The Aberdeen weekly. [volume] (Aberdeen, Miss.) 1878-1933, 1921-07-08
Rail Chief Declares Freight
Charges Not the Cause
of Stagnation.
FARM PRODUCTS ARE CITED
Business Depression and Lack OF
Demand the Real Trouble.

| board Of the Southern Pacific COM
| pany, went into great detail as TO the
effect Of freight rates on produce ship
| ments, foreign and domestic The
main points he made in this part Of
his testimony were:
First-That business depression 10
not the result Of high freight rates.
Second-That the real cause of stag
nation in produce shipments is lack
of market or profiteerIng.
He said ia part:
A widespread propaganda is being
carried on to arouse public sentiment
against existing freight rates whereas
the fact is that even since the rates
have been advanced the cost of trans
porting commodities is far less than
the toll taken by the commission mer-
chant and the retailer for buying and
selling them.
Public MisIed as to Situation
People are misled and conclude that
high rates have stopped the movement
of a large amount of freight and that
the railways would make more money
If they would reduce the rates and
thereby revive the traffic.
There is the strongest reason 10 be-
lieve that the very great reduction ia
traffic has been due almost entirely to
general business conditions that are
worldwide in their effect, and that
would have come If there had been no
advance in freight rates.
Prices of commodities reached their
maximum in the first half of the year
1920 and thereafter fell with great
rapidity in France, the United States
and the United Kingdom. The fall In
the United States began in May, and
was rapidly on its way downgrade in
September, when the advanced rates
took effect. Nevertheless traffic did
not drop for at least four months.
Slump Not Caused by Higher Rates
1t was a general defation and fail
In prices from the heights TO which
they had been driven by war condi-
lions that has caused a stagnation of
business throughout the world.
That it is not caused by the cost of
transportation is convincingly shown
by the fact that stoppage Of buying
has caused an oversupply- of ships,
hence ocean tonnage rates have been
recently at the lowest points In their
history.
Notwithstanding these low rates,
ocean traffic shows as great stagna-
ton as rail traffic, and millions Of tons
of shipping here and abroad are rust
ing away in idleness. Many commodi-
ties would not move even If the freight
charges on then were abolished en-
tirely, because producers can find no |
market.
That the decline IN business is not |
due to prOmbitive freight rates is |
shown by the following examples:
In January of this year the total
tonnage Of lines west of FL Paso and
Ogden operated by the Southern Pa
cifc Company fell of Al per cent.
The combined Intrastate freight ton
mage in Arizona and Nevada declined
so per cent although no increase in
the intrastate freight rates in those
States has been as yet authorized
braeed grain, hay and livestock, as
wen as ores and other commodities.
COTTON 9 9F MSRkRr s0F LACK
OF Texas cotton crop Of over four
million bales. 40 per cent remains IN
and water shipment from producing
point to Liverpool has been reduced
face of which about one half million
bales of cotton less than normal have
the freight rate is net responsible for
the restricted movement.
During September, October and
November, 1920 As per cent less rice.
so per cent less canned salmon and
77~per cent less dried fruit were ex-
ported than during the same months
of the previous year although the
reduction In ocean rates was sub
inland rail- rates, so that the material
decline in the exports of these COM
modities was in the face of a less ag-
gregate cost Of transportation.
The Case OF the Fruit Growers
The troubles of the California lemon
rover have attracted much attention.
lie claims he IS unable to ship his
roduct because OF the increas
reight rates. A removal OF all the
ecent increase OF the rate on lem0ns
would not help him He has a rate by |
ca through the Panama Canal Of less ,
han half-48 per cent-of the rail
ate, yet his lemons are not marketed.
The average price OF a cantaloupe
aid down in New York in the season
( 1920 was not quite II cents. AS
hey were retailed at about % cents.
here is a further profit to somebody
( IA cents per cantaloupe
The managers Of the propaganda for
general reduction OF freight rates i.
ave lost sight OF the fact that in Dc
0ber, 1920, 1895. 321 carloads Of coal Y
ere moved. being the maximum NOV q
d in any month I'm the preceding two
ears, although ii was handled at the
dvanced freight rates, and we have
card nothing as to coal being pro-
uced at a loss or OF the coal mine
wners going out OF business because
[ existing freight rates.
The percentage OF freight charges
, value in the early part of 1921 is
lmost exactly the same as 1t was in
a1x