Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-03-14
EX- SENATOR SMITH
HOPES FOR LOWER
WATERMELON RATES
623 Riggs Building.
The Atlanta Journal News Bureau,
BY THEODORE TILLER

WASHINGTON, D. c., March II.
Arguments favoring a reduction in
freight rates on watermelons and
other products were made before the
interstate commerce commission to-
day. Former Senator Hoke Smith
appeared in behalf of the Georgia
watermelon growers. Testimony was
heard several days ago and tonight
Senator Smith said he was hopeful
of q reduction in part.
He said Georgia shipped in inter-
state, commerce over the railroads
last year approximately $4,000 car
loads of watermelons-9,00 from
south Georgia and 1000 from mid
die Georgia.
They were shipped during the last
half of June, during July and the
early part of August during period
of the year when the freight to be
carried by the railroads is ightest
and, therefore, added but little to
the expense of the railroads which
must have continued practically the
same, even though this freight had
not been hauled.
The railroads received last year a
return from hauling this freight or
approximately $3,250,000. The freight
rates on watermelons have been in
creased since June, 1918, first rs
per cent, and then in August, 1871,
SO 1-3 per cent. On the original cost
plus the increased 20 per cent, the
present taxes will check, If they 90
not destroy, the watermelon bust
ness out of Georgia.
Will Help Business
If they are lowered to a hgure
which will leave a profit for the wa
termelon growers, with the spread
of the boil weevil in Georgia, 1t is
probable that this business will large
ly increase and lowering these rates
so as to encourage rather than de-
stroy. the business, will be profit
able to the railroads as well as TO
the watermelon growers.
The evidence of Secretary Parrish,
of the Southwest Georgia Watermel-
on Growers association, presented
the fact that taking the whole state,
the railroads got an average OF
freight per car of $206.64, New York
being treated as the point OF dest-
nation, while the growers received
only an average Of $151.OS per car.
This estimate was based upon aver
age carloads of melons weighing 29,-
100 pounds. The transportation
charges, therefore, averaged in the
state, $3.50 in excess Of the gross
return per car to the growers. 1t
was shown that the average cost
of producing a carload of melons,
including the marketing but not in
Guiding the freight, is $1O9.75 per
carload.
Middle Georgia Suffered
It was shown thct 1000 cars ship
ned from middle Georgia averaged
to their owners only $1C0.61 per car
load, making net loss to growers OF
S9.14 per car. While the "0uth Geor-
gia watermelon growers received an
average good profit up their mel
ons it was shown that their crop
came in two weeks earlier than nor
NAL and that the profits were MADE
out of the early watermelons, there
having been a loss on the later pro-
duction.
Watermelons are not handled in
refrigerator cars, but in ordinary
freight cars of the least expensive
character, and the amount OF ton
mage per car is heavy.
With the present freight rates,
increased as they were in 1920, the
watermelon growers must go out OF
business. His freight rate with New
York City as the terminal point
from south Georgia and middle Geor.
gia points is between IS IL and II
mills per ton mile. Prior to the in
crease in freight rates in 1918, it
was between and Ia mills per
ton mile. The rate on watermelons
from south and middle Georgia TO
New York City, estimated in mills
per ton mile, is more than rs per
cent higher than the rate on iron
and steel products from Georgia
points to New York City. 1t is ap-
proximately 20 per cent higher
than building material to New York
City from south Georgia.
The bulk of iron and steel articles
from the south move from the Biz
mingham and Sheffield districts; the
bulk of watermelons move from
Georgia.
II am advised that the southern
classification places watermelons.
manufactured iron and steel, and
cast iron pipe and building mate
rial all in the sixth class" said Mr.
Smith.
IF "a mills per ton mile is the
rate on iron and steel articles from
Birmingham, then Is IL to IA mills
per ton mile is unnecessarily high
on watermelons from Georgia.
Will Kill Business
"If permitted to remain, it will
kill the business and stop the
freight. While the rate prior to
June, 1918, was 8.S mills per ton,
mile, believe they could stand q
rate of 10 mills per ton mile now.
"As melons begin to move the
latter part of June, and largely
move in July, the decreases to save
this years crop from being a loss
must take place prior to that time.
IF the melon growers are permit
ted to make a reasonable profit this
year, feel sure the crop will large
ly increase next year. If they again,
by reason of the high freight rates,
are to suffer loss, the railroads
cannot look further to any consid-
cradle freight from Georgia out of
melons in the future
Mill. ell