The Brunswick news., 1921-12-06
DEFENDING RAIL RATES.

rates" the Railway Age points out II
an article in the current issue, sir
spite Of the large advances in railway
! rates which have been made within
the last three years.
"The main ground upon which the
preent rates are attacked, is that the
rates Impose an undue burden upon
businesss But why do they impose
an undue burden? Because, as it is
claimed, the rates are so high in pro
portion to the prices the producers get
for their commodities that they can
not afford to pay the rates. The fact
is, however, that in July, 1921, the lat.
est month for which complete data are
| available, the average railway rate per
ton per mile was much less, compared
with the wholesale price Of commodi-
ties, than it was in the period when
there occurred relatively the largest
increase in railway traffic that ever
was recorded.
Never in any decade in history did
the traffic of the railways increase
relatively faster than in the ten years
from 1900 to 1910. The total increase
in freight traffic between those years
was over 80 per cent. This shows
sconclusively not only that the relation;
ship between rates and prices during
that period was such that the traffic
could easily bear the rates charged
but hat it was highly conducive to the
development of the industry of the
country and the traffic of the railways.
How much higher, then, are average
railway rates and average wholesale
prices at the present time than they
were in this ten years from 1900 to
1910? The average railway rate in
July, 1921, according to statistics of
the Interstate Commerce Commission,
was Sc 1-2 per cent higher than it was
from 1900 to 1910, while the average
wholesale price of commodities, ac
cording to the statistics OF the Bureau
II Labor, was rs per cent higher than
1t was then. In other words, relative
" to wholesale prices the average rail
way freight rate is now substantially
lower than it was when the industry
OF the country was deye oping and the
traffic of the railways was growing as
rapidly as was ever known. These
facts show that the contention that
the present rates are higher than the
traffic can bear is an absurdity"
The Railway Age publishes elabor
a,e statistics showing the entire his.
tory Of the Average railway rates and
average prices from 1890 to 1921 IT'S
rate statistics are taken from the re.
ports of the Interstate Commerce
Commission, and its statistics regard
ing wholesale prices from reports o.
the Bureau Of Labor The average
rates and average prices for the years
1890 to 1899, inclusive, are taken as a
basis. The figures show that in July,
1921, the latest month fer whicl the
data are available, the average rail,
way freight rate was 40 per cent high
er than in 1s90-tS99. and the average
wholesale price OF commodities was
exactly 100 per cent higher, Referring
% the fact that the most serious com.
plants regarding the present rates
come from the farmers, the Railway
Age shows that the average wholesale
prices of farm products are now ST
,sr cent higher than from 1899 to
500.
"'rho average railway rate steadily
declined" saws the Railway Age. Gun
II 1917. and was then Is per cent less
man IN the period from 1890 to 1899
Il was not until 1919 that a general
dvanee in rates apply ms to all the
always was made. and In that yea
average wholesale prices nd aincreas
ID until they were t65 par cent higher
han the average from 1890 tc 1899.
"The real reason why there is arI
resent so much complaint about al
eyed high railway rates Is that for {
ong period OF years producers and
hlppers were accustomed TO doinr
BUSINESS on railway rates which were
teadny declining ana prices which
sorc rapidly Increasing. Whea the
complain now about the relations be
ween rates ard prices they usual,
ompare them with the relation
which existed ir~ 1916 or 1913. Bl
n reasoning of this kind is most m
air and faliaelous because for a Ion
oeried before those years rates haf
aeen declluiug and prices hat bee'
increasing TO sceh an extent that rate
sad become unreasonahly tow com
aared with, prices. The Interstate
Commerce Commission itself held IN
1914, and again in 1917. that the rasss