Evening journal., 1917-07-27
The Farmer and The Railroads

Railway freight rates are lower
at present compared with the prices
Of agricultural products than they
ever were before in the history OF
the United States" the Railway Age
Gazette points out in Its current issue
in an editorial commenting on the
fact that the farmers, especially in
the middle West. continue to oppose
advances in rates, while most other
business interests favor them.
1T IS often said" the Railway Age
Gazette remarks, that while the
prices which consumers have to pay
for agricultural products have in
creased greatly, the farmers have
not received the benefit of these in
creases. Official statistics on the sub
ject demonstrate the incorrectness of
this contention. The Statistical Alb
stract of the United States shows
that between 1910 and 1916 the farm
values of the most important agricul-
tural products increased as follows:
Wheat, from 1873 cents per bushel to
SLIGO. or 81 IL per cent; corn, from
As cents to $50 cents. or SO per
cent; oats, from 344 cents to 52.4
cents, or So per cent; barley, from
57.S cents to $50 cents, or 90 per
cent; rye, from II IL cents to S1.22.
or 70.S per cent; buckwheat, from
&C cents to $113, or 70.S per cent.
potatoes, from 55.7 cents to S146, or
1862 per cent.
Meantime, railway rates almost
stood still In consequence, whereas
in 1910 the freight rates on a bushel
Of wheat from Chicago to New York
was II per cent of the farm value
of the wheat in 1916 It was only 63
| per cent OF the farm value OF the
! wheat. Likewise, while in 1910 the
! freight rate on a bushel Of corn from
| Chicago to New York was 1876 per
! cent. Of the farm value of the corn
! In 1916 the rate from Chicago to New
! York was only 10 IL per cent. of the
farm value of the corn.
How much the farm value of agri-
cultural products have increased re-
latively TO the rates which the rail-
ways received is '--/'0lngly illus
trated by the increases which have
taken place in the number Of ton
miles and passenger-miles of trans
portation which can be bought with
a given quantity of any farm pro-
duct For example. in 1910 a bushel
of corn at the average farm value
would buy 60 ton-miies Of transpor-
tatiOn. while in 1916 It would buy
1875 ton-miles. an increase of exactly
100 per cent. Likewise, in 1910, a
bushel of wheat at the average farm
value would buy 1T ton-mies of
! transportation. while in 1916 it would
! buy 227 ton-miles, an increase of %
! per cent. Even more remarkable are
! the relative changes in the farm
value of potatoes and in the average
railway rates. In 1910 a bushel Of
potatoes at the average farm value
would buy "a ton-miles OF trans.
portation, while in 1916 it would buy
207 ton-miles, an increase Of 166 pei
cent. CERTAINLY with such increases
as have occurred in the prices thai
the farmer receives he has become
able 10 pay much higher rates thar
he is now paying.
Furthermore, it would be TO hii
interest to ray higher rates GooC
and adequate service is more impor
tant TO him. as well as to all othei
shippers, than the lowest rates tina
can possibly be obtained. Now. as {
matter of fact, the farmer. like othei
shippers has not within recent years
been receiving adequate service
Why? Because the railways have no
been able to increase their facilities
as fast as the demands for transpor
tation have increased. They hav,
been unable to increase their facili
ties sufficiently because, excepting il
the abnormal year 1916. their net re
turn has shown a steadily downwar,
tendency and this downward tend
ency has been due to the fact tina
they have been unable to secure in
creases Of rates to Offset the in