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freight and the return of empty cars to the interior. The need of proper storage and loading facilities at our Atlantic ports is so evident to any unbiased observer that I fail to see how House file No. 10453 can meet with any opposition.
If I can be of any assistance to you in facilitating the passage of the legislation in question do not hesitate to advise me. Respectfully,
FREDERICK B. WELLS.
Mr. JACOBSON. At a meeting held by the State agricultural society on January 16, 1920, in Minnesota, a resolution was introduced and is signed here by Thomas H. Canfield, secretary and general manager of the Minnesota State Agricultural Society. I should like also to introduce that resolution into the record.
The CHAIRMAN. That will be inserted in the record. (The resolution referred to is here printed in full, as follows:)
Whereas one of the issues vitally concerning the farmers of the State of
Minnesota is the annual railroad car shortage, just at the time of year when the agricultural products of the State are ready to be marketed ; and Whereas the State Railroad and Warehouse Commission has discovered that
this shortage is due in the main to the congestion of cars that remain unloaded for weeks at the principal seaboard terminals on the Atlantic coast,
because of inadequate storage and handling facilities; and Whereas after many years of agitation on the part of the Minnesota Railroad
and Warehouse Commission, Congress is about to take action remedying this condition, in bills now before that body, fathered respectively by Hon. Knute Nelson in the Senate and Hon. Sydney Anderson in the House, directing the Interstate Commerce Commission to adopt means for obtaining the necessary facilities for handling and storing upon the Atlantic seaboard agricultural export commodities; and Whereas Senator Frank B. Kellogg, a member of the Senate Committee on
Interstate Commerce, is arranging for a general public hearing on these bills and is desirous that Minnesota be represented by a strong representative. committee at this hearing: Therefore be it
Resolved, That the State Agricultural Society of Minnesota unqualifiedly indorse the purpose of the bills now before the National Congress and that a representative of this society be appointed to be a member of such committee from this State to go to Washington to be present at the hearing of the bills proposed to correct the so-called car shortage. Attest:
THOMAS H. CANFIELD, Secretary-General Manager.
Mr. JACOBSON. At the grain dealers' association meeting held in Minnesota-Mr. Charles Kenning is present here-resolutions were also introduced requesting that the railroads build these elevator capacities, and I would like to have these resolutions inserted in the record.
The CHAIRMAN. They will be inserted in the record.
(The resolutions referred to are here printed in the record, as follows:)
1. We appreciate the splendid entertainment given us by the ladies' band, of Starbuck.
The program of the convention has been materially enriched by their splendid music and songs and we desire to thank them heartily for their presence with us and their entertainment, and trust we may have them with us at future conventions. Carried.
2. We want to thank the officers of this association for their untiring efforts in making a success of this convention as well as for their splendid work during the year for the association. Carried.
3. We desire to thank the West Hotel for their courteous entertainment, the speakers on our program for the splendid efforts they have made in assisting in making the sessions interesting and instructive, the delegates for their attendance, and all who have contributed to the success of our convention. Carried.
4. We strenuously protest against any arbitrary reduction in the prices of farm products unless there be a similar arbitrary reduction in the prices of other commodities at or near the same time. Carried.
6. We are favor of the passage of legislation which will provide for the return of the railroads to their owners as quickly as possible, and which will permit operation by said owners, under the supervision of the Interstate Commerce Commission and the State Railroad Warehouse Commission as their power existed before the war.
7. Whereas the name of our national organization is often confused with other organizations which use the name national council: Therefore be it
8. Resolved, That we favor changing the name of our national council to the American Farmers' Grain Dealers' Association.
Resolved, That we instruct our delegation to favor the reorganization of the national council on a firmer foundation.
Whereas the United States is facing a transportation crisis unequaled in the history of the Nation, yet notwithstanding the shortage of freight cars, they are being used in the East for storage of grains at a nominal rate of demurrage because of lack of storage facilities: Be it
Resolved, That we indorse the Nelson and Anderson bills now before Congress that will compel the carriers to provide elevator space for grains and warehouse capacity for flour at seaports and demand immediate enactment of this legislation.
10. The Interstate Commerce Commission has under consideration the issuance of new grain rates that are rankly discriminatory against the Northwest, and will cost every grain grower at least 5 cents a bushel on every bushel raised; that will greatly increase the cost of will feeds to the dairymen ; that will deprive much of the northwestern wheat of its natural market-Minneapolis—diverting it to Chicago and points east, thereby making new financial connections by farmers' elevators necessary, and adding to their cost of doing business on account of the longer time money for advances will be held out of use: Be it
Resolved, That this convention ask and petition that the temporary suspension of these rates now in effect be made permanent.
11. Whereas the eight-hour day for farm labor is, owing to the seasonal character of the work, economically impossible, and the existence of such hours in other lines of industry makes difficult obtaining of farm labor: Be it
Resolved, That during the present crisis in production union labor should forego the eight-hour day, to the end of bringing about cheaper living costs for the city worker.
12. Whereas the farmers of the United States produced to the utmost during the war without thought of length of the day's work, while labor was asking and receiving high wages for short hours: Be it
Resolved, That it is now time for labor to do what farmers did-produce to the utmost in order that prices of manufactured articles that farmers must buy may be reduced to meet the reduction in the prices of products of the farm that has been to a great extent forced in the so-called interest of the consumers but in reality to enable food handlers to more easily exploit the farmer and food buyers.
13. Whereas the operation of the present Federal grades cost the producers of the Northwest millions of dollars in the handling of the low quality 1919 crop : Be it
Resolved, That this convention demands the immediate reopening of the matter of grades, to the end that a fairer and more equitable system be put in force before the 1920 crop begins to move.
B. M. ANDERSON, Chairman.
Mr. JACOBSON. And also a resolution approved by the State Legislature of Minnesota on April 17, 1917—that was when we first started.
The CHAIRMAN. That resolution will be inserted in the record. (The resolution referred to is here printed in full, as follows:)
RESOLUTION NO. 3.
(A concurrent resolution memorializing the Congress of the United States to establish, operate, and maintain terminal elevators at all the railroad and marine terminals of the United States where grain is extensively handled.] To the United States Senate and House of Representatives: Whereas during the past two years the demoralization of the transportation
systems throughout the United States has caused irreparable losses to the farmers and producers of grain; and Whereas as a result of such demoralization there has been stored millions
of bushels of grain in cars at the various terminals. Owing to the failure of such terminals to handle such grain, the transportation thereof has been very seriously delayed, causing the consumers great inconvenience and unnecessary increase in the cost of living, and in many instances actual suffering; and Whereas the various railroad companies have failed in securing for the
farmers and growers the necessary relief, although frequently urged to do so; and Whereas in November, 1916, there was appointed by the National Association of Railway and Warehouse Commissioners a committee to investigate the car shortage and make a report thereon; and Whereas said committee, after a careful and thorough investigation of the
car shortage at the various terminals throughout the United States, found that thousands of cars at the leading terminals were used, not only for days and weeks, but months, for storage purposes, because of the inability and failure of the terminal elevators to take care of and handle the grain at destination: Now, therefore, be it
Resolved by the House of Representatives of the State of Minnesota (the Senate concurring), That we earnestly and urgently petition Congress to establish, operate, and maintain, terminal elevators at all the leading railroad and marine terminals of the United States where grain is extensively handled, firmly believing this to be for the best interests of all the people, including consumers and producers alike, and essential to the successful growing, transportation, and handling of grain throughout the United States. Approved, April 17, 1917.
Mr. CHARLES KENNING. Mr. Chairman, I will also say that a similar resolution was passed this week at Chicago, at the Farmers' National Grain Dealers' Association.
Mr. JACOBSON. Now, in Philadelphia, some time ago, I had a meeting with the members of the commercial exchange, and I remember one grain man told me it was so bad there at times that the cars were standing on the tracks; that the congestion was so bad there that they had steamers waiting for grain, and one grain man had to pay $25,000 in demurrage just because he could not get the grain down to Philadelphia. The Philadelphia exchange is represented here so they can talk for themselves.
I would like to mention that at a recent hearing of the Committee on Merchant Marine and Fisheries, a gentleman was present from Galveston, Mr. Haines-of course, I have really nothing to do with this but I want to mention it anyway.
At Galveston, during the war, there was probably more grain shipped out than there used to be and Galveston has a capacity of about-well, I do not want to say 4,000,000 bushels, because it is
not quite that much capacity on account of the many varieties of grain, but let us put it at that. New Orleans has a capacity of about four or five million bushels; so that is really the capacity that there is in the Gulf ports for grain and grain products.
Our grain men of the Northwest are very much interested in this matter. I do not know of one of the elevator men from the large elevators down to the small farmer elevators all through the Northwest who have not written letters and had meetings. I have had meetings with them and they have asked for relief.
They believe that the only way we can get relief is to get our cars back. "It is true that some people think it is the car shortage. I do not. I believe that there is a car shortage; there is no question about that, and also a power shortage; there is no question about that; but not as much as people really think or would think if they had seen what I have seen and know what I have investigated.
Mr. Haines made a statement-and I just want to let the people of the country know that the northwestern people—the people that are represented by you three Senators--are not crazy in everything.
Mr. Haines made a statement that all we knew out West was grain elevators for flour mills and broom factories, and to ask a man in the Northwestern States to buy ships they would be crazy; no such question was asked. In the State of Minnesota alone, in the Northwest, we have 8,500 stockholders in the Norwegian-American Steamship Line, of which I was one of the subscribers when it first started. As to the Swedish-American Line, we have also a great many of our northwestern farmers who are interested in those ships. So I want to have these people get away from that idea that we do not know anything except about
flour elevators and broom factories. We probably know as much about ships as they do in Galveston.
Mr. Chairman, as far as the bill is concerned, that is all I have to say.
Senator POMERENE. Daniel Willard, president of the Baltimore & Ohio Railroad, in a statement which he made before this committee when we had the railroad legislation up, practically took the samo position that you take, that the failure of the railroads to function was due to the lack of terminal facilities.
Mr. JACOBSON. Yes.
Senator KELLOGG. There is no doubt that that is true of the Atlantic Seaboard, and has been for a great many years.
Mr. JACOBSON. Now, gentlemen, if there are any questions that you would like to ask me, I will be glad to answer them, if I can, and I believe I can answer any questions with respect to this matter.
Senator KELLOGG. Have you had any hearing before the Interstate Commerce Commission on this subject! Have you presented the matter to the Interstate Commerce Commission!
Mr. JACOBSox. Yes; I have. That is the reason the bill is drawn in the way it is. Mr. Hines and Max Thelan and Mr. Chambers thought it would be a good idea to have that bill drawn so that the Interstate Commerce Commission should be the ones to have the power at the hearing to locate these elevators and warehouses.
They thought that would be a good idea, and Mr. Hines and the administration said they would back them up. I have a letter in my pocket from the Chairman of the Interstate Commerce Commission, which I received on yesterday but have not had time to respond, asking me to come and see him. I think it is Commissioners McCord, Hall, and Clark who are on that committee, and they want to meet with mé while I am here.
Senator KELLOGG. Clark is the chairman this year, is he not?
Mr. JACOBSON. Yes, sir; Mr. Clark is the chairman. Aitchison has been chairman, but he goes out this year.
The CHAIRMAN. Mr. Clark has just been made chairman?
The CHAIRMAN. It was Mr. Woolley's turn, but he declined to become chairman because he was not in sympathy with the railroad
Senator Kellogg, have you any further questions to ask Mr. Jacobson?
Senator KELLOGG. I have no questions. I am pretty familiar with it myself, and I know there has been a shortage of terminal facilities in New York.
Mr. JACOBSON. I have with me the expert who takes care of the car shortage in the State of Minnesota, Mr. A. L. Flynn, and I would like to have him make a statement covering just a few minutes in order to show you gentlemen what we are up against.'
Senator POMERENE. Have you examined the recent railroad bill which we passed?
Mr. JACOBSEN. Yes, sir; I have.
Senator POMERENE. Do you not think that there is sufficient authority under that bill now given to the Interstate Commerce Commission to make this investigation which is required by this bill ?
Mr. JACOBSON. We do not think so, Senator.
Senator POMERENE. Well, their authority extends to all the needs of transportation, etc. I have not in my mind the exact phraseology, but we intended to make that very comprehensive.
Mr. JACOBSON. We have been through that with our attorney general, but on account of their wanting to have the grain and grain products in it, that is really what we are up against more than anything else.
Senator POMERENE. I do not think it mentions grain products, but it mentions the general transportation needs of the country, and it seems to me that in their investigations they would be able to do just exactly the things which you call for.
Mr. JACOBSON. But the Interstate Commerce Commission, as I understand, is very much in favor of this. You know Mr. Elmquist, who has been down here a few years?
Senator POMERENE. I think it is a proper subject of investigation, and I think we ought to have detailed information about it.
Mr. JABOBSON. I have had a good deal of talk with the commissioners from your State, and the grain men of your State, and they are very much interesteil, just as much interested as we are.
Senator POMERENE. We are all interested in getting the necessary transportation facilities and storage facilities, but the only thought I had in mind is does not the legislation which we passed just a short