The Hartford herald. [volume] (Hartford, Ky.) 1875-1926, 1921-06-15
The Farmer Pays The Freight

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A representative of the Transpor
tation Department of the American
Farm Bureau Federation appeared
at the Interstate Commerce Com
missions hearing in Denver on May
10 and presented the following
statement:
1.-THE prices of farm products are
set by competitive conditions. The
price of farm products is fixed al
the market, and not at the farm it.
self. The farmer receives the mar
ket price less the freight. The
manufacturer adds the freight to
his cost of production. 1t is be-
cause the farmer must so pay the
freight in every case that the in.
! crease in freight rates affected the
agricultural interests of the nation
so seriously When you add to this
increase in the marketing costs the
unprecedented fall in prices of farm
products, it becomes evident that
the farmer has reached the crisis,
and must be able to put his hay,
grain, livestock, fruits and vegeta-
bles on the market at less cost, if
he is to avoid bankruptcy.
1.-THE Interstate Commerce Com
mission can properly reduce rates,
if such a reduction will mean an in
creased volume of traffic and the
consequent increases in the net
revenues of the carrier. Testimony
is abundant to show that the farmer
simply refuses to send his goods to
market at the present level of
freight rates. Attention is called to
the average prices received on the
farm in April, 1920, and April,
1921. as shown by the Department
of Labor. Potatoes dropped from
$2.96 per bushel to 79c; hogs from
approximately $14 per cwt. to 50;
beef cattle from 80 to Sc per cwt.;
sheep from SIT to IS per cwt.;
wheat from $2.34 to $1.34 per bush
ell; oats from Gle to 39c per bushel;
wool from sic to SC per lb.; beans
from SAL to $3.9S per bushel.
Potatoes, sheep, corn, oats, wool
and beans are all selling today at
prices less than the 1915 level.
According to the Department of
Labor statistics. farm prices are 25
per cent above pre-war (1913, and
all commodities are So per cent
above. while reports to the Inter-
state Commerce Commission show
that railroad revenues per net ton
mile are Sc per cent over 1913.
I'm contrast to the marked de-
fatiOn in the price of farm products
has been the constant increase in
freight rates. The average revenue
per ton per mile received by the
carriers in January, 1921. is about
Sc per cent higher than in 1915.
The combination of this increase in
rates with the drop in prices, has
left the farmer helpless.
TN the Black Hills of South Da-
kota is produced an excellent quail
ity of alfalfa hay. Reports to the
Farm Bureau indicate that the far
mers in that section find that the
price at the Minneapolis and Mis-
souri, River markets will not cover
the freight. cost of hauling to the
station and the commission and
other charges at destination. The
farmer is not considering here any
cost of production, but only the
actual Out-Of-pocket cost of mar
keting. Montana hay naturally
moves to the Minneapolis market
where It secured price ranging
from 50 to $50 per ton, depending
on the kind and quality. The rate
from the most eastern Montana
points to the Twin Cities is approxi-
mateiy $11.50 per ton, and from
Green Falls is about SIS per ton.
II is not necessary to inquire furth-
er as to why the Montana farmer
does not market his hay"