels of corn each, and reduced rates by the railroad enable National Oats Co. to compete with grain firms using river barges to move corn to southern markets. National Oats Co. officials said the firm has shipped half a million bushels of corn south since the rate reductions became effective. . ."

Shippers, dealers and consumers are happy because they are saving money, Southern is happy because the railway is making money. These new rates and the "Big Johns" have put a lot of freight back on the rails.

These Illinois trucks loaded with corn are lined up at the Corno Division of the National Oats Company in East St. Louis, Ill., where the corn was unloaded into Southern Railway "Big Johns'. for low-cost shipment to grain dealers in the South.