Evening star., 1925-08-22
FARM DEPRESSION
CLAIM |SDOUBTED
Railway Age Hits Congress
Resolution Relating to
Agriculture Needs.

In view of the prevailing prices Of
commodities in general and especially
of farm products, the Railway Age, in
an editorial In it's current issue. raises
the question az to how the Interstate
Commerce Commission can give effect
to the real purpose of the Hoch-Smith
resolution regarding readjustment Of
freight rates passed by Congress at it's
last session. This resolution referred
to the existing depression in agricul-
ture' and directed the commission to
effect such lawful changes in the
rate structure Of the country as will
permit the freedom of movement by
common carriers OF the products OF
agriculture affected by the depression,
Including livestock" The resolution
was passed in January. The Railway
Age calls attention TO the fact that in
July, 1925, the average wholesale price
of farm products. a s reported by the
Bureau of Labor Statistics. was 61
per cent higher than in 1918, before
the war. while the average for all COM
modities was only 59.9 per cent higher.
Conditions Then Existing.
AT the time the resolution was
pa ssed," says the Railway Age, "the
prices of farm products were not low
as compared with those of most other
lively low for few years before, and
the authors Of the resolution evidently
believed that they would soon be io%
again. There were considerable fiuc-
tuations in the prices of most com
modities during the first seven months
of this year. but throughout the time
since the Hoch Smith resolution was
pa Ssed farm prices have held their
own with other prices. During these
! h, ~
modities averaged 5S.s per cent higher
than in 1918. and the prices of farm
products 5Si2 per cent higher.
The Department of Agriculture
publishes monthly statistics rega riding
the prices received by the producers
at local farm markets for l5 of the
most important products. These show
that there have been increases within
the last year in the prices received by
the farmers for l3 of these products
tntfl comparatively recently there
was complaint that while the prices OF
some farm products had incres sed
those of livestock were stiu low. The
statistics regarding the prices of live
stock axe. therefore. especially signifi
cant. Between July. 1924, and July
1925. the average price paid at loca1
farm markets for beef cattle adva need
from s5.65 to S6.55 per 100 pounds. OF
is per cent: hogs. from $3.50 to $12 .02
or 81 per cent; veal calves from $7.Ss
to sS.65, or almost 10 per cent; lambs
which already were high. from $40. 81
to fll.I, or almost l6 per cent.
Not a New Proposal.
The proposition that freight rates
Cn farm products should be made es
pecially low because the prices of farm
products were low was not new one
| 1t was energetically exploited in tht
grain rate case decided by the Inter
state Commerce Commission late II
; 1921, when the commission, largel,
because the prices of farm product,
We're low. ordered the rates on grair
reduced. In December. 1921. the aver
age wholesale price of farm products
as reported by the Bureau of La boz
| Statistics. was only 20 per cent higher
than in 1918. In July, 1922. Il wa,
30 per cent higher than in 1918. This
was an advance OF 12ia per cent since
the reduction of rates on farm prod
ucts had been made. In July. 1924, II
was Al per cent higher than in 1918
an advance since December. 1921. OF
i7l2 per cent. In July. 1925. the last
month for which figures are avsila Bile
/ IL was 62 per cent higher tina n in 1913
an Increase OF about 35 per cent since
freight rates were reduced al the be
ginning OF 1922
Since the relations between prices
generally have been restored close &c
what they were before the war there
Is no reason for believing that the
present level and relations of prices
are merely temporary. Furthermore
there is no reason for believing tha,
the present costs OF railroad opera
tion are temporary. If-the theory that
rates should be based upon prices
should he applied. then the advance ir
rates in Western territory on most
commodities, and especially on farm
products. would be much greater tina r
the per cent for which the railways
are asking