Omaha daily bee., 1885-06-24
RATES AND REBATES.
Another STRAIN Of Stat mGnS Given 10
the Senate Commerce Committee,
Charles Francis Adams Among Those
Who Tell What They Know-The
Committee Completes its Work.

~ SNoNo OAAnbo AlltEhhhVb
commerce investigation committee were
up bright and early yesterday morning,
and In their psrlor at the Paxton
hotel promptly on time, $3.50 o'clock, to
hesr more statements about the railroads
and their relations with the people in
this section of the country. Newspaper
men, railroad men, merchants and farm
ers entertained them one after another
until about s o'clock, when they drew
the line, and at 6 o'clock departed for
st. Paul.
MoRNING SESSION.
The Senate committee on Inter.s state
commerce investigation met at $50
o'clock yesterday morning and commenced
hearing of testimony of witnesses from
the interior part of the state. The first
man to appear before them was Mr..
Gere, of the Lincoln Journal. Much of
! the Determinations existing in this state
sgainst shippers, by the railroads, arises,
thought Mr.. Gere, from repeated rate
wars, carried on by opposing lines that
come into tho state from various points.
For instance, a road from st. Joe, Mis-
souri,, to some point In Nebraska, and
a road from Council Bluffs to the
same point, invariably give better
rates, to the merchants and also to other
shippers, than they can get to Omaha,
which fact, to the mind of the witness,
Is a serious discrimination against
Omaha. Mr.. Gere said that he had
never been connected with any railroad,
and In the various political fights he had
been both on the sides of the railroads
and against them. Daring the grssshop-
per plaques the railroads lowered their
rates to What they said was below coat,
and they did that to give the people of
the state relief, but as soon as the plague
was over, rates were raised again to their
highest figure.
@. e, Yost, of the Republican, miro
duced himself. Mr.. Yost said that he
was not a student CT railway economy,
nor versed In the measures which such
enterprises required, but had come there
to deny @ statement made the evening
before by Mr.. Rosewater relative to his
connection with the river brldg e here and
a contract to transport goods across 1t.
\ AAo hkI AS'Sk W. haNo lo hhl -"
terest in any such contract.
Mr.. Jabez Burrows, a farmer from
Gsge.county, was the second gentleman
to appear. The farmers have a great
source Of discomfort over q feeling that
, their political powers are domineered
over and eubdued by the railroads. The
best method for fixing rates is by law,
and as the general basis on which to fix
rates he would take into confederation
TIE cost of construction and expense Of
running different railroads. He believed
that the farmers are becoming more and
more In favor OF o national railroad COM
mission. He would be would be willing
to give 10 per cent profit on all capital
invested. The great evil of
the whole business is this practice among
railroads of being allowed to water and
Initiate stock. At one time here the man
who built the Republican Valley road,
which cost $12, 900 a mile to construct,
testified before a legislative committee
that the road was not making enough to
pay for the grease on its wheels, bat at
the same time 1t held q market value of
$45, 900 per mile. Several transactions
of shipments from Omaha and Piatts-
mouth to points west, were read to show
the variations of prices charged for rates
and the determinations that are prac-
ticed. The shipments in this state are q
matter of special contract.
Mr.. Burrows Is of the opinion that
railroads ought to be considered, what
those who build them say they are when
asking for subsidies from the people, soy
they are, public Institutions, and what
ever gcei into the construction account
fairly and squarely should be capitalized.
The fact thar there has been no uni.
form system of accounts kept, he's given
rise to the practice OF watering stock. 81
believe" taid the witness, "thst the gov. |
eminent ought to have The power to
build parallel lines of road In any part of
the country.
The recent movement by which con-
Solicitations are affected makes it almost
an impoaslbility to build short lines of
road. Congress ought to by general
statute establish by general principle a
system of rates. 81 don't think that any
system of rebates should be SLOWED. The
unit ought to be baged on the car load,
and every man who chips whether lsrge
or small should have the privilege and
benefits Of the same rates. The cheap
long haul and high local rate Is in itaelf a
great discrimination against the
agricultural interests Of the
state. By these the farmers
are confined to the shipment Of q few ar
~ticles, and they are also prevented from
having a home market by reason of this
Discrimination, and 1t also prevents the
building up Of manufactures in this state.
Ii railroads can make combinations
among themselves for doing business st
10 yer rates, Mr.. Burrows would have no
objection to the pool system, and as an
economy principle 1t Is not obj Objectionable,
provided rates are fixed by law. Under
tho question of long and short hsuls, aud
the determinations allowed by rates,
railroad companies have the power to
build up or tear down communities and
towns, and to sustain his argument on
this point tho witness cited q few In
stances In this Ltate.
AS q Measure of preventing the Issue
of unauthorized and
ILLEGAL RAILROAD SToCK.
A governmental system of railroad &C
ought to be established. Mr..
Burrow s was Of the opinion that water
routes for shipping products would be
an immense benefit to the western PEG
pie. Annual reports, comprehensible In
their nature n then opened to the