The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1921-08-25
GRAIN RATES WIPE
OUT FARM PROFITS
FARMERS WOULD LOSE MONEY
EVEN WITH PRODUCTION
AT 1914 COSTS
MINNESOTA CONDITIONG TOLD
UNDER PRODUCTION NEXT SEA-
SON UNLESS TRANSPORTA-
TION CHARGES ARE CUT

dSHlnSlOI, aug. 10 - rIelSh1
rates on a carload of corn from Neb-
raska farm to Omaha payable in 1914
by the sale of 11S bushels, now costs
the market price of 1872 bushels, j.
w. Shorthill, secretary of the Farm
.ers National Grain Dealers associa-
ton told the interstate commerce
commission today at hearings on
grain freight rates.
Farmers in IL states, Mr.. Short
hill said, had effected savings that
amount of cents a bushel in handl-
ing grain through cooperative ele-
Vators and market systems, but re-
cent freight rate increases had more
than wiped it out. Even if grain
could be produced at 1914 costs, he
added, farmers would lose money at
present freight rates and prices.
Corn costing IS cents a bushel to
produce on 1914 cost basis, sells to-
day at 46 cents in Omaha, the far
mer getting about 33 cents after
handling and transportation charges
are paid, he said.
Under present marketing and the
transportation conditions the Mime
sofa farmer, who works from "sun to
sum-" is earning Is cents an hour.
From this sum he must pay taxes
and interest on the mortgage.
F. W. Peck, director of agricul-
tural extension at the University of
Minnesota, late yesterday gave this
information in a graphic picture of
farm conditions in Minnesota to the
commission. A reduction in freight
rates, Mr.. Peck told the commission,
will go long way toward increasing
the earning power of the farmer.
For instance, Mr.. Peck said re-
duction of cents in the freight rate
on wheat will increase his Is cents
an hour by % per cent; of a cepts by
80 per cent, and of cents by 81 per
cent. On oats the farmer will pro-
fit more by freight reductions. A 8
cent decrease will mean an advance
in the Is cents an hour of 38 per cent;
a cents, an increase of so per cent,
and 5 cents an increase Of ga per
cent.
The corn growers would get 80
per cent increase in wages if the rate
We're reduced 3 cents; 40 per cent for
4 cent reduction and 40 per cent if
the reduction were 5 cents.
A reduction of a dollar a ton on
hay would mean an increase of 40
per cent on the hourly return of the
grower and So decrease would mean
an so per cent advance to him.
Mr.. Peck's figures were challeng-
ed by railroad attorneys but their
cross examination failed to break
down his figures.
Cost production figures were pre-
scented to the commission by Mr..
Peck to show that the farmer is pro-
ducing at loss.
James R. Howard, president of the
American Farm Bureau federation.
said that unless transportation
charges are reduced before another
crop is planted, there will be under
production next year.
81 am opposed to the reduction of
production" Mr.. Howard said cit
is not a good thing for the farmer. 1t
is not a good thing for the country.
Normal production is the best for all
concerned"
"The railroads." Mr.. Howard went
on, "must meet the farmers half way.
We are entitled to the same wage
scale as railroad labor and to the
same rate of interest as railroad in
vestors."