The Covington leader. (Covington, Tenn.) 18??-current, 1921-09-29
FREIGHT RATES
AMM ~MARRaw
ARE EAURBI AN !
GERMAN COMPETITION is NOW
BEING FELT SHARPLY
Rates On Pig Iron From Birmingham
To Pacific Coast Almost Doubled
Prices Made when Cotton Sold
At S5c Are Not LOwered-HOstility
Toward Railroads Interests Aris-
ing-Rates Uniustified.

Germany is now supplying to Cali
fornia and the entire Pacific coast
all the coke which that section is
using, according to a letter from
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 1892 per ton, but today
it is S22.40 per ton, and they add:
"All the iron that is needed on the
Pacific coast is coming by sea, most
of it from Belgium" "In
olden days the rate to California on
Connellsville coke was $11.3O per ton;
the present rate is $19.76 per tor"
The old freight rate from Birming-
ham to Cincinnati was $2.75 per ton;
now it is $3.50. The freight rate on
pig iron from Birmingham to St.
Louis was S2.75; 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
furnaces"
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 Of business. They were
made when cotton was selling at 35
cents to 40 cents pound and pig
iron and coke at more than double
the present prices. Since these
freight rates were established prices
of everything has been cut right and
left, and railroads can not prosper
at present rates, because present
rates destroy business.
There can be no thorough economic
development of this country until the
railroads voluntarily, or by the
power of the Interstate Commerce
Commission, are forced to bring
rates down to a more normal basis.
The Manufacturers Record for 20
years or more advocated a higher
rate than that which prevailed, be-
lieving that the railroads were not
then getting freight rate which
would justify the expansion of rail-
road facilities, which we have so per-
sistently advocated. But the present
rate is absolutely uniustified from
every point Of view. 1t is destruct-
i've Of business. 1t has thrown
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
acific coast, and is hampering and
in many cases making impossible
the development of our domestic ex-
port trade.
Unless the railroads voluntarily
and promptly take the lead in bring
ing about lower freight rate, they
will inevitably create hostility to
railroad interests, which will prove
as destructive as were the legislative
activities years ago, by the states
and the nation alike. against all rail-
road interests. A quick readiust-
ment Of freight rates, preferably by
the wisdom Of the railroad man
ayers, is the safest and sanest
course for their own preservation.
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
about a reduction in rates-Manu-
facturers Record.
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