Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-01-10
FREIGHT RATE REDUCTION.
NECESSARY TO. FARMERS
Wallace Asserts Rails Must
Cut Expenses to Help
Agriculture. q
STEAKS IN pnILADELrmIA
Declares Efficient Farming ana Trans
porfntinn Systems Are Iudisucu.
snble tn National Welfare and Dc-
pendent Upon One Another,
tBy Associated Press

PHILADELPHIA, Jan. 9.--To brin,
| about a normal rcodjustment In npri.
culture and. through It, Industry.
railroad deficits must be met NV 20.
ductions In operating costs. rather
than by advances In rates, Secretary
Wallace. OF the Department OF AErI-
culture. declared In I'm address to-
night before the Traffic Club of phila
dciphia. Agriculture. lie said, "ur
gently needs tho adjustment OF
freight rates on farm products to n
point Mt which thoy bear about IN.
same ratio to the prico tho farmer.
received for those products as pre.
vailed before the war"
Need General Price Level.
IL would be better for all interc.t,
the Secretary continued. A. aur,,,
tho reconstruction period, a rener,I
price level about GO per cont nho,.
the prc-war normal could bo est,b.
iished and farm prices brought UP To
THIS level rather than that Other
pricea DO forced down to tho level
OF agriculture products. But this
seema impossible at present, he said.
30 other prices must come down
aa agricultural prices como up until
the normal relation is restored"
Hihcient agriculture and trans
porta'ion systems. Mr.. Wallace de-
clarcd, arc Indispensable to tho M
tionnl welfare and arc dependent
upon ono another. Tho relation bc
tween two industries, no said. ls pn
very intimate that neither can nno,a
10 acquiesce In n condition which s,
riousiy affects the ether. ANY mate
rial advance In tho cost OF producInc.
or marketing crops. without n cor.
responding advance in the price re-.
ceiFcd from tho products, the sccrc
tary asserted. piunges agricul,ur,
INTO state of depression and IN,
greater tho difference between ~
cost OF production and marketing ma
the price received, the more .er,ou.
the depression
FreIsht Rates nig Factor.
~ would DO unfair Mr.. Walluc.
continued. to Say that the unprecn-
aehteu depression In which W. hnd
agricniturc today Is duo wholly Ia
tie very largo increases In freight
rates which have been imposed dur.
ing the past three years, but II ia
thir TO say that these incronaeJ
freight charges arc large factor IN
fctard!ns agricultural recovery. IL
prices now received by farmcrs fnr
taei crops wcro sue has prevailed In
i9io ana tho earlier part OF 1920
thcy could pay tho Increased freirb,
rates without serious Inconvenience
but farmers are not receivin. s,,cb
prices. Instead. they are compelled
10 take prlcos no more. on the aver
age. than the pre-war nor,nnl. md
In tho case OF some crops. consld
crnbiy below.
Tho trouble now is that whcreas
the prices the farmer receives for
MS crops arc lower than before In,
war. the price lie pays for the things
he needs ARC from 20 to 10 per cent
ibovS the pre-war prices. Hence
the purchasing power Of tho major
farm crops is probably lower than
ut any time In our history, and thIs
mas very much TO do with the nation
wide Industrial and business dcpres
sion
1T is doubtful whether ngrjcul,ur.
can mako complete recovery for
many years unless the normal ratio
between the prices tho farmer re-
ceiyes for his crops and the freight
rates he pays. both on what no coils
and what he buys. Is ro-estnblished
soon"