The Birmingham age-herald., 1924-01-04
COMMISSION OPEN ATLANTA HEARING
Alabama Men Among Those Who Testify On
 First Day

ATLANTA. Ga, Jan. 3.-CBy Asso- eiated Press.)-The boil weevil with accounts of its ravages on the necessity of diversified farming, to- day was placed before the interstate commerce commission as basis of opposition to the granting of lower grain rates from the west.
 Taking of testimony in Atlanta by the commission marked one of se- ries of hearings being held in sev- eral sections of the country in com pliance with a request of President Coolidge that the body investigate the advisability of providing reduced grain rates. The hearing was att and carriers of the southeast and further sessions will be held tonkr- row.
 Former Gov. Richard I. Manning of South Carolina; Hugh McRae. farmer and former public utility man of Wilmington, N C.: ". R. Cole. Nash vile. Tenn, president of the Nash way, and B. L. Bugg. receiver of the Atlanta, Birmin sham and Atlantic railroad, testified if lower grain rates from the west into the south were granted the diversification pro- gram of southern asriculturists would be retarded.
 ? pr. J. N. Harper of the Southern Soil Improvement commission, how ever. stated that while the reduc- tion In rates might force the farm CTS of Tennessee and Kentucky from f the production of wheat, the action would not prove deterimental to the planters in the southeast that now product their grain.
 Would Hinder Diversifieation. Tn continuing his testimony, the expert said he was opposed to the reduction on the ground thAS 1t would hinder diversification of crops in this section.
 Tt took the advent of the boil weevil to blast in the minds of the 10 sap his cotton dollars for bread and wheat from the west" former Governor Manning asserted He added that the southern planter nus. he made to raise his own grain and meat.
 While questioning the South Caro- inan. M. M Casti, representing the Alabama Farm Bureau association and the Montgomery Chamber of Commerce, made the statement that grain rates in the south, and between points in the south, are higher than in any other section of the country. He is expected to take the stand tomorrow to testify in favor of reduced rates.
 ''It is matter of common knowI- edge that the economic position of the wheat growers, particular those of the northwest Is far from satis- factory" Mir. Cole testified. and it in the rate on grain and grain prod ucts would serve measurabIy to ameliorate their condition.
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 T shall not try to attempt a diag- this condition beyond expressing the view that rates for transportation have little, if anything, to do with 1t and that the cause must be sought elsewhere. It is certainly true that tho price of wheat is fixed in the and other foreign ports, rather than in Chicago-and that the relatively low price of wheat is probably due more to over production of that commodity than to any other single cause.
 for transferring loss of the farm CTS to the railroads, the witness added, ''it has been estimated that if carload rates on grain and grain product sssre<sndn ced, based on tons originated in 1922, the freight reve-
 
 way operating income of Class l railways in the southern district would he reduced in amounts vary ing from s1.ls4.lo7 in the case of reduction Of l per cent per 1oo reduction of 1oh cents per 100 pounds"
 Would Lower Market Price.
 A reduction in the rates would lower the market price of grain in tne south, Mir. Cole testified. A col- lateral tendency toward discourage ment of the diversifcation of crops, which he termed "the most benefi- cisl policy inaugurated among south ern farmers" also would follow, the witness stated.
 Tn the southern states, as a whole, so am advised. approximately S5 per cent of the grain is used locally and never shipped on railroads at all. for any substantial distance, the price of grain is fixed by the mar let at Chicago. and other primary markets, plus the freight rate" he stated. 'lf there is any reduction In freight rates on grain it Is reason able to assume that 1t will be made to apply uniformly throughout the country. The result of such reduc- ton would be that the price of grain of the southern farmer will be sub- stantially reduced. In other words. for tho s5 per cent of his grain which the farmer never ships, or stps for only short distances, he will receive less than if this reduc- ton were not made. because his price is fixed by the market at Chicago and other primary markets plus the frsish, o rate" n e.
 To Investigate Msynsld Case.
 In considering matters of routine business, the Senate during the day formally provided for investigation by the privileges and elections com 'mittee of the election of Senator alayfield, democrat, Texas, charged with excessive expenditures and oth- CT irregularities. A subcommittee will meet next Tuesday to map out procedure.
 Inquiry into plans of the American Ear association to use British ves- sel for transportation of members on & pilgrimage to London next summer was ordered by the Senate. which also asked for information as to the facilities the board has offered the delegation of the Chamber of Com merce of the United States for it's trip last year to Rome, made in foreign vessel.
 The Senate listened to an address by Senator Sheppard, democrat, Tex as, euloEizing former President Will son for his part In the ending the WoFlu WAT ana ms Ileht Tor the League of Nations, while the House heard several, beginning with a speech by Representative Upshaw, democrat. Georgia, on prohibition. m which he proposed punishment for members of Congress and other gov ernment officials who may violate the dry laws, He also denounced ai- legged transfer of embassy liquor to bootlegGers and afterward Represent tative Blanton, democrat, Texas, in tyoduced a number of resolutions de- slgAed to tighten enforcement. One of the resolutions would provide for the use of the army or navy in en-