The New York herald., 1921-04-21
Sense.


native of smashup of the Ameri.
can transportation system and the
American business institution. II
welcomes the opportunity and rel.
ishes the duty to spread before the
public other observations and re-
marks on this great question, with
its truths as piercing as sunshine and
its principles as limpid as mountain
oir yet with so many minds closed
to the light.
Ii a series on American National
booklet by EDGAR GEN
GENBAcH, rejecting lucidity and radi-
ating sense, goes straight to the heart
Of the freight rate adjustment:
1T is circumscribing markets,
throwing thousands out of work, i'm
posing an unbeatable bar on enter
prise, streaking sidetracks In the
country and machinery in industries
with rust. II has dealt a severe blow
at our foremost national activity
agriculture--and our railroads are
counting the measure of the recoil in
miles OF empty box cars.
ITO start with, we will have to put
more flexibility into the Interstate
Commerce law and the hundreds of
rulings OF dozens of commissions, rate
committees. &C.. around the country.
"we will have to place railroad
service on a merchandising basis and
provide opportunity for the great
American art of salesmanship and
creative effort.
sTo-day railroad service is not on
a commercial basis, and the changing
complexion OF conditions. the oppor-
tunities and factors that every
banker, merchant and Industrial man
ager uses daily In his calculations
and adjustments, are totally denied
to our railroad friends.
THE railroad executive has had
left to him apparently one sole condi-
tion--that is to meet his payroll,
whatever 1t Is. And he has tried to
meet 1t by a succession of rate In
creases that now prohibit traffic and
block the very sources of the earnings
he counted upon"
First comes the stoppage Of rail.
road traffic by oppressive rates, then
on its heels the throttllng of produc-
ton:
The present freight rates have a
tendency to locallze traffic and re-
duce the average Of hauls. To a
greater or less degree present freight
rates will isolate many commodity
movements.
with an unmovable surplus here.
a want untitled there, with great in
dustrial centres encircled by freight
wall, how are We going successfully
to compete in the worlds markets
against the vast industrial establish
ments of foreign countries?
what will happen IL hundreds of
famous industries. developed to great
size and efficiency by freedom OF
widespread national distribution. are
forced by the present situation to
curtail and split up their activities?"
. A bushel OF wheat will move the
long thousands OF miles from Argen.
tina. In South America, to our own
Atlantic seaboard under light ocean
freight rate charge Of 10 cents. But
n bushel Of wheat must move the few
hundred miles from Missouri River
points to our same Atlantic seaboard
under crushing freight charge OF
80 cents. The process to American
commerce, when no sense governs Il
is death. The author shows how and
why:
THE thing that is needed In the
freight rate situation is that In the
main rates should bear relation to
the market value Of the commodity.
"A ton OF shoes is worth nomlnally
$4,000. a ton OF corn $40 $50 per ton
on shoes is per cent. OF the value;
s5 a ton freight on corn Is 25 per
cent OF the market value.
when corn is high high freight
rate Is not unduly burdensome. but
some measure of lexibility is needed.
40 that the same freight rate charged
on $3.50 corn IL not assessed against
the farmer on his so cent corn.
but in depressed conditions. with
half OF Europe starving, 4 wouldn't
aeevn improper to consider the propo-
sition rs a merchandising problem.
The situation presents great oppor-
tunity for railroad executive with
commercial powers. Suppose he would
announce publicly to all shippers on
his line, and good for sixty days a
special export rate on corn that would
represent n fair ratio TO the going
market value Of the corn.
"a mixed situation would be in
stantly crystsllized the foreign pur-
chasing commissions would surely
seize the opportunity II would clear
out country elevators. release frozen
credit and turn the wheels under
lot Of idle oars.
"Tho expedient OF special SALE
cAnplcd with advertising. IL one of
thA fundamental practices OF tho most
.,,cAaeef,,f ,,,ercl,a rdfqipV i,o,tsea and