Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-03-08
IOWA RAILROAD COMMISSION
SHOWS WHY STATE HAS
NOT GAINED.
RAILROADS DISCRIMINATE
AGAINST INTERIOR POINTS
Outside Towns Haxs Distinct Advan.
tass in Building Up Manufacturing
'ndustriss-New Po;nt Brought Out
Infsrief Filed s.for. commsres
Board at Washington.
Special to Times Republican.

opcSAdi 10 4lHleS-HepuDHcan.
Des Moines, March S.-An answer
to the old query. why has Iowa los:
population?" is found in the document
just filed with the interstate COM
merce commission, being the brief and
argument on behalf of the Iowa Rail-
way commission in the Iowa western
rate cases.
The book discloses and places on
record the detailed facts about the dis
eliminating in freight rates against
which Iowa manufacturing and jobbing
industry must labor in competing for
business. The major part, but not all,
of this handicap is felt by the business
houses at interior iowa points. The
evidence reveals why manufacturing
and jobbing houses marketing a pro-
duct in the west are almost forced 20
move out of Iowa under penalty Of
destruction, and why it is practically
impossible to induce those who organ
ifze new enterprises to locate at inter-
Tor Iowa cities.
What seems to be the situation as it
was developed on the recent hearing
regarding these western rates, is that
an Iowa company on getting its raw
product from the east pays rate
about the same as If he was located on
the Missouri river or beyond, and on
shipping the same stuff west he is
charged a rate as if he was located
on the Mississippi river or east OF 1T
thus the Iowa man pays double across
the state or worse.
This is not done at competing
points. For instance, business house
at st. Louis has an advantage over
one located in Iowa, avera ging as
against Ottumwa 1914 cents per hun
dred pounds, Marshalltown PAL cents,
,Des Moines 22.1 cents, Cedar Rapids
1915 cents, Waterloo % cents and Ma
son City 1913 cents.
Outside Points Have Advantage.
Kansas City has an advantage rang
ing from 81 cents at Ottumwa to 22.7
at Forest City. Chicago has an adj
vantage of 15.5 cents over Iowa City,
Cedar Rapids 1876 cents. Des Moincs
1872. Marshalltown 21.2, Ottumwa 1876,
Waterloo 1871, Mason City 25.4 and
Baskerville 30.5.
AS a result Of this discrimination,
for instance, a. certain factory was
compelled to move from Ottuinwa to
Chicago Heights, ILL.,, tho an attrac.
tive bonus in cash and land was offered
II 1t would stay in Iowa. Evidence
was given that as to factory at Grim
nell 1t was at a disadvantage as COM
pared with Moline Of $500 per car
load Of stuff handled to certain far
western points. $27.13 per car with
st. Louis and $3.50 per car from Chi
cago.
The railway commission had its rate
expert figure out typical instance of
the cost Of this handicap on Iowa in
dustry in dollars and cents Of actual
Illustration put up to the interstate COM
the Lennox Manufacturing Com
pany, Marshalltown. Computation
was made of actual shipments from
eastern points and actual shipments
to western points and 1t was then fig
ured out how many dollars Of disad-
vantage there was in not being located
in one Of the favored cities. Some re-
suits were given as follows:
On traffic to Reno, New, Chicago's
advantage over Marshalltown on
actual business done was $2,503.s0; st.
Louis advantage was $3,774.50.
On traffic to Salt Lake City. Chi
cago's advantage. $2,33o.s6; st. Louis
advantage. $3.611.06.
On number OF other western cities
similar determinations were shown in
figures actually developed in business.
This is business for a year.
New Feature Revealed.
One very interesting feature, new
to the public at least, was brought out
in this case. The railroad pleaded in
the hearing at Chicago that the Iowa
distance rates are responsible for the
trouble and gave testimony to the eff
feet that the Iowa distance rates are
low compared to those in other states.
On this point the brief by Mr.. Thorne
says:
TN the first place, the comparisons
they offer do not truly represent the
situation; and in the second place. 1t
would make no difference II they did
represent the true situation. Low state
rtaes do not justify high interstate