lected out the railroad industry and made it an exception. We told the rail- 

 roads, while everybody has to reduce their charges, you may increase your 

 charges by over a billion dollars. 



One further significant fact in this connection: The latest available 

 figures I have indicate that the average prices of farm products at point 

 of origin are below the pre-war level. I do not believe that is true of any 

 other great industry in our country. 



AN ALARMING CONDITION. 



Now let us summarize the situation in one sentence: The record of the 

 past year demonstrates that the strongest, the most powerful organized in- 

 dustry amongst our people is the railroad industry; and the weakest is the 

 agricultural industry. 



That astounding fact must never be forgotten so long as you people shall 

 live. It is time for agriculture to organize as never before. It is time for 

 agriculture to tell the people of this nation that it proposes to organize 

 for self-protection in business, in commerce, in society, and in government. 



PRESIDENT MANN: I think that paper is one of the best addresses 

 we have ever had to put in our book of record of this association. [Ap- 

 plause.] 



We begin to get some daylight on the subject when he says the farmers 

 have fifty-four per cent of the money on deposit in banks and then when 

 they loan it out they loan only about four per cent to farmers. 



Q. What are the prospects of a further reduction in freight rates? 



Mr. MATHENY: That is almost impossible to say. I think it will come, 

 but just how soon it is hard to say. We are doing the best we can. The 

 matters are before the Interstate Commerce Commission now. The railroads 

 have reversed their position. You see Section 15-A of the Transportation 

 Act put upon the Interstate Commerce Commission the duty, if you please, 

 of seeing that the railroads get a certain return on their investment. In 

 undertaking to do that the rates will have to go up again. But the railroads 

 have reversed their position and they did grant us a ten per cent reduction 

 without having to fight it out. As to what can be done in the future only 

 the future can tell. 



Q. The Railroad Labor Board has some effect, had it not? 



Mr. MATHENY: The effect of organized labor in the railroads had a 

 great effect on this whole freight rate question. The Labor Board did the 

 best it could. I don't know just how it could have done better. It is all 

 mixed up with politics. That is a pretty hard question to answer. 



Q. Will there be a continued rise in prices? 



Mr. MATHENY: I am not enough of an economist, sir, to answer that. 

 The law of supply and demand is certainly in force, but the prices certainly 

 did go up. Nobody knows why. Perhaps the grain exchanges and the live 

 stock exchanges could tell us, but they won't. 



Q. What is your opinion of the condition of the equipment, the rolling 

 stock of railroads now as compared to the war and prewar times? 



Mr. MATHENY: I would rather not attempt to answer that. I don't 

 know enough about it. 



Q. Well, some of them say it is worse now, but Director General Hines 

 and McAdoo say it is better than when they took it over. 



Mr. MATHENY: If the amount of money spent for the repair and 

 maintenance of rolling stock has anything to do with the condition of the 

 equipment it ought to be a good deal better, because they certainly spent 

 a good deal more money than they ever had before, but when you consider 

 what organized labor did by reason of its organization in increasing the 

 amount of pay, in increasing the number of men and in decreasing the 

 amount of work they did it is no wonder that the freight rates went up, 

 and you fellows pay it. 



Q. The cutting off of five hundred thousand laborers cut down the 

 expenses a whole lot, didn't it? 



Mr. MATHENY: It should. It does, undoubtedly. 



