Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-08-10
Contest Over Freight Rates in
Nebraska and Iowa Similar
in Final Results
LIFE OR DEATH TO SOME
Hiqher Rates on Cream the Salvation
of the Smaller Concerns, Altho High
er Butter Prices May Follow - Man
ner in Which Centralized Concerns
Benefit From Long Haul Rates.
t,necial to Times Republican.

t;pecial to Times Republican.
Des Moines, Aug 1o.-The prelimln-
ary skirmish on cream rates is now on
in Nebraska before the new state rail-
road commission there. Whatever the
result of that hearing is it is bound
to have some effect on the action of the
Iowa commission and the interstate
commission. 1t is a fight between the
big centralized plants and the railroads
with the chances strong that the rail-
roads are going to win.
Out in Nebraska the problem is
somewhat different from that as pre-
sented in Iowa but it leads to one and
the same thing and the ultimate I'M
portance of the freight rate on cream
is that vast populations Of the country
are concerned, and vitality concerned,
for the reason that their supply of
those necessary articles milk and but
ter are at issue.
In Nebraska the railroads made an
exceptionally low rate many years ago
in order to encourage the shipment OF
milk and cream. They did encourage
it successfully and it is about to swamp
them now. They claim that their
trains are delayed and trouble has
broken lose generally in recent years
because of the rates. Entire trains are
given up to hauling milk and cream.
1t is taken from Nebraska points to
Omaha and also to Denver Denver mas
no supply of milk and cream close at
hand. 1t must be shipped from eastern
and central Nebraska to supply the
Denver and Colorado trade. AS a. re-
suit in years past the railroads made
low rate to start the business. They
made the long haul rate very low and
now there are no local creameries In
Colorado nor in Nebraska. They are
all centralized plants drawing their
supply Of milk and cream from long
distances.
One illustration Of this is little
creamery in western Nebraska. The
rate for a 100 mile shipment to MIS-
plant from eastern Nebraska is 81
cents and the rate from the same point
thru his town and across the rest or
Nebraska and good part of Colorado
to Denver is Sc cents.
The same fight that is being made IN
Nebraska is being made elsewhere
The railroads are trying to get thel':
rates up to the new rates recently an.
nouncee by two roads in this stata.
They have filed these rates also with
the interstate commerce commission III
an effort to have them made interstate
rates also.
Should the railroads succeed in set"
ting these rates up it will have two ef''
fects. It may increase the price o.
cream and butter to the consumer III
the large cities and it will also help
cut the local creameries whose supply
is brought into the creamery from the
farming community round about BY
wagons. This is the reason the big
centralized plants in this and othe:
states are fighting the increase in tho
rate. Where they have to pay a high
er rate on the long haul the local
creamery will get its supply without
the expense of any freight rate and
will thus be able better to meet COM
petition.
The great bulk of the butter that is
made i'm the state of Iowa is by the
local creameries, tho Iowa has nine
teen centralized plants. These little
plants are perfectly willing to see the
long haul rate go up. 1t mas been 3
hard fight with many of them. The
big, centralized plants are able WITH
low rate to drive any local plant out
of business. The price paid for cream
is on the amount Of butter fat 1t con-
tans, the price for a pound of butter
fat being about the same as the cur
rent price for butter, the creamery get
ting it's profit on the fact that in the
process of making butter salt is put
into it. and it weighs heavier after
manufactured.
But the big centralized plants in
Iowa have been able to go into COM
and pay several cents above
the market price, and more than the
local plants are able to pay. AS re-
suit the centralized plant gets all the
cream in that community and the lc-
cal plant being unable to get cream
goes out Of business; then the CEN
tralized plant puts the price of butter
fat down to as much below the market
price as it can do and still get cream.
With a high freight rate on the long
haul the centralized plants will not he
able to do this.
A. H. Davidson, secretary of the e,s-
ecutive council is to have charge of
the archives department that will be
located In the historical building. The
last legislature put the work under tie
council instead of under the
curator of the historical building, tho
the department. will be located in the
historical building. The council has
placed Mr.. Davidson in charge. and he
will be given assistants to do the work
under his direction.
A feature of the Iowa state fair stock
exhibit this year will be the Iowa bred
draft horses on exhibition. The state
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