East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-03-15


they have made their profits on the
long hauls rather than short hauls. TO
keep manufacturing localized in the
East where it first developed and 10
prevent wide decentralization of man.
ufact Iring in the western agricultural
regions. The rates we're also adjusted
so as to give undue favoritism 10 the
large Eastern seaboard cities. This
led to the building of great centers of
population in the East, specializing in
manufacturing and the wide dispersal
of agriculture in the middle ana fa,
West. The result was long haul for
manufactured articles westward and
the lang haul of agricultural products
eastward.
Some of the farm output was neces.
sary to feed congested areas in the
East, but in addition large amounts
of it were raw materials for the fic-
tories of the East. 1t is a little ap-
preciated fact that factories secure
three-fourths of their raw materials
from farms and that fully one-.,alf
the farm products go long distances
for manufacturing, packing, etc. Much
of it then returns to the producer in
its finished state upon which he pays
two transportation charges
The fixing of rates, as indicated,
was part of necessary stage in the
economic development of the United
States and criticism cannot justly be
leveled against it. Without such an
arrangement it is difficult to see how
a continent so quickly could have be-
come q nation but the period when
these things were necessary has pass
ed. The country is now settled from
coast to coast. There is no need of
keeping the industrial development of
one region artifically stimulated and
another region artifically retarded.
For other reasons not german to this
subject the whole railway industry is
under intensive scrutiny avnd faces
epochal changes.
The matter of the long haul and the
short haul Is likely to be changed in
the general reorganization of the rail-
| way systems which Is imminent. 1t
seems likely that the railroads may
soon be under the control Of the gov
ernment again and operated for SER
vice rather than profit and some 9th
er reformation that seems, probable In
the adjustment of rates on the basis Of
service rendered. This means that
| rates will probably be placed upon Il
mileage charge, plus charge for ter
minal facilities. If this occurs there
will be q rapid decentralization of
manufacturing, then localization of in.
dustry will no longer be profitable
Nearness to raw materials and espec.
tally nearness' 10 market will be recog
nized as factors to be considered ir
| locating industries. The great CENTER
of population in the East will bt
greatly affected. Without artificia
support from the railroads the center:
could not continue their industrial su
premacy. Insofar as the Eastern cit
les turn their attention to the manu-
facture of articles using imported raw
materials, or manufactured article:
for export their manufacturing plant'
could be retained and even increased
The commodities needed by the peo
pie living in the East also could b.
manufactured in that region and tht
consuming market of the West woult
be removed from the dominance o.
Eastern manufacturers and supplied
| by factories of our own. Unde,
equal and non-d discriminatory rate
the interior would very likely witnes
a rapid increase in its industrial ac
/ tivities.
i All the natural factors favorini
manufacturing and jobbing are to b,
found in the interior. Raw materia
from the farm and from the mine
are easily available. Power and fue
are at hand and living Is cheap be
cause of the prevalence of farms ant
manufacturing would rapidly increas
the population of the interior ant
cause further development of GU
farm lands which would help to shar
the present burdensome tax situation
now levied upon the few. On the hu
man side it is far more desirable t
have large number of relativel.
small factories and jobbing house
scattered through the small cities ant
towns than to have this business for
ever concentrated in the large coas
cities.