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THE MCCABE Co.,

Hon. HUBERT H. HUMPHREY,

Minneapolis 15, Minn., June 6, 1955.

Senate Office Building, Washington, D. C.

DEAR HUBERT: We are in the midst of a very critical boxcar shortage resulting from several different factors. Probably the principal one is the high level of economic activity all over the country. Secondly is the strike affecting the large trucking lines in the western part of the country which has diverted a great amount of traffic to rails. Third would be the slowness in the movement of new ships for the mothball fleet to Puget Sound which has resulted in, I believe, a couple of thousand cars or more being tied up in those ports waiting for unloading on the arrival of these additional ships. Fourth, the diversion of cars to the Southwest for the harvest movement. This is a usual thing at this time of year, of course, but with their extremely short crop, we would not feel it was a necessity to force a hardship on the northwestern part of the country to take care of their crop.

In talking with the Great Northern Railroad, they advise us that they are still losing cars faster than they are getting them from connecting lines, so the situation will get more critical. There is a very large amount of CCC grain to move off the farms and through the country elevators to make room for the new crop which at this season gives very high promise.

Furthermore, the shortage of cars for moving grain has resulted in a fictitious shortage of cash wheat in the terminal markets-12 protein spring wheat selling at 22 over the July futures; 14 protein at 44 over and 16 protein at 70 over. These

are tremendous premiums and we, as country elevator operators, are buying wheat from our farmer customers on the basis of these premiums. We are unable to get this out and onto the market so we are faced with some terrific losses because the new wheat crop is only starting to move in the Southwest, and actually, it won't be very long until the new Montana winter wheat will start to move in this area. So it is tremendously important to us that we get a better supply of boxcars so that we can get our cash wheat out.

I don't think there is any solution to this problem unless we can bring enough pressure on the ICC to issue an order to connecting lines to turn over sufficient boxcars to our Northwestern lines so that our supply is up to 100 percent ownership. If our roads had 100 percent ownership, we feel that the situation would be under control and certainly we would have no complaint.

I am sure you will be hearing from other country elevator operators in the Northwest in reference to this situation and I hope you will be vigorous in your work with the ICC and let's see if we can't get a better boxcar supply for the farmers of the Northwest. Anything you can do will certainly be appreciated. Yours very truly,

RICHARD F. MITCHELL,

BEN MCCABE,

JUNE 8, 1955.

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DEAR MR. MITCHELL: The Midwest agricultural area is confronted with a serious situation as a result of a boxcar shortage.

We urgently need your cooperation and assistance in making every effort to make boxcars available for the movement of farm and elevator stored wheat in Minnesota, Montana, North Dakota, and South Dakota. It is imperative that this locally stored grain is moved to the terminals at once to leave all the country elevator storage available to the farmers for the coming crop. Furthermore, the shortage of cars for moving grain has resulted in a fictitious shortage of cash wheat in the terminal markets.

Spokesman for the Great Northern Railroad advise they are still losing cars faster than they are getting them from connecting lines, so the situation will get more critical unless emergency action is taken at once toward release of western railroad boxcars by eastern and southern railroads.

I urge you to issue an order to connecting lines to turn over sufficient boxcars to our northwestern lines so that our supply is up to 100 percent of ownership. If our roads had 100 percent ownership, we feel that the situation would be under control and we would have no complaint.

Unless this is done, serious problems will be created by inability to move large amounts of CCC grain off the farms and through country elevators to make room

for the new crop which at this season gives very high promise. Enclosed for your information is a copy of a letter on thus subject I have received from one of our leading grain dealers.

Sincerely,

HUBERT H. HUMPHREY.

INTERSTATE COMMERCE COMMISSION,
OFFICE OF THE CHAIRMAN,
Washington, June 13, 1955.

Hon. HUBERT H. HUMPHREY,

United States Senate, Washington, D. C.

MY DEAR SENATOR HUMPHREY: This will acknowledge receipt of your letter of June 8, enclosing copy of letter from The McCabe Co., 374 Grain Exchange Building., Minneapolis, Minn., dated June 7, in regard to the boxcar shortage in the Midwest.

The Commission is well aware of the boxcar shortage. It exists not only in the Midwest, but in the Far West, in the steel areas, and in other parts of the country. The serious boxcar shortage is due in part to the following reasons: First, there was a strike which lasted better than 3 weeks involving the great trucking industry in 11 western States. The freight hauled by these truckers, and they were some of the largest in the country, had to be carried by rail. Second, the Commodity Credit Corporation has tied up a lot of cars hauling the wheat for export, and there has been a delay in unloading them. We are hopeful this situation will be remedied shortly. Third, the American Railroad Associa tion has issued an order requiring western railroads to return to the ownership railroads in the Middle West all boxcars directly from the West. (They can be loaded, I understand, if the loaded car goes to the owner railroad in the Middle West). Finally, due to improvement in business throughout the country, carloadings of the railroads have increased. Frankly, there are not enough boxcars available.

This situation will be corrected to some extent now the trucking strike is settled and if the Commodity Credit Corporation unloads the cars of wheat promptly. You may rest assured the Commission is doing everything in its power to relieve the shortage of boxcars.

Your enclosure is returned.

With kindest regards, I remain

Sincerely,

Hon. EZRA TAFT BENSON,

RICHARD F. MITCHELL, Chairman.

JUNE 9, 1955.

Secretary of Agriculture,

Department of Agriculture, Washington 25, D. C.

DEAR MR. SECRETARY: Enclosed for your information is a copy of a letter I have just sent to the Chairman of the Interstate Commerce Commission calling his attention to the seriousness of the boxcar shortage in the Midwest, and the adverse effect it is having on movement of CCC grain from country storage to terminal elevators.

Your Department should be keenly concerned about getting the farm and country elevator storage cleared in time for the coming crop.

I would appreciate anything you can do to expedite emergency action by the ICC toward making more boxcars available for that purpose.

Sincerely,

Hon. HUBERT H. HUMPHREY,

HUBERT H. HUMPHREY.

DEPARTMENT OF AGRICULTURE,
Washington 25, D. C., June 24, 1955.

United States Senate.

DEAR SENATOR HUMPHREY: This will acknowledge receipt of your letter dated June 9, 1955, to which was attached a copy of your letter to Richard F. Mitchell, Chairman of the Interstate Commerce Commission, concerning the shortage of boxcars for wheat loadings in Minnesota, Montana, and the Dakotas.

The Department has been aware of the growing shortage of boxcar equipment in the Nation for the past 3 weeks. Shortages have developed in the Pacific Northwest, the Southwest, and in the Chicago and Minneapolis areas, as well as in Arizona and Nevada.

The shortage of railroad boxcar equipment is due to a variety of reasons, the principal of which are:

1. The general improvement in business conditions which resulted in a greater volume of railroad traffic and increased the demand for high grade boxcars. Carloadings for the week ending June 4 were 713,673 cars, an increase of 16 percent above the corresponding week in 1954.

2. Heavy movements of grain to ports in the Pacific Northwest for export and storage in the moth ball fleet.

3. Early maturity of the grain crop in the Southwest.

This situation was further aggravated by the strike against the motor carriers in the 11 Western States, and the traffic which they normally handle was diverted to the railroads. We believe the boxcar shortage will be relieved somewhat by the settlement of this truck strike which was effected June 10, 1955.

Since June 2 the Department, to assist in making more cars available, has withheld all loading orders for the movement of Commodity Credit Corporation grain to ports in the Pacific Northwest for storage in the mothball fleet. This action has resulted in the release of a substantial number of boxcars for the use of other shippers. It is the purpose of this Department to continue its assistance insofar as it is possible so long as emergency conditions exist.

It is anticipated that, witn the settlement of the truck strike and the reduction in the number of cars moving to Pacific ports, together with the continued efforts of this Department, the Association of American Railroads, and the Interstate Commerce Commission, there will be a general improvement in the car situation in the future.

Sincerely yours,

HOWARD J. DOGGETT, Assistant to the Assistant Secretary.

THE MCCABE Co.,

Hon. HUBERT H. HUMPHREY,

Minneapolis 15, Minn., July 20, 1955.

Senate Office Building, Washington, D. C.

MY DEAR SENATOR: In reply to your wire of July 19 regarding public hearing called for Wednesday, July 27 at 2:30 p. m. on the current freight car shortage, we wish to give you the following figures. For immediate shipment we have in our various elevators the following commodities:

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This means an immediate requirement of 1,015 empty boxcars to move last year's crop. In addition to the above, there is also an undetermined amount of grain on the farms which would normally come to our elevators for shipment if we had room to take it in.

Further than this, within the next week or two, the new crop will start moving and it is anticipated that there will be a large crop this year.

We sincerely enlist your assistance in getting the Interstate Commerce Commission and the Association of American Railroads to get a larger proportion of empty boxcars from the eastern lines to the carriers in the Midwest to help move the crop now in store and the new crop which is coming shortly.

Yours very truly,

O. A. BEHMER.

DUMONT, MINN., July 26, 1955.

Senator HUBERT HUMPHREY,

Senate Office Building, Washington, D. C.:

Situation critical.

grain cars.

Elevators plugged. Request immediate action regarding
DUMONT FARMERS COOP ELEVATOR Co.

WHEATON, MINN., July 26, 1955.

Senator HUBERT H. HUMPHREY,

Senate Office Building, Washington, D. C.:

Boxcar shortage is worst ever. New crop just starting. Elevator already blocked past 4 days. About 1,400 producers depend on us to ship their grain. Fifty boxcars needed immediately; 100 cars needed next 60 to 90 days. critical.

Situation

ALVIN HENNEN,

Manager, Farmers Coop Elevator.

ELDRED, MINN., July 25, 1955.

Senator HUBERT HUMPHREY,

Senate Office Building, Washington, D. C.: Again we ask that you exercise all your influence in securing more boxcars for the Northwest railroads. We have about 200 producers to accommodate them. We would at this time need 20 cars with another 50 cars over the next 60 days. FARMERS ELEVATOR CO.

Hon. HUBERT H. HUMPHREY,

United States Senator, Washington, D. C.:

GLENDIVE, MONT., June 7, 1955.

We ask that you contact the Interstate Commerce Commission asking them to make every effort to make boxcars available for the movement of farm- and elevator-stored wheat in the States of Minnesota, Montana, North Dakota, and South Dakota. With favorable weather conditions existing throughout the balance of the growing season it is imperative that this stored grain is moved to the terminals leaving all country and country elevator storage available to the farmers for the coming crop.

JOHN MONTGOMERY, Manager, McCabe Elevator Co.

BELTRAMI FARMERS UNION COOPERATIVE ASSOCIATION,
Beltrami, Minn., June 9, 1955.

Senator HUBERT HUMPHREY,

Washington, D. C.

DEAR SIR: Kindly contact the Interstate Commerce Commission and demand that the eastern and southern railroads be ordered to return the northwest railroads their equipment. We have been getting only few cars a week, and have loading orders for CCC grain in our file of 150,000 bushels and still more farm storage on which we have no orders as yet. We have been blocked in our elevator for the past month.

Any assistance you can give us will be greatly appreciated.
Kind personal regards,
Sincerely yours,

Senator HUBERT HUMPHREY,

A. M. LARSON, Secretary and Treasurer.

THIEF RIVER FALLS, MINN., June 15, 1955. Washington, D. C.

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DEAR SIR: I read in the Minneapolis Tribune Friday, June 10, that you are checking into the boxcar shortage in the upper Midwest. I believe I know reason why this situation exists. Early this spring the Minnesota Railroad a Warehouse Commission allowed the Soo Line Railroad to cut their service between. Glenwood, Minn., and Duluth, Minn., from daily freight service to freight servic

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tri-weekly. Now loads of grain are being held at Glenwood 2 and 3 days. Friday morning there were 78 loads of grain for Duluth being held at Glenwood. If this is being done all throughout the upper Midwest, you can easily see why we have a boxcar shortage.

Yours truly,

Senator HUBERT HUMPHREY,

Washington, D. C.

VERNON A. JAHR.

FARMERS ELEVATOR CO.,
Eldred, Minn., June 17, 1955.

DEAR MR. HUMPHREY: We know you are aware of the boxcar shortage in our State of Minnesota, as well as neighboring States.

Our situation is perhaps no worse or better than the average in the northwestern part of Minnesota. Our capacity of 130,000 bushels has been for some time and still is completely filled with grain. Under some conditions this might be a favorable situation, considering that we could and are collecting storage from Commodity Credit Corporation. However, first and foremost our position is to serve our 200 farmer patrons with facilities to handle their grain. This we are unable to do at present and with harvest only a short time away, the situation takes on an increasingly alarming picture.

In behalf of my directors and some 200 patrons I ask that you do everything in your power to force a more equitable distribution of boxcars, especially so in line with the actual ownership of some of the roads that serve this Northwest. Yours very truly,

Senator HUBERT H. HUMPHREY,

Washington, D. C.:

H. MYKLEBY, Manager.

ULEN, MINN., June 10, 1955.

Urgently request your assistance in getting the Interstate Commerce Commission to demand eastern and southern railroads to return northwestern railroads their equipment. Boxcar shortage very critical in this area. Elevator has been blocked for 2 weeks and we have 60,000 bushels of grain ready to ship and expect 50,000 more to be delivered by producer patrons.

Very respectfully,

TRI-COUNTY Co-op ASSOCIATION.

WINTHROP, MINN., June 6, 1955.

Senator HUBERT H. HUMPHREY,

Senate Office Building, Washington, D. C.:

Considerable grain in elevators and farmers hands this territory to be moved before 1955 harvest can be taken in suggest releases of western railroad boxcars by eastern and southern railroads to take care of old and new crop. Elevators will be plugged up if this is not done.

MCCABE CO.

FARMERS UNION GRAIN TERMINAL ASSOCIATION,
St. Paul 1, Minn., June 22, 1955.

Hon. HUBERT H. HUMPHREY,
United States Senate, Washington, D. C.

DEAR SENATOR HUMPHREY: I have read with a great deal of interest your letter addressed to Chairman Mitchell of the Interstate Commerce Commission and his reply thereto.

Now, in his communication he points out 3 or 4 situations that may have a bearing on this boxcar shortage. Then finally points out the improvement in business throughout the country as having an effect on the railroad's inability to furnish boxcars. Then he very frankly makes the statement that there aren't enough boxcars, and that's exactly what we have stated for years, and that it should be the point upon which the Interstate Commerce Commission should be asked to move, to insist and demand that the railroads build more boxcars. The record at the present time indicates they are taking more cars off than are being

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