Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1922-11-05
LARGE CROPS Do
NOT MEAN GOOD
TIMES, ASSERTS
Is the Worst Bit of Eco
nomiC BunCombe Preva-
lent Today, Is the Belief
of Charles Dillon.

st. Louis, Mo, Nov. 4.-The worst
bit of economic buncombe pre-
valent today is the belief that large
crops mean good times for farmers.
Charles Dillon, assistant to the
CHAIRMAN, western presidents' coln-
nittee of the Association of Rail-
way Executives. told members Of
the Traffic club here.
This year, due to the political
speeches of radical candidates for
office. the farmers have fallen into
the mistake of blaming their trou.
bles mainly to high rates charged
by railroads, he said, adding that
rates have little TO do with it.
I'm an address in Chicago, J. r.
Howard, president of the American
Farm Bureau, estimated the total
annual income of the farmers at
St0,976, 100000" Dillon said. "Of
this amount farmers spent about
$7,01S,340,000 for goods, machin-
cry and general commodities. In
tcrcst took approximately one bill
lion dollars. Taxes amounted to
1858, 10000 and railroad transpor-
tation 81, ,123,000.000 This makes
the farmers outgo about $9,S04.-
340,0 900.
Pay 20 Per Cent Of Freight Rates
THE federation figures that the
farmers pay 20 per cent of the
freight rates, or about $500, 600, 900
year in freight rates. If that is
the case, then only per cent of
the farmers total expenditures is
for freight transportation. The re-
mainder of their expenditures goes
for general commodities, machin-
cry interest, taXes-all of which
have increased as much or more
than railways charges. 1t must be
clear that the farmers are not be-
ing ruined by something costing
them only per cent of the whole
sum they spend every year.
With bumper crops prices de-
cline. Some crops would not yield
the farmers a fair return il the
railroads carried them to market
free. According to latest figures
farmers produced about $50 mil
lion bushels of potatoes last year
anu iC1NlNNu II olAl % w Eis'V b
bushe1, They have grown more
than 450 million bushels this year
and the price is down to 30 to 4V
cents a bushel, with poor demand
even at that price.
Fruit Grown Enormously
Fruit was grown so enormously
this year that prices went to pieces
and thousands of tons We're thrown
away or permitted to rot. While
railroad rates may be blamed foi
part of this loss, it is quite obviou;
that with their present operating
costs. their undoubted need for new
capital for development, the roads
cannot afford to carry the sc crops
at an out-of-pocket' rate in order
to meet dwindling prices in over
flooded markets.
at has become quite the custom
TO say that the railroads VII have
a net income this year of 900 mil
lion dollars. This Is q big sum tt
a man who has no cash and whose
notes are due at the bank whil'
his crops decline in value or canno
be moved No one ever tells thu
farmers that the roads earn only
three and one-third per cent IL
1921. How many business firms
would be content with any such re
turn?
"What the farmers need now i
not lower rates. They need cars
and they want them moved
promptly, and more than cars the,
need a business-like system of dis
posing of the crops they produce
If you doubt this you have only t
watch the prices go down whei
grain and livestock receipts at thu
| big celters go up"