Show FREIGHT RATES NUT NOT CAUSE GAUSE OF FARM PLIGHT Railroads Make Reply to Ito Secretary Wallace Opposing Op p posing sing Reduction of I Charges on Farm 3 stuffs fluffs tuffs i WASHINGTON W Feb 23 The The i railroads ro ds through tho bureau of ot r railway Uway economics maintained by them here Issued a a. statement to today today to- to day designed to show that freight r rates tes on farm products are not responsible for the fluctuations in inthe inthe I Ithe the prices paid to producers The statement presented the re results re- re suIts of at a study ol dt the prices paid to producers of f wheat corn corn- oats oMs I and livestock and was a reply repy to the contention of ot Secretary Wallace Wallace Wallace Wal Wal- I lace that freight rates on farm products should be reduced to re relieve relieve re- re lieve the agricultural situation The cost of living at present said the statement is 1 per percent percent percent cent greater than in 1913 The average hourly wages of unionized workers increased 93 per cent be between between between be- be tween 1913 and 1922 and has ha Increased in increased increased In- In creased from 5 to 10 per cent I since Bince 1922 so that union wages arc are now more than per cent greater than in 1913 The hourly wages of railway have Increased per cent since 1915 while their annual earnings have Increased 97 per cent FREIGHT RATES HIGHER Freight rates generally now are B per cent alove 1913 lOU Accord- Accord lug Ins to Secretary Wallace freight rates on wheat from country shipping ship ship- pi ping 1 points to primary y markets are 45 per cent ab above ve the the p prewar e v r rates Rall ay taxes per pel mile are per percent percent percent cent higher now than in 1913 Because Because Be Be- cause the Increase in freight rates rates since 1913 is smaller than the In Increase Increase increase In- In crease in cost cost of ot living mid and in in wages it is evident that tho cost of ot transportation service considered considered consid consid- ered as one factor of ot distribution I is lower relatively than the cost of ot other services involved between producer and consumer The bureau declared Its study tended to show that in marketing commodities such as Its wheat corn cornand cornand cornand and oats where supply and d de demand demand de- de I mand is the tho measure of ot comPetition competition competition compe compe- and where freight rates do donot donot donot not change the fluctuation of farm prices upward and downward Is due duo entirely to causes beyond the lintl influence ence of f local freight freigh t costs FREIGHT SMALL FACTOR The Th study of ot livestock ek the statement statement statement state state- ment said showed that out ut of ot every dollar paid by livestock buyers buyers buy buy- ers ers 65 cents went to the tho railroads railroads' for freight 33 cents represented other costs of ot distribution and I cents was realized by bY- bYthe the pro pro- ducer This study stud it was asserted tended tended tended tend tend- ed to show that freight charges are relatively a small factor fact r in the price paid for livestock that ap apparently apparently apparently ap- ap the principal factors in influencing influencing in- in the thes the's s sellers sellers' net proceeds are the quality of the tho stock and market conditions and that in the marketing of of f cattle arid and calves hogs and sheep the present transportation transportation transportation trans trans- costs are are su such h as as to to- toper permit permit permit per per- mit of the free m movement of ot 11 stock to the the various m marketing centers from a consider considerable ble range of ot territory |