Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-11-22
Commissioner Ketchum and Mr..
Wright Disagree on I'm
portant Point
Raising Of Rate on Cream to Chicago
Pleases Dairy Commissioners, While
Railway Commissioner Says Iowa
Rate Should Be Lowered-Arsu-
ments Pro and Con.
ecial to Times-Republican

Special to Times-Republican.
Des Moines, Nov pa vital diff
ference of opinion exists between State
Railroad Commissioner n. S. Ketchum
and State Food and Dairy Commits
sioner H. r. Wright as to the fixing
of the rates on the shipment Of cream
for the long haul to the big cities out
side of Iowa, and the difference Of
opinion is the point that is at the root
and foundation of the entire freight
rate question.
When the Illinois Central gave rate
of 40 cents on 100-pounq can of
cream from Fort Dodge to Chicago and
charged 49 cents on can of the same
size shipped on the same train to Du-
buque, but half the distance, both
commissioners said it was discrimina-
ton and both condemned it, When the
Illinois Central raised the rate to Chi
cago,> Dairy Commissioner Wright was
satisfied and had secured just what he
wanted. Railroad Commissioner ket-
chum was not satisfied and believes
that the rate from Fort Dodge to Dd-
buque should have been lowered rather
than the rate from Fort Dodge to Chi
cage raised.
Either method would have removed
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 Chicago is in the interests
of the creamery man.
Commissioner Wright says the cheap
rate to Chicago is just what builds up
mer less for his cream than the small
creameries inside the state. In sub
sanitation of his claim Mr.. Wright
digs up facts and figures to prove his
statements.
'It is just this cheap long haul that
builds up the big packing houses in
Chicago and Kansas City, instead OF
having them dotted all over the coun-
try at such towns as Dubuque. Des
Moines, Davenport, Marshalltown, Ft.
Dodge and the like. 1t will do the
same thing for the creamery bust
ness. The farmer gets his best price
for cream from the small creamery. A
creamery that manufactures l50,0OU
pounds of butter year can operate as
cheaply and as economically as one
any number of times larger than that
All the cream to supply such cream
ery can be hauled by wagon to the
creamery with as little expense as the
Jol "a vol
to ship to the big trust plant In the
large centers. BY such an arrange
ment the freight on the cream is saved
and the creamery of that size can at
ford to pay more to the farmer for MS
cream than if it is shipped.
"Now the cheap rate proposition OPP
crates SO that the big centralizlng
creamery for time pays to the farmer
more than the local creamery can at :
ford to pay. The local creamery then
goes out of business, and the price of
cream paid to the farmer Immediately
goes down, for the reason that the Dig
plants cannot ship the cream to their
plants and make butter as eheaply as
the little plant That has been nap
pening all over Iowa.
"In 1900 there were practically no
centralizing creamery plants. There
were 9O7 creameries in the state and
in 1905 this had been reduced to 657
nv the fact that the centralizing plants
had closed up the little plants. The
capital invested in 1900 was $S,469,ol7,
and in 1905 it was $3.03S,629. In 1900
there were Alb salaried officials, and
in 1905 this had jumped to $685. almost
double, and the salaries paid in 1900
to officers was $81,425, and in 1905
s142,779. At the same time the NUM-
Der of wage earners in the creameries
increa sed but little. There were 1,133
wage earners, earning $5S8,653 in 1900
and in 1905, 1,1S0 earning s695,267, but
the miscellaneous expenses jumped
from s15s,990 in 1900 to $369,497. The
value of the product was $15,s46,077 in
1900. and in 1905 it had decreased to
$15,138,027.
"The centralizing creamery business
in which cream is shipped by rail to
the big plant has all sprung up since
1900. and the reports show that the
cost of production is increased over
what it was, while the value of the
product has remained stationary or
little less. The price per pound-of but
ter is just about the same that it was
In 1900. There is no creamery in ex-
istence Furthermore that can make as
good cream from cream that is shipped
by rail and is several hours on the
road. as cream must be in shipment
from Fort Dodge to Chicago, as can be
made in a smaller creamery that re-
ceives it's cream from the farmers
wagon in the morning and manufac-
lures it into butter within few hours
after it is received.
"Mr. Ketchum is going on the theory
that the farmer needs this wider mar
ket for his product. That is his ma
jor premis, and his minor premis nat
urally follows that with the wider mar
ket he will get more for his product.
His conclusion is that there should
therefore be cheap freight rate on the
raw product. His major premis is all
wrong, which destroys his conclusion.
1t is better for the farmer and the
creamery business if the rates are not
so cheap as to allow the Transports
ton on the raw material to great dis
tances"