The Bismarck Tribune Newspaper, August 27, 1930, Page 2

THE BISMARCK TRIBUNE. WEDNESDAY, AUGUST 27, 1930 McDonnell Forecasts New Contest Over Northwest Grain Rates « RAIROADPRIINON [outoukway —=SSSS~S~S*=«~Y Wim‘ FOR REHEARING IS HELD OPENING GUN Seek to Defer Effective Date of | Interstate Commerce Com- mission’s Order CASE IMPORTANT TO N. D.| | History of Case, Dating Back to 1924, Long and Involved, Says Board Chairman Reopening of the grain rate case, recently decided by the interstate commerce commission, loomed today as a result of action taken by the railroads affected by the order. The ease affects the entire grain rate structure of North Dakota, Under the order of the interstate | commerce commission, the new rates become affective October 1, but a petition has been filed by the rail- roads to postpone the effective date until January’ 1, according to a notice received here by the state board of railroad commissioners. The railroads asked for a post- ponement of the date to permit preparation of a petition asking the interstate commerce commission to set aside entirely its order on the grounds that the rate level is too low. As the order now stands, rates om North Dakota will be increased in some instances and decreased in others, according to C. W. McDon- nell, chairman of the state commis- sion. “The effect of the new rates from North Dakota,” he said, “will be some increases, particularly in the northeastern section where the rates are now on a lower basis than from other sections of North Dakota and other states, and some reductions from central and southern North Da- kota.” Typical examples of the proposed readjustment, he said, show the present rate on wheat from Devils Lake to the Twin Cities or Duluth, to-be 19% cents per 100 pounds, while the new rate would be 21 cents. On the other hand, the present rate from Milnor is 19% cents, while the new rate is 17% cents, Mr. Mc- Donnell said. “One important feature of the new adjustment,” he continued, “is placing the rates.on coarse grain throughout the entire western dis- trict on the wheat basis. Get Stop Privilege “Other features are provisions for three free stops at intermediate points, two for any purpose and one for inspection; additional — stops ‘at an additional charge of two cents per 100 pounds, and reduction in the spread of the North Dakota-Chicago rates over the Twin Cities to 11 cents per 100 pounds, the present “spread being 13 cents. “This case not only affects North Dakota but all grain raising states, including. Minnesota, South Dakota, Montana, Kansas, Iowa, Nebraska and ‘others, “The report of the interstate commerce commission was not unan- imous. Commissioner MceManamy dissented from the abolition of the separate transit charge in the northwestern states where transit is now separately charged for, be- cause adding the charge for transit in the rate increases the rate level and includes compensation for a service which the majority of: ship- pers do not want and do not use. “He also objected to the cancel- lation of the differential rate on coarse grains, saying that in his opinion the present basis, 10 per cent less than the wheat rate, should be continued, “Commissioner Lewis expressed the thought that the _ propose: changes bring the general level of rates too low. Commissioner Wood- lock said that the new rates are far too low and will reduce the carriers’ revenues in the western district ap- proximately $15,000,000 a year. Commissioner Porter also dissented from increasing the coarse grain rates to the wheat rate level. Com- missioner Eastman, in a partly dis- senting opinion, sustained our con- tention of lower rates from North Dakota, without free transit, based on cost studies, but the majority would not accept this view.” The proceedings involving grain rates have been before the interstate commerce commission almost contin- uously since October 11, 1923, Mr. McDonnell said. Has Long. History Outlining the history of the case, the commission chairman stated that the I. C. C. entered into an investi- gation on its own motion of the grain rates throughout the United States. Numerous hearings were held, briefs filed and oral argument had, in which the North Dakota commission took an active part. On July 12, 1924, the I. C. C. handec down its decision in which it held that the rates were not shown to be unreasonable or unlawful and that the proceedings should be dis- continued. Congress, on January 30, 1925, enacted the Hoch-Smith resolution, which declared agriculture to be the basic industry of thé nation and di- rected the I. €. C, to enter into a general investigation of the rate structure of the United States with the view of establishing the lowest possible lawful rates on products of agriculturé, including edible _ live- stock. The I. C. C., on May 12, 1925, in- stituted its investigation on grain. Prior to hearings under this general investigation, the railroads serving Ziorth Dakota filed new tariffs to be- come effective August 10, 1925, pro- posing general increases in the rates on grain and grain products to the ‘Twin Cities, Duluth, and other points, in amounts ranging from one-half to eight cents per 100 pounds. “Under protest to the Interstate Commerce Commission,” Mr. McDon- nell seid, “filed by the North Dakota ission and others, the tariffs containing the increased rates — 1935, pendng hearing and investigation. ‘The increased rates were further sus- Pended to June 1, 1926, then to Bep- | entitled to lower He WONT ? WELL ~ HELL COME For suena “Shortly after the filing of the in- creased tariffs, the North Dakota Grain Dealers association and the | North Dakota Fair Freight Rate ase | sociation filed separate complaints with the I. C. C. alleging that the! Present grain rates are too high and should be reduced. The South Da- kota railroad commission also filed a | formal complaint with the Interstate | Commerce Commission alleging dis-| crimination against South Dakota in | favor of North Dakota, because some | of the grain rates from North Da- kota to Minneapolis, Duluth and other terminal markets are lower than from South Dakota to the same markets, mile for mile. The Fargo Commer- cial club had already filed a com- Plaint with the I. C. C. alleging dis- | crimination against Fargo in favor) of Moorhead ‘on grain and products to the terminals. , Cases Were Consolidated “All of these cases were consoli- | dated by the I. C. C. and heard on one record in November, 1925, at! Fargo. The North Dakota railroad commission was represented during the entire hearing and submitted ex- haustive rate and statistical studies.” | Increases proposed bj"the examiner | were opposed by the North Dakota! commission, and the I. C. C. ulti- mately held the proposed increases were not justified. This was said) by the railroad board chairman to | have saved North Dakota’ farmers | over $3,000,000 in freight charges, based on actual crop movement for | 1925, 1926, and 1927. | When the I. C. C. began its hear- ings under the Hoch-Smith resolu- | tion, the railroads repeated their at- tempt to obtain general increases not only for North Dakota but from other states, Mr. McDonnell declared. The position taken by the North Dakota commission was that the low- est possible level of rates should be applied via the shortest direct routes from North Dakota to the Twin Cit- | ies and Duluth; that the rate level | should not -be increased to include} compensation for transit service not used or wanted by the majority of shippers; and that North Dakota is rates than other States because of the tremendous} volume of wheat moving direct to the apna at the Twin Cities and Du- uth, “Certain milling interests,” Mr: Mc- Donnell said, “however, insisted upon | a rate level high enough to include | transit service without additional | charge, and in support of this posi- tion attempted to show that the pro- ducer would benefit thereby and that there would be a revival of the mill-| ing industry in North Dakota. | “As the Interstate Commerce Com- | mission has now prescribed a level high enough to include three stops in transit, two for any purpose, and one for inspection, without additional charge, it remains to be seen to what. extent this benefits the producer and how many old mills are reopened, new ones built, or those already in opera- tion increase their business.” May Appeal to Courts If the railroads petition is denied by the I. C. C. for a postponement of the effective date the carriers plan to appeal to the federal courts seek- dng an injunction on the grounds that the rates prescribed are less than reasonable, Mr. McDonnell said. The railroads involved include the Great Northern, Northern Pacific, Soo Line, Milwaukee, and Chicago and North- western. Active in presenting North Dakota's case to the I. C. C. were the state railroad commission,- Judge H. A. Bronson, representing the State Mill and Elevator Association; T. A. Dur- rant, traffic adviser fér the associa- tion; Ole Serumgaard, representing the North Dakota Grain Dealers as- sociation; P. A. Lee, and Karl Knox Gartner, special counsel, for the grain dealers associdtion; the North Dakota Fair Freight Rate association, repre- sented by G. M. Springer, Jamestown; and L. R. Bitney, Minneapolis, expert Statistician; Fargo Chambery of Com- merce, represented by Traffic Com- missioner N. E. Williams; Stanley B. Houck, Minneapolis, special coun- Sel for the North Dakota commission; James A. Little, public traffic coun- selor, Lincoln, Nebr., and E. M. Hen- dricks, rate expert for the North Da- kota Commission. tember 1, 1926, and then indefinitely. | BUILDING MANY SILOS Taylor, N. D., Aug. 27.—Hans Boerntsen, five and one-half miles west of Taylor, is building an 18 foot pit silo attached to his bank barn. ‘There are eeveral trench and stave silos in the neighborhood. | approved farm storage. ; North Dakota-Montana Wheat Grow- a = ee iG: 4 MOMENTS WE WOULONT LIKE TO LivE OVER. THE MAGIC TREE. COOPERATIVESTO ADVANCE MONEY ON GRAIN IN STORAGE Loans Up to 70 Percent of Valup Contemplated; Flax Is - Included St. Paul, Aug. 27.— Flax growers may borrow up to 75 per cent on flax in approved: storage. from member) cooperatives of the Farmers’ National | Grain corporation as a result of an} agreement reached by representatives of the cooperative at a meeting yes- terday. The meeting was attended by Sam R. McKelvie, grain member of the federal farm board. The position of the. grain. corporation affiliates on| loans to be made on wheat also was| discussed with the cooperatives by Mr. McKelvie. | The Farmers’ Union Terminal as-| sociation, one of the marketing agencies represented in the flax) agreement, announced recently it would make Joans of up to 70 per cent of the net market’ value, of wheat dur- ing the handling of the 1930 crop. The flax loans are to be made on a basis of 70 per cent of the local ele- vator card prices, less any accrued storage costs, with the maximum set at $1.25 a bushel. The money, will be advanced on flax against which storage tickets have been issued in licensed and bonded warehouses, either in the country or at terminals, or on flax in The cooperatives announced they wilt require ‘delivery to the extent that .all flax gn which loans are made will have to be kept in collateral po- sition either in local elevators, at ter- minals, or in approved farm storage. The cooperatives represented were: Farmers’ National Gain corporation; Farmers’ Union Terminal association; Northwest Grain association; Minne- sota. Wheat Growers association; ers association, and the South Dakota Wheat Growers association. Union Announces Plan Farmers Union officials said their loans will be available whether the grain is stored on the farms—in North Dakota ‘and Montana only—in the country elevator, in transiter in} terminal elevators. ‘The reason that farm storage loans are available only to farmers of North Dakota and Mon- tana is that the legislature of those |two states are the only ones which jhave passed laws permitting such storage certificates to be issued by the state. “The loans will be generally on the basis ef 70 per cent of the net value of the grain at the farmers’ local sta- tion,” M. W. Thatcher, union man- ager, said. “However, it does not make a particle of difference where the grain is, just so it is properly cared for or stored. The loans of 70 per cent of the net value are available whether the grain is on the farm, in the country elevator, in transit or in terminal warehouses, “The Farmers’ Union Terminal as- sociation made loans of approximate- ly $10,000,000 in handling the 1929 crop. Practically unlimted funds are available for loans to growers on the 1930 crop. We expect to handle ad- ditional millions of bushels on a loan basis for farmers this year. Farm Storage Urged “Storage on farms presents the cheapest method by which a farmer may hold his grain in the hope that prices will be higher when he desires to sell. The insurance, storage and carrying costs are the cheapest of any method of storage. The storage of grain on farms prevents that grain from showing up in visible supply fig- ures and further depressing prices. “Without advising the farmers to hold their wheat for higher prices or to sell it at the present or any other time, if they desire to hold it,the farm storage method is the cheapest and most to their advantage. \ “Machinery for the making of loans to farmers on farm-stored grain is now ready to be set in motion. The machinery has been well overhauled, olled and should perform much more 2.1990 BY NEA SERVICE, INC. REO. U. 5. PAT. OFF. \crop. ve tet Mpa AAO tie 0 6 ORwilams, blanks have been carefully and funds will be available to farm- ers more rapidly than on the 1929 Governor George Shafer and Farm Storage Commissioner Oliver Kriud- son of North Dakota were recent visitors in St. Paul and conferred with the Federal Intermediate Credit bank officials and revised, improved and approved the application forms to be used this year for loans in} North Dakota. : ! The Farmers’ Union Terminal as- | sociation was the only cooperative in the United States to make loans on/ farm-stored grain on the 1929 crop. Experience Valuable The experience gained in the han- dling of farm-storage loans on the 1929 crop will be valuable. Very lit- tle- was -done in the farm-stored loan business in Montana on. the 1929 crop, but a few weeks ago A. H. Staf- ford, commissioner of agriculture for | Montana, in charge of farm storage, and Farmers’ Union Terminal execu- tives, conducted a school in Great Falls at which inspectors from vari- ous counties, who had been selected ‘at county-wide-meetings by the farm- ers themselves, were trained as to how to make farm storage loans. Each of the states provides appli- cation blanks for farm storage. The farmer must fill out these blanks as well as an application to the Farmers’ Union. Terminal association, The bins then are inspected, samples of the grain taken and grades fixed by the state officials, and the bin sealed. Blanket insurance covering fire, tor- nado, theft and other risks and an integrity bond is provided for each borrower. | Letters of instructions for borrow- ers are or will be placed in the hands of Farmers’ Union executives and em- Ployes. The Farmers’ Union Termin- al association, the insurance surety | companies and the Federal Interme- | diate Credit bank make very specific requirements which must be. carried out carefully. : WHEAT PRACTICAL | LIVESTOCK FEED) Dr. Shepperd of Agricultural College Says Wheat Com- pares With Corn Fargo, N. D.,. Aug. 27—Because wheat is commonly too high in price compared to other feeds to use for livestock feed, many think it is not a good feed. That idea is a mistake, according to Dr. J. H. Shepperd, president of North Dakota Agricul- tural! college and internationally recognized livestock’ judgé.”~ “At the present prices of wheat. and corn, wheat is cheap enough to use as feed. Wheat and corn are about equal in feeding value, pound for pound, but it takes 60 pounds of wheat to make a bushel and only 56 pounds of corn, a difference of four pounds in favor of wheat. This ex- tra four pounds will just about pay the cost of grinding the wheat Shepperd says. F. W. Christensen, professor of animal nutrition, recommends that the wheat be coarsely ground or rolled before feeding to horses, cat- tle and hogs. Sheep apparently do just. as well on the whole grain as. on the ground wheat. FIGHTING WILD OATS Taylor, N. Di, Aug. 27.—Peter Sat- ler rented a farm last spring five miles northwest of Taylor. It was foul with wild oats and for threshing he hired a machine with a cleaning attachment. His 135 acres of wheat went No. 1 dark northern, but from the same acreage he also threshed 400 bushels of wild oats, which he will mix with other grain and grind for hog feed. Sattler says he knows how to fight wild oats and expects to clean the farm up in a year or two. BOOSTS COTTON SALES Austin, Tex., Aug. 27.—(?)—\An ap- pea¥ to governors of southern states to join with him in a “buy-a-bale-of- cotton movement” similar to that of 1914 was made today by Governor Dan Moody of-Texas. In a telegram to each governor in the cotten belt Moody urged they join in a nation-wide smoothly then @ year ago. when the plan was entirely new. Application peal for all who have the means 0 buy 2 bale of the 1930 crop at 18 cents &@ pound and take it off the market. SLO b ERNEST LY! wood NEA SERVICE nc. ‘eHoll HOLLYW00 - STORY By ERNEST LYNN HERPE'S the serial you’ve been wait- ing for—a REAL story of life and love in the city of talking pictures . . .& gripping novel based on actual conditions in Hollywood. “The Hollywood Story” is a glimpse behind the scenes-in the glamorous capital of the movies. 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