September, 1921 



BETTER FRUIT 



Fage 3 



Has the Farmer a Real 



Grievance? 



Yes, he has I 



He has a real grievance because the prices he 

 receives for his products have declined more than have 

 the prices he must pay for almost everything he buys. 



Because of these facts the farmers are not making as 

 large profits as they believe they are entitled to make. 

 Some blame their troubles largely on the railroads. 

 "Freight rates," they say, "are the cause of low prices 

 for grain and live stock." 



The real cause lies much deeper. The decline in the 

 prices of farm products began before freight rates were 

 advanced, and would have occurred if freight rates 

 never had been advanced. It is due to world-wide changes 

 resulting from the transition from war to peace. 



The Railways Have the Same Grievance as the 

 Farmer 



The rates the railways are getting, although they have 

 been advanced, are much lower in proportion than the 

 cost of almost everything the railways must buy. 



High Costs Make High Rates 



The average passenger rate is about 50 per cent higher, 

 and the average freight rate about 74 per cent higher, 



than five years ago in 1916, before this country entered 



the war. 



From these facts it might be thought that the railways 

 should be making money. 



BUT — the prices the railways are paying for 



Materials and Supplies are no^v 65 per cent higher 

 than in 1916; 



Taxes are 90 per cent higher; 



Coal per ton is 144 per cent higher; and 



Wages of railway employees are still 124 per cent 

 higher per hour. 



In consequence of these things, while the total earn- 

 ings of the railv^ays are 60 per cent greater than in 1916, 

 THEIR EXPENSES ARE I I PER CENT GREATER and 

 THEIR PROFITS, SINCE THE PRESENT FREIGHT AND 

 PASSENGER RATES WERE MADE, HAVE BEEN LESS 

 THAN ONE-HALF AS GREAT AS IN 1916. 



What Has Happened to the Railroads Since 1916: 

 Increase in Revenue ■■^■b^™™ 60 7/) 



Increase in Expenses ■■^iBMMBM^i^"""" \ \ 7/) 



In 1916 railway zvages zvere $1,4-69,000.000. After the Railroad Lahor Board advanced them last year they were at the 

 rate of $3,900,000,000, an increase of 165 per cent. The recent reduction ordered by the Lahor Board was only 12 per 

 cent, leaz'ing zvages about $2,000,000,000 greater than in 1916. 



Coal cost $1.76 per ton in 1916, the total fuel bill being $250,000,000. In 1920 the average price was $4.20 per ton 

 and the coal cost $673,000,000, or $423,000,000 more than in I9I6. The average cost of railway coal is now $4.29 

 per ton. 



With prices of materials and supplies still 65 per cent higher than in 1916, the materials and supplies which the rail- 

 ways bought for $447,000,000 in 1916 would now cost them $750,000,000, or over $300,000,000 more. 



Present Railway Rates Chiefly Due to Labor 

 Costs — Not to Return on Capital 



Elxisting rail%vay rates are higher not because railroad 

 capital is receiving or seeking a larger return, but be- 

 cause railroad LABOR, and labor producing things the 

 railroad must buy, is getting so much more than formerly. 



EVERY INCREASE in rates since 1916 has been in- 

 tended to meet — but has not met — these increased ex- 

 penses, CHIEFLY LABOR, and NOT to increase profits. 



Railway profits have GONE DOWN. 



In 1916 the railroads earned 6 per cent. In 1921 they 

 will be fortunate if, on present rates and present expenses, 

 they earn 3 per cent. 



A GENERAL reduction of rates now could not be made 

 without BANKRUPTING most of the railways and making 

 business of ALL KINDS much worse for everybody. 



The managements of the railroads are making every 

 effort to reduce expenses so that rates can be reduced 

 later. Some reductions of rates already are being made. 



There is NO OTHER WAY than by reductions in ex- 

 penses to secure general reductions in rates that will not 

 be ruinous to the railways and make them unable to ren- 

 der to the farmers the transportation service they need. 

 Those who obstruct reduction of expenses not only hurt 

 the RAILROADS but the FARMERS as well. 



Association of Railway Executives 



61 BROADWAY 

 NEW YORK 



764 TRANSPORTATION BUILDING 

 CHICAGO, ILL. 



^hose de'sering 'furiher^ information &n the railroad situation are requested to address 

 the offices of the Association or the presidents of any of the individual railroads. 



MUNSEY BUILDING 

 WASHINGTON, D. C. 



Better Fruit, Vol. 16. No. 3. Published monthly at Portland, Oregon. Entered as second class matter at the post office at Portland, Oregon under the 



Act of March 3, 1879. 



