The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1897-05-27

terost, although it is most econcmlcallv
| nauaGod Tho road earns more on inter
state than ON State business he asserted
Recess until p IN.
AFTERNOON SESSION.
| AT the afternoon session j w Terry,
representing the Santa Fc. submitted that
tho reductions that have been made IN
cotton rates We're greater than the rolue-
lions that have taken place in the price
of cotton Cotton since 1878 has declined
25 per cent in price, while rates have de-
cined 30 per cent. With regard to the as
sertion that there is some erookedncss
about the way the books OF certain rail
roads are kept. Mr.. Terry said that the
only thing advanced in support OF such
Il suspicion was the fact that the ratio of
opernling expenses to gross earnings varies
with different roads There Is nothing
| strange IN this II is not peculiar to Texas
| being due to differences In the character
of The roads and the traffic they handle
/ The Central for instance, shows greater
net earnings than the Santa Re because the
latter haus the most low class freight
| The Santa l'e is operated for less per train
| mile than is the Fort Worth and Rio
| Grandc. yet the latter shows the greatest
! proportona,e net earnings because II
! handles very little low class freight 20
man could lay his finger on single In
stance whore pound of freight had been
| diverted from the Gulf Colorado aud Santa
| Fe for the benefit OF the Atchison. Topeka
! and Santa Fe. The latter gave the former
| better divisions than could be obtained
! from other connecting lines and the form
| er made more money out of Interstate
than out of State business. Explained that
the Galveston. Harrisburg and San An
! enr naI In ion bo
Santa lee because the bulk o. its business
is through traffic. which Is handled at n
| much smaller expense than local freight
| Explained that If the International and
Great Northern earned less gross and
earned more net than the Santa Fe 1t was
| because 1t paid less for labor, and. owing
to physical conditions. hauled more cars
per train Furthermore the International
and Great Northern terminal expenses at
| Galveston are charged up to the Calves
Ton, Houston and Henderson and it orig
mates more OF the cotton II hauls than
does the Santa Fe, the biggest portion of
whose business is received from other lines
and out Of which IT gets but the small end
of The rate as a division. Having dis
carded every other element except that
/ Of physical COS, in estimating tho value
of railroad property In Texas the COM
mission should. he thought. he liberal in
the matter of figuring out what was a fair
| percentage OF Cummings 10 winch fdll prop
erty Is entitled
Denied that there was any water In
the bonded Indebtedness OF the Santa Fc.
! Made comparisons of earnings of Texas
roads with Eastern and Northern roads to
show that low rates depend almost en-
tiroly upon the volume OF business The
gross earnings of the Georgia railroads
were about the same in proportion as
those of the Texas roads, while 5000 miles
OF Georgia road earned $4,000, 600 net, Ms
against S7,000,000 net earned by the 5000
miles OF Texas roads, showing that the cost
of operating railroads in Texas was much
greater than in Georgi., For short dis
tances tho Texas cotton rate was higher
than the Georgia rate but for long dis
tances they were close together and the
bulk Of the Texas cotton crop was carried
on long hauls.
With regard to the demand that Texas
rates be reduced because Of low Interstate
rates, MIR. Terry addressed himself to the
assertion that grain was hauled from Kan
sas city to Galveston for II cents and said
shat admitting that such rate had been
given the cost Of getting the grain TO Kan
sas City must be added thereto. which at
the lowest calculation. makes the total |
rate u cents. while the Texas joint line
grain rate was II cents In answer to he
earnest demand Of the commission. the |
railroads were endoayoring 10 build up |
Texas ports by making rates that would |
divert Kansas grain in their direction, yet |
every lime anything was done along this |
line statesmen of the Barney Gibbs and |
Joe Fatty type howied about it.
Referring TO the question Of rehates anc |
rehlling Mr. Terry said that he didn't |
believe the most rigid inquiry would de- |
yclop any serious amount of either No |
matter what tho sins of traffic men may |
have been In this direction In the past,
they were small now, AS + light from
Heaven had changed Paul and as "A salary /
from the Dallas freight bureau had |
changed Joe Farley. 40 had decision from
the supreme court changed the traffic men, |
The practice OF giving free passes to com
merclal people and drummers. who kicked |
against the gate system and the 4 cent
mile law, had depleted the revenues Of
tn railroads considerably. but that had
been stopped. The ra .lroads didn't lose
much by giving members 81 the legislature
passes, rs they wouldn't travel no how
il they didn't have - The practice of
giving rebates did not reduce the revenues
of the railroads az II was lnduiged in to
get business which would be lost other
wise.
Judge Reagan didn't believe this and /
wanted 10 know II The officers OF the roads
giving rebates didn't whack up with the
beneficiarles thereof and rob the railroads.
a thing could he proven those INDUCING
in II would lose their Jobs SO quick II
would make their heads swim.
Cation should be high Slnss freight, he
continued bersuse Il was inflainmab. aud
,aopirea ssperlal care IN handling, neces-
sltqtlne insurance. etc. As compared with
erain the rate on cotton should be about
81 per hundred