The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-05-03
PEOPLE ARE HEARD
Continued from Fifth Page)

and naturally would make rates as only
necessary to take their share OF the
grain in competition with the eastern
long haul. To gives the people OF the
benefit OF their shortest gulf outlet,
they must have the benefit or Compel
tiion between two ports
When I came here. II was a view 10
building the elevator alone, that IL. with
financial assistance at my command;
but after consideration of the matter
and Of the possibility Of failure to
make a success, or being able 10 CEN
tralize the grain at this point, II was
so forcibiy impressed on my mind, that
/ concluded we could not afford to I'M
dertake the work independently, as We
felt that the eastern railway lines could
well afford to reduce their rates east
from the Missouri or Mississippi river
to favored parties TO the extent OF
half million dollars or more in order
to prevent our centering the grain and
using the elevator, thereby causing US
to make failure and close the eleva-
tor This would be a risk that W.
could not afford TO take, and the peo-
pie of Kansas could not afford it; for.
if the elevator should be a failure, the
eastern lines would then advance their
rates; as Galveston certainly would
parties would not likely take IL up. as
they have had an opportunity 10 build
an elevator here for years, but being
interested east, they want the grain TO
go that way.
Our main object in having the peo-
pie take the bonds of the elevator would
be that in case we needed their support
we would have them back of US and
which the railroads would be compelled
TO recognize. BY the people owning
the bonds for the full cost of the house,
which would be secured by a first mort
gage, they would be practically inter-
ested in the success of the same as the
goodness of their bonds would depend
on the success of the elevator and would
naturally give us the control OF their
tonnage; so in going to the railroads and
asking for proportionate rates as pre-
walls out from Kansas City by being
able to offer an equal amount Of ton
mage at this point. it gives US an as
Surance of securing same. If the
railroads should not wish to grant IL,
we could go to the people holding our
bonds and ask pledge of both their
outbond and inbound tonnage for a
definite time to the first road That
would recognize US and then stand
by that road; that is, give such road
the preference of our business other
things being equal. II is for this pow
er that we wish the people to identify
| themselves
The people originally have the power
which they now centralize at Kansas
City placing 1t out of their hands, and
then Kansas City has the power which
is now being worked against the people
| of the west; as the rates are now as
nigh to go from Central Kansas direct
to Galveston as to go via Kansas City;
that is, take 27c point on corn 10 Gal
weston or New Orleans, the rate to
Kansas City is 13c the railroads out
from Kansas City viii carry the grain
| TO these ports from Kansas City at the
difference between the local rate into
Kansas City and the through rate from
point of origin or for lac Now as the
surplus grain, especially wheat, is rails
ed largely in Southwest Kansas within
an average distance of about Is miles
as against 225 miles TO Kansas City, IL
will enable the grain from this Is point
to reach Wichita at an average rate Of
about 7c and as through the concen-
tration Of business and competing lines
| at Kansas City, the railroads are will
| ing to carry the grain at 14c from there;
| the lines on similar concentration and
competition at this point would willing
| ly carry the grain at 14c, so from their
point of origin, IT makes IA and or &c
through rate instead of now, &c.
Further, this leaves the Kansas line
two hauls on their own road making Il
instead OF now one haul and getting
only lac and paying 13c to competing
| lines.
Further, the Kansas line gets the ben
T. 90 ~
| disc, as whatever the farmer realizes
manner expend for goods which will be
hauled back to him by the Kansas
roads; so in a manner the Kansas roads
gets this &c making the &c and the
farmer gets the benefit in the enjoyment
| of life to the extent of what his pur-
| chases of &c a hundred will give
| him; so both the Kansas roads and far
mers will be benefited and IL is to
their interest that the elevator and
market should be established here. AS
IL now is, the grain goes over two lines;
that Is, has to pay a rate oftwo lines,
and naturally it is more expensive
supporting two roads than one. We
do not ask the people 10 give US cent,
they take security for their money and
| If we default in payment Of any of the
bonds, they own the elevator. We
paid for the Galveston elevators and
Galveston is ready to join with the next
and furnish the money to make mar
ket here In this arrangement, we do
not consider the elevator as a money
making business: II merely is an auxil-
Mary towards securing the rates, SO
that virtually there is but one commits
sion charged, the expense between the
local shipper and the consumer. II
someone else owned the elevator, we
would have to pay the cent charges and
our commission OF ic. which In man
ner. would tend 70 interfere with be-
ing assured OF a uniform business via
Galveston. as we would not be able 70
compete within 1c buShel a. strongly
against the east as If the people built
the elevator as above. A uniform and
free business Is all important 10 the
people Of the west 70 get the full benefit
Of their nearest outlet
Again. If the Kansas lines. seeing that
the business can be secured from this
point. and not being dependent upon
Kansas City for tonnage 1 feel that
they Will very early arrange their traf-
fic and virtually pull loose and stand
out independent for the north and south
haul as they VIII feel that they viii
have a permanent business; and /,
would be money in their pockets in do
ing so. As Il is now. the business Is al
uncertain and they could not AFFORD 10
make the rates for few months work.
resulting probably. IN general demon
aIization OF their traffic
For The people OF the west 20 get the
full benefits Of their nearest ports. the
grain must 60 as near direct as posi-
be.
CONDENSED TESTIMONY.
Chas. 3. Hood. Broker and Manufac-