Evening star., 1928-05-17
GRAIN RATE CUTS
ARE HELD UNLIKELY
Rail Men See No Possibility
of EquaIizing American and
Canadian Charges.
BY J. G. ROYLE.
D,sn,,oh IN The star

Special Dispatch to The Star.
NEW YORK, May 17.-Whatever
may be the fate of the McNary- -Haugen
bill, the farmers of the country can
anticipate little aid in their competition
against the Canadian wheat growers
from freight rate adjustments. This
fact was made plain today. according
to railroad and agricultural authorities.
by the report of the Interstate Com
merce Commission in response to the
Walsh resolution In the Senate con-
cerning the effect on American farmers
of the difference between grain trans
portation rates of this country and
Canada.
The commission was unable TO esti-
mate to what extent the American
farmer would realize if American rates
we're as low as the Canadian freight
tariffs. Moreover. the commission adds
that 1t still remains to be established
that the present American rates are too
high. To reduce them, it might be
necessary to upset the basis OF earnings
for carriers on which the whole rate
structure of the country is based, &C
cording to railroad economists.
Policies Are Different.
The commission makes plain that the
railroad policies of the two countries
are essentially different, since the do
mestic carriers are wholly dependent
on revenues derived from transporta-
ton, whereas in Canada nearly all the
railroad mileage is owned by two great
system, one of which is owned by the
government.
Grain rates throughout the United
States already have been subjected to
greater downward revision than those
~kI r.
riers. especially those in the Northwest,
are clamoring for an upward revision.
declaring that the profitable operation
of the rail lines depends on this.
It is true that rates from Northwest
ern grain-growing centers to the Amer
ican head of the lakes are from 10 to 10
cents a hundred pounds higher than
for corresponding hauls in Canada 10
the Canadian head of the lakes. but
railroad men see no possibility OF
eulalizing what in effect amounts To
a subsidy to the Canadian grain grow
ers. Moreover. the Interstate Com
merce Commission Is without power TO
regulate lake water rates, since the car
riers on the lakes have never been held
to be public carriers. Even II the DO
mestic rail rates we're lowered, the
American grain for export would be un-
der a disadvantage in rail movements
from Lake Erie ports to Atlantic ship
ping terminals. as compared with tne
Canadian grain movement down the
St Lawrence.
Cooperative Selling Success.
Railroad men declare that the Cana
dian grain grower has an even more
potent advantage than lower freight
rates in the fact that the farmers oil
Canada are the only ones who are
sold on cooperative marketing and
have stayed sold" Cooperative sale
of the Canadian wheat crop mas oeen
a huge success and the farmers or
ranizations have built huge elevators
and control magnificent storage ana
shipping facilities.
AS a result. the Canadian farmer to-
day is selling the grain he grew in 1927
at figure far in advance OF the prices
which obtained last year when the
American farmers sold their crops
This advantage is so marked that IL
partially equalizcS the tarin oarrier
erected against the importation OF
Canadian grain into this country.
Farm relief measures. however. are
working out from the natural working
of economic laws and the farm buyine
power tnuuestionahly Is far stronger
today than Ii was two years ago. Thls
has come about through higher farm
product prices and lower production
costs. The aggregate value OF so main
crops is estimated by the Department
of Agriculture as per cent higher
than year ago.