Evening journal., 1922-11-11
THE FARMER AND FREIGHT RATES

are laboring under remarkable hailucinatior
when they attribute OF their troubles to freight
Referring renewed agitation and proceedings
recently before Commerce Com
further reductions freight rates farm
products declares freight rates lower oo-
pared with the basis than the price Of almost
anything else the farmer has to buy It adds'
Under existing conditions any order for substantial
reduction of railway rates. whether made by the Inter
state Commerce Commission any other government
body including even Congress ITSELF would be oonhs-
Icatory and therefore unconstitutional and void"
Comparing freight with the prices Of farm pro-
ducts and other commodities the Railway Age adds
that there is doubt that the farmers generally are
suffering severely from present economic conditions. IT.
however the would investigate the facts for
themselves instead of believing the misrepresen-
taons they would find that freight rates only
a small part OF the cause OF their troubles.
Freight higher compared with the prices OF
farm products than they Immediately before the
But It is also true all Delawareans know, that
the prices OF almost all the things the farmer to buy
higher compared with the prices OF farm products
than they before the The railway rates and
prices OF the 1914 usually selected for COM
parson with present railway rates and prices. The
average per per mile 1918 7.2e mills and
in 1891 II was 1877 increase of 6S per cent AS
suit OF the 10 reduction made year. the
average rate is about 81 cent higher than in
1913. Wholesale prices of all commodities re-
ported monthly by the Bureau of Labor Statistics of
the Department of Labor show that July 1922, the
average price of farm products s5 cent higher
than in 1913. What do the statistics the Bureau OF
Labor show regarding the wholesale prices Of
other commodtesf They show that in July 1899 the
average price of cloths and clothing 80 cent
higher than IN 1913; the average light
ing 1874 cent hgherI the average price OF lumber
and building materials, 10 per higher; the
average price of house furnishings rs per cent higher
The average Wholesale price of all commodities except
farm products and foods 90 per cent higher than
in 1919 It will be that the over 1913 IN
the prices Of almost all other things buys
was greater than the increase in freight
But why compare the statistics with those of
1923? Railway rates had descended almost the
est level reached in On the other hand the
prices Of farm products and other commodities had
been Increasing for before that The aver
age railway rate is only so per cent higher than
the average railway rate OF the ten period
1910. As compared with the average prices OF 1900
1910 the average price OF farm products showed
crease in July 1922 OF "a cent? cloth
Ing. 90 cent? fuel and lighting 17e per cent? metals
and implements 30 cent; lumber and building ma
erials 20 cent? house furnishings per cent The
average increase in the wholesale prices of all oo
modities 70 per compared with an average
increase in freight rates of only so per cent
Furthermore. the farmer makes only comparatively
small part OF HIS expenditure for freight transportation
James n. Howard. president OF the American Farm
Bureau Federation is authority following esti-
mate OF expenditures made by the farmers in a year:
For purchases at wholesale prices s7o1s $40 0OO for
interest at least $1,000 oOoi for taxes sses
for railroad transportation freight passenger ST.
1osoOoooo. These figures make total OF ss7s4 OOO-
600 Tor expenditures made by the farmers this
mate is correct the farmers expenditure for railroad
transportation is only IL per Of his total expend
ure His expenditure freight transportation Is not
moro than $500 ooO Therefore OF his total outlay
not more than cent Is freight transpor-
tation.
Upon what theory OF economics It be claimed, |
the Railway Age asks that farmer is being ruined
because in the cost Of some
thing which he makes only about cent OF his
total expenditures
reductions made freight than in the Of
anything else he buys The farmer is today suffering
heavy the railways unable to furnish
enough transportation farm products satsfac-
toriy 70 This condition never be remedied
except by OF railway facilities sufficient
increase in railway facilities be secured unless
the railways allowed to net returns large
enough TO enable them raise large amounts of new
capital. To reduce railway rates under present oondi-
lions would inevitably keep the earned
by the railway inadequate The railways whole
could not now financially any further reduction
unless It accompanied by further reduo
tons and the prices OF the fuel and materials
they have to buy. But under present conditions Il
would be impraccable for the railways to fur
Their reductions wages There is perceptibe ten
dency of the prices decline. The OF
coal has increased result of the coal strike
In the years further reductions railway
rates may become practicable. They will not become
practicable however until corresponding reductions in
the prices commodities in rates OF interest IN
the wages OF labor have been be brought about
The railways have 10 pay these high wages high
prices Themselves They never can make pre-war rates
until they labor, materials and fuel
costs.
"Dont push US too far" ex1airns British propa-
yandist arguing in favor OF cancellation OF debts Well
who's pushing? The has been for four years
ana the European debtors have yet found
renient either to pay dollar principal the