Omaha daily bee., 1895-05-02
TEXAS RATES CASE HEARD
Interstate Commerce Commissioners Finish
Their Work at Omaha.
FURTHER TESTIMONY AT KANSAS CITY
Local Shippers Show the Hardship of the
Difference In Rates from Texas In
Favor of Kansas Clty-stOck
Yards vitality Interested.

The Interstate Commerce commission con-
tinued taking testimony yesterday in the
case of the Commercial club against the
various railways. wherein it is alleged that
they have been discriminating in favor OF st.
Joseph and Kansas City on rates from the
south.
W. N. Babcock general manager Of the
stock yards company, testified practically
the same as did Commissioner UT Tuesday.
| On cross-examination Mr.. Hagenback asked
| the witness II IL was not a fact that by
| reason of its better location and larger mar
| ket Kansas City was in position to COM
| mand better rates from the different roads.
In answer the witness stated that Kansas
! City rates were controlled by a one-man
| power and that that one man was heavily
| Interested in the Kansas City stock yards
| and in railroads running into those yards.
In answer to another question. Mr.. Bah
! cock stated that about 600 cars of feeders
had been shipped to Kansas City from this
market between october 1. 1894, and March
| 1 of this year. and that about 200 cars had
been bought by Omaha packers in Kansas
| City and shipped here for slaughter.
| Mr.. A. ]. Lanningham, who represents the
| Commercial Freight Bureau of Kansas City,
asked Mr.. Babcock II he would endeavor to
have the Fremont, Elkhorn & Missouri Valley
give Kansas City the same rates on stock
from points north of Omaha, provided Lam
ningham would use his best efforts with the
Missouri, Kansas & Texas to get Kansas
City rates for Omaha. Mr.. Babcock an
swered that he would, and then put the same
question to Lanningham, who answered it
affirmatively.
John S. Knox, traffic manager Of the
| Cudahy Packing company then took the
stand. and after giving brief history of the
establishment of the South Omaha market
! stated that by reason of the immense bust
ness done by his concern, the necessity of
having cattle at all times of the year and
At pft tba
| Mr.. Cudahy was compelled to establish
branch house in Chicago, where he could
| buy Texas cattle.
| At the afternoon session the Texas case
| was completed on behalf Of the complain
ants, and the case was continued till next
! Saturday, when the respondents will intro
| duce evidence at Kansas City.
| On cross-eXamination In the afternoon Mr..
| Lathrop, representing the receivers of the
| Santa Fe, undertook to make John S. Knox
! admit that Omaha was receiving favorable
rates as Kansas City, but found him a
| tough nut to crack. Mr.. Knox produced
| figures showing that Kansas City and St.
Joseph shipped hog products to st. Paul for
! "a cents per hundred, while Omaha paid 23h
| cents; that on dressed beef the Kansas City
rate was 30 cents, and the Omaha rate % cents
| In going south Omaha is compelled to pay
cents per hundred more than Kansas City,
| which makes the rate prohibitory so far
| this city is concerned.
Mr. Knox had labOred with the different
| railroad traffic managers and with the va
! rious associations, and at one time Mr.. Han
| ley, the thsn traffic manager Of the Santa
| Fe, promised to propose a change to the
association which controlled rates on his
| road but as 1t took a unanimous vote to
| secure change at the request Of one road,
| nothing was accomplished.
The witness further stated that his con-
| cern used about 600 or 700 cars Of salt per
year. AS 1t all comes from Hutchinson, Kan,
which has a rate from to cents higher
to Omaha than to Kansas City, he ap-
| preached the Union Pacific, which owns un-
| developed salt wells near Marysville, Kan,
and asked 1t to ship from that point, which
| would put Omaha on equality with Kan
| sas City. The only answer he could get was
| that salt was a matter Of agreement between
| the roads, and that to grant his request
| would disrupt the whole association.
| Mr.. Knox stated that on account of the
| unjust discrimination on the Texas cattle
| rates Mr.. Cudahy was compelled to establish
house in Chicago and that he was now
seriously considering the advisability OF en-
arging the Chicago plant and decreasing the
| plant here.
| After closing this case the complaints Of
| the Kearney merchants regarding sugar rates
| were taken up.