The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1913-05-29

Many melons have been cut and dis
tributed, including that very juicy n
OF the Great Northern of $500, 900, 900.
That and all other excess profits were
made by means of special privileges, as
public service corporations, and in
equity belonged to the public.
The surplus earnings, might and
should have been USED to furnish the
needed extensions and equipment for
this Zone of Plenty" from which it
was taken, and thus assist in catch
ing up with production. But no, not
one dollar.
If they will not invest their own ex-
cess profits, and advertise that fact at
every opportunity, how can they expect
any sane business man to do so?
If we were to stop right here in this
study, the conclusion must be, that
instead of trying to teach the farmers
better methods" and more scientific
and efficient farm management" these
gentlemen should be retired, and more
efficient managers employed. On their
own testimony the farmers have
swamped them with freight they are
unable to handle, and they have made
such a mess OF their business manage
ment as to have so utterly ruined their
credit, that they are unable to buy on
credit, or borrow money to furnish
the equipment to enable them to reap
the rich harvest of profits the farmers
have prepared for them.
In view Of the interest the farmers
have in this vital problem | shall urge
at our next annual session that we
make an effort to employ experts to
teach the railroad managers better
railroad management" To apply
modern and up to date Scientific and
efficient" methods to transportation.
And not to be outdone by them in their
interest in us | shall urge that the
state of South Dakota build, equip and
operate a demonstration railroad to
ohoW IiiClll ho" dhbpoIIdLlO Ndu Uc
made to keep pace with production.
Does the farmers interest In trans
portation warrant this effort?
Please remember that of most farm
products we produce a surplus for ex-
port; that We compete in the worlds
markets with the worlds producers;
that to do so we must pay the cost Of
transportation and handling to the
market. That is, the price we receive
at our home market, is the worlds
price, less cost of transportation and
handling. In effect, we pay those
charges on what is consumed at home
as well as what Is exported. Agricul-
ture Is the only industry that pays
freight both ways, pays On what he
produces and on what he
He cannot pass 1t on as the other
industries a and do.
Then it follows that as the cost Of
transportation to the worlds markets
increases, the price to the farmers de-
creases, and as the cost decreases, the
price to the farmer increases.
The railroad managers real inter-
est in the farmer is demonstrated be-
yond all question, in that ever since
1898 there has been an upward trend
to freight rates. The last two years
should rouse the farmers to action.
For the crop Of 1911 the rate to Min
neapolis was increased from one to
two cents per 100. The ocean rate was
increased 2.8 cents per 60 lbs. Total
increase over 4 cents per bushel for
wheat. Notice Of a 3 cent per 100 raise
was made for the 1912 crop but has
been held up temporarily, but the
ocean rate was raised 4 cents per 60
lbs. an increase Of s cents per so lbs.
in two years. Eight cents per bushel
more for the railroads (and still de-
manding more). Eight cents per
bushel less for the farmer; land still
less in prospect for the future) that
much less trade for our business men,
and to develop and build up u state.
The freight rate on sheep has been
been raised about ten per cent, on
hogs better than eight per cent, and
on hay so cents per ton.
The farmer pays that freight; that
Is he receives that much less for those
commodities.
Note: The Commissioner of cor
porations reported to President Taft
that he had absolute proof that the rail
road companies controlled ocean rates.