1 REPORT OF IOWA FARM BUREAU FEDERATION 403 



ide^ of the government operating their farms are clamoring for govern- 

 ment action in other lines, not realizing this government ownership of our 

 farms is part of the whole plan. 



Cooperation is the antithesis of socialism. It is self-help as opposed to 

 state activity. Those who make proper use of cooperation become 

 stronger to do for themselves what they would otherwise ask the govern- 

 ment to do for them. 



Cooperation will do all that socialism can do and will still retain the 

 priceless advantages of individual initiative. Socialists wish to discard 

 profit. The cooperative organization substitutes the patronage or service 

 dividend for the capital dividend. Socialists wish to have wealth more 

 equally divided. The cooperative corporation limits the ownership of its 

 shares thus diffusing the advantages which may come from the enter- 

 prise. Cooperation is an important agency and will become increasingly 

 influential in minimizing profiteering and promoting a high general 

 standard of living. 



The American Farm Bureau Federation is definitely committed to the 

 furtherance of cooperation through already organized, or yet to be or- 

 ganized societies. 



II— TRANSPORTATION 



One of the first departments which the American Farm Bureau Federa- 

 tion organized was that of transportation. This department has attended 

 many hearings and functioned to the benefit of the membership in vari- 

 ous ways. Let me, however, specifically call your attention to four things 

 which we have done, all of which have resulted in economies of freight 

 payments to our membership: 



1. Following the passage of the Cummins-Esch Act it was incumbent 

 upon the Interstate Commerce Commission to make a readjustment or 

 revision of rates which would, in the judgment of the Commission, satisfy 

 the provisions of the law regarding guarantee returns. That immediately 

 brought up the matter of railroad valuations. The manufacturers and 

 business interests of the country, who were able to pass their freight pay- 

 ments on with their invoices, were not concerned regarding costs of trans- 

 portation. Those financial interests of the country which are particularly 

 interested in railroad questions and the market for stocks and bonds were 

 glad to see the railroads liberally dealt with. It was only the farmer 

 whose freight bill is subtracted at his own station from the price which 

 he receives for his commodity and who can in no way pass on charges 

 to the next man, who was concerned. At this hearing no farm organiza- 

 tion other than the American Farm Bureau Federation was represented. 

 The railroads asked for a property valuation upon which their rates 

 should be based, amounting to many millions of dollars more than the 

 market price of all their outstanding stocks and bonds. I have in my 

 office the record of this fight by Mr. Thorne, covering more than three 

 thousand pages. The result of it was that the Interstate Commerce Com- 

 mission lowered the carriers' asked-for valuation one billion seven hun- 

 dred million dollars, or practically 10 per cent. Mr. Thome's own estimate 

 is that this resulted in a net saving of $30.00 per annum to every farmer 

 in America. At that our contention was and still is that the allowed val- 



