The Austin weekly statesman. (Austin, Tex.) 1883-1898, 1895-06-20
THE COTTON RATE ROW
THE COMMISSION AND THE Rail-
ROAD MEN STILL LABOR.
THEY WE'RE IN SESSION ALL
DAY YESTERDAY.
Many Arguments Advanced by the Rail
road Men Why the Tariff Should Not
Be Put Into Effect.

LIE COIlullSSlOu anu the railroad men
were in session all day again yesterday
talking over cotton rates.
Judge Perkins, representing the Cot
ton Belt system, presented the condition
of his road as they were last year and as
they would be affected by the proposed
tariff of cotton rates. He showed up the
Texas lines of the Cotton Belt railway
were short of revenue on present rates
to pay operating expenses and interest.
The necessities of the lines were present
ed. First is the reduction of grade. The
road was built as narrow gauge by ex-
ploiters. 1t run up hill and down and
around stumps. We need $4,000 to sup
ply steel rails, coal stations, engine houses
and machine shops are needed. We have
10 miles of road subject to overflow. 1t
would cost 100000 to raise it above over
flow. Altogether for betterments 81, no.
600 is required. The Tyler Southeastern
needs $21O,00O for steel rails and the line
requires an aggregate of 100000 for bet
terments. Last year they earned $416,-
revenue-bearing freight. That was I'M
1
tonnage under rates that were in force
before the railroad rates would have
earned $4,000 and under the proposed
tariff would earn 1851 ,391. Under old
rate would have earned on all our roads
$134,635 more than under the proposed
tariff. That would be merely enough to
have paid the deficit in our operating ex-
penses and interest. Mr.. Perkins endeav-
/ Ored to show that Texas lines of the Cot
| ton Belt system have the advantage over
the lines Of the system in Arkansas and
i Missouri in the division of earnings
Admitted the commission could not as q
general proposition make rates on the
basis of the poverty of a road, but 60 per
cent of the Cotton Belt earnings is deriv-
ed from junction points, its lines crossing
nearly every road in Texas. AS a legal
proposition upon which he didn't want to
be misunderstood. Didn't run q bluff
game. l am stating a legal proposition
1t is clear from the showing made that
to put in the reduced rate ON the Cotton
Belt system as an entirety it would be I'M
reasonable. But the commission will say
here are other roads that can stand the
reduction and we can't ask the people to
lpay them present rates. To this | reply
that our road as a corporate citizen OF
Texas has the right to be protected and
any rate that will not afford necessary
revenue is unreasonable. Now, if the
rates on the connecting roads are put
down our cause of action still exists as
legal proposition. My opinion is that
the commission must take the condition OF
the weakest road or else the weakest road
will have it saction to enjoin the rate
a not thinking about a row. We CAM
afford row and our disposition anyway
is for peace
Commissioner Steadman called atten
ton to the statistics of cotton earnings
presented by Judge Perkins as possibly
showing the Cotton Belt had not main
tanned commission rates on cotton.
Judge Reagan said statements had beer
made to the commission that cotton rates
made by the commission had been cut
Judge Perkins-The man does not LIVE
who can say that the Cotton Belt has cut
the commission rate. On the main ques
ton We had deficit in revenue o.
$4,000 when the basis Of rates wal
20 cents per 100 pounds. Now IT is pro
posed to reduce it 10 per cent. We hay'
reduced operating expenses to the limi
and our interest charge is reduced II
per cent on the commission valuation
of our line. We can make no reduction
unless of the wages of employees and tina
is out of the question.
Mr.. Bornefield of Galveston cotton eX
change made brief statement to tn
effect that the exchange has no interes
in rates as the price of cotton is hxe,
in Liverpool
General Freight Agent Martin, of tn
San Antonio and Arkansas Pass, presente,
statement of the operations of their roat
showing q deficiency in the net earning
: at existing rates of some $420,OO0. Ill
showed further that their earnings o.
cotton were about $640,000 which, h
claimed, was one-third of the revenue
He cited that under the proposed taril
his road would earn on same amount
cotton about $539,000, making differ
!. ence of about 100000.
General Freight Agent Fields of tn
( Waco and Northwestern, made q stat!
> ment of the decreases of revenue on hi
road and was followed by Judge Terry
!, who made another speech against tn
n proposed tariff.
!, There were a number of other freigh
4 agents and compress men present and al
4 ter lengthy arguments by them pro an
! con on the proposed tariff the session wa
y closed, Judge Reagan taking occasion
4 however, to assure all that full justic
Il would be melted out to them. During tn
Q discussion it developed that Judge Reo
gan had written to railroad men cor
demning restriction of common point tel
ritory on through rates to Texas.
i The meeting finally adjourned sin
4 die