The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1928-12-19
WEDNESDAY, DECEMBER 10, 1928.

WEDNESDAY, DECEMBER 10, 1928.
THE MINNESOTA PLAN EXPLAINED
r GLOWING the publication of the article
The Minnesota Plan, made up of sugges
tions for concrete efforts by Congress il
behalf of Farm Relief, which appeared in 60 pa
pers in Minnesota last week, series of explana-
lions we believe are calculated to give immediate
aid to agricultural in general will be published
weekly study of the article and explanations
we trust, will impress how easy farm relief
program could be started The adoption of some
or all of these suggestions could be accomplished
without controversy, if brought properly before
congress and if backed by sentiment, it might be
possible to adopt most of them without delay.
The first of the series of explanations will
deal with the development of the Mississippi and
st. Lawrence waterways. 1t follows:
Development of Mississippi and St.
Lawrence waterways within limits that
can be approved by disinterested engin-
GERS and business men. Delegation of
power to the Interstate Commerce Com
mission to permit northwest railroads to
- compete with the Panama Canal for
western traffic.
The first suggestion of this needs no explain
ation 1t is not controversial. The benefit to
agriculture and to the northwest in the develop
ment of the Great Lakes and Mississippi water
ways is generally conceded. No far seeing plan
of farm relief, that looks ahead and builds
for the future can neglect this matter of inland
waterway development.
In regard to steps being taken to enable
northwest railroads to compete in rates with the
Panama Canal. We believe that no one has ex-
pressed the handicap which came to the North
Izl:-- = L.
and cheap ocean freights so well as did Herbert
Hoover in a Chicago speech on March 10, 1926,
in which he said:
"The Panama canal has drawn the
Atlantic and the Pacific seaboards and
their back country economically much
closer. We can roughly visualize that if
we set up a new measuring unit in the
shape of the number of cents which it
takes to carry ton of staple goods at
present rates. Using that measuring
rod and taking in every case the cheap
est route, we find that before the war
New York was 1904 cents away from
San Francisco while now it is only 1850
cents away But Chicago, which was
2,61O cents away from the Pacific coast
before the war, is today 2,946 cents
away In other words, Chicago has
moved 1886 cents away from the Pacific
coast while New York has moved 224
cents closer to the Pacific coast. A SIM
liar calculation will show that in the
same period as ocean rates remain about
the same, Chicago has moved 594 cents
away from the markets of the Atlantic
seaboard and South America. This
disturbance in relative rates affects
agriculture even more deeply than in
dustry Our competitive agriculture
lies to a large degree in Argentina, Au-
stralia and India. Therefore for
eipn European farmers reach Euro
pean markets at less cost in proportion
to pre-war than midwest farmers"
Now transportation is the life blood of en-
Notwithstanding or industrial, and we mus
get at such essentials first. Two answers to
this problem are in sight: 1. Development OF
waterways-Great Lakes and Mississippi. 2
Permission to our railroads to compete with the
canal route for traffic west. Many of on,
Northwest people do not know that the rail
roads are forbidden to make lower rates in thi:
competition The Interstate Commerce Com
mission declares that it lacks power to allow
railroads to compete and congress has refuset
to the present time to give it such power.
The inequalities existing at present are al
most past the belief of those who have no
studied them. For instance, if Minnesota pro
ducts, farm or manufactured, are to be shipped
west to coast or inland states, it is cheaper t.
send them to New York New Orleans, Their
to be loaded boats, sent through the Panam'
canal, up the west coast and then shipped inlant
by rail, than to ship them directly west man.
hundreds less miles to the desired point.
If our railroads could haul more goods west
they could bring goods back at cheaper rates
Empty cars going west are charge on loadet
cars coming back.
Obviously the Northwest can gain by an.
modification of this order against competin,
with the Panama Canal. The Northwest coul
afford to pay the government the interest OF
the Panama Canal bonds for release from thi
man-made freight rate handicap piled on top O