Salt Lake Telegram | 1931-07-03 | Page 4 | Threat to Industry

THREAT TO INDUSTRY THE appeal of the railroads for a THE increase in freight rates indisputably Is is' a P. threat to industry They say that the only alternative is a acut acut acut cut in wages for a mil million 11 and a quarter of railway workers They say the raise is essential essential essential essen essen- to maintain the credit of the transportation transportation transportation tation industry Wall Vall street supports their contention Some labor leaders favor granting the pe pe- pe Others oppose it The Thc railroads say the increased income in large part would bep be p passed sed on to labor whose hose increased purchasing ing power would be felt in other lines The agricultural interests and many lines Jines of Industry whose products are not consumed by the railroads view the increase as a vital blow to the industrial structure of the country Summed up the railroads and allied interests interests in interests in- in declare the increase would be a stimulant stimulant stimulant to the entire business field in the United United United Unit Unit- ed States St-ates those opposed as ts vehemently asseverate that it would be a knockout blow What do the railroads think of the public attitude toward the proposed advances They have blamed truck lines pipe lines water carriers and other competitors for for- fora a large part of their distress With higher transportation charges will business and Industry industry in industry in- in prefer to pay the increased rates to the railroads or to use the competitive agencies agencies agen agen- cies des at lower cost to move their freight Does money flow to or from front the owners i of railroad securities Increased freight rates will wUI result in Increased in increased increased in- in creased costs in the distribution of ot the products products prod prod- nets of farm and factory mine and mill D Distribution Dis Dis- s- s costs have been assailed by economists economists mists as the outstanding factor in making the differential between manufacturing cost and cost to consumer out of all proportion to a reasonable spread Higher freight rates re resulting re- re suiting in higher costs of commodities will further reduce the purchasing power of the American dollar This can only have the effect of stagnating business and Industry in a time when the arteries of commerce are arc already clogged The conclusion is inescapable that the carriers have chosen a most inopportune time timeto to ask sk for higher rates Instead of furnishIng furnishing furnishing furnish furnish- ing widespread relief action by the interstate interstate interstate inter inter- state commerce commission in granting the request at this time will bring about a crisis from which the business of the country will willbe willbe willbe be unable to extricate itself The railroads have other means of ameliorating their con con- There are still some extravagances which may be curtailed without injury to service Elimination of these will help If It will not wholly solve the problem