The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1905-05-19
evitably dragging the industries Of
the country into politics.
Example From Minneapolis

They cite a concrete case. brought
week. He explained at great length
the troubles in the northwest between
the big ,millers of Minneapolis, and
the spring wheat growers, over the
policy of the railroads to give lower
rates on wheat for export than on
| flour. The result has been to curtail
the export trade in flour, and to that
extent to reduce the earnings of the
big mills and affect the pay of the
! mill employees.
Mr.. Bacon admitted, however. that
CHS policy, while affecting the millers
unfavorabiy, has worked decidedly to
the advantage of the grain growers,
| who were, as a result, able to secure
larger price for wheat than under the
old conditions, when they had no mar
ket other than that afforded by the
| millers.
Mr. Bacon admitted on cross exami-
! nation that if the railroads were to
change their policy and give wheat
no harmful preference over flour in the
export trade, the flour exports would
undoubtedly increase and the wheat
exports decrease, giving larger profits
to the millers, while the wheat grow
ers would find their profits diminishing.
Prophesy by Railroads
! This situation suggests to the rail-
roads what would happen if this ques-
ton of adjusting rates between the
milers and the grain growers were
| turned over to the government
| At present the party claiming to be
injured has his appeal to the railroad
company, and if that appeal is not
needed, there is no redress. But if
the power to give redress is lodged in
the government, how, they argue, could
any satisfactory adjustment be reach
ed between the conflicting millers and
the farmers without dragging the en-
|
should be dragged into politics would
not the result be as disastrous as it
| has been in Germany and France for
the past quarter of century The
millers bring data showing their an
nual loss under the determinations;
| their laborers would side with them
and there would be a disposition to
hold the political party in powertoe-
| sponsible if no change were made. Sim
their rights to the preference they
were enjoying, and would likewise
visit upon the head of the party in
power their displeasure.
The Situation in Germany
This is precisely the situation in
Germany, and it explains why, in that
country, the government has found it
inexpedient to become a party to rate
contests between localities. The re-
suit, it is asserted by the railroad men,
has been in that country an inelastic
system of rates, the paralysis of the
government arm, though fear of polit-
ical consequences, and a condition Of
commerce much worse than that which
the present laws have sought to cor
rect.
AS a further hint Of the way politics
might be made to figure under a sys-
tenn of government rate making, an
other illustration, taken from Germany,
is pertinent: In 1894, the German gov
eminent endeavored to correct rate
inequalities by giving a lower rate on
grain from eastern Germany to the
western sections of the country. The
new rate incensed the western grain
growers, VINO claimed that their near
ness to the point of consumption en-
titled them to demand the continuation
of the old preferential rate, but for
Gently, however, the German emperor
became interested in a great reciproc-
ity treaty with Russia, and this treaty
was brought up in the national legisla-
tive body, where it was stoutly oppos-
ed by members from the western Ger
man states, who were strong enough
to prevent ratification. They made it
plain that they would prevent ratifi-
cation unless the Objectionable rate on
grain were repealed, and the govern
ment was compelled to yield ana put
the rate back to the old discrimina-
tory figure. Then the Russian treaty
was ratified.
Rate Regulation Evils.
The question in this country is
whether the ills it now has are great
er or less than those which rate reg
ulation by the government might bning
and to the answer to that question the
president and his cabinet and other
Thoughtful men are now directing their
serious attention. The senate sommit-
int TO