Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1921-10-28
GRAIN FREIGHT
RATES SLASHED
Farmers Of Northwest viii Bene-
fit More Than $4,000, 600
BY New Schedules.
BY NOV. 20
Grower to Receive Reduction on Ap-
proximately Half Of This Years
crop-Grain In Elevators
Not Affected.

: Washington-1n sweeping declara-
ton involving the entire railroad situa-
ton, wage scales, depression in indus
try and finances, the interstate CON-
merce commission ordered the freight
rates on grain, grain products and hay
throughout the western half of the
United States reduced by an average
OF approximately IS per cent e.
Notice was given the carriers that
the commission expected the reduc-
lions to be put into effect Immediately
and by Nov. 20 at the latest, and that
the low state of railroad earnings,
which led to the increase in 1920,
should hereafter be rectified by reduc-
lions in wages and prices and that a
downward tendency should be set for
their rates.
Farmers in the Northwest will reap
direct benefit from the reduction
which will amount to S15,000,000 or
more, it was estimated.
The actual increase in the grain
growers income will vary according to
the rate from his shipping or primary
market. In the case of the, farmer who
pays the freight on wheat from Fargo.
N. D., to Minneapolis, for example, the
additional value of his product will be-
213 cents a 100 pounds.
Benefit on Half Of Crop.
It is estimated that the grower will
get the benefit of the reduced freight
on so per cent of his wheat, oats and
rye, and on Is per cent of his flax APP
proximately that proportion of these
crops of 1921 still is in the hands of
the farmer at the primary market.
The grain grower will receive all of
the benefit of the reduced freight
rates, for the reason that when he
ships his product to the primary mar
ket he pays the freight to- the terminal
elevator. In other words, he receives
the market price, less the freight.
With the rate from Fargo, N. D., re-
duced 21k cents q 100 pounds on
wheat, the farmer will receive that in
crease in his net return. The same
condition will apply in other primary
markets. >
Elevators Not Affected. +
I. The new rate will not apply to grain
or grain products in terminal eleva-
tors. Minneapolis terminal elevator
supply of wheat. oats, corn, rye and
flax is in transit, and if it were to be
re-shipped, either in the raw state Of
manufactured into flour or other pro-
duct, the old rate would apply. =.
{ The greatest benefit will accrue to
the farmer through the corn crop,
which has been reported to be heavy
in Southern Minnesota, South Dakota
and other sections of the Northwest
where corn is principa. crop. Prac-
tically none of the Northwest corn
crop has been shipped to terminals.
Only two cars of new corn have been
received at the Minneapolis market,
and the same situation is reported to.
be true in other grain centers Z
Absorbs Voluntary Reductions.
The order of the Interstate Com
merce commission makes the rate re-.
duction on basis of one-half of the
increase granted in August, 1920. The
reduction will absorb individual or vol.
untary reductions by carriers since
August, 1920. in the opinion Of Mime
apolis freight rate experts.
: The rate from Fargo, N. D., to Min
neapolis before August, 1920, was IA
cents a 100 pounds on wheat, the IS.
per cent increase raising it to 10 cents
100 pounds. The new rate will be