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

St. Paul, March l2.-The valuation
of the railroads of the United States,
as fixed by the Interstate Commerce
commission for rate-making purposes,
is at least s3,000,00O,OO0 too high,
attorneys for the American Farm
Bureau federation declared in wind
ing up a powerful appeal for imme-
date freight rate reduction, in gov
eminent 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 Blu
reau was the only shippers organic
alton in the country to introduce as
evidence 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 rednc-
ton. The farm bureau is recorded as
the only farmers organization in the
country that. appeared to fight for
reduced freight rates when the gov
eminent opened hearings ON hay and
grain rates last fall Rate cuts; aver
aging Is 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 bureal
leaders followed, and the net result
was so-called voluntary cut of
10 per cent in freight charges on
practically every product of the
American farm.
Hearings just concluded in Wash
ington 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
in spite of small volume of traffic,
the roads were 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 (water and ally is approx
imately three billion dollars less than
the tentative valuation made >by the
Interstate Commerce = Commission"
the Federation declared. 80 -.
Its attorneys argued that with the
railroads earning 5.21 per cent in:
come on their property investment,
their earnings on a fair 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 value Of: farm
products was only % per cent higher
than in nrn-wa,- fiYnnS mil X, a, M
products ACTUALLY below the pre-war.
level while the railroads income per
ton of freight hauled one mile was
IA per cent higher than il 1914 and
1915 9.
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