Morris tribune., 1921-11-25
HOW RAILROAD RATES BLOCK BUSINESS,

things bulk large in the various distractions en-
the return to normal business conditions An
optimistic view and "sunshny attitude towards present
economic far better than getting into the
Dumps what helps most of all is clear understand
ing of Just what and what remedy to ap-
ply.
Deere and Co., farm implement manufacturers, have
gone anayse the effect of present freight
charge price products and their conclus-
ions are given in wdelyquoted letter
A farmer at Cubertson, Nebraska wrote to the COM
pany follows.
II need wagon and my dealer wants the price of
$50 bushels corn, the wagon 1 could buy with
200 bushels of before the war The harness man
wants price a wagon load of hides for No har
simply cannot see my way clear to buy wagon
harness anything else that possibly manage to
get along without"
In replying the Derre Company out various fac
tors in manufacture of implements, with the
following detailed discussion of the relation of freight
charges will be noted that the farmer suffers heavily
both coming and going, more going than coming The
letter says
"Our present price, F. O. B. Moline on farm wagon
per higher than price of 1914. At this
price selling this wagon at approximately 20 per
than The cost you at Culbertson,
Nebraska, however, does bear the relation to
the price, for the that in 1914 the freight
farm wagon from Moline to Cubertson 81. 81
hundred the including the tax is 1882
"a farm wagon weighs 1900 lbs The difference in
freight of 95 cents hundred makes the transportation
this wagon alone $11.4O than it did before
the The increased transportation the
terials that into the greater than this
when you come to pay for this wagon through the
sale of corn in the Chicago market you have still
greater disadvantage due to the
clined since 1914 The freight from Culbertson
to Chicago in 1914 "a IL cents a hundred, ap-
proximatey IA a bushel today, with the 8 per
cent tax included, it is Ate hundred, approx
mately 2e cents bushel, that pay ~
bushel get your Chicago that you did
1914
you state that it requires $50 bushels of corn
buy wagon today. At IL bushel increased
freight this that paying the railroad $7S
90 transportation the necessary buy
therefore your increased contribution
road in getting this wagon there ship
ping enough to Chicago pay for it, $89.4O.
"You we'll see from this that is absolutely i'm
possible for of to get a normal basis of
prices until the cost of transportation very materially
reduced You ask us when conditions will change; we
tell when transportation gotten back upon
reasonable basis The great difficulty in getting this
adjustment the expense railroads are put to
for labor, for example, here in this community
going of labor is 80 Rock Island
shops 43 cents hour being paid eight hours
day and overtime with the provision
that if more than hours overtime is worked even
though it be ten minutes five hours additional
saton is charged Locomotive engineers getting
$4,000 $4,000 year. good deal the same condition
maintains in coal mines
eve all must work, through our congressmen and
through united public sentiment to secure
ment of these railroad and mining before anv of
can hope to resume business in way AS far as
here concerned already made substantial
reductions in our prices and expect to continue
in future reduced costs of production permits We
are continually operating at very substantial loss The
business world outside of transportation mining has
gone far it it gets relief through these
channels"
third of the population country are engaged
IN agriculture and when they forced to produce
loss in order that the engaged in railroad
aton and coal mining enjoy exceptional compensa
tlon' 1T is little wonder that all business halts
1t should be noted also that corn is much lower now
than it the letter was written but that
only makes the difference marked and places the
farmer under bigger handicap.
The cut in grain has been postponed until