Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-24
OFFICE OF THE
RAILROAD COMMISSION OF TEXAS.
AESEIN n,rN Acf L 1901

Gould lines in Texas:
OFFICE oFTHE
RAILROAD COMMISSION OF TEXAS.
AUSTIN. TEX. Oct Il. 1891.
f. II. Hinton. ESQ. General Freight Agent Of
Texas ana Pacilc Railway. Dallas. Tex.
DEAR SIR-Yom letter of yester-
day calling attention TO telegram
in tho Dallas News of the 18th
inst, which YOU Inform us charges the
"t;oulu lines with having cut the cotton
rates on points beyond The stale. is before
us As 4 representative OF those lines, Y on
inform us that this charge is wholly IN
warranted" We do not know upon whose
authority The charge WIS made. But from
other statements contained III your letter,
in connection with some facts known TO us,
Your disclaimer is hardly sustained as TO
the point that rates on cotton going 10 points
beyond the state have not been seriously
cut.
In the conclusion of your letter you charge
that you meaning the railroad commits
sion OF Texas have cut the rates and not
the Gould lines
In order 10 determine the truth of the
statement as 10 whether the lines you rep
resent have cut the rates on cotton to points
beyond The state. we note that emitting to
state the exact facts, you say:
We wish it distinctly understood that
we nave done nothing more than preserve
pre-eXisting relative conditions
Further on You say:
We simply preserved the differentials
on cotton heretofore existing as between
the rates 10 Galveston ami the rates 10 other
markets without the state
You say further:
when your (meaning the commission
reduction of cotton rates became effective
Oh the 18th inst. it inevitably enforced :.
like reduction of our interstate cotton
rates
This will be better understood by a reel
tai of the facts on which your statements
are based.
During the meeting Of the freight agents
of the Texas railroads and the railroad com
mission of Texas, which occurred On the
9th OF July last. the commission stated to
the freight agents. among other things. that
freight rates on cotton We're excessive and
must be reduced. if the loss OF revenue 10
the roads HAD 10 be made up on other kinds
OF merchandise.
The commission also stated 10 the freight
agents that their rates of freight in Texas
were much higher than the rates on the
same system of road beyond the borders of
Texas; that the loss OF revenue on the
part OF those roads outside OF Texas was
being reimbursed BY the revenues derived
from the higher rates on the roads within
Texas; which the commission said WAS
wrong and ought to be corrected The
tOUllllSSlDl s.iND Slitl " liz; IIblSlU agents
that This policy was sacrificing the interests
of Texas and of our coast cities for
the benefit of the trunk railroads. and the
coast cities of the East, which they said
ought not 10 be done. They also said TO the
freight agents that they would do whatever
the% could as a commission TO correct these
wrongs.
Your real complaint is that the commits
sion i trying 10 trying 10 carr out the pol
or nv AGAINST no
winch had prevailed in the management of
the railroads.
In establishing our tariff No. on cotton,
effective September il we made some re-
duction in the cotton rates, and made the
rate on rncompreSSed and compressed the
same. We were induced TO do this because
of the pre-cXiStin% practices of the railroads
of paving the cost of COMPRISING. and on
the understanding that the practice should
continue IL was stated in the meeting of
the railroad agents ana the commission. 10
which we have referred in elaborate ar
gumentS, that il was TO the interest of the
railroads to pay for COMPRISING the cotton.
as il enabled them to save car space. TO car
ry twice Is many bales on 4 car, 70 expedite
the movement of cotton. ana 10 prevent
cotton blockades, And Of all freight agents
ana railroad officers present not one CO.
jected 10 this statement
The maximum rate on cotton before our
rates were established was 20 cents per
100 pounds. The maximum rate as estah-
Hshed by the commission was 65 cents per
100 pounds.
At subsequent meeting of freight agents
in the city of st. Louis they, BY a formal
resolution, determined that they would no
longer pay for COMPRISING cotton destined
for Texas points. They also agreed. as we
are informed, 10 continue TO pay for com
pressing cotton 70 be transported over roads
beyond the borders of Texas, and 10 reduce
the freight rate on such cotton , cents on
the 100 pounds. BY this means. while re
ducing the already low rate on cotton OH
their lines of road outside OF Texas, they in
creased their maximum rate in Texas to a.
cents on the 100 pounds, being cents higher
than the maximum was before we estab-
lished rates, ana 10 cents on the 100 pounds
higher than the maximum established oy
the commission.
In order 10 correct what the commission
believed to be the great wrong done by the
action of the freight agents at their St
Louis meeting, we issued our commodity
tariff No q on cotton. made effective Octo-
Der u, by which we fixed the rate on COM
pressed cotton l0cents in the 100pounds less
han on uncompreSsed cotton. The effect of
this rate was 10 preserve in good faith tine
intention of our first cotton tariff and 10 pre-
serve the rate which 1t was understood was
secured to the shippers by that tariff This
did not reduce the rate on cotton. but only
made provision which transferred the cost
Of COMPRISING from the railroad to the
shipper and kept the rates is they were
before, Ii was also intended by il to meet
he action of the St. Louis meeting of
freight agents.
The next move by the freight agents to
partially defeat our cotton tariff was TO re-
fuse 10 allow cotton 10 be stopped in transit
10 be compressed when destined for Texas
ports. AID 70 insist on carrying 1t at the