Omaha daily bee., 1921-08-16
Grain Freight
Rate Hearings
Open at Capital
Over 200 Agricultural Men
Present to Testify; Nebras.
ka Delegation Headed
By Thorne Browne.
BY Z. c. SNYDER.
ashinrton Cerrcspondeut Omaha Bee.


Washington, Aug. lS.-(Special
Telegram. before the full mem
bership of the Interstate Commerce
commission today, hearings were be-
gun on the movement to secure a
reduction on hay and grain rates
from the middle-western group OF
states. The importance Of the hear
ings attracted more than 200 repre-
sentatives OF growers of grain and
allied interests in those states, none
of whom was more interested than
the delegation which came from Ne
braska to attend.
The Nebraskans here for this pur-
pose are headed by Thorne Browne
Of Lincoln, member of the board of
railway commissioners; J. w. Short
hill OF Omaha, representing the Co.
operative Grain Shipping association;
]. c. Suite of Omaha, representing
the hay growers; Nels Parsons Of
Omaha, representing the hay COM
mission men; c. II. Gustafson of
Lincoln, representing the United
States Grain Growers association;
H. d. Lutte Of Lincoln, representing
the state Farm Bureau federation.
and u. G. Powell of Lincoln. expert
rate man and statistician of the Ne
braska State Railway commission.
Nebraska Members Present.
All the Nebraska members OF the
house were present at the opening
this morning. Judge kinkaid, who
is particularly interested in hay
rates, but interested in grain rates
as we'll, has had number of con-
versations with the Representatives OF
the Omaha Hay exchange, who are
now here, and will aid them in get
ting evidence before the. commission.
Mr.. Shorthill will. in all probabil
ity, testify tomorrow. He has made
a special study of rates on grain ap-
plying from interior parts of Nebras-
ka, not only to Seattle on the west,
but to Minneapolis, Omaha, Kansas
City and Chicago on the east and
south. and he comes to Washington
loaded with mass of first-hand in
formation gathered during his tour
about the state as secretary OF the
Farmers National Grain Dealers as
sociation.
Twenty states, through their rail-
road commissioners, have joined with
organizations representing the agri-
cultural bloc as we'll as many western
bankers in urging lowering of rail-
road rates on agricultural products
on the ground that present rates
make it impossible for producers to
realize a reasonable profit from their
products. The hearing, it is expect
ed, will extend throughout the week.
rates on hay being the last to be
taken up.
F. w. Peck, director OF the agri-
cultural extension department OF the
University of Minnesota testifying at
the hearing, said that the farmer de-
pended upon his profit and upon la
Dor. and that grain producers now
were receiving but IS cents an hour
On the average for labor. Any de-
crease in freight rates would be add
cd directly to this l5-cent an hour,
he contended, and would material
ly increase the profit of the farmers.
A decrease in freight rates of 2
cents a bushel would represent an
increase of p per cent on this profit,
he said
Farmers Hard Hit"
]. r. Howard, president of the
american Farm Bureau federation,
said that prices on grain were fixed
where the surplus accunulates, usual
ly in Liverpool, and that this price,
less commissions and the cost of
transporting the grain to the points
where the prices are made, was what
the producers received. Therefore,
he added, any increase or decrease
in freight rates was felt directly by
the farmer.
Commissioner Potter injected into
the hearing several times the conf
parative price received by the farm
er for his labor and that received
by the railroad employe, and while
Mr.. Peck was testifying asked that
The economist prepare for the COM
mission a table comparing the two
rates of pay. In reply to a question
as to whether the farmer, the rail-
road security holders or the railroad
employees suffered most under pres
ert conditions. Mr.. Howard ex-
pressed the opinion that the farmers
and the security holders probably
were both ''hard hit