The Miller press. [volume] (Miller, S.D.) 190?-current, 1922-04-27
RATES
INVESTIGATED
Preferential Rates For Agricultural
Products Recommended

washington, April 25.-The Joint
Commission of Agricultural Inquiry
has completed the third section of it's
report to Congress. The first section
was a general survey of the situation
entitled "The Agricultural Crisis and
Its Causes" The second section COW
cred credit and financial systems and
their relation to agricultural interests.
The third section, which is ready for
transmission to Congress, cover the
economic relation of transportation to
agriculture and industry.
Speaking for the entire commission.
Chairman Sidney Anderson Of Minne-
sofa, states that in a nutshell the con-
clusion OF the commission Is that the
farmers dollar when figured in terms
of transportation is worth only ~
cents. The report makes a great many
recommendations for a general over
hauling of the transportation machin-
cry of the nation. 1t recommends
not only a general reduction of freight
rates but II recommends preferential
freight rates for agricultural products
and other basic commodities. The
report enters very exhaustively into
the subject of transportation service
and transportation rates and their
economic relations to agriculture.
Quoting Chairman Anderson's au-
thoritative forecast Of the report.
I'VE have found that freight rates on
perishabies normally take about one
third OF the selling price, and fire.
quently as high as t~wo-thirds." Mr..
Andersen continued: "The report will
show that in October. 1921, farm pro-
ducts were at en- index figure of 102
compared with 100 as the normal w
erage) while railroad rates were t69.
II Is manifest from the evidence We
have secured that the purchaser and
the farmer are dependent to a mark
ed degree upon the transportation
charges of farm products"
Taking up specific examples, Chair
mar Anderson said fertilizer prices
are now close to the pre-war basis
except for higher freight costs. The
transportation charges on %agricultur-
al implements including the freight
on raw material entering into their
manufacture (such rs pig iron, steel,
coal, coke and lumber) amount to
about Is Per cent 0f the total selling
price to the farmer. A reduction In
freight rates on these basic raw ma
terials which enter into the manufac-
ture OF farm implements wilt mater
tally assist in reducing the farmers
expenses.
The report will show that farmers
are the second largest consumers of
steel. coming next to the railroads.
and purchase annually about 80 per
cent of the nations steel output. They
are therefore vitality interested in the
transportation charges upon steel and
iron. According to iron and steel
makers, the freight element In a ton
of steel is declared to be about Al
per cent of the selling price of the
finished article. The farmer Is SINH
larry interested in freight charges up
on coal, as he is a consumer OF 20 per
cent of the bitutninous coal which Is
mined. Directly or indirectly he con-
sumes 46 per CEN of the country's
lumber production. The report OF the
many grades of lumber the freight
cost on long hauls amounts to more
than the value of the lumber at the
mill.
There are some products which the
farmer sells which are not vitality af-
fected by freight rates, in the opin-
ion of the commission. For example,
while II is the opinion of the commits
sion that the spread between the re-
tail market price for wool and the
price paid To the producer is abnor-
mally large, il Is believed this Is due
primarily to disorderly and unscienti-
fc marketing and in the steps taken
toward the cooperation, grading and
selling will rectify in a great measure
the evil. The price of gasoline and
kerosene is found to be Influenced
little or not at all by freight rates.
Canned goods prices are not material
ly affected by freight rates as the
rates have a relatively small ratio on
the selling price of canned goods.
Freight rates on such articles as boots
shoes, dry goods, clothing of all kinds,
etc. according to the commissioners
report, are not materially responsible
for the price of those commodities.
Where the freight rates is not absorb
ed by the merchant but is made a part
of the cost basis upon which margins
and profits are figured, 1t represents
only a small proportion of the final
sales price.