The Mt. Sterling advocate., 1921-08-11
Exhorbitant Railroad
Rates Must Be Cut

ifornia and the entire Pacific Coast
all the coke which that section is us
ing, according to a letter from the
Matthew Addy Company, iron mer-
chants Of Cincinnati. And yet we
have been told that there was no
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 was 1922 per ton, but to-
day it is $22.40 per ton, and they
add: "All the iron that is needed on
the Pacific Coast is coming by sea,
most Of it from Belgium" "1n
the olden days the rate to California
on Connellsville coke was $11.30 per
ton; the present rate is $19.76 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 Birming-
ham to Cincinnati was $2.75; now it
is $3.50. The freight rate on pig
iron from Birmingham to st. Louis
was $275; today it is $5.25. "The
South" the Addy Company writes,
"has just about gone out of the pig
iron business, because freight rates
are so high as to .practically build
wall around the Southern fur
| naces."
The situation in the iron and coke
trade, so clearly outlined in this let
ter, is typical Of the conditions pre-
vailing in nearly every line of bust
ness in this country. Freight rates
are exorbitantly high. They are de-
structive to business. They were
made when cotton was selling at 35c
to 4Oc a pound, and pig iron and
coke at more than double the present
prices. Since these freight rates
were established prices of every
thing have been cut right and left,
and railroads cannot prosper at the
present rates, because present rates
destroy business.
There can be no thorough eco
nomic development of this country
until the railroads voluntarily, or
by the power of the Interstate Com
merce Commission, are forced to
bring rates down to a more normal
basis. ~
The Manufacturers, Record for
twenty years or more, advocated q
igher rate than that which prevailed,
believing that the railroads were not
getting a freight rate which would
Justify the expansion Of railroad
facilities, which we have so per-
sistently advocated. But the pres
ent freight rate is absolutely un-
justified from every point Of view.
1t is destructive of business. 1t has
thrown q 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 development
of our domestic export trade.
Unless the railroads voluntarily
and promptly take the lead in
bringing about lower freight rate
they viii inevitably create hostil-
ity TO railroad interests which win
prove as destructive as were the
legislative activities years ago, by
the states and the nation alike. |
against all railroad interests. A
quick readjustment Of freight rates.
preferably by the wisdom Of the
railroad managers, is the safest and
sanest course for their own preser-
walton. He will be a narrow minded |
railroad official who fails to see
the signals Of danger in present
rates and who does not take prompt |
steps TO bring abont a reduction in