The Mellette County pioneer. [volume] (Wood, Mellette County, S.D.) 19??-1971, 1919-04-11

nOur mill, very careful must
be given to the consideration of
freight rates and transit privilege in
existence at that point, and the prob
ability Of their permanence or other
wise; for il, after the elevator or
mill were established and put into
operation, an important change was
made in transit rules or charges for
that point, it might render the loca-
ton wholly undesirable and ever
make it impossible to do business.
Hearings are being held by Con-
gress for the purpose Of determining
the form or kind of legislation which
shall be enacted for the permanent
control of the railroads Of the United
States. Whether that control will be
in the form of Government Owner
ship or private ownership under Gov
eminent control or private operation
under Government regulation, can
not at this time be fortold.
The United States Railroad Ad-
ministration is now engaged in a
constant, we might say almost cease
less, revision of tariffs in an effort
to obtain additional revenue, and
when one considers hat in General
Order No. %, which went into effect
on June 25, 1918, the United States
Railroad Administration imposed ar
bitrary charges which initiated
against Minneapolis, it will be seer
that the question Of freight rates is
a very important factor; for, in that
instance, the changes made threaten
ed the very life of the Minneapolis
terminal 1nrRnt IL continual
The Federal Government, through
the Federal Trade Commission, has,
in addition to investigating the pack
ing situation, conducted an equally
elaborate investigation into the Ques-
ton Of marketing grain, and the mill
ing industry. The report Of your
Committee was delayed in order that
it would have the benefit Of that in
vestigation, but no information or
recommendation, except for temper
airy regulations, has been given out
by the Trade Commission.
We believe it is fair to assume,
however, that this Federal report
will disclose a set of facts that are
unanswerable and that remedies will
be suggested upon which Federal
legislation will be based hat will re-
move the abuses in grain marketing
and milling business.
Legislation may be enacted by
Congress, placing the marketing OF
grain under permanent Federal con-
troll. If that should be the outcome,
then, by reason Of the fact that most
Of the grain which we market must
be shipped across a state line or in
interstate commerce, the Federal
government would have exclusive
jurisdiction, and the state would not
be in. a position eve to control the
operation OF its terminal elevators,
should it engage in hat business.
Again, in the absence Of Federal
regulation by Congress-, If the state
were to construct a terminal elevator
at a terminal market outside Of this
state, such elevator would be subject
to the laws of the state in which
located; and, hence, would be sub
jeCt to the regulations of hat state.
Many Of the practices which form
erly existed in connection with the
marketing of grain have been re-
moved through the organization Of
Farmers Cooperative Elevator Com
panies, and it is fair to presume.
that, through these and other CO.
operative organizations, there will be
a continual elimination Of the evils
of the marketing Of grain.
And, should Congress, as the re-
suit of the investigation made by the
Federal Trade Commission, pass
laws to remedy the situation, there
may result some permanent basis to
secure competitive buying of grain
and eliminate speculation.
1t is certainly true that because
the grain marketed from this state is
largely shipped to another state, and
hence constitutes interstate CON-
merce, hat the state is powerless to
pass any statute which would remedy
the marketing conditions, and that
Congress alone has that authority.
Just what action will be taken by
Congress on this subject cannot be
foretold. Until Congress has exer-
cised it's power and established the
with reference to the marketing of
grain, it is our opinion that states
would better refrain from taking any
action.
While the states can, and undOubt-
eddy will, cooperate with Congress
and with the Federal Government to
eliminate the evils existing in the
marketing Of grain, Congress has
exclusive jurisdiction to apply the
remedy, and any legislation along
that line by the states in the way Of
establishiL terminal elevators until
after Congress has expressed itself
upon these very important subjects,
would be of uncertain value.
Your Committee, therefore, recom-
mends that, for the present, this state
refrain from the exercise of the per-
mission granted under the recent
constitutional amendment outhoriz-
ing it to build terminal elevators.
We believe 1t will be we'll to await
the report Of the Federal Trade Com
mission and action of Congress, az
well as to watch the experiment
which is undertaken In North Da-
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