Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1897-07-14
WHO GETS rHE BENEFIT.

In the course Of his reply to the demands
OF the Kansas board Of railroad commits
sioners for lower rates on grain and coal,
President Ripley. Of the Santa Fe, fired one
shot that has taken away the breath OF
the anti-railroad agitators. 1t was Sc,
forth in the demand for reduced grain rates
that the farmers would receive the entire
benefit OF the reductions. In the demand
for reduced coal rates it was held that the
advantage would accrue TO the same farm
ers. President Ripley desired TO be in
formed of the system of logic that had
been employed TO bring the railroad COM
mIssioners TO the belief that in one case
the producer would be benefited. while in
the other It would be the consumer. II it
is true that the amount of reductions in
rates may be added TO the price received
by the farmer for his grain, why, asks Mr..
Ripley. will not a like reduction in coal
rates add to the price received by the
miner? 1t is plain enough that one or the
other of the positions assumed by the COM
missioners is untenable.
Mr.. Ripley holds that a reduction in freight
rates always inures to the benefit of the
consumer-thst is TO say, If it is general
enough to AFFECT any considerable portion
of the crop going to market. In support Of
this conclusion he cites at least one in
stance that will be well remembered by
those who had business in the grain mar
kets a year ago. We quote as follows:
Last summer there was a reduction in
the corn rates from Kansas. On July IA.
1896. September corn was selling in Chicago
at 2Sh cents q bushel. May corn was SELL |
ing at 30% cents a bushel. On that day
notice was given by one of the Kansas
roads of a reduction OF : cents per 100
pounds in the rate on corn from Kansas
TO st. Louis. which rate became effective
on the 18th Of July. This forced a SINH
lar reduction to Chicago. On July IS. Sep |
TENDER corn closed at q cents in Chicago
and May corn at 2slz cents. On July 81
September corn sold at PAS cents and May
corn at 2T% cents. On August % a further
reduction OF 8 cents per 100 pounds in the
freight rate on corn was made to both st.
Louis and Chicago. On August % Septem-
Der corn sold in Chicago at 2Jk cents a
bushel, and May corn at ISIS cents These
figures show a total reduction in the freight
rate from July "a to September 10 of u
cents per 100 pounds, which is equal to
6.72 cents per bushel. The decline in the
market price of corn during the same
period Appropriated S cents a busheI in
September corn and : cents In May corn,
showing that at the end of three months
war in rates the position of the Kansas
corn producer was relatively worse than
before the rates were reduced. In other
words the decline in the Chicago market
absorbed the entire reduction in the freigh
rate, and the benefit Injured to the con-
Mr.. Ripley did not follow up his coal
proposition with illustrative figures. but
was scarcely necessary. Every coal
dealer and consumer in Kansas is well
that any reduction in the rates be-
comes at once of advantage to him. A re-
duction Of 80 cents a ton to any point in
Kansas viii reduce the price to the con-
sumner in exactly the same sum. and this
would seem to establish pretty clearly the
Of Mr.. Ripley that the producer
no substantial benefit I'm a reduction
Of freight rates.