The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-01-25
LOCAL MANUFACTURER
EXPLAINS HANDICAPS
OF FREE PANAMA TOLL

The following was submitted by
Fred Gennett:
81 have observed in both of the
local newspapers recently, many news
items on two of the general news sub
jects Of the day. and desire to par
ticularly call your attention to the
local application of these two news
items to the business conditions OF
Richmond The first is the loss OF d
congressman by the State of Indiana
to the more densely populated regions
of the east; the second is the Panama
canal toll rate controversy.
Both of these conditions are OF in
terest in connection with the transfer
of population from communities in
which the farming population is great
err than the set population of the large
cities. OF course it is to be presumed
that the more rapid increase of popu-
lation by the large coast cities has
been brought about by greater demand
for labor Again the greater demand
for labor can only be produced by hav-
ing better conditions to meet compe-
tition. Decreasing cost, therefore, in
water competition is most decided
factor towards relative improvement
of population away from farming com.
munities to points having particular
advantages
Explains Application.
"As applied directly to ourselves, we
are directly following the results of
the low water rates for transportation
as compared with the high freight
rates, particularly for transportation
to the Pacific coast. The Panama
canal, despite the tolls now charged
Oh domestic transportation, produces a
rate of s1.G5 per hundred pounds to
transport a piano boxed from New
York to either Los Angeles, San Fran
cisco or Seattle. The rate from Rich
mond today, boxed, is $685.. The
agitation. therefore, for a reduction in
tolls is joint agitation to further in
crease the margin Of difference be.
tween factories located on the sea
board and factories like ourselves 10
Gated in the interior. and in addition
in case of a deficit for the operation
of the Panama canal, the citizen of
Indiana who must meet this burden OF
transportation costs, is likewise re.
CURED to contribute through the fed
eral government, taxes towards the
advantage of his eastern competitor
''Yon will observe. therefore, that
the piano manufacturer OF the city oil
New York, has a saving of s2.01a pei
hundred pounds. or S16.12 on an in.
strument weighing 800 pounds boxed
This saving alone is more than the
amount of freight paid when an instru
ment is shipped from New York as
compared with Richmond.
Handicaps Richmond.
Prior to the war, uniform rates on
rail were maintained east of the Mis-
sissippi. permitting the entire manu-
featuring section of the country to
compete on an equal basis for the Pa
cific coast trade. | feel sure that sim
liar freight conditions exist on other
lines than ours. consequently this
question and its particular application
in Richmond has the effect of gen
eral handicap against Richmond pro
with an advantage for the products OF
seacoast manufacturing towns.
Il am sending a copy of this letter
to both of our Richmond newspapers
for | feel that this handicap is one OF
the handicaps which the citizens
should understand and should work tc
overcome. You also will appreciate
that this reduction of railroad trans
portatiOn is one of the causes for con
tinued loss by the railroads. for I'M
doubtedly the Pacific coast is buying
its goods TO be shipped by water You
may be interested in knowing tina,
there are now nine steamship lines
operating out of New York to the Pa
cifc coast where prior to the wal
there were but two.
Yours very truly,
FRED GENNETT."