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Image from web page 619 of “Illinois Agricultural Association record [microform]” (1923)
Title: Illinois Agricultural Association record [microform]
Identifier: 5060538.1923-1930
Year: 1923 (1920s)
Authors: Illinois Agricultural Association Illinois Agricultural Association. Record
Subjects: Agriculture — Illinois
Publisher: Mendota, Ill. : The Association
Contributing Library: University of Illinois Urbana-Champaign
Digitizing Sponsor: University of Illinois Urbana-Champaign

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Text Appearing Just before Image:
THE I. A. A. RECORD – f I Web page Seven 1 Water Transportation Will Support How Farm Prices May possibly Be Raised by Barge Line Create- ment Down the Mississippi Lachlan Macleay, Secretary Misaiaaippi Vailey Aaaociation

Text Appearing After Image:
Lachlan Macleay IN speaking: of the issue of get- ting a fair cost for the goods of the farms, it has been said &quotthe farm price be- comes the retail cost less the charges of assembling, transporting, pro- cessing, and distri- buting.&quot Assum- ing that this is a right statement, then any agency that reduces the expense of getting the products of the farms to their mar- kets will outcome in larger prices on the farms, and the farmer, for that reason, has a direct cash interest in Inland Water- way development which will lower these transportation expenses. It is 7346 miles from Buenos Aires, Argentine, to Liverpool, exactly where the globe price of wheat is created. From central Kansas to Liverpool through the port of New Orleans, it is 6010 miles, —1336 miles less distance, and however Kansas wheat pays practically 12c per bushel far more to get to market place than Ar- gentine wheat. The average rail haul to seaboard in Argentine is 141 miles against an typical rail haul from Kansas to seaboard of 800 miles. In 1927 Argentine corn was marketed on the Pacific Coast, United States of America, in competition with Illinois, Iowa, and Nebraska corn, and regardless of the duty paid, I am told by trustworthy authority that it undersold our Middle West solution so a lot that we lost the marketplace almost totally. Argentine Corn Competes What do you believe of wheat moving 12,691 miles from Melbourne, Aus- tralia, to Liverpool for 19.eight cents per bushel as against 27c a bushel for an 800 mile rail haul from Kansas to New Orleans? Buenos Aires is 6,722 miles from New York, and Illinois is only an average of about 900 miles, and yet Argentine corn, despite the duty, usually finds a lucrative market in New York, New Jersey, Boston, and Philadelphia. The average earnings of Atlantic ocean carriers last year is provided by the Shipping Board as three mills per ton mile. The typical earnings of Class A rail- roads is offered by the Interstate Com- merce Commission as 11.1 mills per ton mile. The typical earning of the Fed- eral Barge Line on the Mississippi River was four.12 mills, and it produced a profit on that figure following paying all of fts expenses and depreciation. The Federal Barge Line is handi- capped by shortage of gear to take care of the complete volume of traffic presented to it. It has not adequate ter- minal facilities, and its river channels are not a lot more than two-thirds com- pleted. In addition to these physical handicaps, it is being bitterly opposed by potent east and west rail lines, despite all of which it carries grain from St. Louis to New Orleans for 11 %c per cwt., as against a rail rate of 18c per cwt. and shows a profit on that rate although it brings back Yucatan sisal to make the farmers’ binder twine at a saving of 20 % beneath the rail rate, and makes a profit on that. It brings north a thousand automobiles of sugar a month and saves the public $60 per auto. Carries Grain Less expensive I could go on enumerating com- modities the Barge Line handles at a saving for the shippers and consumers, practically covering the whole list of staples utilised by the men and women of the Val- ley. It is carrying grain from the Twin Cities of Minneapolis and St. Paul to New Orleans for export at a rate of 14.8 cents per cwt., as against a rail rate of 35 %c, and bringing back sisal, binder twine, sugar, and coffee, also farm machinery from Moline and Rock Island for use on the farms of Min- nesota, Wisconsin, North and South Dakota. If the Barge Lines can do as effectively as they are doing although battling agfainst the present handicaps to their oper- ation, it is a fair assumption that they can do considerably much better when these diffi- culties have been overcome. I am not creating an extravagant statement, nor an more than-optimistic a single, when I tell you that on many commodities the Barge Lines will be capable to reduce their present prices in half, and they will move coal, lumber, and steel merchandise at tremendous saving^s when their equipment, terminals and channels are sufficient and completed. Require More Facilities There is urgent want for grain ele- vators at Barge line terminals on the rivers so that the farmers’ grrain can be place on the river barges at the close to- est port to the farm anol move by water to the nearest port to its ultimate mar- ket. A grain elevator at Memphis, Tenn., for instance, will be of excellent value to grrain growers in the north and northwest who can then ship by water at a substantial saving a larger element of the 50,000,000 bushels of coarse grains and wheat that are used annually in the southeastern states. This would move from the farm by rail to the river, by river to Memphis, and then by rail to destination, as a result en- joying the advantage of low price water transport for a wonderful portion of its journey. There is a large marketplace for hay in Cuba and the West Indies. Higher freight costs shut out the Middle West totally, and although in our nation there is in some hay-gfrowing sections as significantly as 3 years’ crops in stor- age awaiting a marketplace that will get the grower even his production price. Ca- nadian hay is moving into Cuba at prices that our shippers can not com- pete with. I ‘ I Canadian Prices Reduced Speaking of Canadian prices, you may be interested in a comparison of American with Canadian rail rates on grain from the farms to the seaboard for export which was created in testi- mony favoring the Denison Barge Line Bill by George J. Miller, Executive Sec- retary of the Missouri River Navigation Improvement Association. His testi- mony showed that from points in Al- berta province, Canada, averagring 1,200 miles to Port Arthur on Lake Superior, the rate on grain per one hundred pounds is &amp5c. The rail rate from Port Arthur to Quebec for export, 1372 miles, is 18.34 per cwt. or a total of 43.34 cents for a total rail haul of about two,600 miles. From Mani- toba to Port Arthur, an averagre of 650 miles, the rate is 18c per cwt. From Saskatchewan to Port Arthur, an average of 800 milei^, the rate is 20c. I In the United States the average 650 mile haul from Nebraska and Kansas points to Chicag^i carries a rate of 35c per cwt., as against the Canadian price of 18c. The typical rate on export grain for an 800-mile haul from the Middle West to seaboard is 38c per cwt. as against the Canadian price of 20c. (Continued on page 8) * i

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