The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1921-06-16

(By DAVID LAWRENCE.
Especial Dispatch to The Reformer.)
Copyright 1921.
| WASHINGTON, June 1G.-The gov
eminent has interviewed effectively in
what might have been serious situation
for the California fruit growers and at
the same time would have established a
principle of vital Importance to those
American shippers everywhere who have
found it cheaper to transport their goods
! by water than by rail.
Briefly. the railways have been peti-
toned 10 reduce their freight rates on
western fruits President Harding him
self has lent his influence to the movement
for lower rates for California producers.
Now the railroads have come forward with
a proposal that if the western fruit grow
erS will sign a contract agreeing not TO
ship by water through the Panama Canal
lower freight rate will be given the
shippers.
This move has been called a ''hold-up"
by the California fruit growers, who en-
listed the help of the Harding admins
tratiOn. The matter was fully discussed
at Tuesdays cabinet meeting and while
the government had no legal power to pre-
vent the contract from being signed, it
was evident that the moral influence of
the administration could be made to
weigh heavily with the railroads
Word came yesterday from some Of the
railroads that they will not insist upon
the clause of the contract requiring the
California shippers to give up water
transportation. Should all the roads take
this view. the matter will be amicabiy
adjusted. hut it is significant that the
principle involved in the transaction
caught the eye of the government and
was carefully studied with view to pre-
venting a recurrence of such contracts as
they involve land and water transporta-
ton.
The suggestion has been made by adj
ministration officials that while the gov
crument itself could not legally prevent
the making of such an agreement, the
water transportation companies could
bring action against the railroads under
the federal trade commission act which
governs unfair trade practices in cOmpe-
tition.
The railroads have been charging about
$3.50 a box for shipping fruit to the At
lantic seaboard while the same box can
be shipped by water around the canal at
a rate of 81. OF course water transporta-
ton is not so rapid and is advantageous
only for points near the Atlantic sea-
y
ing the products in land after they have
been unloaded at Atlantic ports is an addi-
tOnal factor that must always be taken
into account.
The railroads have been able by man
euvering their rates to handle most of the
| fruit trade. but the present freight cost,
according to the California growers. Is
practically prohibitive and means their
ruin unless relief can be granted.
! The latest proposal Of the railways is
that a rate of S1.10 will be given. provided
that the fruit growers agree not to ship
by water. Elimination of the latter pro-
vision is insisted upon by the Harding
administration in its informal negotia-
! tionS with the railways and the prospect
! is that the railways win not insist upon
, it. but will grant the $40 rate irrespec-
| tive of the amount shipped by water.
! This case is another conspicuous in
stance of the part the Harding admins
: tration is endeavoring to play in assist
ing the nations industries The govern
! ment's influence with the railroads is still
a powerful one. even though the roads are
+ in the hands of their owners again. PreSi-
/ dent Harding hasn't had a single cabinet
meeting yet at which the question of
| transportation hasn't occupied a conSid-
cradle part of the time lie told callers
yesterday that it was bound to be a sub
| ject of constant concern to the admins
! tratiOn. The Intervention of the govern
Inent in the California case is not merely
| a recognition of the clamor of the western
members of congress for lower freight
rates. but is part and parcel of the gen
| eral influence welded by the agricultural
| lists of the country with the Harding ad-
| miniStratiOn.