Omaha daily bee., 1921-08-17
Rates Must Drop
Or Price of Corn
Must CoHigher
j. w. ShorthilI
Omahan Testifying at Wash.
ington, Asserts Freight
Charges Absorb All
Farmers Profits.
j. w. Shorthill
BY E. c. SNYDER.
Correspondent Omaha Bess

Washington correspondent Omhhn De~
Washington, Aug. lo,-(Special
Telegram.)-J. w. Shorthill OF
Omaha, secretary of the Farmers
National Grain Dealers ASSOCIATION,
ir testifying before the Interstate
Commerce commission on the mat
ter of present freight rates on grain,
stated that the farmers could not
continue to produce corn III Nebras-
ka at anything like present prices
with freight rate of 23 cents to the
Chicago market.
He pointed out that at a station
| in Nebraska l27 miles from Omaha
farmers are now receiving 81 cents
| for corn on which is charged a
freight rate of llH cents to Omaha
or Is cents to Chicago.
Increases Absorb Advantages.
He said that on August IS, 1914,
it required 1lS bushels of corn to
pay the freight from that station to
Omaha and that on August Is,
1921, it required S92 bushels. The
increases which have been made i'll
freight rates, Mr.. Shorthill said,
more than absorbed the advantage
the individual farmer gained by in
vesting his money in corporation
elevators in which the farmers OF the
country have an investment Of more
than $40,000,000.
He particularly laid stress on the
fact that the farmer received the
price at the terminal market less
tran1 ortation costs and handling
charges and that any increase i'll
transportation costs decreases in a
like manner the price the farmer
receives. Any reduction in trans
portation costs at the present time
will make an increase in the price
the farmer will receive.
Rates Must Come Down.
Producers of grain, Mr.. Shorthill
said, have the same freight bills to
pay no matter where the grain may
be sold and regardless of whether
the grain is shipped or not, whlct
means that a reduction in freight
rates will be a greater saving TO pro-
Gucers Of grain than the loss OF rev.
enue to the railroads.
The chief point in Mr.. Shorthilrs
testimony was that transportation
costs must come down along with
farm prices and other costs before
farmers can get on normal basis IN
their business.
Prepare to Burn Corn.
Iowa farmers are attempting to
mature the largest corn crop in tho
history of the state. with no prospect
of market, and Minnesota farmers
are preparing to burn their corn this
winter instead of buying coal, farm
ers told the commission.
Railroads, by maintaining abnor-
mally high freight rates will lose the
traffic on the coal which the farmers
would use if they could sell Their
corn, as we'll as that on the unsold
grain, T. E. eastman, a Minnesota
farmer, told the commission. Lower.
freight rates on grain and hay, ne
said, in reply to questions by mem
bers of the commission, would III
crease the volume of traffic, not only
in those commodities, but tie in
crease would be reflected in the
added purchases by farmers OF ma
chinery, household goods, lumber
and other necessities.
E. H. Cunningham, secretary OF
the American Farm Bureau Fedora
ton of Iowa, and practical farmer,
said that while the railroads prob
ably were suffering as the result OF
the present readjustment, he be-
lieved the situation as regards q basic
industry like agriculture should be
given precedence in consideration
over the carriers, which he described
as commercial" industry.
No Profit for Farmer.
DR.. E. G.. Mourse of the Iowa state
agricultural college was put on the
stand by the grain men to establish
that costs of producing, transport
ing and marketing grain were more
than the prices received by the iarm-
er. All witnesses agreed that the
market price of grain included trans
portation costs and that the price
paid the farmer was in every case
the market price less the cost 'of
handling and freight.
Commissioner Lewis asked whether
a reduction OF freight rates would
not have a tendency to increase ship
ments to points of consumption,
thereby increasing competition and
reducing prices. He was told that
this probably would be true in the
case of hay, but that the reduction
in price would not equal the in-.-
crease in the amount paid the farmer
as a result of the reduced rates. De-
creased rates on grain, the witnesses
said, would not reduce the market
price of grain.
]. H. Mercer, secretary OF the Kan
sas Live Stock association, testihed
as to economic conditions in Kansas,
where in general, he said, were de-