The Snyder signal. (Snyder, Tex.) 1887-????, 1921-07-29
GIVES REASONS
FOR DEPRESSION
Rail Chief Declares Freight
Charges Not the Cause
OF Stagnation.
FARM PRODUCTS ARE CITED
Business Depression and Lack OF
Demand the Real Trouble.

fore the Senate Committee on Inter
state Commerce, which IL conducting
an inquiry into the railroad situation,
I Julius Kruttschnitt, chairman of the
board of the Southern Pacific conf
pany. went into great detail as to the
effect OF freight rates on produce ship
ments, foreign ana domestic. The
main points ne made ln this part "
4 his testimony were:
/ First-Thst business depression Is
not the result Of high freight rates
Seeond-That the real cause OF stag
nation In produce shipments is lack
OF market or profiteering.
/ lie said, In part;
A widespread propaganda Is being
| carried on 10 arouse public sentiment
against existing freight rates, whereas
! the fnct Is that even since the rates
{ have been advanced the cost OF trans
1 porting commodities is far less than
/ the toll taken by the commission mer-
chant and the retailer for buying aud
selling them.
Public Msled as 20 Situation
People are misicd and conclude that
high rates have stopped the movement
of large amount OF freight and that
the railways would make more money
n they would reduce the rates aud
thereby revive the traffic
There is the strongest reason 10 be-
lleve that the very great reduction in
traffic has been due almost entirely 10
general business conditions that are
worldwide in their effect, and that
would have come II there had been no
advant in freight rates
Prices OF commodities reached their
maximum IN the first half OF the year
1920 and thereafter fell with great
rapidity I'm France, the United States
and the United Kingdom. The fall In
the United States began In May, and
was rapidly on It's way downgrade in
September, when the advanced rates
took effect Nevertheless traffic did
not drop FOR at least four months.
Slump Not Caused by Higher Rates
Ii was general dehatlon and fall
in prices from the heights TO which
they had been driven by war condi
tlons that has caused a stagnatIon OF
business throughout the world
That 1t Is not caused by the cost OF
transportation Is convIncingly shown
by the fact that stoppage Of buying
has caused an oyersupply OF ships,
hence ocean Tonnage rates have been
recently at the lowest points in their
history.
Notwithstanding these low rates.
ocean traffic shows as great stagna-
ton as rail traffic, and millions OF tons
OF shipping here and abroad are rust
ing away In ldeuess. Many commodl-
ties would not move even II the freight
charges on them were abolished en-
tirely, because producers can ind no
market.
That the decline in business Is not
due to prohibltiys freight rates IL
shown by the following examples:
In January OF this year tho total
tonnage OF lines west OF FL Paso and
Ogden operated By the Southern Pa
cine Company fell ON Il per cent
The combined intraststs freight tom
mage in Arizona and Nevada declined
80 per cent although no increase in
the intrsstats freight rates In those
or made effectlvs. This decrease EN-
bracsd grain. hay and livestock. as
well a. ores and other eemmoditiss
COTTON e o. stskSr. s0' LACK
ora Texas cotton Drop Of over four
million bales. 10 per cent remains un;
.T:s .., , IT.: .y:r,s: r.. S'.t t.su. 1o
pslnt to Liverpool has been reduced
ssY' ':Gou 100 oss :uS"a.f m m 20:
bales OF cotton lass than normal haYs
been exported to Liverpool Obviously
the freight rate Il not Responsible for
the restricted movement.
During September. October, and
November 1929. i5 per cent less rice.
50 per cent less canned salmon and
II per cent less dri-d fruit were ak
ported than during tho same months
Of the previous year although the
reduction in ocean rates was sub.
stan.lsiiy more than this Increase In
Inland cal rates. ." that the material
d@cl'." ln the A.1ur't Of these cont
moditieS WAS u me fa"e ~ less az
sr,sni- CIT - ~ lspIr a'iOu.
The Cess Of tNs Fri.t Growers
The trn1h.rs 81 De-. Cslif"rn'a lc,non
grower have attracted much attention
He claims h. IL uuahi- 10 ship his prod.
uci brcau,, 81 he Increased freight
lolF>. y I.''''t a. ~ 81 me retpNi iu-
cre"S" ~ i'ia rI'' -" l"nOns would not
help HIM H. hns = rp'n D. sea through
the Panama tJnnj 81 less than half
4S per cen 30 tn.- - rate yet lis
lcmois are no. fur a';rd
The n,rra, ."''rr ~ = csnialoupe
laid down ~ No. inf': q The season
OF 1890 Wa zoo que = cents. ~
they were gctl''-i 81 l',aii - cents
there u ~. .i'f "a, '" somebody
OF II cents inp ga. rl1u;"
The ma'a-G.s a." DE- frci a..3ndn foe
genera rrjloiru ~ ftriSht rates
have LOST II - 90 - -" hat IN DE-.
tober lg.D. - :'..i cari"ads ~ coal
were moved. h',. i'.i' .iu,X iuub may
ed In any riuI.ii ir' i.,, ,.r,''r'ing two
years. alihp1el p .yas siinl'ci at the
advanced ffr'Si'i iii's. al &c have
heard no'h'ng ., - ~.'l being pro
duced AT lo.s r~ - ." coal mine
oxvnetq 90 ur a.ff - q. 'fs..sg hpr-tuaq