The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1906-08-24
FARMERS OUT MILLIONS
THE SOUTHERN ROADS BLOCK REDUCTION IN
GRAIN RATES.
Northern Roads, Great Northern. Northern Pacific
and 500 Offer Per Cent Reduction in
Grain Rates-Offer Is Rejected.

policy that has heretofore been followed
by these railway companies should be con,
tnued and that reductions in rates should
farmer to get his product to the market
With the least expense.
How 1t Works Out.
1.-THE increased benefit to the producer
from reductions in grain rates over re-
auctions in merchandise rates Is easily
computed. For instance: farmer with
100 acres of land, raising, say 20 bushels
per acre, or 200 bushels averaging. on
bushel, would furnish so tons of freight.
Should the farmer purchase of the store
keeper once week rs pounds of mer..
that ordinarily consumed by a family
he would purchase 1920 pounds of meN-
chandise, during the year, on which the
per hundred weight, would amount to
$500. The reduction in merchandise
rates. proposed by the, commission. is
reduction of a little over 81 in the freight
charges on the merchandise farmers
family would purchase during year: II
the railway company were able to reduce
dred pounds or % cents per ton, 1t would
mean reduction to the farmer. or an
increase in the amount received by him
for his grain of $40, or over twenty times
the amount of the reduction in the freight
charges on merchandise. provided that
the farmer received the benefit of that
none of this. dollar would find its way
into the pockets of the farmer, as the
dollar would have to be distributed over
course of the year that it would be i'm
practicable for the storekeeper to make
any reduction in the prices, charged by
him for the merchandise sold.
New Schedule.
"3. Fer the above reasons. and in pur-
suance IT the policy which , they have
a e erese tn aes
der discussion are continued in force, and
while SO continued, they will reduce the
rates on wheat and coarse grains shipped
from all points in the state of Minnesota
in excess of 100 miles from the terminals
OF their respective systems, 10 per cent
from the tariffs now in force. The rates
from stations within 100 miles of the
terminals are now SO low that further
reduction Is impracticable. The present
rates from such stations are now lower
than those charged in any other Western
state. as a comparison and the evidence
submitted to the commission in this case
will show.
"The aggregate reduction in the rev.
enue of the railway companies from the
proposed Reduction in grain rates will be
very large, and one that the railway
present merchandise rates are also to be
disturbed. 1t Is only by reason of the
large interstate business over which the
commission has no control that the rail-
way companies are able to offer any re-
duction whatever. If the railway COM
panies. parties to this proposal, were
solely dependent upan state traffic, they
could neither afford to make the pro-
posed reduction nor provide one-half Of
the. service which they now give the
state.
Immediate Benefit.
"a. Under conditions that have arisen
In the course of this hearing 1t is appar-
ent that considerable time must elapse
before the matter can be finally deter
mined by the commission. leaving out Of
the question the possibility Of considera-
ton Of the matter elsewhere. The rail-
way companies making this proposal
have been holding back an intended re-
ductfon In grain rates awaiting the result
Of the present hearing While reduce
ton in grain rates has been contem-
plated, it was impossible to grant it, and
also submit to a reduction in mercban-
disc rates. A large crop is about to be
harvested, and it Ks important to the
farming communities to know at once
what rates they will be compelled to pay;
and II the farmer is to receive the benefit
of reduction in the grain rates on his
and an immediate decision of the matter
Is necessary. If the proposed compro-
mise is promptly agreed to, the present
crop will get the benefit of the reduction
1.-The railway companies cannot afford
to reduce both the merchandise and grain
rates, and one or the other must remain
where 1T now is. A reduction made now
In grain rates and followed later on by
reduction in merchandise rates would
mean simply the restoration of the pres
ent grain rates"