The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1921-05-19
LIVES REASONS
FOR DEPRESSION
railroad Chief Declares
Freight Charges Not the
Cause Of Stagnation.
ARM PRODUCTS ARE CITEL
business Depression and Lack
1t Demand the Real Trouble

Washington, ID. C..-In testify
1R before the Senate Committee
al Interstate Commerce, which Is
unducllng On inquiry into Tie
abroad situation, julius krutt-
,chnltt, Chairman Of the BOaro
4 the Southern Pacific Company,
vent into great detail as TO the
fleet OF freight rates on produce
nlpments, foreign and domestic.
the main points he made in this
art OF MS testimony were. FIRST
That business depression is not
he result Of high freight rates;
,econd--ThaL the real cause OF
tagnatIon in produce shipments
5 lack of market or profiteering
.e said, in part: a widespread
Propaganda is being carried ON
} arouse public sentiment against
Aistlng freight rates, whereas
nc fact is that even since the
ales have been advanced the cost
transporting commodities Is
ar less llian the toll taken by The
commission merchant and the re-
dllor for buying aud selling them.
Public MiSled as to SiLua. Ion
People are misled and conclude
hat high rates have stopped The
Movement OF a large amount uT
eight and that the railways
you'd make more money If they
SOuld reduce the rates and there
~ revive the traffic. There is
ne strongest reason to believe
hat the very great reduction in
traffic has been due almost en-
.irciy to general business condi-
lions that are world wide III their
effect, and that would have come
4 there had been no advance i'll
freight rates. Prices of COM
moditics reached their maximum
IN the first half of the year tgz0
and thereafter fell with great
rapidly in France, The United
States and the United Kingdom.
rbe fall in the United States be.
gan In May, and was rapidly ca
It's way, down-gfade IN September,
when The advanced rates took
effect. Nevertheless traffic did
not drop for al least four months.
stump Not Caused by Higher natee
IL was general defiatiOD and
fall in prices frem the heights ~
which they had been driven by
war conditions thai has caused
\ RtsgDatien of business through
out The world. That il 10 not
Eaused by The cost Of transpoPia-
lion ia cupylncingly shown by the
fact that stoppage OF buying has
caused an oVersupDiy OF ships.
hence ocean tonnage rates have
been recently al the lowest points
m their history. Notwithstanding
these low rates, ocean traffic
shows as grea! siagnaiion as rail
traffic, and millions Of tons Of
shipping here and abroad are
Trusting away in idleness. Many
commodities would not move even
if the freight charges ON them
we're abolished cuGrsly, because
producers can find no market
That the decline in business is mol
due To prohibliye freight rates il
shown by the following examples:
IN January of tbs year the total
tonnage uf lines west OF IL Pasn aud
ogden operated BY the Southern Pacific
Company fell OF Al per cent. Tho
combined iulrsstate freight tonnage
IN Arizona ana Nevada declined so per
cent although no increase In the mira
state freight rate, IN ihUsc states
has been a. yet authorized ar made
effective This decrease embraced
gram. LAY and livestock, as We'll a.
ores Aud other commodities.
Cotton unshlpped for LaGR OF
Markets
~ a reNas cotton crop OF over four
million bales, 80 per ceRI re;ua.ns I'M
marketed. The average cost OF rail-
ana wafer shipment from producing
paint to Liverpool mas been reduced
about ti.SsIs per 100 pounds IN lie
face OF Which about one half million
bales VI cotton lsss than normal hAVs
been exported 10 Liverpool. obNiausly
the freight rate 10 NOT resp0nsibls for
the restricted movement n1rinT
September, october, aud AoSslnLsr,
iqsu, as per cent lees rice. ~ per
cent lees canned ,almoR. ARs - per
cent less dried fruit we're exported
than darlnE lhe same months BF lie
previous year. slIasUTh the rsduciisa
In ocean rAtsS was suh.IsRHaliy more
than ihs hcrsass III lnISnd raH rstea.
- Wat the material dtcItae IN the
sKpofn OF these commodities wAt u
the face Of LEES agsreEa,s eosi Of
DISAPPEARANCE,
The 0aee q ths Fruit Growers
Tho troubles OF the California
lemSn grower have attracted much
attention. He c,a,ms he ia un-
able Ia shin his product cause
" the increased freight rates. A
renewal of all thu recent increase
OF the rate on lemons would not
help linn. Hc has rate bS sea
through The Panama Canal OF les
than half-iS per cent-of the
rail rate, vel his lemons are not
marketed. The average price OF
a caulaloupr laid down in New
YORK IN the season Of 1920 was
not quite cents, As they were
retailGd ri about % cents. there
is y further profit TO somebody
az "a cents per cantalOupe. The
managers of The propaganda for
general reduction OF freigh
rates have lost sight OF the fac
that in October. 1920, t,i95,3sI
carloads OF coal were moved. he
ing the maximum moved i'm any