FOREST POLICY. 35 



The public desires lower rates of freight, whilst the railroads 

 are eager to increase them, claiming that freight rates are the 

 only "commodity" which, with the decreasing purchasing power 

 of gold, and with the increase of wages, has not been increased 

 simultaneously. 



A general increase of all freight rates all over the United States 

 by a given percentage say by 10 per cent would discriminate 

 against shipments over long distances, and would favor, relati- 

 vely and absolutely, the shipper and also the owner of woodlands 

 close to the points of consumption. 



An absolute increase of all freight rates by a fixed sum say by 

 2 cents would, on the other hand, favor the shipper far away 

 from the point of consumption, and would discriminate, against 

 the shipper from points close to consumption. 



Naturally, where the operating expenses of a railroad are high 

 [in a broken country, and far from coal], the expense of freightage, 

 and hence the freight rates are high, higher than under the 

 reversed conditions. 



The Interstate Commerce Commission is now called upon to 

 decide the so-called "tap line" cases; the cases of "car stake 

 equipment", and so on. 



Low freight rates have the tendency to increase the size of the 

 various industrial enterprises, and to eliminate the small and 

 weak establishments; they have the tendency to produce by 

 the elimination of the weaker producers combinations of the 

 strong ones ; they have the tendency to kill home industries, 

 and to favor the large factory ; have the tendency to favor impor- 

 tation, notably, of raw material ; have the tendency to decrease 

 the cost of living. 



The change of a freight rate gives, when it is locally increased, 

 an undeserved blow to the local industries; when it is locally 

 decreased, it gives an undeserved advantage to the producer. 



B. STUMPAGE VALUES AND SOIL VALUES. 



Suppose lumber is selling at 25 dollars per M. delivered to 

 a given city. The lumber may come at the freight charge of 

 5 dollars per M. from a place at which it sells at 20 dollars f. o. b. 

 cars; or it may come at the freight charge of 20 dollars from a 

 place at which it sells f. o. b. cars at 5 dollars per M. 



SCHENCK, FOREST POLICY. ; 



