The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-05-27
COTTON RATE HEARING
Tariff Men Contend That No Redue-
ton Should BE Made.
ARGUMENT ON THE DETRIMENTAL.
Nr'Lovctt Said Abolition Would Ruin
Houston as Cotton Market.
NIX. CRANES INTERROGATION.


resenting the Galveston. Harrisburg and
San Antonio, addressed the railroad COM
mission this morning contending that
under the difcrcntjal Galveston sets cotton
hauled for the hf,y miles between Hous-
ton and Galveston for less than is charged
from common point territory 20 Houston.
and denied that Galveston is at any dis
advantage as compared With Houston. MIR.
ballinger and everybody else knows, he
said, that the rate from Houston TO CAL
Weston on cotton Is exactly the same now
as ii was when the present difterental was
established. said that the fixing of a maxi
mum rate was hot the only effect OF Buff
talo bayou navigation, because the exist
enoe of said bayou had given rise to a
traffic which existed aud WAS entitled to
exist. Denied that the railroads had prac-
ticaliy forced The Direct Navigation com
pany into the Southwestern Traffic assO-
citation. SAID company is carrying cotton
Tor less than ever before under the pres
ent direrenial. Did not believe that the
people of Texas had created the railroad
commission with a view of establishing a
mileage system Of rates Had that been
the intention said system could have been
put into effect by legislative enactment
without commission. From the Houston
SteAblNiNN ne Aisil no blltNNlNll 10 II Jillt7
age system If applied to Galveston. Said
system would drive Galveston out of bust
ness, however and force North Texas cot
ton out through Mississippi river points,
There is more cotton going ont through
Texas ports under the present blanket
territory system than ever before, Condi
lions are different in Texas rom what
they are in Georgia. where tie mileage
system prevails. Texas is much the largest
a ia nm ha ~ ha
is raised away from the coast, while the
reverse is the case in Georgia.
Returning to the differential Mr. L0vett
asserted that its abolition meant the de-
struction of Houston as a cotton market,
Was not that Galvestons object? Was 1t
not TO the interest OF the people of Texas
to have two instead OF one big cotton mar
ke,? There was no foundation, he main
tanned, for the belief that the control of
certain railroads by the Southern Pacific
had operated to the detriment Of Calves
ton Surprising that the line from Houston
10 New orleans was divorced from the
Southern Pacific the commission could not
control H. as but short piece OF II Is In
Texas and ii II were not Interested in the
welfare of the Texas lines 1t might de
moralize rates and haul cotton 10 New Or
leans as cheap as it is hauled to Calves
ton The line is fact and must be oper-
ated and uncontrolled b. Texas interests
it could dry up Galveston as cotton
market. 1t was but theory that the aboli-
ton of the differential would force the
entire Texas cotton crop ont through Cal
weston There is the Texas ana racine. IL
can't 20 out OF the cotton business And
there are other conditions which can not
he ignored in this matter The only eject
OF abolishng the differential would be TO
Kill Uouston's cotton business. If II we're
true that the differential is wrong In prin-
ciple. as asserted by Mir, Ballinger, IT
should also he abolished on oulbpund
freight from Galveston, which would ab-
solutely dry up the trade of that port.
On the general situation in reference TO
the, proposition to reduce the cotton rates.
MIR. Lovctt said the reports OF the roads
he roproEented showed that they were as
economically managed as any ro7u IN me
country said that the Houston anu
Texas Central might possibly gei aiohs
with a slight reduction III ireiHht 'n'es,
but that II was necessary that al ledSt
$500 0On be spent in improvements upon 1t
within the next twelve months. II was
only within the past four years that It's
bondholdera had received anyih'ng on
their investment For ten years prior 10
1899 they had received nothing. That inc
Central is earning enough money to pay
interest on its bonds is no evidence that
the rates are unreasonable, The only Value
which railroads have is their earning eA-
racity. and the cost of reproducing ran
read Is not a lar . nra'S ~ Pm ,he rates #
determlne me i .,aa re .borg ', There is
should 9a prrna a,de as ~ what ia rea
sonahle rate. III the coS' oI r'pl "' ns ,i,S,
railroad is taken AZ pI ,nnrc 49, than ibev
rates trt lo""s W. wr' therc is a large crop
are entitled TO , %nr" o t'' entitled TO- when
"nu iess ''lsn ,rho ,r,,a noIlcy for a
To- HaE Tnt "a
state TO ndopt IS Una, 40 iIns r "a" are
ioas9heple Oh ,nenlssirts a. az ,,rodt regard
,nll'l,n 10 SOM i,'r va nmtting down their
i ,, OF ,nu o"a ai,r,ad has tho legal right
'"os, itN'li .,'l .,aFI, vii hear lr-
10 chafEe What tho " ~. Ma ro,d Thoy
fsspeguye O, NV eus' " ,o ~ iii The risk
should no' no maus , ~ edN, - lose money
IN me puh,u,sS "u u ii,h, simnly because
wheh the uaHlt - slor ,,n,cs There |
It may be great ~ plH1r ''n ,,r5er when
Is not enc Wora li , ,pv '' Mean r',ds ly |
railroad NSu9uutS NJ X odo,tlop nj |
hn m