New-York tribune., 1920-10-14
By ]. f. German

1
ond q Pacific Railwoy Company
1T seems probable that no part of
the United States will benefit more in
the long run by'th recent advances in
railway rates than the Southwest
This statement is made upon the as
sumption that the state Legislatures
and railroad commissions will allow
the same advances in state rates as
.he interstate Commerce Commission
mas authorized in interstate rates. The
estimates of the Interstate Commerce
commission as to the increases in
earnings which the advances in rates
VIII cause are based on the assump-
ton that as large increases will be
made IN state as in interstate rates
II the state rates should be held down
the railroads would be prevented from
earning the net return which the In
terstate Commerce Commission has in
dlcated they need, and the object IF
Its rate decision would be defeated.
10 many the statement that the
country as whole. or particular
section of it, will benefit by the ad
vances in rates may sound paradoxcal.
Some persons try to make it appear
the advances will cause increases in
prlces, that these increases in prices
will increase the cost of living, and
will impose an additional burden on
everybody. The probable effect Of the
advances in rates should be looked at
from the standpoints Of our people
both as. producers and consumers of
commodities for while we are all
consumers, all of us who work,
whether we are the owners or the
managers or the employees of produc
tive industries. are also producers.
1t must be obvious to anybody who
will think q moment that in the long
run the amount of grain, of COAL of
manufactured articles that can be pro-
duced is dependent on the amount Of
transportation that can be furnished.
The prosperity of all producers there
fore is very directly dependent upon
adequate transportation.
How Chain Works
Looking at the matter from the
standpoint of the people as consumers,
it is obvious that the cost of living
depends upon the prices Of the things
they have to buy, and that the prices
Of commodities depend upon the
amounts of them produced. Since the
amounts of them that can be produced
depend upon the adequacy of trans
sion that not only the peoples pros
perity as producers, but also the re-
duction of their cost of living as con-
sumers, is dependent upon adequate
sportation.
Now, the main purpose Of the ad
vances in rates is to enable the rail
ways to enlarge their facilities and
furnish more transportation; and it
necessarily follows that if this purpose
is accomplished the advances in rates
viii in the long run reduce rather
than increase the cost of living.
The Southwest is one of the parts of
the country in which there are still
the greatest opportunities to increase
production Furthermore, it's railways
were peculiarly in need of advances in
rates to enable them to increase their
facilities. 1t is for this reason l say
that it should benefit at least as much
as any other section by the advances
in rates.
1t is somewhat difficult to say what
are the exact geographical boundaries
of the Southwest, but the territory
usually meant by this term is, roughly,
that part of Missouri south of the
Missouri River, the states of Arkansas,
Oklahoma and Texas, that part of
Louisiana west of the Mississippi
River and the states of New Mexico
and Arizona. This is a territory much
richer in natural resources than most
Of the people of the country probably
realize. 1t was formerly looked upon
as almost exclusively an agricultural
country Large parts of it are in fact
among the richest agricultural parts OF
the United States 1t is a great Vege-
{able producing section. 1t has a sub
stantial output Of coal 1t is a large
lumber producer From time to time
discoveries of different kinds OF min
sral products in various parts of it have
disclosed that it is much richer in
minerals than almost anybody thought
some years ago. The oil discoveries of
the last decade have made it one of the
greatest oil producing parts Of the
United States. 1t is, in fact, territory
of great and diversified natural re-
sources.