High Hurdle For Oklahoma Industry

AN acute problem faces manufacturers in the southwestern states, including Oklahoma, Arkansas, Texas and Louisiana, because of the present freight rate structure which discriminates against this region and favors the northeastern part of the United States . The competitive disadvantage of Oklahoma and the Southwest resulting from discriminatory rates is a material factor retarding the general economic development of this region . The problem as it appears in particular industries is well known to many businessmen. But its full economic import is not generally recognized . Economic development of the Southwest follows the pattern found in the history of other regions. The early stage of this development is characterized by extensive production of agricultural raw materials and exploitation of mineral and forest resources. Despite a pronounced demand for labor and capital, a region in its economic youth has a shortage of these factors in proportion to natural resources . Because of this deficiency, a new territory adapts itself to a system of production involving extensive use of land and exploitation of other resources but a sparing use is made of labor and capital . The greatest comparative advantage is in