Factors in the Farm-Railway Situation - An Address by L.A. Downs

Sep 21, 2026

Uploaded by Theodore

A formal 1927 address by L.A. Downs, President of the Illinois Central System, examines the remaining points of disagreement between farmers and railwaymen. It argues that many earlier grievances about railway service and delivery timeliness have largely disappeared, highlighting improved efficiency and reliability. The speech then critiques rate reductions as a remedy, explaining how market prices respond to supply and demand rather than only freight-rate changes, and calls for fair rate adjustments under changing economic conditions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages10

Reading Time25 min

AccessFree to download

Factors in the Farm-Railway Situation

Rates Blamed for Many ills

Rule Should Work Both Ways

97-84077-11Downs,LawrenceAloysius Factors in the farm-railwaysituation [n.p.] [1927?] # COLUMBIA UNIVERSITY LIBRARIESPRESERVATION DIVISIONBIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED-EXISTING BIBLIOGRAPHIC RECORD Reproductions may not be made without permsion from Columbia University Libraries. ## RESTRICTIONS ON USE: TECHNICAL MICROFORM DATA FILM SIZE: 35mmREDUCTION RATIQ: 10:/ DATE FILMED: 5-7-97INITIALS: P6 23965 ## TRACKING\#: FILMED BY PRESERVATION RESOURCES,BETHLEHEM,PA. ## FACTORS IN THE FARM-RAILWAY SITUATION 328(2G 1 An Address by L.A.DOWNSPresident,Illinois Central Systemat the WEST TENNESSEE FARMERS'INSTITUTEJackson,Tenn.,July 20,1927 DA # Factors in the Farm-Railway Situation L dre11720-4bEo The subjects of mutual interest upon which farmers and railwaymen are in substantial agreement are more numerous today,I believe,than ever beforeI am tempted to list and discuss those subjects.Itwould be an endless task but a pleasant one.However,it is muchsimpler to list and discuss the few remaining subjects of disagreement,and I believe it is more important to do so,for only in that way cancomplete agreement be attained. Several causes of disagreement between farmers and railway menno longer exist.For example,there is no longer any argument con-cerning the adequacy and eficiency of railway service.Farmers,incommon with all railway patrons,now receive cars promptly whenthey want them.As soon as the cars are loaded,their movement isbegun under the impulse of power that is modern and efficient.Themovement is made without delay,over tracks that are laid with heavysteel,adequately ballasted and thoroughly protected by signals,andthrough yards that are marvels of efciency in the classification ofcars and the breaking-up and making-up of trains.Finally the de-livery is made,at least hours,often days,in advance of the time thatwould once have been required,and at least ninety-nine times out ofone hundred in A-1 condition. Certainly railway service of that kind ought to go far toward mak-ing up for whatever other deficiencies the railroads may,in the opinionof their patrons,seem to haveIt was once estimated,as some ofyou may recall,that every shortage of transportation cost the farmersand business men of the country through the temporary impairment ofservice at least as much as a year's freight bill could amount to.Thoseshortages occurred frequently in the past.They came suddenly,with-out warning,whenever for any reason business rose to unusual heightsof activity.The fact that we no longer suffer from them should beregarded as one of the proudest achievements of American railwaymen and one which should entitle them to lasting credit.I am nothere,however,to call down praise upon the railroads,but to discusssome of the remaining differences of opinion between farmers and rail-way men. RATES BLAMED FOR MANY ILLS It is no secret that railway rates are regarded as the cause of manypublic ills and that the revision of rates is frequently urged as a remedyfor these maladies.For example,right now some of the coal minerswho are on strike are advocating changes in freight rates on coal inorder to establish a situation which they hope would put them back at work.For a great many years the farmers likewise have had atendency to look toward reductions in freight rates as a means ofadding to what they receive for their labor—that is,the prices theyget at the farm or at the local station for their products. There is a fallacy in this belief which will become apparent upona little examination.The fallacy lies in the assumption that the cen-tral market price is a fixed thing.The fact is that the central marketprice—like all other prices—is the result of whatever the current rela-tionship happens to be between supply and demand.Because of thepossibility that a reduction in freight rates might have a te

FAQs

What disagreement does Downs say still exists between farmers and railwaymen?

He suggests many major causes of disagreement have ended, then focuses on the remaining differences of opinion rather than the resolved ones.

Why does Downs challenge the idea that lowering freight rates benefits farmers?

He argues central market prices are not fixed; they change with supply and demand, so reduced freight rates could lower the central price as easily as they might raise the farmer’s net price.

What principle does Downs propose about changing railway rates?

If rates are reduced due to temporary business depressions, he says rates should also be increased when prosperity returns, so the overall rate level and railroad earnings remain stable.

Sep 21, 2026

Uploaded by Theodore