Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-16
CHARGES
AROUSE OPPOSITION
Middle West Shippers Are
Seeking Lower Rates on
Farm Products.
BY JOHN r. SINCLAIR.
Special Dispatch to The Star.

Special DlSpaLCn 10 1He SthE
KANSAS CITY, Mo, May 16.-Driv-
ing through the beautiful, country club
estates of this active Midwestern COM
munity, estates laid out and developed
by foremost citizen, j. c. Nichols, one
could easily believe that Kansas City
was in a particularly prosperous con-
dition.
And it Is, when we consider that it is
in the very heart of the farming belt
of the Nation. High freight charges
and farm depression are its major prob
lens.
I'VE started an agitation three years
ago to reduce the rate on wheat going
to New Orleans from Kansas City, be-
cause we were getting none Of the bust
ness" said Charles johnson, president
of the Kansas City Southern, discussing
the ever-present problem of freight
rates in the Middle West.
THE rate from Kansas City to the
gulf is 3012 cents, and the distance is
1876 miles. That rate is all out of line
with other rates in the Midwest. For
instance, from Kansas City to Duluth,
632 miles, the rate is 10 cents.
The rate from Kansas City to Chi
cago, ASP miles, is 17l2 cents. From ST.
rate is 18 cents. while from Chicago to
New Orleans, 919 miles, the rate is 1914
cents.
I'VE have asked the Interstate Com
merce Commission to reduce our rate
to 1914 cents. This is our story in a
nutshell. We are not asking any IN
reasonable slash, but we can make a
profit on the rate we request, and we
believe the I. G. c. should grant it,
Such change would benefit the farmer.
up to September 80, however, the
rate from Kansas City to the gulf is 10
cents. But this is due to the emergency
by which all railroads have granted a
reduced rate to effect more speedy
movement of last years wheat crop to
the world market before the new crop
comes along"
Kansas City business men are watch
ing wheat prices closely. So are the
farmers who have fortunately disposed
of a large share of their last years
wheat crop. The spectators, very large
ly. seem to be holding the bag. And
the situation is not pleasant for the
spectators to contemplate.
The 1928 crop was a bumper It to-
tailed nearly 100000 900 bushels within
the United States. Other parts of the
world also had big crops. So on March
there remained in the elevators and
on the farms in the United States more
than 5000 900 bushels undisposed of,
the largest surplus in 10 years. The
new crop is now coming along, and the
Government estimates that 1t will be
larger than in 1923.
But this is not all. Canada is in the
same position. Her surplus from her
1923 bumper crop remaining unsold
April l was 100000 bushels. Added
to this. Canada'S freight rate on wheat
gives her an 8-cent advantage in the
world market over American wheat.
So, realizing a crisis was at hand, the
American railroads have agreed volun-
tarily to reduce the freight rate from
the "glutted Midwest to Atlantic sea-
ports" making it about 9 cents bushel
lower than at present. This will give
the American farmer at least an equal
chance with the Canadian in getting
his wheat on the world market.
But Canada is not asleep. She de-
cided that she, too, would have to meet
this situation, and at least hold part of
her present advantage, so an order fix
ing a lower tariff on wheat to meet the
reduction announced by the Interstate
Commerce Commission. effective last
Monday, was signed by H. A. McKeown,
chairman of the board of railway COM
miSSioners of Canada. 1t is not as large
a cut as in the American rate. but it is
enough to put the Canadian and Ameri-
can farmers on a fairly even basis, and
now a race is on for the market.
(Copyright, 1929, by North American News.
paper Allanceo