Evening star., 1922-04-28
DEMAND FOR DROP
IN FREIGHT RATES
Secretary Wallace Sees Rail-
way Concession or Increase
in Farmers Prices.
By the Associa ted Press

By the Associated Press,
NEW YORK, April 2s.-Unless there
Is a quick reduction in raiiroao
freight rates to about pre-war
levels" or the prices of agricultural
products Increase sufficiently TO equai
the rate advance. there Will De pro-
found readjustments" in agriculture
production, involving read1ustments
in industry as well. Secretary wallace
of the Agricultural Department de-
clared in an address today before the
New York Academy of pohtical
Sciences. The ''blighting erect upon
agriculture of the present lncreaseu
level of freight rates. the Secretary
said "can hardly be comprehendeu.
Summary of Conclusions.
What he regarded as the probable
effects if present rates were continued
for any length of time were sum
married. by Secretary wallace as
follows:
First, to favor the farmers OF
South America and Australia at the
expense of our own farmers, ana ali
the more so because of the substan-
tial decrease in ocean rates.
Second. to- keep prices of farm
products in the large surplus pro-
ducing states at figures lower than
are justified by the investmenk In
/ land and equipment and cost OF pro-
duction.
Third, prolong the period of dis
! satisfaction among farmers and eE-
courage advocates of economic tai.
lacies of all sorts.
Fourth. improve the position OF
eastern truck and fruit growers, bul
| add considerably TO the cost of milk
: and dairy products because of tho
advanced prices of hay. and coarse
grains necessarily shipped in from
the west.
Fifth. gradually shift industrial
enterprises westward, nearer the sur
PLUS food-producing territory.
Sixth, promote sectional rather
| than Id ,ioiaf spirit ana ihhke in Il
and more difficult large national poll
cies with respect to international af.
! fairs"
Freight Rates Tax ON Farmer.
Present freight rates impose a tax
on the farmer of the surplus producing
states. Mr.. Wallace said, which must
grains and hay to the east and which
already is causing the fruit and truck
growers of the far west and southwest
TO turn to water transportation and the
wheat growers of the west to use the
shorter haul to water for export grains
ports passing through gulf ports had
increased from "a per cent OF the total
in 1913 to So per cent in 1921.
Il am not making special plea for
the farmer as against the railroads.
They must work in harmony and un-
derstanding. The important point
am trying to make is this: That this
nation has been built up by a system
of low railroad rates designed to en-
courage the movement of our surplus
agricultural crops long distances to
manufacturing. Industrial and business
centers, with a corresponding return
haul of manufactured products. and
that a sudden reversal of this theory
of ratemaking results in great eco
nomic injustice. and if persisted in
will keep us in a state of confusion
and agricultural and business uncer-
tainty for long time.
Sees Hopeful Sign.
THE most hopeful sign of the pres
ent time is the apparent recognition
of the railroad management that our
present high rates cannot be con-
tinued without disaster to the rail.
roads themselves and that rates mus,
come down to point not far, If any
above the prewar levels"