The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1921-08-12
AS Others See 1t
ExoRBITANT RAILROAD RATES
MUST BE REDUCED
Manufacturers Record.)

ACKNOWLEDGEMENTS heCOTu.J
Germany is now supplying to California and the
entire Pacific coast all the coke which that sec
ton is using, according to a letter from the
Matthew Addy Company, iron merchants of Gin
cinnati. And yet we have been told that there
danger from German Competition.
In discussing this subject, the Matthew Addy
Company points out that this condition is largely
due to exorbitant freight rates In olden days
the freight rate on pig iron from Birmingham to
the Pacific coast $12.32 per ton, but today
it is $22.4O per ton, and they add: "All the iron
that is needed on the Pacific coast is coming by
sea- most of it from Belgium" I'm the
oden days the rate to California on Connellsville
coke was $11.SO per ton; the present rate is
$1976 per ton"
And then mention, is made of the fact that the
coke that is being used on the Pacific coast is
coming from Germany.
The old freight rate from Birmingham to Gin
cnnati S2,75 per ton; now it is 81 so. The
freight rate on pig iron from Birmingham to ST.
Louis was $275; today it is 1928 1.-The South"
the Addy Company writes, has just about gone
out of the pig iron business, because freight rates
so high to practically build wall around
the southern furnaces
The situation in the iron and coke trade so
clearly outlined in this letter, is typical OF the
conditions prevailing in nearly every line of
business in this country Freight rates are ex-
brilliantly high They are destructive of bus
ness. They made when cotton was selling
at 35c to 40c a pound and pig iron and coke at
more than double the present prices. Since
these freight rates established prices of
everything have been cut right and left, and
railroads cannot prosper at the present rates,
because present rates destroy business.
There can be no thorough economic develop
ment of this country until the railroads volun-
tarily, by the power of the Interstate Com
merce Commission arc forced to bring rates down
to a more normal basis
The Manufacturers Record for twenty years or
more advocated a higher rate than that which
prevailed, believing that the railroads were not
then getting a freight rate which would justify
the expansion of railroad facilities, which we
have peraistenty advocated. But the present
freight rate is absolutely unjustified from every
point of view. 1t is destructive of business. 1t
has thrown a great burden upon the country
1t is permitting European coke and iron to drive
out the coke and iron of Pennsylvania and the
south from the Pacific coast, and is hampering
and in many cases making impossible the de-
velopment of our domestic export trade.
Unless the railroads voluntarily and promptly
take the lead in bringing about lower freight
rate, they will inevitably create hostility to rail
road interests which will prove as destructive
as were the legislative activities years ago, by
the states and the nation alike against all rail-
road interests quick readjustment of freight
rates preferably by the wisdom of the railroad
managers is the safest and sanest course for
their own preservation. He will be a narrow
minded railroad official who fails to the sig
mails of danger in present rates and who does
not take prompt steps to bring about reduction
in rates.