The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-07-31
BISMARCK BODY
FILESPR0TEST
ON RATE BOOST
Association of Commerce De.
mands Suspension of Sched-
ulcd Grain Tariffs
CHARGE DISCRIMINATION
Proposed Grain Rate Increases
Threaten States Pros
perity, Claim

In detailed statement Of fa4s
charging wholesale discrimination
against North Dakota agricultural
interests, the Bismarck Association
of Commerce today pet,tioned the in
terstate commerce commission to
suspend proposed grain :ate in.
creases published by no. ,hwes; roads
effective August 10.
The petition filed By tie local
trade body supplements the general
protest presented before the inter-
state commerce commission by the
state railroad commission. Similar
petitions have been previously filed
by the North Dakota farm bureau
federation. the North Dakota fair
freight rate association. and local
mill and elevator interests.
Proposed rate boosts scheduled to
&c into force on the eve of a mons
ter wheat harvest will cost North
Dakota farmers upwards of $2,OO0,OOO
IA year. and constitute serious
threat to the prosperity of North
Dakota agriculture and business of
the state dependent on agriculture"
the petition sets forth.
Cite Loan Rates
Citing farm loan interest rates as
ranging from . to 10 per cent in
North Dakota. the affidavit points
out that grain rate boosts threaten
returning prosperity of the state.
Based on the 1924 crop, we esti
mate proposed rate increases Of
August 10 to be approximately $2,-
100000 per annUm,' it continues.
If we add general increase Of a
moderate amount we should have "A
total constituting Il serious threat to
the prosper: y of North Dakota and
the business of the state
The statement of facts follows in
part.
North Dakota is markedly de-
pendent upor the farm income de-
rived from grain crops, the produc-
ton of wheat and flax which are
large and the production Of food
grains being relatively small.
THE fattcning of livestock re-
Quircs an investment in animals and
the valuc of food grains fed pending
their shipment and sale. Livestock
on the farms is therefore 4 pretty
sound index Of the relative prosper
ity Of agriculture.
Livestock Values
I'VE attach hereto statement
showing the swine and cattle farms
in North Dakota. South Dakota and
minnesota and their value as OF Jan.
/. lo22 and 1923. Attention is di-
rected to the fact that the total
value Of such animals on Jan. !,
1923, was North Dakota $4G.OO5 900
South Dakota $0S,4s7,0O0 and Min
nesota Sl37 .S75,0OO.
The relatively small amount OF
live stock. the liquid asset Of the
81. H. ,<L hat, ~,
farms goes far to explain the fact
1876 per cent of North Dakota farm
loans carry interest rates Of 3 OF
10 per cent.
LAS further evidence Of the de-
preston in North Dakota agriculture
we refer to the report Of the Secre-
tary of Agriculture to the President
under the heading Good Grain Loans
Yearbook 1922 p. SO which shows
that North Dakota farmers borrowed
1861 ,548 in 1922 from the federal
government with which seed grain
was purchased to continue farming
operations.
North Dakota seed loans were
nearly one-half of the $l,4Sl OBS
loaned to farmers for this purpose
We also enclose herewith a state.
ment showing the, purchasing power
of grains and flaxseed for the year
1924 and 1925 to April which indi.
Gates that the relatively low purchas.
Il continuing farm problem"
Great Northern Case
Pointing out that the Commission
has held in the case Of the Superior
tWisc.) versus the Great Northern
Railway, that "there are important
differences in the traffic and trans.
portation conditions in North Dakota
the petition declares existing North
Dakota interstate grain rates ARE
not prejudicial to South Dakota OF
Minnesota.
I'm 924 North Dakota produced
63,SS7 900 more bushels Of whea,
than Minnesota and South DakOta
combined and that there were ship.
ned from the North Dakota counties
where produced 6O,319 900 bushels OF
wheat more than the shipments from
both of these states.
I'm other words North Dakota
shipped the equivalent of 1000 car.
loads of 10000 lbs. each more than
were shipped in the same period oi
time from Minnesota and South Da.
kota.
"Th;s vast movement of North Da.
kota wheat concentrates to the Min
neapolis and Duluth markets in max.
imum trainload lots as compared with
scattering movement from South
Dakota to Minneapolis, Sioux City
Omaha, Milwaukee and Chicago and
very important transit movement
to mills in South Dakota, Minnesota
Iowa and Wisconsin.
"These, circumstances produce i'm
portant differences in the costs Of
transportation and justify substan
tial differences in rate level. The
same statement shows that Nortl
Dakota shipments of wheat equa
A3l per cent Of tho shipments from
South Dakota alone.
Charge Discrimination
"Discriminatory and prejudica
situations would he created at tht
Minnesota North Dakota state line,
/. the statement claims.
"For example, the rate nm whea
from both Grand Forks, North Dako
=" and E"st Grand Forks, Mimi. tt
Minneapolis, Mimi. is now l6 l.:
Continued on page three)