The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-25
BUSINESS rs CRIPPLED.
Industries of Colorado Re-
tarded by Unfair Dis
elimination.
REDUCTIONS MUST BE MADE.
Railway Officials Dismally Fall in
Trying to Make Plausible
Explanations.

DENVER, Colo, April 24.-The Inter
state Commerce Commission this morning
heard from railroad officials the reasons
for the higher freight rates to San Fran
cisco from Denver than from Chicago and
other Eastern points. They claim they are
obliged to make lower rates from Chicago
than they could afford to make from in
terror cities, situated like Denver, on &C
count of the competition.
J. A. Monroe, general traffic agent of the
Union Pacific system, who was the first
witness to-day, frankly conceded, low
ever, that rates from Denver were too high
and declared in favor of granting to Den
yer the same freight rate to the coast as is
enjoyed by Chicago.
J. w. Nesmith, manufacturer of mining
and milling machinery, next presented
complaint. He said his industry had been
built up slowly from small beginnings, and
he had built many smelters in the West in
competition with Eastern manufacturers.
He did not ask unreasonably low rates,
the raw material for his establishment be-
ing right at hand in Colorado. To Ell Paso
the rate on manufactured products which
he made was just the same from st. Louis
as it was from Denver though the former
was twice as far from Ell Paso. Chicago
had a rate within cents of the Denver
rate, though 1000 miles further away.
He thought there was no reason why
Denver should not have a chance to ship
machinery to the North but it was shut
out by the freight rates. The Missouri
River points should be open to Denver for
competition with Chicago, but that was
out of the question because the rates were
all in favor of Chicago. Mr.. Nesmith felt
indignant that Denver was not given fair
chance to become a great manufacturing
and distributing center.
H. z. Solomon told of his attempts to
get rates such that he could develop large
body of clay containing aluminium which
he owned near Denver. If he had been
given rate equal to that on metallic ores
he could have got into the Eastern markets
with it. He had failed to do so.
w. A. Bissell, assistant freight traffic
manager of the Santa Fe was next called.
He gave detailed account of the principle
upon which rates to Denver and California
from the East were made.
He said such rates were largely in
fuenced by water competition. 1t was
question of abandoning coast business or
meeting the low rates of the steamship
lines. The Panama line was the strongest
competitor the transcontinental lines had
There was no such competition in Denver
Upon this basis he explained some Of the
particular cases which Mr.. Kindel had
mentioned in the way of freight discrimi-
nation.
His line would, he said, be willing to
give satisfactory rate, as low as the Chi
cago rate, to San Francisco for Denver
products if that would not involve the cor
responding lowering of rates to intermedi-
ate points. If the interstate commerce
law required this the roads would prefer to
give up their coast business.
General Freight Agent Crosby Of the
Burlington dwelt upon the effect OF hard
times upon the railroads and was of the
opinion that all the lines had always done
the best they could for Denver merchants
and manufacturers. He said there was
never any complaint concerning the rates
on ores, bullion and other products, which
largely constituted Colorado's output.
1t is stated tonight that the roads have
practically conceded that Denver and Pu-
CDiO olldlA NC IliddC bSl Ills UIcdHS
that they will really be distributing CEN
tiers of the Chicago freight level.
The Southern Pacific, however, insists
that the commission shall not
extend this ruling to intermediate
points, as that would compel
that road to abandon competition with
water carriers on transcontinental bust
ness and fall back on local business, which
would compel it to help develop its tribu-
tary country. Freight Agent Smurr of the
Southern Pacific was on the stand the en-
tire afternoon telling much of the condi-
tions which his road contended it should
be allowed to maintain.
If the concession practically agreed upon
is made Denver manufacturers in other
lines will be granted the same methods of
rate-making between Denver and the West
as have been granted the complainants in
this hearing, and will be able to make use
of the rate for short haul equitable with
that made for the long haul. This applies,
however, to westbound business only.