54 OUTLINES OF AGRICULTURAL ECONOMICS 



40. Explain the " public " warehouse system. Do we have any 

 government-owned warehouses for agricultural products ? Would it 

 be desirable ? 



PROBLEMS 



1. "The volume of export business is an important factor in the 

 price of mill feed, such as bran. In recent years ocean rates on wheat 

 have been considerably less than the rates on flour, thus decreasing 

 export trade in flour. Mills in this country have the capacity to 

 grind every bushel of our wheat, and every bushel ground in this 

 country leaves sixteen pounds of mill feed for the American farmer. 

 Millers have for years been trying to secure an equalization of wheat 

 and flour rates on ocean vessels. Should dairymen join with them 

 and accomplish this result, mill-feed supplies would be enlarged and 

 prices lowered.' ' Is this a case of discriminatory rates? Is a rate 

 of fifty cents more on flour than on wheat justified by greater cost of 

 handling ? Draw up as full a list as you can of cases of discrimination 



(a) between different sections of production of agricultural products, 



(b) between different farm products or between farm products and 

 manufactured articles, etc. 



2. "Nobody appears to try seriously to lay the blame for high 

 prices at the door of the railroads. In the five-year period 1884-88 

 the average cost of carrying a bushel of wheat from Chicago to New 

 York by rail was 16.32 cents; in 1908, 10.60 cents. The railroad 

 gets only about 1 cent a pound for bringing butter from the Mississippi 

 River to Boston, and chickens are brought from Chicago for about 

 J of a cent a pound. Whether or not, in spite of this situation, the 

 railroads are still charging too much and making profits too large 

 would take the most expert investigation to determine. " Have rates 

 upon farm products in general fallen in proportion to the Chicago- 

 New York rate on wheat? Is the comparison with previous rates 

 or a study of the net profits of the roads the better basis for judgment 

 on the correctness of rates ? 



3. "All employees of the railroads have instructions 'to secure 

 additional revenue.' Very few lines can be trusted. They will 

 promise you lower adjustments and then they will begin to plan 

 increases instead of reductions. Look back over the past four years 

 and you will find many increased rates, lengthened schedules, higher 

 refrigeration charges, and other underhand methods which are eating 

 at the arteries of your business and impeding the proper distribution 

 of fruits and vegetables." Contrast these bitter words with the quo- 

 tation above (2). Can you explain the difference? (The former is 

 from the Massachusetts [19 10] cost-of-living report, the latter from 

 the Traffic Committee of a trade association [19 16].) 



