The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-03-11

ability Is put up against another man
cut rate, and the result IS exceedingly
unsatisfactory TO the man who hasn't the
inside railroad arrangement.
Il am absolutely satisfied that the
three heavy shippers OF grain IN Kansas
have cut rates and have long had them
| do not think that these cut rates are
now gwen by underbilling or In any
such clumsy way as that, which would
be liable To detection. The railroads
themselves do not Ike undertaking. Ii
they say to the shipper You may under
bill: you NAV weigh in 30,oeo pounds
and call it $4,000 pounds they have no
safeguard that the shipper will not
weigh III $4,000 pounds or $4,000
pounds, and still cal ii PA ,e0O pounds.
They do not know how much of a re-
bate they are giving. 1t is much more
probable that the system now used IS
simply the paying in cash of the full pub
lished tariff, and the protected shipper
gets back cash rebate, and there is
nothing left to show the slightest record
of the transaction. This thing was done
by the Atchison railroad last year TO
such an extent that when the annual ac-
counts came to be fixed up the amount
so paid back had reached such proper
lions that the auditor was at a loss TO
know how to handle the account, and a.
special meeting of the board OF direc-
tors had to be called to devise some way
of absorbing the amount of cash re-
bates that had been paid back to Mr..
Peavy.
'.Irain business is being done IN this
state in a way that will admit of no
other explanation than that the three
large shippers, Messrs. Counselman,
Tempier and Peavy, are doing business
under a protective rate. L am
satisfied that Mr.. PeaEy has
been told by the management
of the Atchison railroad to go ahead
| and bny grain to be shipped by that rail-
road as against the competition of other
roads, and that rate is being given that
| enables him TO successfully bid for grain
SO that it shall go by that road and not
by some other, which, perhaps, would
be more natural channel for it.
when all the great wheat markets
are in line, and these men are able 10
| make shipments that would show an
absolute loss to any shipper who was
paying freight at full tariff rate, can
! there be any doubt that they are buying
under some arrangement more favorable
| than the public can make!
| There are just the same indications
| pointing to the fact that the big Min
neapolis millers are able to make inside
rates on their shipments. We get daily
market reports from Glasgow, Antwerp,
and Amsterdam We know just what
the freight tariffs are to those
cities Our flour stands well IN those
markets, but while Minneapolis has
been able to send out 1,S00 cars
| of -four a day there is not a
| miller in Kansas who could ship -four to
any point in Europe and see his money
! back. The Minneapolis millers have
| been taken care Of somewhere between
Minneapolis and the seaboard, and rates
have been given them that enable them
TO make profit.
"A case of discrimination is the
! through rate from Kansas TO Texas. In
every other direction the rule is to class
ify -four and wheat together and they
are shipped at the same rate. The roads
/ taking -four into Texas, however, make
a difference of 3 cents hundred. The
Texas millers have to buy wheat IN kau-
sas, and they say that they cannot COM
pete with theikansas millers If the Kan
sas millers are allowed TO ship flour into
that state at tue same rate wheat Is
shipped. The result is that the roads
have taken an action which practically
amounts to protection of an industry of
one state against another state. The
interstate law should be improved Oh
done away with altogether; better repeal
it than continue it as 1t is now
SUGGESTS A REMEDY.
at is difficult to say what is the
remedy is for discrimination, too high
rates, and unequal classification. The
first view is that it ought TO be accom-
plished by competition. but we have
pretty nearly demonstrated that thai
will not do. l abhor government con
troll; that means more patronage anc
!, more power to the party in power. VIII
, the party controlling that vast patronage
they never could be ousied from office
At the root of the whole trouble Is the
initiation in the capitalization Of all roads
There is no railroad man who cat
give you satisfactory answer rs t(
what the basis of freight rate is. AZ
freight rates are now made, their basis
is certainly not the cost of the service
The rule seems to be that rate Is made
equal TO all that the traffic will stand. j
rates could be made that would make
fair income on the money invested tina
would be satisfactory to all Of us. If We
: could find what that is and then do blsi
ness inside of II that is all we want Blu
, the Alton road is capitalized for SAG ,00'
mile: the Atchisou. Topeka and SAINT;
: Fe is capitalized for S92 900 a mile
| will not do to let it follow that the At
/ Gibson is entitled to twice the rates o
r the Alton. There never was mile o
Atchison track in this state which cos
SO. 900 to build, but il Is bonded 70
$50, 900 mile.
why not let the remedy be in this dl
rection: All other kinds of cooperation
are assessed and pay taxes on the hasi
of their capitalization. Railroads are nov
= assessed by a state special board. NJ
remedy would be TO assess the railroad
, on the basis Of their capitalization. /
they are over capitalized and such IA,
proves burdensome let them liquidate
: We, in Wichita, went through boom
3 few wears ago. We capitalized
: TOO high and we bad .
: liquidate Why not let railroad
: stockholders do the same: II the rail
. road capitalization were reduced {
something like legitimate limit Their
would not be the effort TO earn returl
on the vast amounts Of water and ia
= rates might easily I've reduced 20 a pom
, that would burden no shipper.
Il am an advocate Of railroad pools
Let US get rates dow Il 70 where the con
panies yet only a legitimate profit az
, then there viii be No incentive 10 "a
. rates. We ought 10 20 still further.
= railroad ought never to he N partnership
:, ,,-itl, q ~, IN kim nT.arafes On il line.