Imperial Valley press., 1924-02-18
East Central Section of U. Sis
In Good Condition; General us.
Business Drops Below Normal

~ BABSON PARK, Fla, Feb. Is
THE east central section is more
active and is distinctly in 4 bette
position business-wise than either
New England or the north Allan
tic group, according to Roger W.
Rabson. statistician. The third see
tion of his detailed report on busi,
ness conditions in the United States
and Canada, issued today, gives his
findings in the six states comprising
this group.
Michigan is leading over Ken
tucky, OHIO. Indiana, Wisconsin
and illinois," says Mr.. Babson,
with a gain of % per cent as com
pared with business year ago. This
section as a whole shows an in
crease OF IS per cent over last
year.
"Twenty-five years ago this see
tion was almost entirely agricultur-
al. But since that time have been
more and more impressed on each
visit with the increasing diversity
Of interest and the changes that
have taken place in the sources Of
purchasing power.
"Statistics show that 55 per cent
of the income of these six states
is industrial rather than aoricultur-
al. The crops of course are still
important and it is interesting 10
compare returns on this source Of
income with last year.
Wisconsin is doing exceedingly
well with its dairy interests. During
The downward swing of business
which began in 1920, one of the
most spectacular features was the
relative strength of the dairving re-
gions. Business in the dairving
sections remained relatively good
even when sales were at their worst
in other agricultural territories
The resistance which the dairvins
regions shows to business depres-
sion is worth bearing in mind.
Failures Decrease
''In all of these east central
states / find a distinct decrease in
failures, running from a 40 per cent
decline in Kentucky to aronnd y
80 per cent decrease in Illinois,
Michigan and Wisconsin,. Further,
4 diversified interest represented in
this section promises to keep it in
fair. shape regardless of what may
Happen to other sections of the
country. If business, for instance,
slaekens in certain manufacturing
centers during 1924 it should pick
up IN the agricultural regions. In
addition | feel that the manufactur-
ing, interests of the central west are
in Va stronger position than those
of the east because they are pro
tected' both from foreign and home
competition by high freight rates.
s'When i'll Washington recently
| spent considerable time studying
the prospects for railroad legislation
by the present Congress. am con
WINGED that freight rates on farm
products are too high compared
with manufactured goods and some
will be made. With
the farmers getting only pre-war
prices for their products and being
obliged to pay about 70 per cent
higher freight rates, it is fairly cer-
ain that an adjustment is due and
that freight rates on farm products
will probably be lowered while the
freight rates OH manufactured goods
will be slightly increased as far as
his section of the country is con
,erned.
Three Centers
''Such readjustment should help
the business interests of these
3tates in two ways. First, by saw
ing the farmers part of the money
that would otherwise go out of the
!ast central states in form Of high
er freight rates, Secondly, by Civ
ing the manufacturers of this sec
tion even more protection than they
now enjoy in the form of high
freight rates on manufactured
goods which effectively handicaps