Evening star., 1927-11-03

Moines Register of October 90 for No.
| Northern wheat are $l.20ts at
Minneapolis. On the same page it
is quoted at Winnipeg, in Canada, at
$14lla Thus it will he seen that
wheat is selling at from 15 to 20 cents
bushel higher in Canada than in the
United States. The farmers Of the
United States have been compelled to
take an average of about Is cents
bushel less for the present wheat
crop in the United States than the
price received by the Canadian farm.
ers. And this is the fact in spite of
tariff of AZ cents bushel on wheat.
THE causes of this discrimination
are, first. that the price Of all wheat
in both Canada and the United States
Is fixed by the sale of the surplus in
the world market at Liverpool, and
1t is costing the American farmers
about Is cents a buShel more to get
their surplus wheat to the Liverpool
market in railroad freight rates than
the Canadian farmer This is true in
spite of the fact that the Canadian
farmer must ship his wheat farther
over the railroads than the American
farmer. Therefore, the American
farmer is compelled to pay a transpor-
wheat to the railroads in the United
States for their so-called efficient pri-
vate management. from which the
Canadian farmer is relieved by the
government operated roads in this
country.
Other Products Affected.
''The farmers of the United States
are paying a like excess discrimina.
inn fsrt rI-.
crlmlnation cannot be removed bv
merely passing farm bill. 1t will
require railroad bill also, and one Of
far-reaching effectiveness to remove
TINS excess transportation charge.
The railroad proposition is better
business proposition in the United
State. than in Canada. The rail
roa of the United States ought to
! operated at lower rates and with "a
better service than the Canadian
roads. There are several reasons
why this is not d te.
First. the valuation of the rail-
roads is excessive. At the moment
the commission fixed the tentative
value of IS illion 900 million dollars,
tn value as shown by the quota.
tions off their stocks and bonds was
less than II billion. Thus
by la~y the United States gave rail
roads legalized value Of over seven
billion dollars more than their mar
ket value. as the farms are always
valued. Even nee the big stock
boom3 in railroads, their market
value is still many billions less than
the tentative value of the commission.
The law then gives them a return OF
So per cent upon this entire valua-
ton, water and all. The farmers
must contribute in excess freight rates
to pay this return. as we have seen
upon wheat.
Another item is the capitalization
Of unearned increment in the proper
ty values Of the railroads which does
not occur in the aforementioned
roads of Canada. This amounts to |
two or three hundred million dollars
4 year that goes into capital costs |
and it's earnings must be paid in ex
cess rates.
Waste Is Big Item.
Another gigantic item is the waste |
of competition. Edward Dudley Kenna |
of the Santa Fe said in his book over |
10 years ago that this amounted TO |
over 100000, 900 a year. This goes |
into operating expenses and must be |
paid in excess freight rates.
THE excess profits of the inside, or |
corporations that furnish |
the supplies to the railroads is another |
item. These profits amount to $780,. |
Doc, 900 or $500 0,OO0. 900 a year.
Another item is the return on the |
bonded portion of the capital. The |
railroads have always secured their
ponds. about 10 billion OF them. at |
about AZ per cent on an average, and