The News-Herald. [volume] (Hillsboro, Highland Co., Ohio) 1886-1973, 1890-09-18
GRAIN RATES.
The kelation Of the Farmer to the RAIL.
roads--Grain Rates and the Interstate
fynyu uvoiasiOr. rA .aI.r

rOads--0rain hhtes ana Sne lnter-Stnto
Commission.
In the Chicago Railway Review Of
July 90 Mr.. Aldaos F. Walker reviews
the argument Of e. w. Lambertson, Of
Nebraska, before the Interstate Com
merce Commission, in behalf Of lower
freight rates on Nebraska grain, and
presents the arguments in favor OF the
railroad side OF the question.
Such arguments may be epitomized in
two paragraphs as follows:
'sThe Commission claims to have
found that the average cost of produc-
ing a bushel of corn on Nebraska
farm and delivering the same at rail-
road station Is 1s cents This is GER
tainly an outside figure, and it includes
not only the cost of all labor and actual
expenses paid out but also interest
upon the farmers entire property, not
simply his investment but the current
market value of the land"
To this paragraph the following clip
ping from the Nebraska State Journal
is the farmers answer:
"A gentleman now a resident of this
city, formerly resident Of Iowa, states
that in 1888 he sold 160 acres Of land in
Crawford County, Iowa, for Ss5 per acre.
Since that time the Chicago, Milwaukee
& St Paul railroad has built line end
started the town of Buck Grove within
eighty rods of the farm, but notwith-
standing this he was offered the entire
farm the other day for SIS per acre, max
ing depreciation of 81, 600 in the value
in seven years He states that all
through that part of Iowa he can buy
improved farms for So to $40 less per
acre than he could get wild land for
seven years ago."
Mr. Walker then proceeds to state
that 'In other words, the farmer at
Lincoln, in receiving 1S cents per
bushel for his corn, gets more than he
is willing to allow the railroad company,
for he realizes full return for actual ex-
penses, and interest upon not the first
cost but upon the present value OF his
plant" But the present value of the
farmers land, as will be seen from the
above clipping, is much less, improve
ments and all, than the first cost of the
raw land and does not include the value
of improvements made, so that MIR.
Walkers statement is misleading, to
say the least.
The farmer, although the most inter
ested party, has nothing whatever to say
in reference to the valuation or price Of
his farm, such value or price having been
gradually and continuously decreased,
until the depreciation in value since
1873 has been at least 80 per cent This
depreciation has been caused directly
Tin common with that of all other values
both of real estate and of all produce
and commodities, by the insufficient
volume of currency and by the appre-
citation in the value of gold, caused by
the demonetization of silver and the
adoption of the single gold standard,
contrary to law by the Treasurer Of the
United States.
And the same legislation, indirectly,
has caused a greater depreciation in
value of farm lands, as compared with
other values, because the fall in price
of all farm products has rendered farm
ing Improbable and farm lahds unde-
sirable property to own and bay taxes
upon. But the mortgage uponfthe farm
has not only not decreased in Its face
value, but on the contrary, has largely
increased in actual value, because IL
takes so much more produce of all kinds
to pay both principal and interest
With these facts in view we will pro-
ceed to Q consideration Of Mr.. Walkers
plea that the farmers are not willing to
allow the railroads 'interest upon not
the first cost but upon the present value
of" the railroads. To one not aware Of
the actual facts this plea may appear to
be plausible, but 1t is, in faot bpecious
and sophistical.
Railroad values represented - they
are by interestbearing bonds and div
idend paying stocks) like farm mort
cages, have wonderfully increased, not
in face but in actual values by reason Of
the increased purchasing power of the
money received as interest and div
idends. II the value Of railroad property
was justly to bear the same deprecis.
tion from the same cause that the
values Of farm lands and farm products
have suffered, then the rates of freight
upon all classes Of farm produce should
have been lowered in the same proper
tion that the prices Of farm produce
have fallen. But such has not been the
case, as freight upon corn was about the
same last spring when corn was selling
for fifteen cents as when 1t was selling
at fifty cents Moreover, railroad values,
unlike any other values are largely
fictitious Instead of the interest be-
Ing based upon the principal, the amount
of existing principal is determined by
the amount OF interest paid.
In other words, the supposed value Of q
railroad is that amount upon which the
tribute exacted from the people will pay
a fair rate of interest while the limit OF
this tribute is affixed by the owners Of
the railroads, who charge all the traf-
fc will bear" 1t will be noticed at
once that the railroads under
this arrangement possess privileges
and advantages that are not and can not
be accorded to the farmer. II the farmer
were not subject to the law of price and
to the fluctuations Of values, but could