Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-01-31
GAZETTE SYMPOSIUM.

direct to retail merchants in this state.
They are willing that they shall be frac-
ton higher to cover the difference in the
cost to the railroads of handling, relying on
their ability to overcome any reasonable
difference in rates against them by ship
ping goods in large quantities.
No wholesale dealer in Texas can stand
the competition of outside houses while
rates from the factory to iobbing house in
St. Louis or New Orleans, and thence 10
given point in Texas added together, are
less than the rates from the factory to
Texas jobbing house and thence TO the
same point in Texas.
One illustration taken from the existing
tariffs of the railroads will set forth, rela-
lively, the condition of every wholesale
dealer and manufacturer IN Texas with
reference to Texas trade, as l have at
tempted to describe it. 1t is this: The rate
on material that enters into the manu-
facture of iron fences and iron roofing
from Birmingham, Ala, to Cincinnati,
Ohio, 500 miles east of Birmingham, IS u
cents per 100 pounds. When this material
is made into roofs or fences, 1t can be
shipped to Abilene, Tex, for n cents per
100 pounds, making the cost of shipping
from the iron mine in Alabama to the man
ufacturer in Cincinnati and thence to Abb
lene SO cents per 100 pounds.
The rate on the same raw material from
100 pounds, and when manufactured into
fences or roofs at Dallas and shipped from
thence to Abilence 1t costs 81 cents per 100
pounds, making it cost "a Dallas manufact-
urer $l.09 per 100 pounds to reach retail
dealer or consumer in Abilene, against 81
cents paid by the Cincinnati manufacturer,
for whom the railroads haul the goods
nearly thousand miles further. The same
discriminating rates apply in favor OF st.
Louis, except that the difference against
Texas manufacturers is greater. The rates
quoted above are all on carload shipments.
On less than carload shipments the dis
elimination is even greater but it is useless
TO multiply illustrations. Hundreds could
be given. but the one cited sets firth the
discriminating basis upon which state and
interstate rates are at present adjusted.
1t does not require any argument to show
that the Dallas manufacturer must go out
of business. the argument is made when
the case is stated. Now to make a rate
from Birmingham, Ala, to Dallas and
thence to Abilene that would enable the
Dallas manufacturer to reach the Abilene
market at SO cents per 100 pounds with his
manufacturer product, along side of the
Cincinnati manufacturer, would snot de-
prive the Abilene retail merchant or con-
sumer of any advantage he now enjoys.
On the contrary, however, as above stated,
it would add another, by enlarging the
number of competitive markets in which
to purchase his supplies.
Galveston and Houston. being ''water
points, enjoy lower rates from the inter
state points than any interior city, and can
reach larger territory, but labor under
the same disadvantages in reaching the
Texas trade though in a less degree.
Is it unreasonable TO request the railroads
to make rates that will enable Texas man
ufacturer to reach Texas people with his
goods and wares on terms of equality with
Ot,tci1a S1tP Viayr Of crraataT.
length of the haul for the foreign manufact-
urer2 / think not Would it be unreaSon-
able for Texas manufacturer to ask for
rates that would enable him to reach the
Texas consumer on more advantageous
terms than the foreign manufacturer, in
view of the less amount of service the rail-
roads perform for him2 l think not.
Two answers are generally made 10 Texas
manufacturers and wholesale dealers when
they ask for rates to which their situation
entities them.
The first is, that they do not handle as
large quantities of raw material and goods
as foreign dealers and manufacturers, and
are, therefore, not entitled to the rates
given them. VIII they not cease to handle
goods altogether, unless they are placed on
terms of equality with foreign interests2
The second is that if lower rat es are
given them on account of their proximity
to the consumer aud the less amount the
service performed for them costs the rail-
roads, the consumer will not get the benefit
of it. Admitting the truth of this for ar
gument's sake (but it is not always true) it
may be asked why do men Of capital and
enterprise come to Texas, establish fac
tories and engage in the wholesale trade if
ii is not to get the advantage which q local
enterprise should enjoy by reason of its
nearness to the consumer2 If there is
never to be any difference in rates fro N
Birmingham, Ala, by way of Cincinnati, 10
Abilene and from the same point by way of
Dallas 10 Abilene. nearly q thousand miles
nearer, why should capitalist build q fac
tory or establish wholesale house in Dal-
las at ala VIII at would be the advantage