The citizen. [volume] (Berea, Ky.) 1899-1958, 1922-11-09

Increase In freight rates" said Sec
rotary 81 Agriculture Wallace In tnlk-
ing OF the troubles Of the farmers.
He pointed out that in Ip2O freight
rates on mnny " the more important
farm crops were almost double what
they were before the war: these In
creased rntei not only imposed
grievous financial burden hut In many
cases narrowed the market fol crops.
which were not worth enough to carry
the freight rate 10 distant markets.
AT the same time" said he, "tho
Increased rates on the things the
farmer had TO buy added TO his cost OF
living and the cost Of production by
Just that much. Had prices OF farm
crops remained nj the 1919 and early
1920 levels. the higher freight rates
could have been paid without incon-
venience. A freight rate OF rs rents
a bushel when corn Is selling for SIZE
n bushel Ii not a serious mntter. but a
25-cent rate Oh 5Ocent corn IL rulna.
ton. During 1920 the Influence OF the
administration was exerted In every
proper way to bring about a reduc-
| tion In freight rates on farm crops.
and a number Of important reductions
were secured. Rates are still alto
gether too high. however. With rela-
ton To the selling value Of crops. and
further substantial reductions must
come In the near future.
This railroad question Is exceed
lngly complex and difficult When the
| federal government took over the
roads II was on the agreement that In
addition to proper maintenance they
should be assured Of earnings equal to
the average Of the three years. June
go 1914. to June 30. 1917. Costs Of
operation were increasing steadily and
| the government advanced both passen-
ger and freight rates.
Railroad Costs Too High.
Ubiquitous working agreements and
shop rules which greatly reduced Ia.
bOr output were accepted. The result
was that railroad costs IT operation
increased far more than railroad re-
ceipts During this period practically
everything shipped was selling at
price high enough to have carried
correspondngly high freight rate.
Good business administration would
have provided for railroad income dur
| ing those prosperous times large
enough to meet the government con
| tract and would thus have saved the
| hundreds of millions which the gov
eminent afterward had to pay. Also
| IL Shnlll haNA mazda n pn0sihln for a
| prompt reduction In rates when the
prices of farm crops made II necessary.
"The urgent demand by farmers for
large reductions in freight rates have
| led some people to think that II the
| farmers could have their way they
| would put rates so low that the roads
could not possibly operate. Nothing
could be further from the truth. The
farmer Is almost wholly dependent on
the railroad for the movement Of his
surplus crops and live stock. Much
agricultural freight Is perishable and
must have expedited movement. The
farmer, therefore. has a direct Interest
In efficient railroad operation and
knows that the roads must be permit
ted TO charge enough to cover all prop
err costs Of operation and enough n
| addition 10 give fair return upon
the money invested and thus keeE
capital In the business. Neither does
the farmer want government opera
ton Of the railroads. He had enough
to satisfy him for all time. He will
never forget the losses, both direc,
and indirect, which he suffered he.
cause he could not ship when his stun
was ready for market, and because
Of bad service.
Rates Must Come Down.
Nevertheless, freight rates on farm
crops and live stock must come down
With present prices for his crops ant
with probable prices for the next yea,
or so. the farmer simply cannot affOrc
to pay the present rates. They are
ont of all proportion to the pay he get,
for what he grows.
"a hopeful sign which points toware
the possibility Of reductions In rail
road rates is the gradual reduction ir
the part wages contribute to the tOtai
operating cost. Apparently, the rail
roads are making steady progress In
the reduction of these costs, and SHOULD
therefore be able soon to make sub
stantial 'eductions In freight rates or
farm products. In considering the
matter Of freight rates Of agricultural
products there are two things which
should always he kept In mind. First
that the cost Of transportation Is es
sentially a part Of the cost of produc
tion, SO far as agriculture Is con
cerned, and any increase in transpor
tatiOn costs must come out OF the
price the farmer receives Second, our
business and Industrial life has beer
built up on a system OF relatively low
railroad rates for agricultural crops
designed to encourage their movement
over long distances TO Industrial and
business centers."