, 1922-11-16
The Farmer and Freight Rates.

The Farmer and Freight Rates.
SOMETHING has got TO be done about freight
~ rates next year or n whole lot OF folks will be
forced out of business or forced to restore war
The people engaged in retail, and whole.
sale business or the handling of commodities of
any character have a way of absorbing the costs
OF freight but the farmer 10 :he one person VIII
must stand and take it as il esmes.
Secretary Wallace not long sJlce reviewed the
matter and among other things said:
"One of the heavy burdens which the farmer
has been forced to carry at a time ~hen he was
least able 10 carry it has been the large increase
In freight rates. In 1920 freight rates on many OF
the more important farm crops were almost double
what they were before the war. These increased
rates not only imposed {. grievous financial burden
but In many cases narrowed the market for crops
which we're not worth enough TO carry the freight
rate to distant markets. At the same time, the
Increased rates on tho things the farmer had 70
buy added to his cost OF living and the. cost of pro
duction by just that much.
Had prices Of farm crops remained at the 1918
and early 1920 levels, the higher freight rates could
have been paid without inconvenience. A freight
rate of % cents a bushel when corn is selling for
S1.75 a hushel is not a serious matter, hut a %
cent rate on o0'cent corn is ruination. The influ
ence of the administration has been exerted ir
every proper way TO bring about a reduction II
freight rates on farm crops, and a number of I'M
still altogether too high, however, with relation tc
the selling value of crops, and further substan
tial reductions must come in the near future.
This railroad question is exceedingly complex
and difficult. When the federal government tool
over the roads it was on the agreement that in adj
dhtion to proper maintenance they should be as
sured OF earnings equal to the average of three
years, June 30, 1914, to June 80, 1917. Costs OF
were Increasing steadily, and the gov
eminent advanced both passenger and freight rates
But materials, and especially wages, continued &c
advance the latter with government assent and
even encoura cement. lniquitous working agree
,nents and shop rules which greatly reduced labor
output were accepted. The result was that rail
road costs of operation increased far more thar
railroad receipts. During this period practically
everything shipped was selling at a price enough
rate. Good business administration would have
provided for railroad income during those pros
porous times large enough to meet the government
contract and would thus have saved the hundred.
OF millions which the government afterwArd had
to pay. Also it should have made it possible fol
a prompt reduction in rates when the prices oil
farm crops made it necessary.
1.-The urgent demand by farmers for large rcduc
tions in freight rates have led some people t.
think that if the farmers could have their wa,
not possibly operate. Nothing could be further
from the truth, The farmer is almost wholly de
peadent on the railroad for the movement of hi.
surplus crops and live stock. Much agricultural
freight is perishable and must have expedited
movement. The farmer, therefore, has n direct in
tcrest in efficient railroad operation and know,
that the roads must be permitted to charge enough
TO cover all proper costs of operation and enough
ia addition to give n fair return upon the none,
invested and thus keep capital in the business
Neither does the farmer want government opera
49, hta NAebA vi tudI III
his three-year experience to satisfy him for al
time. He will never forget the losses, both direc
and indirect, which he suffered because he coul,
not ship when his stuff was ready for marke
and because of bad service.
Nevertheless, freight rates on farm crops an,
live stock must come down. With present price
for his crops and with probable prices for the mex
year or so the farmer simply cannot afford to pa,
the present rates. They are out of all proportion
to the pay he gets for what he grows.
THE distortion between the freight revenue re
ceivcd by the railroads and the prices for tn,
principal farm crops in the year 1921 can be illus
tratcd III this way; In 1918 the average amour
the railroads received for hauling a ton of freigh
ono mile would buy Ia bushels of corn in Iowa
in 1871 the revenue received by the railroads fol
hauling n ton of freight one mile would buy g.
bushels of corn in Iowa. In 1913 this revenue pc
ton mile would buy one bushel of wheat in Nortl
Dakota: in 1921 IL bushel. In 1913 Gil pounds o.
cotton in Texas; in 1921, los pounds. In 1913, II
pounds of hogs in Nebraska; in 1921, is pounds
In 1913, l bushel of potatoes in New York; in 1921
15 bushel. In 1918, II pounds of sheep in wyom
ing; in 1921, ID pounds. In 1913, 81 bushels Of
oats in Illinois; in 1921, 80 bushels. In 1913, 81
pounds of butter in Missouri; in 1921, 4 pounds.
"A hopeful sign which points toward the posi-
biity of reductions in railroad rates is the grad
ual reduction in the part wages contribute to the
total operating cost, Apparently, the railroads
are making steady progress in the reduction Of