Ladysmith news-budget. [volume] (Ladysmith, Rusk County, Wis.) 1907-1927, 1921-10-28
Farmers of Northwest Will Bene-
fit More Than S15,OOO,000
BY New Schedules.
EFFECTIVE BY NOV. 20
Grower to Receive Reduction on Ap.
proximately Half of This Years
Crop-Grain In Elevators
Not Affected.

Washington a sweeping declara-
tion involving the entire railroad situa.
ton, wage scales, depression in indus.
try and finances, the interstate COM
merce commission ordered the freight
rates on grain, grain products and hay
throughout the western half of the
United States reduced by an average
of approximately Is per cent.
Notice was given the carriers that
the commission expected the reduc-
tions to be put into effect Immediately
and by Nov. 20 at the latest, and that
the low state OF railroad earnings,
which led to the increase in 1920,
should hereafter be rectified by reduc-
tions in wages and prices and that
downward tendency should be set for
their rates
Farmers in the Northwest will reap
direct benefit from the reduction
which will amount to $l5,00O,000 or
more, it was estimated
The actual increase in the grain
growers income will vary according to
the rate from his shipping or primary
market. In the case of the farmer who
pays the freight on wheat from Fargo,
N. D., to Minneapolis, for example, the
additional value of his product will be
21a cents 100 pounds.
Benefit on Half of Crop.
1t is estimated that the grower will
get the benefit of the reduced freight
r<fh HI yxrha nd
rye, and on Is per cent of his fax. APP
proximately that proportion of these
crops of 1921 still is in the hands Of
the farmer at the primary market.
The grain grower will receive all OF
the benefit of the reduced freight
rates, for the reason that when he
ships his product to the primary mar
ket he pays the freight to the terminal
elevator In other words, he receives
the market price, less the freight.
With the rate from Fargo, n. d., re-
duced 21a cents a 100 pounds on
wheat, the farmer will receive that in
crease in his net return. The same
condition will apply in other primary
markets.
Elevators Not Affected,
The new rate will not apply to grain
or grain products in terminal eleva-
tors. Minneapolis terminal elevator
supply Of wheat, oats, corn, rye and
flax Is IN transit, and if it were to be
re-shipped. either in the raw state OF
manufactured into flour or other pro-
duct, the old rate would apply.
The greatest benefit will accrue to
the farmer through the corn crop,
which has been reported to be heavy
in Southern Minnesota, South Dakota
and other sections of the Northwest
where corn is a principa. crop. Prae-
ticaliy none of the Northwest corn
crop has been shipped to terminals.
Only two cars of new corn have been
received at the Minneapolis market,
and the same situation is reported to
be true in other grain centers.
Absorbs Voluntary Reductions.
The order of the Interstate Com
merce commission makes the rate re-
ductiOn on basis OF one-half of the
increase granted in August, 1920 The
reduction will absorb individual or vol
untary reductions by carriers since
August, 1920 in the opinion of Mime
apolis freight rate experts
The rate from Fargo, NJ D., to Min
aeapeiis before August, 1920, was IA
GENTS 100 pounds on wheat, the 35
per cent increase raising it to 70 cents
q 100 pounds. The new rate will be
1872 cents 100 puonds.