The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-01
ASK LOWER RATES
/. G.. C. Makes ThOrO Investi-
CATION Into Charges on Grain.
Attorney General Hopkins Pre-
scented Case for Kansas.
ACTION STARTED BY REED
Hearing Establishes a Record
in Two Respects, He Says.
As Result of High Rates Hay Is
ROtting ON Ground.
ACTION STARTED BY REED

The application for reduced freight
rates on grain and hay in the western
territory is receiving thoro considera-
ton from the interstate commerce
commission, according to Richard ].
Hopkins, attorney general, who re-
turned to Topeka this week from
Washington where he assisted in pre-
senting the case in behalf of Kansas
and associated states. The applica-
ton was filed originally by Clyde NJ.
Reed, chairman of the Kansas public
utilities commission, who is chairman
of the managing committee represent
ing some twenty states west of the
Mississippi river.
The hearing is establishing a record
in two respects, the attorney general
said. The case opened before the
commission August 1 5 and is expected
to continue thruout this week, max
ing it one of the longest heard by the
commission in several months. In the
ordinary case but a small minority of
the eleven commissioners listen to the
evidence, but at this hearing usually
five or six have been on hand daily.
Heavy Losses to Producer.
"I believe evidence has been pre-
sented which should convince the
commission that the present level of
Idl6S has Dulll up dh dOSOlulC
barrier between the producer and con-
sumner of hay, which has resulted in
tremendous losses to both the pro-
Queer and consumer and to the car
riers as WELL" said Hopkins. The
figures show beyond a doubt that hay
can not be shipped to market without
heayye loss to the producer. Conse-
quently hay is rotting ON the ground.
Grain rates, too, are out of proportion
and work a hardship on all concerned
For long time the railroads have
employed a group of expert attorneys
who have devoted their time to con-
vincing the interstate commerce COM
mission that the railroad industry
needs special care and protection from
the commission. This grain rate case,
1 believe. is waking the commission
up to actual conditions in the west,
and Ii may yet realize that the hest
interests of the entire country the rail-
roads included, demand lowered rates
On these basic commodities"
Reduction Made to Meet Competition.
The recent application of Kansas
carriers for a reduction of cents a
hundred in grain rates from Kansas
points to gulf ports does not neces-
shippers on the part of the railroads.
in the opinion of the attorney general.
He said the reduction is being made
to meet competition created by the
similar reduction recently made In
grain rates from points east of the
Mississippi river to the Atlantic, which
in turn was made to preserve the grain
traffic of certain roads which were
losing 1t to Canadian roads that had
cut rates via lake and rail to Montreal.
The whole purpose, Hopkins said, is to
divide the traffic among certain car
riers but with no direct benefit to pro-
ducers.
Reed Gives Figures.
washington, Sept. Western rail-
roads by expansion of reserve accounts
and the setting up of exorbitant de-
probation charges against their prop
critics, have concluded profits amount
ing to nearly $200,0O0,0O0, Clyde NJ.
Reed, chairman of the Kansas public
utilities commission and spokesman
for the Western Grain Men in their
attempts to get reduction of rates.
testified today before the interstate
commerce commission.
On the-b basis of an analysis of the
accounting returns of nineteen rail-
roads in the west, operating S9,056
miles of track or 68 per cent of the
mileage of the western district, Mr..
Reed asserted that their profits dur
ing 1920. which he said, generally,
had been considered insufficient to
their earning power. in fact. had been
the greatest in their history He
charged that propaganda in favor of
maintenance to telephone rates had
misled not only public opinion. but
also the official bodies charged with
the duties of regulating rates.
Make Big Profits.
The profits of the nineteen rail-
roads as shown by their official re-
ports were ssS7, ,S34.470 in 1920. Mr..
Reed said. while in 1915. the best year
previously recorded, he added, they
amounted to s52s.717,753. In addi-
ton to this, the roads held on Decem-
ber 81. 1920, he continued. $2S9.o0O,-
600 as a reserve for Accrued depre-
citation of equipment" In 1915, the
total reserve so held was S144, 1862,
he said. adding that the roads in 1920
had added ito the funds $24,000.000
which was carried as operating ex-
penditures" A further example, he
said, was an Operating reserve ac-
in 1920, while in 1915 the fund was
$3,T33,5s1. These amounts were set
aside from railroad earnings. Mr..
Reed said. Notwithstanding that nor
NAL expenditures were made on
equipment and road bed.
Among the roads included in the
summary were the Atchison, Topeka
& Santa Fe, the Chicago. Rock Island
and Pacific, The Great Northern, the
Minneapolis and st. Louis. the Chi
cago. Burlington and Quincy, and the
Chicago, Great Western. The COM
pilation. Mr.. Reed said, could be con-
sidered as indicating the conditions
prevailing on the 30 per cent of west
ern mileage left out. 1t demonstrated,
he added, that the roads were amply
able to put into effect the decreased
rates on grain and hay which repre-
sentatives of twenty western states are
asking