The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1923-11-30
OPPOSED TO CUT
IN FREIGHT RATES
Action Declared Would Impair
Service Efficiency
VIEWS OF RAIL HEAD
President Northern Pacific Road
Witness Before !. c. c. Hearing
At Minneapolis Today
Associated Press Dispatch.I

ASSOCIATED Press D1spatch.l
Minneapolis, November 27.-The
Northern Pacific railroad has a
prospective Improvement program
for the next three years which calls
for an expenditure Of $4,000, 900,
President Charles Donnelly OF that
road, told the Interstate Commerce
commissions railroad rate investi-
eating committee in Minneapolis
today.
In the last three years and ten
months, the witness said, the
Northern Pacific spent $41,000,00U.
The earnings on the capital invest
ed will be about 3 percent In 1928,
Mr.. Donnelly forecast.
northwestern railroad executives to
take the stand in the nation wid,.
investigation ordered by the COM
mission into freight rates on grain,
grain products and hay. His testi-
mony was offered to show that rail-
road rate reductions would impair
the efficiency OF service and sap
the meagre revenues.
improvements Are Needed
The improvements set forth in
an exhaustive statement by Mr..
Donnelly should be made, he said,
because Of the operating economies
they would afford or because OF the
additional protection they would
AFFORD to the public and to employ
es."
1.-THE Northern Pacific expenf,
a large amount Of money since re-
leased OF federal control in the face
OF need for most rigid economies -
n0nn0Ilu a
by Clyde Reed, chairman OF the
Kansas public utilities Commission
and chairman Of the comm0tee of
railway commission, chairmen in
northwest states. r IL the Northern
Pacific would carry out the $685.
100000 program. Under favorable
conditions, we would" he answered.
Some OF the improvements sug-
gested were an alternate low grade
main line from XIII Deer, N. D.. to
Newton, Mont, eighty miles: ar,
| second, main track from Little Falls
to, Philbrook. Mimi. twenty eigl
Mr.. Donnelly in his testimony,
said that northwestern lines reve-
nue. was lower than in other Sec
lions Of the country.
Prefer Inferior Service
v. Il. Anderson. assistant attor-
ney general and general counsel for
the Minnesota Farm Bureau FEEDER
alton, another witness, said that. in
MS opinion, the farmers would pre-
FER inferior railroad service IL II
was accompanied by lower freight
rates. He said there are more cars
available now than ever before in
the history Of railroads In this dis
trfct because there has been a great
reduction in the volume to haul
principally because OF lack of farm
! ers production and excessive trans
Dortatfon costs. Excessive rates
he said, affect transportation SO
that farmers cannot use it,"
The witness said that no farmers
now are depending upon wheat
alone and all have gone into diver
| sffied farming.
Conditions Minnesota Farms.
Conditions on Minnesota farms
are worse now than ever before, he
said, although agreeing with cross
/ examiners that various federal gov
eminent and state agencies are en-
| deavoring to assist agriculturists
Reduction In grain rates, he said, is
essential. All farmers operate at a
loss because all prices he must pay
are out of harmony. Bank failures
in the rural districts he said, follow
inability Of farmers to liquidate their
loans.
The hearing is being conducted by
Commissioners John ]. Esch and
tombstone Canpbell