422 IOWA DEPARTMENT OF AGRICULTURE 



ants, not employed spasmodically from time to time when a case arose, 

 but men in my constant employment, who would be able to help me, just 

 as the railroad traffic men, attorneys and rate clerks help them, so that 

 when I went into any case I could perform my task for you gentlemen 

 just as efficiently as the other fellow was performing his task. I thought 

 there was room for such an organization on behalf of private industries, 

 and I thought the live stock industry, the farmers, were probably as keenly 

 interested in reasonable rates, rules, etc., on transportation, as any other 

 branch of industry in the United States. The jobber or manufacturer is 

 only interested in the preservation of the general level of rates primarily 

 to see that the rival pays the same that he pays. You folks are interested 

 not only in preserving the relationship between rates, but in seeing tha< 

 you are not compelled to pay excessive charges. Why? Because the 

 price of your commodity at the terminal, less the cost of getting your 

 product to market, determines the price you pay. You can not "pass the 

 buck" on to the consumer; you are the man that pays the freight bill. 



The jobbers and manufacturers of this country organized very effec- 

 tively what is known as the National Industrial Traffic League. When we 

 get into one of those tests, these gentlemen are generally willing to grant 

 an advance, provided their competitors are forced to pay the same 

 amount. 



So that the farmer, above all others, is most deeply concerned in this 

 subject. You are obliged to take the initiative and not rely on the 

 manufacturers or jobbers of your cities, but to take the initiative on your 

 own behalf before congressional committees and courts. But very for- 

 tunately, another group of interests are involved in somewhat the same 

 manner, and that is the independent oil Industry. They are dependent 

 on rail transportation in competition with pipe line transportation. Those 

 gentlemen have seen the wisdom of doing precisely what I have outlined, 

 and as a result they are spending from ten to twenty times as much as 

 you gentlemen in making preparation for contests of that character. The 

 general counsel for the Western Refiners' Association recently told me he 

 didn't think it was fair for them to assume so much of this burden, if the 

 live stock and grain people were really concerned, and thought that it was 

 important that they should bear more of the burden necessary to perform 

 this work efficiently and ably. 



I am here today to give my clients a report of what we have tried to 

 do during the past year. If this work has not been worth while, it is time 

 to stop it. I am also going to outline to you some of the matters now 

 pending, and then it is up to you to see that the work is continued or not 

 continued, because it is your work and you constitute the boss. 



A year ago we had just closed the 15 per cent case, when I appeared 

 before you gentlemen at the Savery Hotel. The railroads of the country 

 had asked for a general advance of $400,000,000, the largest single case in 

 history. Several hearings had been held and the Interstate Commerce 

 Commission had declined each application, during the course of the year. 

 The western railroads had just asked for a re-hearing, and that applica- 

 tion was withdrawn. Consequently, when I was here before you at that 

 time, we found ourselves having avoided any general advance in freight 

 rates. 



