The Richmond palladium and sun-telegram., 1922-08-09

sells at profit the real wealth Of
the country is increased
The farmer buys the product Of the
factory and this money in wages
makes it possible for the rest of US
to buy the product of the factory
Transportation is the connecting link
that brings the two together.
What Fixes Prices.
Just what would 2,300.o0 people
(the population of Iowa. do with 400
million bushels of corn. They could
under forced circumstances, use six
bushels per person. or 1880 900 bush
els. From the annual crop report in
Iowa there is at least 380,000,000
bushels left over for the folks in the
world who have no corn. The price
of food stuffs is fixed very largely
where the greatest center of popula-
ton is and farthest from production.
In other words, these centers of pro-
duction, farthest from production. use
the surplus that the grower does not
want for his own use. The price o.
this surplus depends upon the demand
and supply. The greater the supply,
The consumer of the surplus fixes
the price, and fixes it for the whole
product He fixes the price not only
for that which he uses. but all that is
produced The largest centers OF
population farthest from production
really fix the price for the world com
modities. The producer gets the price
at this center, less what it costs to
get the product from his place of pro
duction to the consumer. To Illus
trate. corn at S100 per bushel in Liv.
erpool, and if it costs so cents bush
el to transport the corn, the Iowa
farmer will receive 40 cents for his
corn, and 40 cents, with small varia
tions, will be the price of the whole
400 million bushels, even though only
few million bushels are shipped te
the center market farthest from pro
duction-Liverpool
General Conclusion
! Corn is but about one-third of the
| product of the Iowa farmer True
some of the products are not so direct
! ly affected, but the general rule hold:
good What is true of Iowa farm
products is true Of all farm products
| in all the land-locked states. and wha
is true Of the farmers products i:
true of the factory products as well.
| Transportation charges, then, is ;
mighty important question for these
states and all the other states. M
Farmer may be said to be a wist
bird" He can exist if he does no
sell. He wants TO sell at profit, 70
he desires to live in the largest ant
| fullest sense. He desires to improv,
his home surroundings his schools
| churches and roads. TO do this h.
must get to his rightful market witt
his products with as little cost am
| friction as possible
A properly constructed freigh
| beat can be propelled through waite
| at one-fifth OF the friction a LOADED
freight car can be hauled on a stee
rail. Good business sense in any 9th
| er field would dictate that We remov'
! four-fifths of the friction wherever vi
| can.
There is whole lot of friction be
tween Chicago and New York for
box car loaded with corn or hogs, an,
there is heap of friction in the term
inals at New York City-about on tn
average of S35 a car. This is abou
$50 car too much, and a wastefu
friction on the pocket of the pre-
ducer.
To Remove Friction.
Can we, in an economical sense an
in a practical way remove this exces