The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1926-07-29
Northwest Farmers Win
Fight Against Rate Rise
]. c. c. Denies Roads S Per Cent In
crease-Efforts of Freight Costs
to Be Pushed

crease-Efforts of Freight Costs
to Be Pushed
A decision which the farmers o.
Minnesota, and FL other mid-westerr
states, have been awaiting with an
xiety was handed down by the Inter
state Commerce Commission on July
16.
It was the decision which denied
to the western railroads blanket in
crease of 5 per cent in freight rates
Ia demand which was vigorously
fought for the past year by the Farm
Bureau, in behalf of the agricultural
industry Of the region affected.
While the farmers are entitled to
rejoice over the victory which spares
them an added transportation burden
of millions of dollars annually, the
fight is not yet over, according to
Farm Bureau officials, who declare
that the demand for reduction in
freight rates on agricultural pro-
ducts, as contemplated in the Hoch-
Smith resolution, will be pressed un-
Til the subject is finally decided ia
vorably.
A brief review OF the case is now
in order. The Hoch-Smith resolution,
passed by congress two years ago,
ordered the I. C. c. to make an in
vestigation of the general freight rate
structure with a view to reducing the
freight burden on farm products, in
Guiding livestock, as means of aid
ing agriculture to recover from the
existing depression.
Before this investigation was be-
gun the trunk line roads in 2 mid
western states filed an application
for an increase in freight rates of II
per cent, including farm products
and livestock. The American Farm
Bureau at once started a fight to
block this increase and appealed to
the state farm bureaus to get busy.
It was the Farm Bureau alone
which carried on the months-long
battle which followed, insofar as the
interests of the farmers were con-
cerned. The Minnesota Farm Bureau
spent four months collecting statisti-
cal data, with the cooperation of
the county farm bureau, and at the
hearing by the I. C.. C. held in St.
Paul last November, presented a
brief which was the most complete
and comprehensive exhibit filed at
any of the regional hearings, showing
the true condition of agriculture as
compared with that of the railroads.
Shortly after the Farm Bureaus on
slaught was launched, the roads vol
unfairly amended their petition from
II per cent to 5 per cent. The de-
NAL of this latterincrease proves
that the fight made in behalf of the
farmers was successful, so far as it's
defensive side is concerned.
However, the agricultural organi-
cations had asked for a reduction in
the rates Of farm products, under the
HochISmith resolution, but this was
not granted by the I. C. C. in its
present decision. The door was left
open for further consideration of
this phase of the question and it will
bep ushed to a conclusion by the rep
resentatives of ogranized agriculture.
The record in the case will be held
for further consideration in connec-
ton with the commissions general
rate structure investigation under the
Hoch-Smith resolution, but it was
held that the present record "af-
fords no adequate basis on which to
make reductions or increases.
AS to the rates on agricultural
products the commission said, how
ever, that "the record warrants US in
concluding that in proposing changes
in existing rate structures, either for
the purpose of improving earnings
of carriers in western trunk line ter
ritory or for the purpose of rectify-
ing inequalities in existing rate struc-
ture, carrirs should propose no adj
Nances in the rates on prducts Of ag-
riculture, including live stock, ex-
cept where particular rates on such
products may need adjustment to re.
move inconsistencies or where it car
be shown that thep roduct in ques-
ton is not affected by depression )"
On the other hand, the report
found that the earnings of the west
erns roads as a whole have not beer
such as to warrant, on the record at
it stands, any downward revision Of
rates on products of agriculture OF
of other industries subject to depres.
sion.
"What the decision really means
from the farmers standpoint" says
Farm Bureau official, ''is that he
the farmer, will not have to pay 8
$50,000,000 increased freight bill an.
nually. He will not have to pay i
because he was adequately represent
ed at the six hearings held. He wa.
adequately represented because there
existed in each of the % states 6
Farm Bureau Federation and these
state federation workers, with the
American Farm Bureau federation
were able to collect, organize anc
present mass of data sufficient tt
determine the 1. c.. C.. decision. This
is just one more example of what cal
be accomplished through organized
effort. /"
In Spite Of Light Receipts Of