The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1922-08-16

States, and prices Of live stock have
been driven to a decline much more
rapid than the decline in cost of pro-
duction, while imports of meats have
further depressed the market. This
construction is a menace to the live
stock industry. Livestock operations
(before the war frequently precarious
and proftable) did not during the wal
build up reserve Of profits sufficient
to offset the present losses due to the
current marketing of war stimulated
production at less that it's cost"
Then the Bureau of Markets, a Gov
eminent agency, proceeds to give these
statistics, and says:
"On the other hand, following the
putting of meat on the free list IN
1918, imports began rapid develop
ment, which was cut off only by the
war and in 1920 show marked
tendency to resume. These facts need
to be considerd in conjunction with the
fact that the Chicago packers control
from so to so percent of the meats
shipped from South America to world
markets. With our exports practical
ly no greater than in 1910 and with
imports for their cattle and sheep
a strong potentially for increase of
products. Imports Of mutton about
100000 pounds; in 1920 they were
1OO,000,0O0 pounds, and had far
more depressing effect on sheep and
lamb prices than on consumers prices
of the products"
IMPROVEMENT OF PRICES
In any event, prices of farm prod
ucts have very largely increased IN
1922. 1t is true that during the sum-
mer and autumn Of 1921 prices which
had commenced to go down continued
to decrease in most products, but it
is also true that the War Finance
Corporations activities did not begin
to take effect until the beginning OF
the year 1922, and between January
and the present time prices of the
principal farm products, including
wheat, corn oats, barley, rye hogs,
cattle, sheep, and wool have very
greatly improved. In some of these
products there has been very great
advance; in others less.
I do not say that the proper rela-
ton between farming products and
other products has yet been reached.
1t is true that under the effects of the
enormous demand during the war the
farm products decreased more rapidly
in price, than other products, SO that
the purchasing price of wheat, hogs,
and cattle in the market was less than
most other products of the markets;
but a proper relation is rapidly now
kbeing restored, and | believe that in
the near future the prices of farm
| products will be brought nearer a
proper relation to the prices of other
products.
TRANSPORTATION RATES
One of the vital needs of the far
mer is cheaper and better transporta--
tion.s Railroad rates are too high, and
they are, of course, burden upon all
the business of the country, and prl-
marily upon the farmer, because he
cannot add his freight rates to the
price of his products. He receives for
his products, in the great central mar
kets, the market prices less the freight
rates. The manufacturer sells his
products at the mill, at the market
price plus the freight rates.
I think there is good deal of mis-
understanding as to the cause OF the
very high freight rates today. When
the Government took over the rail-
roads on the first of January, 1918
freight transportation was the best
and freight rates were the cheapest
here of any country in the world. L
did not believe it was necessary to
take over the railroads, and my belief
has been strengthened and confirmed
by what has transpired. / do not be-
lieve political organization can ef-
fciently operate a great business like
the railroad transportation of the
country. It cannot be managed by
central bureaus in Washington, and it
is for that reason that [ am in favor
of private ownership, under strict
Government regulation, and in favor
of preserving the regulation of intra-
state matters by the States, which is
nearer to the people and can deal more
effectively with the local problems
than can the Federal government.
You cannot run 100000 miles of rail-
road efficiently under a bureaucratic
system from Washington. In twenty
six months the Government lost from
a billion eight hundred million to two
DllllOU uOlldfS Ill Tie OpeIdtlou VI IhS
railroads, increased the freight and
passenger rates 40 to IS percent, and
Increased the operating expenses OF
the roads so as to practically take up
every dollar Of the increased rates,
leaving the roads without any net in
come whatever, and when the roads
were turned back to their owners, al
though billion and half dollars had
been added to the gross income, it was
entirely absorbed by the additional OPP
Grating expenses, and the roads, as a
whole, were not earning anything on
their bonded debts, stock, or value.
Since September 1920, there has been
J considerable improvement. Freight
rates have been reduced about II per
cent amounting to about five hundred
million dollars per annum. Operating
expenses Of the railroads have been
reduced about billion and quarter
dollars, and while the railroads are
now earning only about 8 percent upon
their value as fixed by the Interstate
Commerce Commission, believe that,
unless there is a general railroad