Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-16
Michigan Leads East Central
States IN Business Actiuity
Babs0n Finds Industrial Income Greater
Than Agricultural-Dairy Regions
Prosper in Spite of Handicaps.

remained relatively good even when
sales were at their worst in other
agricultural territories. The resistance
which the dairying regions show to
in mind, although it may be danger
Gus to go entirely on precedent.
DairyinE Farming Profitable.
1t is probable that certain business
men who find farming regions an
unfavorable market may do relatively
well by concentrating their sales eff
forts in the dai ying' localities of Wis
consin, Ohio, Illinois and Michigan.
In all of these east central states.
with the exception of Indiana and
Ohio. | find a distinct decrease in
failures, running from 30 per cent
decline in Kentucky to around 90
per cent decrease in Illinois, Michigan
and Wisconsin. Further diversified
interest represented in this section
| promises to keep It in fair shape re-
CARELESS of what may happen to other
sections of the country. If business.
for instance. slackens in certain
manufacturing centers during 1924, 1T
should pick UP in the agricultural
regions What will be lost in one
field for these states Will be gained
in another. In addition ] feel that
the manufacturing interests or the
central west are i'll a stronger posi-
tion than those Of the east because
they are "protected' both from for
elSn and home competition DS nlSn
freight rates.
Sees Rate ACCOMPLISHMENTS.
When in Washington recently l
spent considerable time studying the
prospects for railroad legislation by
WINGED of .yNIt:tHtn gs in this connec-
ton: rsf,Sfhs1 The Esch- Cummings
act will not :hR' Eepealed as the rail-
roads need: sIaoTe rather than less
credit at thrypresent time. In the
second place. freight rates on farm
products are too high compared with
manufactured goods and some read
justment will be made.
With the farmers getting only pre-
, war prices for. their products and
being obliged to pay about 20 per
! cent higher freight rates, it is fairly
certain that an adjustment is due
! and that freight rates on farm prod
ucts will probably be lowered while
the freight rates on manufactured
goods will be slightly increased as
far as this section of the country is
/ concerned. SuCh REIMBURSEMENT
should help the business interests of
: these states in two ways: First, by
saving the farmers a part of the
money that would otherwise go out
! Of the east central states in form
nf higher freight rates. Secondly,
by giving the manufacturers OF this
section even more protection than
freight rates on manufactured goods
which effectively handicaps outside
competition.
Help for Middle West.
Such a change in railroad tariffs
will do much to build up the indus
trial centers of the middle west, the
Mississippi valley and the Pacific
coast.
The six states comprising this east
I central section contain the three
, economic centers of the United States.
The center of population is today
located in -southwe stern Indiana, the
center of manufactures is located in
western Ohio, while the center of
agriculture will fall in the southern
parts Of Illinois.
With general business in the United
States running at about ] per cent
below normal as indicated by the in
dsx figure of the Babsonchart, the
six states comprising this east GEN.
trail section certainly enjoy an I'M
usual advantage.
Mr. Babson, who is at his winter home
in Florida will continue his special articles
on business and economic conditions in next
Saturdays Star.