Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-14

trafic il 10000, 900 tons annually-half
from Canada and about half grain.
The return cargoes would be light with
very little chance for liner service.
The plan would not relieve railroad
congestion because the st. Lawrence
waterways would be closed to navigation
during much OF the peak trafflc In Win
ter. In order to effect reduction Of
4 cents q bushel In freight rates (the
American farmer not getting alb the
United States should have to pay out
about II cents o bushel.
Stated in another way, this Moulton
survey shows that. the annual expense
Of this project to the people Of the
United States and Canada, not covered
by tolls and freight charges, would
amount to at least $3.50 q ton for such
tonnage IS would use the route. This
statement Is q most important one.
The Moulton report has already
caused widespread discussion through
out the Middle West.
The dropping in the price Of wheat
during the last few days should not
cause the farmer to be unduly dis
couraged.
The Farm Board has already advised
farmers that they should not sell the
wheat in q hurry, but to take 1t easy.
If they fear q further dropping in
prices, naturally millions Of additional
bushels will be thrown on the market
and prices will be seriously affected.
I have Just received a letter from
one of the wisest of Canadian wheat OBJ
servers. Referring to the crop situa-
ton in western Canada he makes this
statement:
"The western (Canada) crop situa-
ton Is really very bad and we are in
for a very difficult Winter"
The American situation has been ag-
gravated by the fact that storage IA
cilities, both on the farm and at the
terminals, have been unable to handle
the crop. This Is not, however, so true
In Canada as 1t Is In the United States.
But q close checking Of the world
figures up to date would seem to irdi-
cate that the world wheat crop for 1929
will not be quite equal to the world
demand. The reserve carried over from
last years crop will likely be called
upon before the year Is over.
Farmers should not dump their wheat
on a falling market, Is the advice OF
the Farm Board.
When Sir Henry Thornton, the Ca
port to the Mexican government, after q
survey of the Mexican railroads, he
pointed out the need for q large reduce
ton in the number of employees and the
elimination Of all political pressure.
The Mexican Railways operate $500
miles Of road. This company is the
largest portion of the railway net in the
country. Rates are higher than In the
United States and Canada. They are
doing substantial and, in many Sec
TONS q growing business.
But the company has defaulted In its
bonded debt for IS years. Its earnings
hardly cover replacement expenditures,
to say nothing of the fair return on
capital.
The reason for this? Naturally the
numerous revolutions have helped. The
cannot move along under eco
nomic prostration. But the chief fault
really lies in the political character of
its management.
Ex-President Gales has decided to re-
organize the road and bring order out
Of chaos. It means q wholesale cut In
the operating force and the stopping of
many other leaks. He may succeed. He
has gift for organization and EN-.
cheney. Success TO him.
(Copyright. 1929. by North American News
paper Alliance.)