Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1939-01-26

pays $65.44 or SO percent more money
for the transportation of one carload
of wheat to Minneapolis, than is paid
by the miller or dealer on two car
loads of flour for greater distance.
Regardless of what others may
say or think, I contend that the only
benefit which may possibly accrue
to the producer is the rate applicable
from the farm to the first terminal
market, and my position finds sup
port in the partial dissenting opin-
ions of some members of the Inter-
state Commerce Commission.
Turning now to a brief discussion
of the rate levels on so-called class
traffic and specified commodities, we
find that the general level of inter-
state rates in effect in the Northwest
is far too high when contrasted with
the general level in Official Territory,
or the area east of the Mississippi
and north of the Ohio rivers. The
difference in rate levels may, and,
as matter of fact, has been and is
now a barrier against the develop
ment of manufacturing industries in
the Twin Cities and the Northwest.
l have on my desk, an official
countrywide rate, traffic and cost
OF service study and survey, which
shows the percentage relationship be-
tween the general class and commod-
ity rate levels in Official Territory and
other regions of the country. This
study shows that the average inter-
state rate level in the Western Trunk
Line Territory in which Minnesota is
situated, is At percent higher than the
average level in Official Territory or
the area east of the Mississippi and
north of the Ohio rivers, while on the
other hand, the freight service ex-
penSe, on loaded car-mile or a gross
ton-mile basis, is shown by this study
to be lower in the Western Trunk
Line Territory, where, as just stated,
the rate level is Al percent higher.
The disparities just cited have been
brought about by giving too much
weight to the rates and rate levels
originally established when the lines
of railroad were extended westward
The theory offered in justification
thereof was that preferential or low
er rates were justified in territories
where the population and traffic den
sity was greatest. These are the
factors that have been advanced by
traffic experts representing the COM
mercial and traffic associations and
railroads as well.
Under the accounting system pre-
scribed by the 1. c. c. and in use
for over 80 years, the railroads were
not required to maintain a system
of records from which it was possible
to obtain the service cost levels for
each of the various rate scale terri
tories. State Commissions in the
Western District have been active in
their effort to have prescribed and
adopted cost finding plan. Com
missioner Eastman, who was made
Coordinator of Transportation, has
actively supported such plan. Re-
search work necessary in the devel-
opment of the plan, has been under
way for a decade The 1. c. c. has
issued an order, and the matter will
likely be heard and disposed of this
year.
These involved and complicated
matters are cited to illustrate the
difficulties which confront regulatory
bodies in the regulation of rates and
charges of the transportation agen-
cieS of the country. In determining
the rates and charges to be pre-
scribed, Commissions must observe
all the rules of law as laid down by
the courts of the land, which means
that we must take into account and
give due consideration and effect to