Decorah public opinion. (Decorah, Winneshiek County [Iowa]) 1895-1928, 1921-12-07
iowa GOVERNOR |
HELP FOR FARMERS
Declares ',z, Can be No Pros
perity in !" ASection Until
Food Produ~N. Be
Sold Profitas,.
DECLARES FREIGHT
RATES RUINOUSLY HIGH
Farmers Have Unprecedented Crops
But Unable to Market Them
AT Living Prices.
(Des Moines Registerl

declaring that there can De no
prosperity in this section of the
country until food products can be
disposed of at profit, Governor
Kendall announced before leaving
for the governors conference at
Charleston, S. c., Dec. 6, that he
hoped some measures might be de-
vised for the relief of Iowa agri-
culturists.
Governor Kendall stopped in Chi
cago to confer with the corn belt
advisory committee of the War Fin
ance Corporation regarding financial
aid for corn growers.
Before leaving Des Moines the
governor issued statement in which
he declared that freight rates were
ruinously high, that the trunk lines
traversing Iowa are prosperous al
most beyond any period in their ex-
istence,. and that the roads would
suffer no embarrassment if freight
and passenger rates We're rebated an
additional 25 per cent. His state
ment in part follows.
81 go to the conference with a
keen appreciation of the deplorable
plight of Iowa agriculture, and with
the earnest hope that measures may
be devised which will inaugurate re-
lief. No farmer in the state will be
able to enter the year 1922 as well
off as he emerged from the year
1920. A great majority of tenant
farmers are entirely insolvent, and
vast number of farm owners are
threatened with bankruptcy. Having
gathered unprecedented crops, they
are unable to market them at living
prices.
1t is obvious that there can be
no prosperity in this section of the
country until food commodities can
be disposed of at fair profit. This
is now impossible and the conse-
quence is a depression unparalleled
in our history. The prospect of in
creased prices in the immediate flu
ture is not hattering! We have
about 1OO,000,000 bushels of corn in
Iowa and we are now cribbing the
most aboundant yield save that OF
1920, that we have ever raised In
the state. In my opinion the corr
market is more likely to be depres-
sed than advanced, and this, ! be-
lieve, in envitable unless radical
reduction in transportation charges
is ordered without delay. Everybody
comedies that freight rates are ruin
ously high, but so far the interstate
commerce commission has refused to
lower them substantially. No en-
barrassment whatever would be oe-
casioned railway operation if freight
and passenger rates should be rebat-
ed an additional 25 per cent.
The trunk lines which traverse
Iowa are prosperous almost beyond
any period in their existence, and
this is established by the fabulous
surplus they are accumulating al
ter defraying all expenses, bond In
terest and stock dividends. But ever
lif that were not true, why should
they alone be exempt from the haro
times which are general? The truth
is that the whole people have beer
the victim of an economic fallacy
concerning railroad earnings. They
have been taught to believe that nj
matter if agriculture is prostrate, nc
matter if manufacturing is paralyz
ed. no matter if business is stagnant
no matter if unemployment is uni
versal, the carrying companies mus
be assured a return of 6 per cent OF
the investments they assert.
"Nobody desires to deal unJustly
with the great transportation lines
of the country, but they should b'
accorded no special advantages ovel
other activities. They are entitled
to a fair return upon their capita
investment, but that fair return mus
be measured by the returns accruint
4 to other lines of business in the con
ditions which at the time prevail
It is preposterous to insist that tn
common carrier of the United State
shall enjoy an income approximate
ing 6 per cent while those who orgi
nate the traffic they carry are prose
cutting their business at a materia
loss"