422 IOWA DEPARTMENT OF AGRICULTURE 



lawful. The matter went to the Interstate Commerce Commission infor- 

 mally, and they made an informal ruling. We now have this formal ruling 

 from the commission: 



"Since the hearing was had, we have decided that in view of the 

 amended Cummins amendment, we can not authorize or sanction rates 

 on ordinary live stock which are dependent upon values." 



The most important matter of the year was the 15 per cent case. The 

 railroads, as you know, last spring asked for a general advance of 15 per 

 cent on all freight rates in the United States. We have had 10 per cent 

 advances and 5 per cent advances in the past, applicable to a section of 

 the country and to the country as a whole, but 15 per cent was the largest 

 that we had ever faced. Fifteen per cent meant approximately $360,- 

 000,000 based on the earnings of year before last, and about $400,000,000 

 based upon the earnings in the fiscal year 1917 — more than $1,000,000 

 every day. It was the largest amount involved, of course, in any pro- 

 ceeding between private parties before any human tribunal in the history 

 of civilization. 



The Interstate Commerce Commission last spring denied the advance 

 on live stock, grain and other commodities in the eastern districts, but 

 granted the advance on class traffic. They denied advances on every- 

 thing but coal and coke in the west and south. The commission denied 

 altogether the advances on approximately $750,000 a day. 



Scarcely had the decision been rendered when it was rumored that the 

 railroads were going to seek to force the advance on commodities. Two 

 or three hearings were held. Altogether there have been, I believe, six 

 hearings since the decision of the commission. The last was on a formal 

 reopening of the entire case so far as the eastern railroads are concerned, 

 and a few weeks ago the western railroads announced that they were 

 going to ask for a rehearing. The western railroads last Saturday with- 

 drew their application for the present, and the hearings have been post- 

 poned indefinitely. 



This case has been something worth while to you. I presume a fair 

 estimate of the live stock going from Iowa to Chicago is something like 

 100,000 cars, which, at $40 a car, would be $4,000,000, and 15 per cent of 

 this would be $600,000. Probably, considering the traffic intrastate, and 

 then the movement to Kansas City, Omaha and St. Louis, it is safe to say 

 that the saving is three-quarters of a million on live stock alone in Iowa. 

 The saving to Iowa so far as all trafffc is concerned would probably ap- 

 proximate $10,000,000 annually — more than enough to run the state govern- 

 ment. 



There have been some of the grossest, most unfair misrepresentations 

 of the facts in regard to the earnings of the railroads, during the past 

 few months, that I have ever read at any time, anywhere.- If there is 

 any man in this room who doubts the wisdom and fairness of our position 

 in regard to these railroads earnings, I want him to carefully follow my 

 statement of a few facts from the exhibits that I have here on the table. 



I want to state to you the position that we took at Washington. 

 I did not have time to come out here and counsel with you; we had to 

 take out position immediately. If we took an erroneous position, we 



