The Cook County news-herald. [volume] (Grand Marais, Cook County, Minn.) 1909-current, 1922-03-16
RAILWAY VALUATION
THREE BILLION TOO
HIGH, SAYS BUREAU
arm Federation Winds Up Powerful
Argument for Reduced Rates
in Government Inquiry.

St. Paul, March 12.-The valuation
of the railroads of the United States,
as fixed by the Interstate Commerce
commission for rate-making purposes,
is at least $3,oo0,ooo,ooo too high,
attorneys for the American Farm
Bureau federation declared in wind
ing up powerful appeal for imme-
diate freight rate reduction, in gov
ernment rate hearings at Washing
ton, D. C.
The arguments and evidence sub
mitted by the farm bureau in it's
fight for further rate cuts have just
been received by the Minnesota fed
GRAFTON headquarters in St. Paul.
In rate hearings covering an en-
tire month, the American Farm Bu-
reau was the only shippers orga11iz :
alton in the country to- Introduce as
evidence a general financial analysis
Of railroad earnings and expenses as
a basis for a demand that freight
charges be reduced still further,
So far, agriculture has been the
only industry in the United States
to obtain a substantial rate redsc-
tlon: The%farm bureau is recorded as
the only farmers organization in the
country that 81 appeared to fight for
reduced freight rates when the gov
ernnent opened hearings ON hay and
grain rates last fall. Rate, cuts aver
aging 18 per cent resulted from the
farmers fight in this case; and imme~
diately after the hearings ended, the
farm bureau began legal action to
force further cuts in rates on all
farm products. Conferences between
railroad officials and farm burea1
leaders followed, and the net result
was a so-called voluntary cut of
70 per cent in freight charges on
practically every product of the
American farm.
81 Hearings just concluded in Wash
Iington covered rates. on hundreds of
commodities, and open up the way
for still further reductions.
Farm bureau attorneys pointed out
that the testimony of the. eastern
railroads chief witness showed that
I in spike of a small volume of traffic,
the roads We're earning 5.21 per cent
on their property investment. The
property investment figure, they as
serted, is four billion dollars higher
than the par value of all the rail-
way bonds and stocks outstanding in
the hands of the public, and from
| five to six. billion dollars higher than
the market value Of the securities.
The par value Of all stocks and
bonds outstanding in the hands Of,
the. public lWater and ALI is approx
imately three billion dollars less than
the tentative valuation made.by the
Interstate Commerce Commission /,
1.-THE federation declared
It's attorneys argued that with the
railroads earning S .2l pei. cent in
come on their property investment,
their earnings on a fair il valuation
would amount to more than seven!
per cent during the coming year
The latest available government sta
tistics they pointed. out, showed that
|in October 1921 the alue arm
|products was on per cent
than IL pre-vvar q many
products act'1all llys below The l,rewars
|llsye Will The rail & income per
ton ht haul 81 one mile was
Peg cent ii eher taan il 4 1s14 and
1915 'sS 81
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