Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-12-17
Com. Washburn
Interprets 1917
Rail FREIGHT Cut

u
Rail Freight Cut
Commissioner of Agriculture Frank
P. Washburn on Friday gave the fol-
lowing interview on the 10 per cent.
reduction on freight rates on West
ern farm products and it's bearing on
the Maine farmers and their bust
ness:
AT the present time the matter
of proposed reduction and investiga-
ton of railroad rates is holding the
attention Of the entire shipping pub
lie, railroad circles and regulating
bodies. What is contemplated has
been given considerable general pub
licity and in fact is now a subject Of
hearing before the interstate COM
merce commission and various State
commissions. Certain reductions
have already been ordered by the in
terstate commission in rates on live
stock, grain and hay in the middle
west and recently the railroads of the
entire country, with the exception of
the. New England lines, have pro-
posed tentative reduction of 10 per
cent. on all farm products.
Maine interests are naturally
much disturbed. and it is believed
rightly so, especially in view of the
contemplated reduction in farm pro-
duct rates in territories outside of
New England The question which
arises in the minds of Maine farm
ers, particularly our potato growers
and shippers. is, Why are we de-
barred from the proposed conces-
sions and what will be our position
in marketing our produce in compe-
Jersey and the middle west which
are large potato growing states?
ITO say the least, the situation fac
ing us Is serious and our railroads Of
New England do not seem to fully
sense the condition in which we will
find ourselves. If for reason that
rates on potatoes and farm products
it not mean ruin to our people and
at the same time greatly reduced
transportation revenue to our New
England roads?
II am much interested in an edi-
torial which appeared under heading
New England Rates in the Port
land Evening Express Of December
10, 1921. This item purports to be
the substance of an interview with
a representative of the Maine Central
Railroad. l wish at this time to call
attention to the particular rate illus
tration as used in that item. 1t
states that the freight on bushel of
potatoes from Corinna to Boston is
16 % cents and that a 10 per cent
cut would represent a reduction OF
a trifle over a cent and a half a
bushel, which is not believed to be
of any appreciate difference to the
consumer and further would not ac-
crue to the shipper The railroad
representative does, however. point
out that the suggested reduction
would reduce the annual revenues of
the Maine Central 100000 on pota-
toes alone.
"While it is true that 10 per cent.
discount in the carrying charges on
a bushel of potatoes from Corinna to
Boston would not materially affect
the consumer, the reasoning cannot
be applied to the shipper. The illusA
tration used, while it may be fact,
treats only the small unit of one
bushel of potatoes, but from the
fact that the reduction would effect
the railroad to the extent Of 100000
it would appear that a further Illus
tration might be more illuminating.
"The freight rate on potatoes from
Corinna to Boston Is % cents per
hundred pounds. Let US assume a
shipment of $50 bushels which
weighs 5000 pounds. The transpor-
tation charge on such shipment is
s126. A reduction of 10 per cent.
would produce a carrying charge of
S113.4O or difference Of $3.50. Now
the question arises, is or is not a
difference OF 1920 a factor to the
shipper? May it not IN many cases
be his profit. or at least large per-
centage of his prdat on the ship
ment? On the other hand, is not a
difference Of $3.50 sufficient to lead
buyers to other markets?
"While specific reference is made
to Corinna as a shipping point the
fact is that the greater part of our
potato crop is produced in more dis
tant sections Of the State, particu-
larly in Aroostook county. where
rates are higher, and where the pro-
posed 10 per cent. cut would mean
differences ranging from SIS to .$25
per car to the principal receiving
points. Az the effect upon the rail-
roads has been spoken OF in terms
of aggregate loss. It Is only fair to
consider the results to the shipper in
the same light bearing in mind that
the differences II only one of rev
cents per busheL will amount to