The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1921-04-07
SHOULD RATES BE REDUCED?

Sioux City Journal &C. II. Mark
ham, of the Illinois Central system,
presents in the advertising columns
a discussion OF freight rates, with ref
for a reduction of the existing rates.
1t is Mr.. Markham's contention that
the rates have not yet had a fair try
out and hat the basic rate is not too
high, If the railways are to furnish
adequate transportation. He consid-
ers that agitation for lowering of the
rates is unfortunate, inasmuch as ii
raises false hope Of reduction and
may result in postponement Of ship
ments. He contends that freight rates
canno be manipulated up and down
ness. He does not accept the view
that a reduction of rates would en-
courage shipping and increase the vol
ume of traffic, and he declares that
a study Of the situation will show that
the August increase had an almost
neglible effect upon business He is
disposed to blame the buyers strike
for the general recession of business
rather than the increase in rates. He
asserts that business should adjust
itself TO the present level of freight
rates until railway income rises to a
point where a reduction would be
justified.
Mr.. Markham's argument that a re-
duction of rates would not be likely
70 encourage shipping and that the
effect Of the increase upon business
was almost neglible is not convinc-
ing. The only argument in behalf of
a reduction of rates that has weight
is hat it would stimulate traffic.
There is good ground for the belief
that in relation to certain commodi-
ties the high rates have operated to
throttle traffic. The Journal already
has shown how the rates on certain
agricultural products are absolutely
prohfbitive. In yesterdays paper ref.
erence was made to the report Of the
geological survey that more than
200, 900 coal cars are standing on rail
way sidings. Mr.. Markham doubtless
would say that the coal buyers strike
has made these cars idle, but the
Journal Is not certain that high trans
p%ortatiOn costs combined with high
coal prices are not responsible in part
for the buyers strike.
1t is certain that the railways must
have income at least equal to their
outgo II they are to function. But
If the present high rates will lot pro-
vide that income, must not some
other method be found? Is Mr.. Mark
ham certain that the buyers strike
to which he refers was not stimulated
in part by the excessive %transporta-
ton cost? The figures on the bust
ness OF the railways for the month of
January. published in The journal
of yesterday. would indicate that the
strike still is in progress. The car
riers, 1t is stated, showed a decrease
in the bulk of freight of 14.7 per cent
on the net ton miles, as compared
with the month Of January. 1920.
Which is the better. an increase of
traffic at a lower rate, or a constantly
diminishing traffic at a higher rate?
1t Is significant that the railways
are undertaking to stimulate passen-
ger traffic by offering reduced rates
for summer travel. by reducing din
Ing car charges and by restoring
"homeseeker' rates on westbound
trafic. II reduced rates will stimu.
late passenger trafic, why should
they not stimulate freight trafic?
Nv, 8, S.