The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-08

Quoted themselves The plan was slIc-
cessful, and in few weeks President
| Stickney's grain agent furnished him
with some very interesting and valu-
able information. However, the mag
nate was not satisfied. and he hired
another man to go over the work in
the same manner The last agent YER
flied the report Of the first, and Presi-
| dent Stickney was convinced that he
had struck q right lead. Then going
| into the details Of the scheme, Presi-
dent Stickney gave. out the following
| spicy statement: 1851
| 1T amounts to this said Mr.. sttckney.
| Suppose grain is sold at go cents bushel
| at Kansas City. 1t means 60 cents, less the
| cost Of transportation to theFMississippi. The
| expense bills fix the amount, But 1t makes no
difference to the purchaser what those ex-
pense bills are-he GETS his grain at 60 cents
| the seller has to stand the loss, IL any and he
| guarantees the grain at the Mississippi In
| great lines of sales the average evens things
oP 90 ~ b ina 5e p s bills
! chase is guaranteed at the 6O-cent rate. So
| that may account for some apparent dis
! crepancies in rates on the same day. and no
underwriting existing, however much it might
be implied.
"But that is not all" said Mr.. sticknev.
Il studied that grain business for long time.
! found out something. Let me give you some
| fgures
Thirty bushels of corn forms the average
product Of an acre Of land. At 81 cents at
Chicago that is $50 for an acre Of corn.
| Now, what do you deduct? Hauling the corn
to the depot, about cent bushel, 80 cents
through freight to Chicago, 1920; elevator
| charges at Kansas City, 80 cents; profit at
Kansas City, ~ cents; elevator charges at
Chicago, 80 cents; profit at Chic go, TIC cents:
commission at Chicago, cents This makes
a total of $5.29, leaving to the farmer in Kan
sas or Nebraska 1921 for his acre of corn.
81 came to the conclusion that the railroad
rates, to make money, must either be changed
or our methods of handling grain reformed.
We could not increase the rates without max
Ing the production Of corn Improbable | set
| about reforming our methods 1t costs mo
more to haul big car than small one; the
switching charges are the same so are other
charges, even though the big car holds three
times as much. Corn has often been costing
us more than the rate to carry. We used big
cars We loaded them to the last ton. We
managed our trade SO that we could take
these cars back with ballast, instead Of empty.
IN addition, gentlemen, we organized the
vators. We bought our own grain, we handled
1t, we carried it. We secured a uniform rats
OF IL cents. OF course the development com
pany made no money, but all it's stock was
owned by the railroad company
Now, that is why the Chicago Great West
ern company gets its 11-cent rate from Kan
sas City. Some of the other lines are hauling
at cents. We are shipping over their lines
for they are hauling at less than cost and
we are getting back some Of the money we
1Ust Defore we studied the grain question
winch ngures on our books, and about which
so much has been said, is only our broker
1t all came as revelation to the
other lines, who had never dreamed
that they had been carrying Great
western grain In disguise on a six-cent
rate. The other officials were SO ex-
ercised that it is likely they will raise
the point that the Great Western
could not legally, under it's charter
own stock in another corporation. The
Great Western, however, is evidently
ready to meet this charge or else the
disclosures would not have been so
cheer fully made Ag
The existence of a money pool is no
new thing in railroad circles POOLS
have existed time and time again. and
the one said to have been in existence
recently was the most satisfactory. to
the Great western, at least, of any Of
them. AS no money was actually paid
over to one company by another. the
pool was not an actually, SO the law
cannot get sufficient grounds to secure
a conviction, under the interstate law.
Ihere have been four or five pools in
existence during the last few years. The
Great Western has been mixed up in
all OF them, but in the business of d.
verting traffic the Great Western has
come out of the little end of the horn.
When the time came for paying the
o1Herences 81 resulting from diverted
business. But in the disclosures of
President Stickney, of the Great West
ern, at Chicago, there appears to be an
explanation why his road was a win
ner IN the last pool, the existence of
which was claimed by a certain road
which came out at thejtail end. Under
the system, told of tfnaPresident Stick
ney,s testimony, the business was so
diverted that the Great Western got
the best of 1t, to an extent that the
other lines in the pool claimed the
Great Western owed them something
like $1,000 But the money was never
paid. 1t is said that the Great Western
had more than that sum coming to it
from the remains Of former pools, and
when 1t came to a settlement the West
ern said: 1--WE will just keep this $780,
600 to even up matters" Then the
other lines got on their ear; said they
would not play, and tipped off the ex-
fstence of money pool.
Bearing on the investigation, Paul
Morton, third vice president Of the
Santa Fe system, said tonight: 1.-THE
admissions made by Mr.. Stickney un-
der oath are most remarkable He ad-
m1ts the Iowa Development company.
corporation organized under the laws
OF Iowa for the purpose of dealing in
land, the stock of which is owned en-
tlrely by the Great Western Railroad
company, was put into the market at
Kansas City to the prejudice of every
body else for the purpose Of securing
grain business for his railroad, it being
understood at the time that the Iowa
Development company would probably
lose money.
IF this is not a device for cutting
rates; if this is not an unjust discrim-
ination as between shippers; and IL
this Is not violation of the interstate
commerce law and of his agreements
with other railroads to maintain rates
and of all good business principles, it
is nothing. 1t is very discouraging for
other railroad men to think that such
things can occur in the face of a dec
laration on the part of Mr. Stickney
that he has been maintaining rates.
and in every way conducting the Chi
cago-Great Western railway in an
honorable manner"
Northern Pacific Earnings.
The gross earnings Of the Northern Pacific
Ior the fiscal year ending June 80 1896 were
$l9, BAL. This is an increase over the pre-
ceedfng fiscal year of 81, 1856, $780, This great
i