The Nevada County picayune., 1910-09-02
WHO SECURES RATE BENEFIT?
Does It Help Farmer When Freight on Cotton to Galveston Is Re
 duced ?-Question Discussed.

Every once in awhile there comes up proposition to change the freight rates on various commodities, writes A. w. Grant in Cooperator. When the commodity involved IS something that the farmers raise. the farmers interest is invoked either to secure reduction or a raise as the case may be. Like the tariff freight rates are species of alleged protection. For instance. higher freight rate on farm products intended to be sold in Texas is considered beneficial to Texas farmers. If the rate on flour from Kansas were raised a few cents 1t would be considered to the advan- tage of Texas farmers who raise wheat, because the higher freight rate will enable Texas miilers to charge more for their flour. and 1t Is assumed. pay more for Texas wheat
 On the other hand, reduced freight of any farm product from Texas to market Is considered to the advantage of the farmer on the the ory that 1t will mean higher price to him for the product.
 The purpose of this article Is to inquire whether the farmer really is benefited by the protection of freight rates. Does 1t help the farmer when the cotton rate to Galveston is re- duced or when the rate on flour from northern mills Is raised?
 The farmer should consider this question carefully because time and again he Is called upon to exercise his right of petition to the railroad commission on one or more rates. The men who ask the farmers for their petitions have much at stake Does the farmer get the benefit those who ask for his influence say he will?
 The truth of the matter is that if the farmer shipped direct to the spin ner and had to pay his own freight, reduction in freight rates would help him. If the farmer milled his own wheat and sold flour a raise on the flour rates from other states com ing in would also help him. But so far farmers neither mill their own wheat or ship their cotton direct to the spinner.
 Yet everybody is in favor of lower freight rates. Where does the farm CT have a chance to get off?
 He has only one. and that Is in ths ownership and control of warehouses. Owning warehouse which can ship his products direct to the consumer without the chance of a middleman's handling the product. gives the warehouse the benefit of the reduced or increased freight rate as the case nay be. If the farmer Is a stock holder in the warehouse he gets the benefit. In a warehouse od which he Is a stockholder the farmer can hold his cotton until the price suits him and the warehouse can then ship 1t and get lower rate. If the spinner bought direct from the farmer the farmer could ship it himself, but spinners don't buy that way. In an elevator of which be is a stockhold CT farmer can hold his wheat until the price gets right and then the ele vator can sell to the miller and reap the benefit of the protective freight rate to come back later to the farmer in dividends Better still 1t would be if the elevator also controlled a flour mill to manufacture the grain 1t con- trolled into flour
 So long as middlemen get their hands on the farmers products freight rates can be juggled to reduce. but it Is gambling against human na- ture and human selfshness to think they will ever be juggled to raise them. The only remedy is ware houses and cooperative control of products until they are ready for ship ment.