Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1906-11-28
Freight Rates.

An interesting discussion is now
being carried on between the State
Railroad Commissioners and Dairy
Commissioner, Fl. r. Wright, in re
gard to the rate on cream shipments
to points outside of Iowa.
When the Illinois Central gave 81
rate Of 40 cents on 100 pound can
of cream from Fort Dodge to Chica-
go and charged 40 cents on a can
of the same size shipped on the
same train to Dubuque but half the
distance, both commissioners said it
was discrimination and both con-
demned it. When the Illinois Gen.
trail raised the rate to Chicago,
Dairy Commissioner Wright was.
satisfied and had secured just what
he wanted. Railroad Commissioner
Ketchum was not satisfied and be-
lieves that the rate from Fort Dodge.I
to Dubuque should have been lower
rather than the rate from Fort Dodge
to Chicago raised.
Either method would have re
moved the discrimination. But Mr..
Ketchum believes that the lower
rate from state points to Chicago
would have kept those markets open
to the Iowa farmer who milks the
COW while to raise the rate to Chi
cago is in the interests of the cream
cry man.
HOW STATE Is INJURED.
Commissioner Wright says the
cheap rate to Chicago is Just what
builds up trusts which in the end
pay the farmer less for his cream
than the small creameries inside the
state. In substantiation of his
claim Mr.. Wright digs up facts and
figures to prove his statements.
1T is just this cheap long haul
that builds up the big packing
houses in Chicago and Kansas City
instead of having them dotted ali
over the country at such towns as
Dubuque, Des Moines, Davenport,
Marshalltown, Fort Dodge, and the
like. 1t will do the same thing for
the creamery business. The farmer
gets his best price for cream from
the small creamery. A creamery
that manufactures 100000 pounds
OF buttersa year can operate as cheap
and as economically as one any /. url..
| Der Of time larger than that. All
the cream to supply such a cream
cry can be hauled by wagon to the
creamery with as little expense as
the cream is hauled to the railroad
station to ship to the big trust plant
in the large centers. By such an
arrangement the freight on the
cream is saved and the creamery Of
that size can afford to pay more to
the farmer for his cream than if it is
shipped.
"Now the cheap rate proposition
operates SO that the big centralizing
creamery for a time pays to the
farmer more than the local creamery
can afford to pay. The local cream
cry then goes out of business and
the price of cream paid to the farm
er Immediately goes down for the
reason that the big plants cannot
slip the cream to their plants and
make butter as cheaply as the little
plant. That has been happening
all over Iowa.
SMALL PLANTS DISAPPEAR.
''In 1900 there were practically
no centralizing creamery plants.
There were then 907 creameries in
the state and in 1905 this had been
reduced to 657 by the fact that the
centralizing plants had closed up
the little plants. The capital in
vested in 1900 was $3,459,0l7 and
in l905i it was $3,O3S,629. In 1900
there were Alb salaried officials and
in 1905 this had jumped to S06, al
most double and the salaries paid
in 1900 to officers was $Sl ,425, and
in 1905 Sl42,779. At the same
time the number of wage earners in
the creameries increased but little.
There was l,l33 wage earners earn
ing $5SS,653 in 1900 and in 1905
1,lSO earning $695,267, but the
miscellaneous expenses. jumped
from $l53,99O in 1900 to $500, ,497.
The value of the product was $l5,-
S46,O77 in 1900 and in 1905 it had
: decreased to $l5,l3S,O37.
: "The centralizing creamery bust
ness in which cream is shipped by
4 rail to the big plant has all sprung
. up since 1900 and the reports show
9 that the cost of production is in
creased over what it was while the
8 value of the product has remained
a stationary or little less. The price
= per pound of butter is Just about
q the same that it was in 1900. There
t is no creamery in existence further
: more that can make as good cream
I that is shipped by rail and is several
It hours on the road as cream must be
: in shipment from Fort Dodge tc
9 Chicago as can be made in a small.
= er creamery that receives it's cream
!. from the farmers wagon in the
: morning and manufactures it into
y butter within few hours after it is
It received.
n "Mr. Ketchum is going on the
: theory that the farmer needs this
b wider market for his product. Tha
Q is his major premis and his minel
9 premis naturally follows that witt
: the wider market he will get more
for his product. His conclusion is
: that there should therefore be 9
Q cheap freight rate on the raw pro.
l. duct His major premis is all
s wrong which destroyes his con.
clusion. 1t is better for the farmer
. and the creamery business if the
g rates are not SO cheap as to allow