Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1907-01-05
SNAIL CREAMER|ES
ARE ENDANGERED
Dairy Commissioner Wright
Contends Lower Freight
Rates Would Hurt
HELP BIG, KILL OFF THE LITTLE
Statement Made to Railway Commits
sion Ia Consideration Of Rate Cues
tion-1oard Contends Rates Arc Not
Maintained by Lines.
to Tlmes-Republlean.

SPECIAL to Times-Republiean.
Des Moines, Jan. 5.-H. r. Wright
state food and dairy commissioner has
addressed a communication to the
Iowa railroad commission concerning
the question Of rates on cream and
milk, m which he calls the attention
of the commissioners to the fact that
the nineteen centralized creamery
plants of the state that ship their
cream in by rail produce 100000
pounds Of butter annually and that the
SIT local creameries to which the
cream is hauled by wagon produce 7A.-
100000 pounds Of butter annually. Mr..
wrigb co4tends that a lower rate on
cream will bhly assist the big plants
in driving the little ones out of bus
mess and says that $50 Of the little
creameries have been driven out all
ready.
Mr.. Wrights communication in sub
stance is as follows;
Under the present freight rates the
centralized creameries reach all parts
of. the state without going farther
than a radius OF seventy-five miles.
They have established themselves
within the last five years and are sue
cessfully competing with the local"
plants, having driven out OF business
$50 locals" The consumer will not
be benefited by lowering of the trans
portation rates on cream for the rea-
son that practically all the cream
shipped Wy rail in the state is for but
ter. making purposes, only minute per
cent Of that shipped by rail going 9TH
er than for butter. The producer will
not be benefited by lower rate since
the price paid by the centralizer Is not
governed BY competition, the centraliz-
er paying only as much as he has to in
competition with the local. The CEN
trailer by covering wide territory
is able to and does pay a different
price in di ferent localities for prod
ucts Of the same quality and the prices
paid in localities where there Is no
competition will not be affected by a
lowering OF the rates, nor in localities
where competition exists except to
meet that competition. Advantageous
rates benefit only the operator and not
the producer as is shown by the fact
that in Kansas, Nebraska and Missouri
prices paid by centralizers are below
the prices paid in Iowa. The minimum
possible cost to manufacture a pound
of butter is definitely known and if
the centralized plant were to pay a
uniform price over the state the ques-
ton Of freight rates would be of little
interest. It is submitted that the de-
mand for decrease In rates does not
come from any one supplying milk and
cream for immediate consumption, nor
from such consumers themselves, nor
from the producers Of milk and cream,
nor from any representative of the
creameries that are producing % per
cent of the butter of the state"
1t IL, understood that the contention
Of the board is that it's rates now il
force are not being lived UP to by the
railroads The board has fixed the sec
ond class freight rates as the rate on
cream and milk. This rate Is for freight
trains All the milk and cream Is car
ried on express and passenger trains
and at a considerable higher rate. One
Of the contentious of the commission
is, however, that no matter how car
ried, the rate should be that fixed by
the beard.