Md. Extension Says Rail Corn Rates Up 40%
The recent short-lived trans
portation shutdown caused by
striking railroad signalmen
added only insult to injury for
agricultural processors and
other freight shippers.
For as long as most of them
can remember, shippers of
grain and similar bulk commo
dities have been complaining
about the poor condition of
railroad boxcars, unnecessary
.demurrage, and the undepend
ability of rail freight shipping
schedules.
The advent of “Big John”
hopper cars about five years
ago held big promise for alle
viating some of these com
plaints. But their limited num
ber and lack of adequate rail
road sidings and loading equip
ment at many rural points to
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Despite an appearance of
doing little to improve service
and equipment, U.S. railroads
have gained permission from
the Interstate Commerce Com
mission for a series of five ex
parte freight rate increases
which have raised the actual
cost of shipping corn from the
Midwest to Eastern Maryland
by 40 per cent since 1967.
Railroad backers might argue
that the cumulative total of
these one-sided increases comes
to only 32 per cent. But, like
the compounding effect of .in
stallment loan interest, actual
increase approximates the 40
per cent figure, according to
John L. Crothers Jr, Exten-
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sion grain marketing and
transportation specialist at the
University of Maryland.
Crothers pointed out in his
weekly Maryland Grain Mar
ket letter for May 7 that, from
July 1964 to August 1967, the
cost for shipping a ton of corn
695 miles from Toledo, Ohio, to
Snow Hill, Md., was $7.30 per
ton. Now the cost is $10.20 per
ton. But rail service and gen
eral equipment condition have
deteriorated during the same
time interval, he charged in a
recent interview.
On top of that, Crothers
pointed out, official railroad
rate schedules have not been
updated since 1964. Figuring
the interim series of five ex
parte rate increases as sur
charges to "the official rate
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T-anoaster Farming, Saturday, July 24,1971
schedule has made present-day
railroad shipping rate sche
dules so complex and jumbled
that only experienced person
nel can compute them properly.
And the jumbled mess has
brought to a virtual standstill
any possibility of instant, com
puterized freight shipping rate
schedules, he observed.
The latest ruling by the In
terstate Commerce Commis
sion confirms a full six per cent
rate hike sought by the rail
roads under Ex Parte 265 and
a variable adjustment of the 15
per cent increase requested un
der Ex Parte 267. An interim
eight per cent of this latter
increase was already in effect
in the East, Crothers reported.
The final ICC order under Ex
Parte 267 permits the following
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Since 1967
adjusted freight rate increases:
—l4 per cent within the East;
—l2 per cent within the West,
between territories and on
export-import traffic.
—6 per cent within the South.
These increases are subject to
the following limitations:
—'Fresh fruit and vegtable
piggyback rates from the
West Coast increase only 9
per cent when they include
a provision for protective
service;
—Rate increases for fresh
fruits, vegetables, nuts, pro
cessed foods, beverages and
wines are limited to a maxi
mum increase of 22 cents per
cwt.
—Grain and grain products are
limited to an 11 per cent
increase.
—Lumber and forest products
are limited to a maximum in
crease of 15 cents per cwt.
These freight rate increases
are likely to be passed on to
consumers for commodities like
fresh foods from the West Coast.
Crothers observed.
But the shipping rate increases
for grain and grain products are
likely to hit farmers hardest. He
pointed out that the rate in
creases since 1967 for srain ship
ments from the Midwest to
Eastern Maryland points amounts
to 8 cents per bushel.
American Dairy
Assn. Meeting
“The Annual Meeting of Dis
trict 18 of American Dairy Asso
ciation and Dairy Council which
includes Adams, Berks, Chester,
Cumberland, Dauphin, Franklin,
Lebanon, Lancaster and York
Pennsylvania Counties will take
place at the Lebanon Valley Ex
position Grounds, Cornwall and
Evergreen Road, Lebanon, at
12 noon Thursday, August 5,
with a chicken barbeque.
The barbeque tickets may be
obtained from Earl Patches,
Annville, Chairman; George
Moyer, Myerstown; Jay Russell,
Ober, Lititz; Homer Campbell,
Elizabethville; John >C. Krone,
Glen Rock; John Lasher, Lykens;
Willard Gray, Downington; or
Field Representative Ray Wdt
wer, Lititz.
Staff members of ADA & DC
will place special emphasis at
this year’s annual meeting in re
porting on the newly formed
United Dairy Industry Associa
tion and District 18’s role in its
future activities.
Also at the meeting, elections
will be held to select three mem
bers to serve on the District 18
Board of Committemen. The
terms of Jay Russell Ober, Lititz;
John C. Krone, Glen Rock; and
Willard Gray of Dowington, ex
pire.
The District 18 membership
will also be brought up to date
on the activities during the past
year by ADA & DC Director,
George Moyer. Door prizes will
be awarded and the membership
is urged to make their reserva
tions as soon as possible. ,
NEED ALFALFA
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Also P.A.G. 617 Alfalfa
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WILLIS H. WEAVER
342 Chocolate Ave.
Mt. Joy, Pa. 17552
Phone 653-1312
13