The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-05-06


the Atchison We're fair.
D. Miller, traffic manager OF the Katy.
SAID The Texas portion OF the line was ac-
ooiueu liberal percentage of the rate
OF interstate business, In many instances
rcaping the greater benefit Its principal
horthbound business was the transporta-
ton OF cattle, out OF which the Texas end
got the biggest share of the rate. IL was
the policy OF the company to induce the
movement OF cotton toward the gulf us
well as TO induce the shipment via Gal
weston of merchandise from the Atlantic
seahoard 10 Texas interior points
During the past season the Katy had
hauled 5000 cars OF grain from Kansas TO
Galveston for export and the Texas end
OF the line had received "a per cent Of tho
rate 20 per cent of the revenue from the
coal business from the Indian Territory
went TO the Texas end. A reduction in
freight rates insures to the benefit of the
consumer In his opinion.
In answer to question by Commissioner
Mayfieid, Miller replied that the system of
divisions in force on the Katy was an ar
bitrary system established by the OFF,
GERS of the main corporation. not requiring
the approval of the officers of the rexas
corporation.
Solicitor Miller stated that he was au-
thorzed by the managers of the Kansas
and Texas corporations to state to the
commission that II was at liberty TO OK
anime their books at any time If It was
thought that they were not honestly kept
or that their division scheme was inc
quitable.
General Superintendent Maxwell of the
Katy said It would take great deal more
money TO place the Katy In a perfect ply
steal condition. The road Is as economically
administered as is consistent with good
service.
7, II. Benton Of Lincoln. Neh.. "a
n mai Nf no
that State stated that his observation had
been that reduction In the freight rate
OF u commodity was generally followed 10y
a reduction in the price Of said commodity
TO the consumer.
helms of Houston said his observation
was that the consumer and not the pro-
ducer of cotton got the benefit Of re-
duction in the cotton rate.
Mr.. Lovett submitted statement OF
earnings OF the Galveston, Harrisburg and
San Antonio and explained the system Of
divisions of rates in effect between that
line and the lines east Of Houston.
General Freight Agent Barnhardt Of the
Cotton Belt said he had at one time been
live stock commissioner of tho State Of
Nebraska and had noticed there that
reduction in the corn rate to Chicago had
invariably been followed by a reduction In
the price paid the producer for said corn.
Gave dates and quotations to show that III
had not increased in sympathy with re-
auctions in the cotton rate
Judge Perkins for the Cotton Belt filed
statement showing earnings under eX
listing tariffs and under tariffs prior 10
the existence OF the commission as COM
pared with what said earnings would be
in case the proposed reduction in cotton
rates was made. Told what the physical
condition OF tho road is and explained that
IT needed 81 .256.000 for bettermenls, while
lacking just about $20C0o0C of having il.
Maintained that "A reduction in the cotton
rate would mean a dead loss to the rail- |
roads and everybody else except the New |
England cotton spinners.
j. L. Leith, freight agent Of the Mid |
land, said his road had spent a great deal |
of money in bettcrmcnts and used eycay |
legitimate means In cndeayors to secure |
business. The cost Of betterments had not |
been charged up to operating eNpcn."s. yet |
the revenues OF the road did not pay said
expenses.
j. NJ Lee superintendent of the south
ern division Of tho Houston and Texas |
Central. stated that his road concentrated |
the putting In Of extensive and needed bet
terments in the immediate future incluA
ing new depots. stone bridges, etc. also
In equipment, all of which |
would materially increase the cost OF main
tenance.
Adjourned until $40 tomorrow morning. |