Evening star., 1924-05-20
Future and Problems
NO. vi.
Farm Relief and Government Ownership of Railroads Held
Vital to Nations Advance.

farmers OF the northwest have learned
something. If politics could be used
by the grain buyers and spectators
in creating q monopoly for themselves
In the field, why can't the farmers
also use a little politics? 1t seems te
are on the job trying to put over
some legislation on our own behalf.
I have been fighting to secure the
passage of some real farmer relief
legislation. What we farmers want
is government marketing corpora
tion as contained In the Norris-Sin
clair bill. This marketing system
would stabi1fZe prices on farm prod
ucts. 1t would also put the grain
speculator out of business.
y \
But we need moro than this sort
of legislation to improve conditions
for the farmer. 1 think that high
freight rates are more responsible
today for the awful condition Of agri-
culture than is the grain speculator
The grain speculator steps in and
drives prices down at az time when
the farmers are compelled to sell, but
the railroads charge extortionate
rates on freight, which, I fear, will
make farming impossible even If we
overcome the influence of the market
manipulators.
And how are we going to remedy
TINS TINS situation? Frankly. I am Of the
opinion that there is only one
remedy--government ownership OF
the roads. For years we have been
endeavoring to control the rates
charged by the railroads both through
the Interstate Commerce Commission
and state railroad commissions, and
We must acknowledge that control
mas been 100 per cent failure. Ac-
tually today we are forced to admit
that in some respects government
control has proven an advantage to
to the shippers
In looking over the history of the
railroads briefly, we find them, with
out exception. grossly overcapitalized
In many cases the outstanding bonds
and stocks exceed by several times
the actual investment in the roads
And the injustice of it all lies in
the fact that this increase in capitali-
zation results in an increase in rates.
Under the Esch-Cummins law the
roads receive what in fact amounts to
a guaranty OF 5h per cent on a "fair
valuation" This flair valuation in
cludes billions Of dollars of water That
is why freight rates were increased by
better than So per cent Immediately
following passage Of the act.
X r X
Now rates were high even before
tho passage of the Esch-Cummins
law. Rates should have been reduced
and not increased. The burden upon
the farmer resulting from high rates
was already making the situation a
difficult one. But an increase of 35
per cent, and in fact little more
than that, in my district, has made
farming practically impossible I
venture the prediction that unless the
railroad situation can be remedied in
the near future, tens of thousands of
farmers will go out Of business en-
tirely and flock to the cities, even
though other remedial legislation be
enacted.
/ am unqualifiedly in favor of
public ownership Of public utilities.
The people own them and should have
complete control of their own prop
erty-such natural resources as
water power. coal and oil. The tele-
phone and telegraph companies
should be made a part OF the postal
system, as is the case in all European
countries.