Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-02-04
WORK OF THE RAILROAD COM
MISSION
[coSTINUED FROM LAST SUNDAY

OF our lluGfSldLe FaliEOaGS, VIII STATE
personally they are friendly TO Texas inter-
ests and would gladly 50 adjust local and
interstate freight rates as TO enable our
merchants md manufacturers to do bust
ness at home, instead of having TO move to
St. Louis or New Orleans 10 reach the
Texas trade, as many Of them have already
done, but they do not own the properties
they manage, being simply executors of a
general policy formed by boards and
directories who have no particular interest
in Texas, and they are therefore powerless
10 help us. Nearly all roads built by Texas
enterprise, and in part by Texas capital
and which, could they have maintained
themselves as local enterprises, would have
benefited Texas commercial and manufact-
uring intere SITS UNNECESSARILY, have long
since been merged into one of three great
systems Of roads traversing the state, the
preponderance OF whose Interests lie out
side of Texas. The benefits the state now
derives from them are purely incidental
and OF character they cannot prevent
flowing to any country through which they
PASS. They have ceased TO be ''of and for
Texas, and are not favoring the building
up Of great trade centers in the state, like
Kansas City, Mo-, or Atlanta, Ca, which
would afford our people the advantage of q
home market and source of supply within
easy reach. Houston might, possibly, be
an exceptional case, but it remains to be
seen whether it Will continue to receive the
fostering care of the Houston and Texas
Central railroad when that road shall have
been fully merged into the 'Hungtington
system" Of railroads, whose principal in
terests lie in California and Louisiana.
Dallas, Fort Worth, Waco, Austin, San
Antonio and other interior cities have at
tempted TO secure such an adjustment of
state and interstate rates as would enable
wholesale dealers at those points TO reach
retail merchants and co nsumers in Texas as
cheap rs the same articles can be shipped
directly to such merchants from jobbing
ceaters outside of Texas. The answer to
this apparently reasonable request IS that
the jObbing interests of the above-named
places seek this advantage at the expense
OF the smaller towns, or, in other words,
that 1t cannot be granted except at the eX-
pense of the trade of such towns.
That this is not any more true of Texas
than IL is of St. Louis wholesale dealer IS
suscel ible of demonstration. In the first
place, three fourths of all the goods sold by
retail dealers in Texas are purchased from
jObbing houses and not from first hands.
Secondly, those purchased from the manu-
facturer himself are sold at jobbers prices,
or to put it differently, the jobber sells at
manufacturers prices. and 1t is q rare case
where it makes any difference TO retail
dealer whether he buys goods from man
ufacturer or first-class wholesale dealer
If, therefore, goods as rule go into a
jobbing house somewhere for distribution
10 the Texas retail trade, why not in a
Texas city, as well as in St Louis, Kansas
City or New Orleans7 They would cost no
more to the consumer if shipped from the
factory to d Dallas or Fort Worth whole
sale house, and thence to a retail merchant
at Granbury, than if they passed through
ST. Louis or New Orleans jobber'S hands,
provided the rate from the factory to Dali
las OF Fort Worth and thence to Granbury
did not exceed the rate from the factory to
St. Louis or New Orleans and thence to tie
same point.
But, as rates are now adjusted, goods can
be shipped from the factories North and
East to St. Louis or New Orleans, and from
thence to any point in Texas, much cheaper
than from the same factories to Fort Worth
or Dallas and thence TO any point in the
state: hence wholesale dealers who desire
To command a respectable share of Texas
trade have either TO locate in a wholesale
trade center outside OF the state. or main
tain warehouse in one and fill the bulk of
their orders through the branch establish
ment, the Texas end being maintained for
the advantage which the name of being
Texas house Is supposed to afford.
The Texas wholesale dealers, in asking
that rates be fixed that will enable them to
reach the Texas retail trade on terms of
equality with St. Louis or New Orleans
wholesale dealers, do not seek that privi-
lege at the expense Of the retail merchant
he now enjoys in reaching outside mar
kets, but would supplement 1t with the ad-
ditional advantage and convenience of a
competing market nearer home.
But Texas wholesale merchants have not
even asked for rates on goods from Eastern
points to Texas iobbing centers, and thence
to the retail merchants in Texas, as low as
existing rates from outside jobbing centers
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 III Texas can stand
the competition of outside houses while
rates from the factory TO jobbing house in
St Louis or New Orleans, and thence to a
given point in Texas added together, are
less than the rates from the factory to
Texas iobbing house and thence 10 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 IL Texas with |
reference TO Texas trade, as l have at |
tempted TO describe it IL 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 lUu DOulOS. W uGu luis HdlGTlGl
is made into roofs or fences, it can be |
shipped TO Abilene, Tex, for a. cents per |
100 pounds, making the cost of shipping |
from the iron mine in Alabama 10 the man |
ufacturer in Cincinnati and thence TO abb |
lene 50 cents per 100 pounds.
The rate on-the same raw material from |
Birmingham, Ala. to Dallas is - cents per |
100 pounds, and when manufactured into |
fences or roofs at Dallas and shipped from |
thence 10 Abilence it costs 81 cents per 100 !
pounds, making it cost n Dallas manufact- |
urer Sl.09 per 100 pounds TO reach n retail |
dealer or. consumer in Abilene, against SO /
cents paid by the Cincinnati manufacturer |
for whom the railroads haul the goods |
nearly 4 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 |
Crimination is even greater, but it Is useless |
10 multiply illustrations. Hundreds could /
be given. but the one cited sets forth the |
discriminating basis upon which state and |
interstate rates ara ut present adjusted.
II does not require any argument TO show
that the Dallas manufacturer must so out |
of business. the argument is made when
the case is stated. Now to make rate /
from Birmingham, Ala, to Dallas and |
thence to Abilene that would enable the
Dallas manufacturer TO reach the Abilene
market at 50 cents per 100 pounds with his |