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Show SJaiSs Ask Ilaii3 Ineresise By Frank G. Shelley Executive secretary, Utah State Farm Bureau Federation. For the fifth time since the war railroads have lasked the Interstate Commerce Commission for increases increas-es in freight raes. This one is for a 13 increase and, if allowed will bring the increase to $4,100,000, since the war on freight and passenger pass-enger revenue. It is difficult to understand un-derstand the reasoning of the railroads rail-roads in such a request unless it is in anticipation of further increases in labor and operating costs. If this is true the railroads must assume the responsibility for encouraging such increases land the subsequent stimulus to the inflationary spiral. Agriculture has been openly accused ac-cused of being responsible for inflation infla-tion because the cost of food is high to the consumer, yet, the facts show conclusively that farmers farm-ers have done -a magnificent job of producing a maximum, which is the best possible anti-inflation formula. As a result of this all-out abundant production prices to far mers are slipping off, only to be absorbed by increased freight rates, increased handling costs and increased in-creased profits to the middlemen. Surely the American public is intelligent in-telligent enough, and the students of economics are smart enough to understand what is taking place. Here are a few .actual facts to get your teeth into: It takes 6 pounds of wool to make a suit of clothes. This suit could be bought for around $50 last year and will cost you $75 this year. Wool brought the farmer 41.9 cents per pound on September 15,1947 and 46.3 c per pound on the same date this year. Figure it out yourself; 6 lbs -at 41.9 equals $2.52, and 6 lbs at 46.3 equals $2.78. First note that the farmer received $2.52 'for the wool which sold as a suit for $50 and that the increase in price to the farmer of 26 cents on the wool this year resulted in a $25 increase in the selling price. Last summer, of the apricots sold, in nearly every instance where shipment of the fruit was necessary, freight companies got Avo to three times more for handling hand-ling the fruit than the farmer did for his entire year of work. Do you know that under present cost of transportation, handling & distribution it would cost 12 cents a quart to put water through the processes required for milk and place it on the consumers doorstep? door-step? For the four to six cents that the farmer receives it is often necessary for him to maintain better bet-ter conditions for his cattle in his dairy barn than he can provide for his family in his home. Consider also that substantial number of farm products are already al-ready considerably lower in price to the farmer than last year. Here are a few of them: Wheat has dropped from $2.43 a bushel to $1.97 a bushel. Other farm products have also dropped; rye, $2.48 to 1.39; Corn 2.40 to 1.78; Rice 2.33 to 2.16; Oats 1.08 to .687; Butterfat .84 to .756; .and eggs, .53 to .514. Meats have remained high because be-cause of the tremendous demand. During 1935-39 when we were plagued plag-ued with undisposable "surplus" the number of beef cattle on farms and ranches totaled 41,815,000 head. Average dispoabble consumer income was $535 per person, and the people consmued 126.2 lbs, of meat per person. In 1947 farmers had 53,399,000 head of cattle; .the cash dispoable consumer income was $1,205 and the consumption of meat 155.2 poudns per person. Now back to this freight rate: question: During the first eight months of 1948 estimated net income of the Class I railroads (after interest and rentals was $86,000,000 compared with $53,000,000 in the same period last year. Net operating income of the ClassL carriers for the first six mdnths of 1948 was $421,000,000 as compared with $289,000,000 during the same period last year. On top of this the railroads are asking for an increase in rates which will amount to $1,092,000,000 to cover a raise allowed and expected ex-pected for railroad workers of $381, 170,000 per year on the 132 major railroads. This boost of pay for workers will result in almost $3 increase in cost of living for each $1 of increased wages. Considering the fact that if farm ers received nothing for their products pro-ducts it would make little or no difference in the price consumers would pay, it is about time that tne American public took a good square look at the real reason for inflation and, if they are really against increase in prices, take action to halt this vicious transportation trans-portation handling cost wage increase in-crease for elss hours and less production pro-duction cycle, which if not stopped stop-ped will bring the whole inflated structure down on this nation's head. Farmers are already feeling the pinch. If labor and the railroads rail-roads think they can push these additional costs on to agricvulture they will most certainly hasten the collapse of our inflated economy. In the interest of national welfare wel-fare the Interstate Commerce Commission should most certainly reject the application of the railroads rail-roads for any further increases in freight rates at this time. Paid advertisement by the Millard County Farm Bureau. |