594 IOWA DEPARTMENT OF AGRICULTURE 



The New Railroad Law. 



The second most important development of the year related to ths 

 transportation act. When I was here at your last annual meeting, you 

 will remember the joint committee was just reporting their recommenda- 

 tion. Since then the act has passed congress. I am not going to review 

 the various provisions, but I am going to summarize it briefly. 



First, the senate bill originally proposed a transportation board to 

 take over many functions of the Interstate Commerce Commission. We 

 took the lead in calling mass-meetings of shippers in Chicago, and fought 

 that very bitterly before the committees, in person, by letter, circular, 

 etc. That feature of the bill was eliminated. 



Second, there was a provision with regard to loading and unloading 

 of live stock. The railroads were beginning to make extra charges for 

 each particular service, and they had selected live stock to add a loading 

 and unloading charge to the rates which you had previously paid, which 

 vi& thought covered the entire service. I think perhaps live stock was 

 the only industry in the United States that received a special mention 

 in the act. And in that connection I want to say that the preservation 

 of organized live stock men I think is very important. Whatever may 

 be my connection with your organization, I do not think it would be ad- 

 visable to abandon the Corn Belt Meat Producers' Association or the 

 National Live Stock Shippers' League. Why? Because an industry can 

 fight its individual battles more efficiently than the entire group of 

 people. In the Live Stock League you have gathered together the repre- 

 sentatives of the producer, the packer, the exchanges, all branches of the 

 live stock industry into one compact organization. Notwithstanding the 

 rivalries, jealousies and bitterness between the various parts of the live 

 stock industry, the Live Stock League can stand thru its representatives 

 before a congressional committee or before the Interstate Commerce Com- 

 mission, and say: "We speak for the entire industry." I think that is 

 very much worth while. 



The third proposition is with regard to compulsory consolidation of 

 railroads. The original senate bill provided for compulsory consolidation 

 of all our railroads — twenty-five or thirty systems, within a certain length 

 of time. We thought that was unwise. What is the most important 

 part of private ownership you want conserved? You have gotten rid of 

 competition in transportation when you consolidate. Now you have 

 some vestige of it — why destroy that? That section was eliminated in 

 conference. 



Fourth, federal incorporation. The original senate bill required the 

 federal incorporation of our railroads. A fight was made on that; it was 

 eliminated. 



Fifth, the reduction of government guarantee, so-called. Originally 

 the senate bill provided for practically a permanent guarantee; then it 

 was reduced to five years, and then we succeeded in getting it reduced 

 to two years. 



Sixth, the re-establishment of the powers of the states. The house 

 bill went wrong. The senate bill was in our favor, retaining the powers 

 of the states. There has been much attack on that proposition of late. 

 There would have been rulings of the Interstate Commerce Commission 



