The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-07
Public Utilities Commission
Appeals to the /. C. C.
Wants Freight Charges Low
cred on Basic Products.
MIDDLE WEST INSOLVENT
High Hauling Has ParaIyzed
Industry, Says Reed.
Other States Are Asked to Join
in Kansas Plea.


Washington, July 7.-Insolvency of
the grain and hay producing industry
of the middle west is threatened. un-
less an immediate reduction in freight
rates is granted, the interstate COM
merce commission was advised today
in petition filed with it by the Kan
sas public utilities commission.
Want Washington Hearing.
Proposals that hearings to be held
before the commission here instead of
in different states involved met with
the approval of Chairman Clark, Mr..
Reed said, adding that the proposal
I would be made to the different state
commissions by John L. Benton, gem
eral counsel for the state commis-
sions.
Reduction of rates in the western
territory would involve the rates in all
territories, Clark told the delegation,
and one hearing in which all states
would be given opportunity to present
their views would expedite the in
J quiry.
j The Kansas congressional delega-
4 ton presented a petition to Chairman
! Clark declaring that since the Kansas
wheat crop has just been harvested
and the bulk of the movement must
/ take place within the next ninety days,
/
rates is imperative.
| For that reason says the petition.
I'VE urge a hearing before the COM
mission at the very earliest possible
date. Any relief that comes at a de-
layed date will be largely robbed of
its value to the shippers of the west
| ern group" The petition declared
present freight rates were a "ruinous
burden to the producers and in many
cases are actually prohibitive."
| The Kansas commission has in
vited the states of Iowa, Wisconsin,
Minnesota, Nebraska, North Dakota,
South Dakota, Missouri, Oklahoma
and others to intervene in this case, no
attempt being made to secure any
relative advantage for Kansas, for the
readjustment asked, according to
; Clyde M. Reed. chairman of the Kan
sas commission, who personally filed
the petition.
| Follows Big Conference.
Carrying the appeal for lower
I freight rates to the national commits
sion followed a conference of officials
of all the leading railroads of the mid
die west with Gov H. J. Allen and
Chairman Reed in Topeka two weeks
ago. AT this conference the rail Of
ficials stated it would be impossible to
grant lower rates, as petitioned.
All railroads operating as common
carriers in the western group. 1s5 in
all, are made respondents in the new
petition. Referring to the increase OF
35 per cent in freight rates which
went into effect August rs, 1920, the
petition says:
These rates vitiate all attempts at
a readjustment toward economic
normalcy and are, under present con-
ditions, unreasonable. unjustly dis
criminatory and unjust1y pre1udicial in
violation of sections 1 and of the in
terstate commerce act"
Grain Basic Product.
The petition points to the fact that
grain and hay and grain products are
basic industries in Kansas; that their
status is the barometer by which the
state is determined" 1t cites the re-
lief granted the railroads by the
$400, 100000 year reduction in
wages; that freight rates continue at
while grain, grain products and hay
have relatively declined more in
market value and at present more
nearly approach the pre- war bass
clares that after paying producing
costs and freight rates very little IL
any return accrues to the grain and
hay producers"
> That not only the industries named,
, but business in general in Kansas is
, endangered by the prevailing finan-
cial condition of the grain and hay
> producers, is stressed in the petition.
, It says:
Cannot Collect Loans.
: "Your applicant would further
show that the conditions hereinbefore
recited have reduced the hay and
grain producing business to a precari-
T GUS state and that unless immediate
relief is granted. insolvency is threat
e ened.
D The extent of the destructive force
Y of such situation can not be lightly
considered. When the farmer can not
I pay the merchant and the merchant
can not pay the wholesaler, and the
wholesaler can not buy what he can
I not sell. the business structure Of the
0 west is destroyed.
Banks at the present time are find
ing it difficult to collect loans on
farms and farm products and grain
and hay shippers are being forced on
the market with their products at .
I sacrificial price to obtain funds to IL
iquidate their debts"
The railroads in the western group
n territory, affected by the Kansas ped.
( ton, cover the central portion OF the
t United States from Lake Michigan
: down the Illinois river to the Missis-
: sippi, thence to the gulf; west to Ell
Z Paso. and north along the Rocky
r mountains thru Albuquerque, Denver.
9 Cheyenne to the Canadian border.
Chairman Reed requested an early
. date for the hearing.