The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-08-17
REPLY TO JUDGE REAGAN.
Officials Explain How the Niue- Cent
Rate Was Made.
THEY W ERE WAITING on GALVESTON
No Occasion for the Abolition OF the
Houston DifercntinI, Especially
I'm This Particular.


is tho text Of the reply received by the
railroad commission from the representa-
tiyes OF the Texas and New Orleans railway
to It's warning with regard to the 9-cent
rate on cotton from Houston to New York
via New Orleans.
Hon. John II. Reagan, Chairman Railroad
Commission OF Texas.
Houston. Texas, August IL, 1Sg7.--Dear
Sir: We are In receipt Of your letter I'D
dressed to us Jointly, and In reply beg TO
say that we had been endeavoring for
some days without success to ascertain the
rate actually prevailing by the steamer
lines between Galveston and New York
According to our best Information the
first-clase rate eouthbound was cents per
100 pounds, and we understand the Mallory
line reserves the right to apply these rates
on northbound traffic. Assuming there
fore that the actual rate on first-cass
freight between New York and Galveston
was cents per 100 pounds, the Texas and
New Orleans Railroad company and It's
connecting line, the Southern Pacific COM
pany. operating rail lines in louisiana, and
the Morgan line of steamers to New York
put into effect on the 18th inst. rate of 8
cents per 100 pounds, AS referred to by
you, which rate was based upon cents per
100 pounds from Galveston plus the first
class differential between Houston and CAL
weston, viz. 7 cents. giving a total of 8
cents per 100 pounds.
In addition to this We may add that In
competition il has been found necessary
by the Texas and New Orleans Railroad
company and its connections in meeting
competition above referred to to publish a
rate OF cents per 100 pounds on first
class between New York and Houston. also
differentially based as above. Soon after
this 9-cent rate on cotton was announced
Mr.. Dgnison Of the Galveston freight bu-
reau took the matter up with us. We told
him our purpose was 10 observe the differ
entail and asked him what the rate from
Galveston really was, He confessed his
inability to state to us what the rate was
on account of the demoralized conditions
existing at Galveston. nor could he tell
what tho rate would be on the succeeding
day. We also endeavored to get the repre-
sentatiyes of the steamship lines in Gal
weston to advise us definitely what their
rates were. that we might observe the Diff
ferential. They informed US ON the 18th
! list: .s;;st. their rate on cotton from Galveston
to New York would be 10 cents per 100
pounds.
After obtaining this Information through
sources satisfactory 10 us we and our con-
! nection, tho Southern Pacific company,
thereupon Immediately announced the
advance of the Scent rate from Houston
TO New York. referred to by you. to 16
| cents per 100 pounds TO become effective
en- the 25th instant which Is as carly a
date us the rate could be given effect un-
der the Interstate law. You will note that
the rate from Galveston Is placed at 10
cents per 100 pounds. The usual difIeren
tal added being 6 cents. makes the total
through rate from Houston to New York
of 10 cents. This, Of course, preserves
the established differential which 1t has
been our purpose ut all times 10 maintain
We further beg TO say your information
to the effect that the rate OF cents Ter
100 pounds was put in to drive our COM
petition by water from the coast OF Texas
is altogether incorrect. We emphatlcally
deny that any of the lines we represent
so far as we are aware had any such pur-
poses. or course decentralization of water
rates between Galveston and New York
is matter to be regretted by all, but
neither we, nor any Of the lines We rep
resent, are responsible for the demoraliza-
ton You VIII, OF course understand
the relation ocean rates between New York
and Galveston bear to the rail rates and
to the rate situation generally. beg
further to say that all the Texas and New
Orleans Railroad company has done has
been to preserve their legitimate business
against existing competition. Yours very
| truly, II. A. Jones.
General Freight Agent Texas and New Or
| leans Railroad.
G. w. Dein.
Traffic Manager.
| In consequence Of the facts recitcd
above there will be no occasion for the
commission to exercise the powers granted
under the emergency rate act, which goes
into effect August 90, In this particular at
least.