Audubon County Republican. [volume] (Audubon, Audubon Co., Iowa) 1885-1894, 1888-03-01

AGRICULTURAL people say JDat tney cOulu mol
afford to place their distributing point at
Atlantic, not that we had not the faci-.
ites to'get out OF our place, but they could
ship into Council Bluffs on a low rate and
distribute from that point as easily as from
ours.
Nj. Sage: In the first place / have done
business with Mr.. Deere for twenty-five
years. Mr.. Deere has an agent at Atlantic,
and has car load rates into Atlantic, and 1t
is good distributing point. 1t is evident
that the geographical position of Council
Bluffs, and especially in regard to Nebraska,
Is decidedly in favor of Council Bluffs. The
reason is this, that from Council Bluffs, the
Union Pacific railway agrees to make the
same rates to Nebraska, and to all their sys-
TEN, as they do from Council Bluffs. The
charge for the bridge at Council Bluffs,
(about six dollars) is saved in the first place.
Mind you, am talking of the Union Pacific.
If Deere & Co. were to ship from Atlantic to
Council Bluffs at low rate, they would
have to pay the Union Pacific railway six
dollars per car bridge toll in addition TO the
rate from Omaha west They charge for
the bridge when the car comes from Atlantic,
but not when IL comes from Council Bluffs.
In addition to this, Council Bluffs has the
advantage of commanding the territory of
the great Northwestern road, the largest
system in the West, and Council Bluffs also
commands the Kansas City, Council Bluffs
d ST. Joe railroad, the Burlington, Missouri
q Nebraska railroad, and the Fremont Il
ElkhOn Valley railroad, which Atlantic
does not. If we could carry from Atlantic
10 Council Bluffs for nothing the rate must
be much higher from Atlantic than from
Council Bluffs to western points. Deere d
Co. make Council Bluffs the distributing
point because the Union Pacific gives COun-
ell Bluffs the same chance as Omaha. |
really think Atlantic wants "the earth" if
she wants the business of distributing in
Nebraska the manufactures of other States.
Senator Young: | want to know whether
you deny positively that there has been any
discrimination against Atlantic or Avoca in
favor OF Council Bluffs?
Mr.. Sage: said plainly that when war
occurred in the business, SO that the rates
had been from Chicago to Council Bluffs ten
cents, we did not make it ten cents to Allan
tic or Ayoca. but we did not allow the BUSH
ness to go to Council Bluffs and pay the'lo-
cal rate back. Say that during fight the
local rate from Atlantic TO Council Bluffs
was twelve cents, the rate from Chicago TO
Council Bluffs ten cents, and we would
charge Atlantic twenty-five cents, instead of
ninety cents, the established rate before the
fight. i think that was reasonable. L want
to state to you what is actually the case to-
day. You are all aware that there is a great
railroad war, which whether we wish to fight
or not, we are obliged to go into, The rate
on frst-claSs to-day, from Chicago to Coun-
ell Bluffs, is thirty-four and one-half cents,
the rate from Davenport to Council Bluffs
is fourteen and one-half cents. Why? Be
cause we make what we call "differentials''
along the Mississippi river. Why? Be
cause the trunk lines make the rate
from New York to Chicago and
from New York to st. Louis. If
we do not make the same rates at Davenport,
across Iowa, st. Louis would do all the bus
mess The gateways at Dubuque, Daven-
port, Burlington, Quincy and other places, :
must be protected, as against st. Louis. II
we don't do it, the city of st. Louis will
take all the business from New York and
the seaboard, and through shorter line,
across the State of Missouri to Kansas City,
and we will lose the business. We do not
like to lose our customers. That fourteen
and One-half cent rate is maximum rate
to-day in Iowa. That is to say, the rate to
Des Moines from Davenport cannot be
higher, and the rate from Iowa City to At
lantic cannot be higher. That is the highest
rate in Iowa. All those cases you refer to
are matters of past history. There is no
way under the provisions of the interstate
law by which any road could charge less
rates at Council Bluffs than the charges east
Of them, If they wanted to. Council Bluffs
is the maximum.
Senator Young: ] know it. Twas trying
to keep history straight. How many roads,
at The time of this pool, were in the poolp
Mr.. Sage: Most of the representatives
are before you the Chicago & Northwestern
first, the Rock Island second, the Burlington
ia lna n nyt nd g
Paul last
Senator Young: l am done with asking
questions | shall not disturb you any more.
| am satisfied your intentions have been good
towards Atlantic, and have no complaint
TO make, only The complaint alleged against
all the roads at Council Bluffs, and the same
thing would exist at Red Oak and other
places. i understand from a person in bust
ness at Council Bluffs that they had a
lower rate from Chicago than the stations
within sixty miles eastward. do not wish
to ask any more questions upon that point
but want to call your attention to section
1897, of the Code, which reads:
at shall be unlawful for any railway COM
pany to make any contract, or enter into any
stipulation with any other railway company
running in the same general direction, by
which either company shall, directly or indi
portion the joint earnings upon the whole or
any part of the freight transported over such
roads, and any violation of this provision
shall render the railway company violating
the same liable to a penalty of five thousand
dollars for each month, for which such earn
ings are divided, to be recovered for the use
of the permanent school fund in the name of
the State"
We have your admission as general freight
agent of the Rock Island road, that that has
been violated for about fourteen years.
Mr.. Sage: l want to ask when that was
passed.
Senator Young: That was passed prior
to the Code enactment Of 1873.
Mr.. Sage l want to state that / was
present before the Railroad Committee two
years ago, and there was great deal of talk
in the committee then about passing the law
to abolish pools After we were hero
couple Of days it was casually discovered
you had law in the statute already.
Chairman: There was an enactment Of
tie freight law with a slight change that was
pending at that time.
Mr.. Sage: You understand now that the
Interstate law, which is the national law of
the country, makes 1t absolutely impossible,
that there is in existence no pool over the
United States. Whatever the railroad gets
1t keeps. Some of our railroads are very
glad the pools are abolished.
Senator Young: Ii seems TO me reason
able thing for corporation of the import
ance Of either one of these 10 violate that
plain provision of the statute and at the
same time have constable arrest poor per-
son for picking up chunks Of coal Oh the
right of way.
Mr.. Sage: IL we did break that statute,
we broke II 10 favor sucl towns as Atlantic