The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-19
TO Win RATE CASE
Clyde Nj. Reed, of Kansas p. O..
c., Is Confident of Victory.
Expects Order From i. C. G.
Within Two Weeks.
REVISE INTERSTATE CHARGES
Chairman Utilities Commission
Returns From Washington.
Grain Case Was Started in To-
peka Last June.

Clyde M Reed, chairman of the
Kansas public utilities commission,
believes western states will win their
fight for reduction in freight rates
on grain. He expects a rate order
from the interstate commerce COM
mission about October 1. Reed is also
confident the state will succeed in its
application for revision of intrastate
| rates when a federal commission takes
testimony next month.
Reed returned Friday from Wash
ington where he spent a month or
more in connection with the grain rate
case. Twenty states joined with Kan
sas in the demand for lower grain
rates. The representation included
Wisconsin and all states west of the
Mississippi river except Texas and Ar
kansas. Fourteen states were rep
resented in the hearing by attorneys
or witnesses. Kansas, which filed the
original application, was recognized
as being in charge of the general case
sentation of testimony and arguments
by the various staten. Three weeks
were spent in hearing of the case.
Case Started in Topeka.
The grain case had it inception in
Topeka in June. At that time a con-
ference was held at the home of Gov
ernor Allen and attented by Chairman
Reed and representatives of a number
of western lines. Later Reed went to
Washington in connection with the
grain rate demand and members of
the Kansas delegation assisted in pre-
enting the matter to federal commits
sion members and arranging for a
hearing.
In July a conference was held in
Chicago and a number of western
states arranged to participate in the
demand for lower rates on grain.
] - e1,s
ton last month twenty states had
Joined with Kansas in an effort to
secure revision of rates downward.
Much Testimony Taken.
Testimony before the I. c. c. pro-
vided a record of practically 1900
pages. Chairman Reed asserted to-
day that members of the federal COM
mission followed the hearing more
closely than any rate application pre-
sented in many months
''Testim ony by the states showed
that farm products had returned to
ractically pre-war prices" said Reed
today. Evidence also showed that
products of the farm from the big
grain states are moved a greater mil
cage than in any other section of the
world. The average distance to sea-
port and to eastern consuming centers
range from 700 to 1000 miles. While
prices of farm products had dropped
shown to have advanced 6S.75 per
cent
Farmers in the grain belt receive
an average of Is cents an hour for
their labor after charging off other
costs, Reed said the testimony showed.
He stated that in the case of South
Dakota farmers, they were shown to
receive but six cents an hour.
Representatives of state commits
sions took the position that a reduc-
|
would not be advisable. They stated.
tho, that returns to the farmers would
be as great under a rs per cent pro-
duction decline, altho tonnage to rail-
roads and supplies to consumers would
be greatly curtailed. Rather than re-
lower transportation charge should be
allowed.
Railroads in Good Shape.
"Our testimony showed" Reed said,
that in 1920 the railroads laid as
many new ties and as many tons of
steel as in any preceding recent years.
Reports offered showed locomotives to
be in better condition and box cars in
better repair than in recent years.
The average for maintenance was
maintained thruout 1920.
Records were for railroads repre-
senting IS per cent of the mileage in
the western district. 1t shows that all
AOel01s CANNPl INO WAlASA DoO paul 0ANA-
dens in 1876, paid dividends in
1920. and that three roads which paid
dividends last year did not pay them
in 1856.
at was also shown" Reed con-
tinued, that the increase in corporate
surplus of these roads last year was
Sip, 100000. There was an increase
in equipment depreciation reserve of
S45, 600 and an operating reserve
increase of $35, 100000. That is a to-
tai of 1892, 100000 increased assets in
| addition to dividents of the railroads.
No Spirit of Amnesty.
There was no spirit of animosity
| in the hearing" the commission chair
man declared. 1.-The state commits
sions desire that the railroads be pros
porous. But it is also the duty and
] responsibility of the roads to assist in
the readjustment which will restore
| conditions to normal. Freight rates
are a particularly heavy burden on
producers of grain and these rates
| must be readjusted in order TO assure
normal conditions"
| Chairman Reed said he was con-
fident that on the showing made by
the state a lower rate would be al
lowed on grain by the federal commits
sion. He also expressed confidence
that Kansas would win her general
freight rate demand when testimony
lis presented to a commissioner in To-
peka next month.