New Britain herald., 1922-04-28
LOWER RATES ARE
 NEEDED BY FARMERS
Either That or Greater Prices for
 Their Products, Wallace Says

New York April 2S,-Unless there IS quick reduction in railroad freight rates to about pre-war levels or the prices of agricultural products in- crease sufficiently 10 equal the raie advance there will bc profound re- adjustments" in agricultural produc- ton, involving read diustmonts in in- duslry as we'll Secretary Wallace of the department of agriculture dcclar- ed today before the New York aca- demy Of political sciences. The "bllghting effect" upon agriculture of the present increased level of freight rates the secretary said "can hardly he comprehendcd,"
 What he regarded as the probable effects If present rates were continued for any length of time were sum mariyed by Secretary Wallace as fol- | lows
 Six Broad Subjects
 First to favor the farmers of | South America and Australia at the expense of our own farmers and all the more so because of the substan- | tial decrease in ocean rates.
 "Second 10 keep prices on farm | products in the large surplus produc- ing states at figures lower than arc | justified by the investment in land and equipment and cost of produc- ton;
 Third. prolong the period Of dis satisfaction among farmers and en- courage advocates Of economic falla- cies of all sorts
 Fourth improve the position of eastern truck and fruit growers but add considerably to the cost of milk and dairy products because of the advanced prices of hay and coarse grains necessarily shipped in from the west:
 Fifth. gradually shift industria enterprises west ward nearer the sur plus food producing territory;
 sixth. promote sectional rather than national spirit and make more and more difficult large national poi- cies with respect to international af- fairs"
 Present freight rates impose tax on the farmer of the surplus produc- ing states MT. Wallace said, which must inevitably reduce shipments of coarse grains and hay to the cast and which already is causing the fruit and truck growers of the far west and southwest to turn to water transpor- tation and the wheat growers of the west to use the shorter haul to water for export grains. He cited figures showing that wheat exports passing through Gulf ports had increased from "A per cent of the total in 1913 to 59 per cent in 1921.
 No Special Plea.
 "I am not making a special plea for the farmer as against the rail- i roads They must work in harmony and understanding The important part am trying to make is this That this nation has been built up by system of low railroad rates de- signed to encourage the movement of our surplus agricultural crops long distances to manufacturing, industrial and business centers with a corre- | spending return haul of manufactur- ed products and that a sudden rever- sal of this theory of rate making re- suits in great economic injustice and | II persisted III VIII htep us III d Stdte of confusion and agricultural and | business uncertainty for a long time.
 "'The most hopeful sign of the pres ent time is the apparent recognition of the railroad management that our present high rates cannot be Contin- ucd without disaster to the railroads themselves and that rates must come down to a point not far if any above the pre-war levels"