The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1931-06-25
Declares Nothing Could Harm
Farming Regions More
Than Rate Boost
DEPRESSION OFFSPRING
Senator Shipstead Has Letter
On File Opposing Is Per
Cent Increase

PoPoAolAoh at OSpdTI-
ment of agriculture officials esti.
mated the proposed incraese, il
granted, would mean an additional
burden of one hundred million dol.
lars against farmers of the country
Senator Shipstead of Minnesota
has on file with the Interstate Com
merce commission, a letter oppos.
ing the application of the proposed
additional rates, holding there is
no reason why the railroads should
be supported at the expense of the
farming population of the country
In the face Of all this, there is a
realization that the railroads are in
a bad way, and the wide diffusion
of their securities makes the situa-
ton that much worse.
Something will have to be done
to ease up the railroad situation, it
is believed, and the question of gov
eminent ownership once more is
peering just over the horizon. Both
the administration and the congress
will have to wrestle with the rail
problem this winter, and the diff
culties involved promise to make of
the question of transportation one
of the outstanding political issues
of the coming year.
The settlement of the question
has special application to the mid
die west, not only because of the
effect an increase in freight rates
will have on the farm problem, but
because of the relationship to rail
of the inland water
way program. For the past year,
ever since the rail chiefs came to
at the beginning of
the depression period, there has
been a slowing up in the river de-
velopment program which has in
definitely delayed the nine-foot
channel for the upper Mississippi.
The railroad opposition to river
and to bus, truck
and pipe line transportation, is ex-
pected to come to a head with the
fling of the application for an in
creased rate.
Likewise the river, bus and truck
forces are expected to grid on their
armor to resist the demands of the
rails, which the lines are directing
to prevent further river develop
ment and regulate motor transport
IN the interest of the steel rails.
With the opening of congress, for
the river forces repre-
senting the upper river will come
to Washington urging passage of
The Shipstead $50,O00,00O bond is
sue and will be met here by the
rail lines who will claim that such
4 course will ruin their business, or
at least seriously handicap it,
The public, which will pay the
freight for any further increase in
transportation, will be an interest
ed spectator, but after all it will
be the public which will decide the
matter, once the question becomes
political.
From the west it is understood
attention is being given once more
to the proposal which Senator
Howell brought to Washington
when first elected, to have the gov
eminent take over some outstand-
ing line and operate it as a check
on other lines.
However, the situation has de-
veloped so that it is expected this
idea will go farther, especially if
the rail lines are denied their n
crease and make demand for
financial assistance. There are ex-
perts in Washington who insist
that either the roads will have to be
assisted or government ownership
involved, the government under
taking to absorb such losses as may
be involved in rail transportation
for the benefits of the entire public,
just as it does in the case of the
transportation of the mails.
The opposition voiced to the pro-
posed freight increase by Mr.. Will
liams of the farm board today indi-
Gates clearly the trend of thought
on this subject. Mr.. Williams
pointed out that with wheat at a
low ebb, and other farm products
effected, the additional
burden will be the straw likely to
break the farmers back.
For example as to the trend in
freight rates, he said that today it
required three pounds of cotton to
buy as much transportation as it
did in 1929. After expressing this
change in terms of cotton, he took
up the value of the average farm
commodity, to buy as much trans
portation as one pound would have
bought in 1929. Despite this tend
ency, the roads now, he says, are
asking an additional Is per cent
increase, a program he thinks will
not only put the finishing blow to
wheat, and other farming, but will
have the final effect of injuring the
roads themselves.
For the roads it is being pointed
out that there securities must be
maintained in value, since they are
widely scattered and their preserv.
ed value is essential if other funds
are to be raised for capital better
ments. Authorities not so friendly
to the railroads hold that any in
creased rate would be nothing more
than a dole to the roads and that
if a dole is so offensive as applied
to the individual why should it be
necessary, they ask, to provide 9
dole for the roads. The granting
of financial assistance, If thai
should be undertaken, would be ev
en- more Objectionable a dole.
The same argument has beer
made against the super-high tariff
as a system which has gotten away
from the Hamiltonion doctrine o.
encouraging infant industries ane
become transformed into one which
has become a dole to highly pro
|tected industries.
It is argued also, that the roads
have brought much of their trou
bles upon themselves by being ovel
capitalized, an unfortunate situa
tion for the holders of railroad Sc