The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-09-24
Railroad Officials Discuss
Freight Rate Troubles.
J. r. KOOntz Says Grain Deal
ers Take Advantage.
MAKES SPEECH At DODGE CITY
Declares That Farmers Should
Benefit by Lower Charges.
Record Kept of Market COndi-
tiOns Since July 1.

Hammering freight rates has been
popular of late but it is evident that
the railroads are getting ready to shift
a part of the burden of criticism un-
der which they lately have been
operating At Dodge City the other
night, J. r. KoontZ, assistant freight
traffic manager of the Santa Fe, said
that the mills and elevators of that
city were paying more for wheat
than are the towns east, notwith-
standing Dodge City's heavier freight
rate
Koontz, who was speaking before a
joint meeting of the Dodge City
Chamber of Commerce and Rotary
club, at which several Santa Fe Of
ficials were present, attempted to
show that many grain dealers are TAX
ing a greater margin on the wheat
they buy than is justified by the
freight rate, and that the latter is not
the chief element entering into the
low prices received by the farmers.
He pointed out that altho the railroads
reduced the rate on wheat three
cents per hundredweight September
u, there had been no increase in the
price of wheat and declared that if
such reductions were to mean any
thing the producer must share in the
advantage, contending also that the
farmers are entitled to the benefit of
the low freight rates in localities
near the shipping or price controlling
. centers.
Copeland Also a Speaker.
L. L. Copeland, secretary and treas
urer of the Santa Fe, spoke on the
general financial conditions of the
railroads and the outlook for the fu-
ture. Other Santa Fe officials at the
meeting were f. z. Cruice, manager
Of the agricultural and industrial de-
partment; and J. +. farrell, editor OF
The Earth. The party went from
Dodge City TO Colorado and the mem
bers are expected to return to Topeka
sometime today or tonight.
1.-THE price Of wheat in Kansas nor
maily is the price of wheat in Kansas
City, less the carrying charge" Koontz
said. THE market at Kansas City Is
controlled by the export meaning thai
Liverpool has for the last three years
fixed the price of wheat. This is nor
NAL. The abnormal has frequently
occurred, and one of the controlling
reasons for the abnormal so far as
Kansas is concerned, is the ability OF
the mills of Kansas, on account Of
future operations. to pay slightly
higher than the prevailing price.
Il nave kept a daily record of the
prices paid at the KanGas City market
and at a number of interior Kansas
grain shipping points. This RECORD
covers the period since July 1. The
freight rate on wheat from Dodge CITY
to Kansas City Is 2 Y cents per hun
drod, to the Gulf for export, 81 cent
mr. hundred The freight rate OF
wheat from Hutchinson to Kansas Cit,
j. IL cents, or two cents less thSl
the Dodge city rate; to the Gulf 10
export, 4S1a cents or two and a nal
cents less than the Dodge City rate.
Hutchinson Paid Less.
For the period from September
to september II, inclusive, my RECORD
shows that the Dodge City price pc
buskel for wheat was No /, $l-1o' NO
. s113: No. 8, S1.1O. The Hutchinson
price for wheat per bushel was, No
S1.OS to S1.10; No. 2, $1.07 to $1.O9
No. 3, S1.O4 to $1.06- In other words
the producer at Dodge City during thu
period mentioned received cent
more per bushel for his No. l whea
than the producer at Hutchinson, ant
the freight rate. as I have indicated
is from Dodge City cents per hun
bred higher to Kansas City than iron
Hutchinson. 1 do not find during tn
period, september Q to II, any station
between Newton and Dodge City Wher
higher prices per bushel were paid 10
wheat than at Dodge City, and at sub
stantially 90 per cent OF the statloh
the price was considerably less thai
at Dodge City. At all of these sta
lions the freight rate to Kansas Cit
is less than from Dodge City"
The purpose of the comparison
Koontz admitted, was to show tina
the much abused freight rate after a.
is not n controlling factor. However
he declared that since the return o
the railroads to corporate operation
many hundreds of freight rates ha
been readjusted downward by the In
dividual action of the transportatto
managers He mentioned the reduc
ton of the lumber rates and grail
rates.
Reduction Didn't Help Farmer.
EFFECTIVE September 70" he sait
"the railroads reduced the expOl
rates on wheat from all points i
Kansas cents per hundredweigh
There has been no change in the priC
of wheat as quoted at interior Kansa
points since September IL, the date {
the reduction in freight rates. If OF
reduction meant anything at all,
meant that the producer should sha1
therein. and it is equivalent to almo'
cents per bushel"
Koontz told about the trouble tt
railroads have had in getting on the
feet, following government contro
As n result of horizontal increases
rates made by the government, ar
since the return of the roads, SON
rates have been found out of line, an
he assured shippers that such rate
already had been given attention,
would be given attention by the inte
state commerce commission and II