Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1907-07-18
THE DELICATE BUSINESS OF
RATE MAKING.

The grain growing and milling in
terests of this valley are brought face
to face with the complexity of rate
making which at long range seems TO
be a very simple and arbitrary art. It
comes about by the proposal Of the
interstate commerce commission 20 re-
adjust the relation between the rates
on flour and wheat from Kansas
points to Phoenix. There appears
elsewhere in this issue an opinion Of
the probable effect of the readiustment
upon the milling business and the
market price OF wheat.
Two complaints were presented to
the commission by a Kansas milling
company. The first was against the
higher rate from Kansas to Phoenix
than the rate from Kansas to the
Pacific coast terminal points. The
second complaint was against the wide
difference between the rate on wheat
points to Phoenix. This difference is
now thirty-flve cents per hundred
pounds.
The commission ignored the first
complaint for it has found by expe-
rience that it relates to a most ticklish
condition interference with which
threatens a widespread arrangement
We of Phoenix once made the same
LII
sion and there is now awaiting ac-
ton by the commission a complaint
by the city of Spokane, heard months
and months ago.
The matter in which there is now
local concern is the pronouncement OF
the commission on the second COM
plant of the Kansas millers. Though
no order has been made the commits
sion states that that complaint is well
founded: that a difference of thirty
five cents in the rates on flour and
wheat to Phoenix is too much; that
the difference should not exceed seven
cents. To bring the difference within
the limits named by the commission
the roads must either reduce the rate
on flour or raise the rate on wheat.
Passing over the probability as to
which horn of the dilemma they will
seize we may consider the effect of
q change on local millers and wheat
growers. In either event it is plain
that the millers viii receive "a severe
blow. A difference of only seven cents
would bring them in close competition
with the Kansas millers. II this diff
ference is effected by lowering the
rate on flour or by raising the rate
on wheat it will be the same to them
so far as the competition is concerned. !
In the latter case. which is the prob |
able case. though it might appear at
first glance that such a raising of the |
rate would benefit the wheat grower, !
it would really have the contrary eff
feet. for while the imports of Kansas
wheat would certainly be restricted |!
the imports OF Kansas flour would be |
correspondingly increased. Consumers |
Of flour would derive no advantage |
from the readjustment since the sit |
uation with respect 10 flour would be |
unchanged unless changed for the /
worse by giving the Kansas millers !
monopoly of the Phoenix flour BUSH
ness. AT any rate the least harmful |
net result would be the Gripping Of |
the valley millers. and the restricting |
OF the local wheat market.
In the other improbable event that 1
the Kansas flour rate should be re-
wheat rate there would ensue the same |
Gripping of the local millers by being |
thrown into competition with Kansas
mills. At the same time the farmers
OF the valley would be brought into
competition with the Kansas farmers
In the latter event supposing the
Kansas millers would take no advan-
tage of, the monopoly thus established
for them, consumers might reasonably
expect to buy flour a little cheaper.
As matter of fact with competition
destroyed or seriously impaired they
would not. but if they should. that
benefit would not offset the damage
that would result from a blow at the
milling and wheat growing business
of the valley.
Ii the commission had acted upon
the first complaint OF the Kansas mil
Ierx and had abolished or lessened the
difference in rates between coast
points and Phoenix, at the same time