The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-21
HEARING ON LOG RATE.
The Beaumont MINIS Before the Railroad
Commission
THE e.R AND K C OFFERED TESTIMONY
Legality ~ tho Contract srccifying
Rate Of Four Dollars u 10 ne
Taken intD Consideration.

"Neu tutD SousfurrNttOn-
Austin. Texas, December 2o.--Pursuant
70 notice previously issued, The railroad
commission this morning In open session
heaid from the parties 10 the controversy
over rates for the transportation OF rotsh
logs from Gulf. Beaumont aud Ksneas
City points to the beaumont mills up
10 short time ago said rate WAS. Under
tho terr,a OF twenty year contract with
me railroad 81 per csis, but was recently,
upon application from the railroad. raised
by the commission to $40 DER car without
knowledge OF the circumstances under
which the 81 rate was put in AZ the $40
rate is prohibitory. complaint against il,
from the beaumont mills Immediately fol-
lowed and today heating was ordered.
" was attended by Representatives OF the
Beaumont anu Texas tram lumber cons
ranies ana their attorneys, Messrs. r.. Al.
oreer aud George w. OBI iens M
Vice President John II. Kirby OF tho
Sulf, Beaumont and Kansas City repre-
scented TIE railsoai. A petition numerous.
y sigped by Beaumont business MIL
aud prominent citizens OF Jefferson couitty
asking for the restoration of the 81 rate
was presented by Mr.. Lea Blunchelte. a
contract entered into Iii 1894 wins intro
dueed, the terms OF which were that Ia
consideration of the transfer TO the rail-
road OF certain trackage belonging 10 and
used by the Beaumont und Texas Tram.
Lumber companies for the movement of
logs said railroad would for twenty years
haul logs 10 Beaumont for said companies
at the rate Of 81 per car. a prospectus
issued by the railroad for the information
of Its bondholders In 1896 was read. Said
PROSPECTUS stated the roads log business
al the 81 rate was worth 100000 per year.
MIR. Kirby stated that these figures were
anticipated at the time the prospectus
was issued on the supposition that tho
volume OF business promised by the mills
would yield them. However, he said, the
business had not materializcd.
1t was stated for the lumber companies
that as a result of the contract submitted
they had abandoned the trans they for
merly operated for the purpose of convey
ing logs TO the river and floating them to
Beaumont. They had, also, ii was told,
ceased running steamboats, for the move
ment OF freight for lumber camps, all Of
which was now moved by the railroad.
In answer to u question from Commits
stoner Mayfleld. Mr.. Kirby said that the
freight rate on the sawed lumber into
which the amount Of logs transported here
tofore by his read for 81 could be con
verified would produce freight revenue to
his line to the amount of Sc 40 IL shipped
direct to common territory points. He
though, that by the adoption of sort
of concentration rule which would give
his road control of the sawed lumber pro-
duced from the legs 1t hauled, or, III other
words, permit 1t to bill the sawed product
and collect a division OF the rate thereon
he Az. fyav. stt,ty III.
final destination, the present trouble could
he removed and the mill men practically
enabled to get their logs hauled free.
1t haviDg been suggested that the only
question at issue was one of whether the
contract between the mill men and the
railroads could be attacked, the commis-
sioners retired for consultation over the
matter and a recess was taken until 2
D. m.
The afternoon session was opened with an
announcement by Chairman Reagan that
the legality of contract would be consid-
cred in connection with the reasonableness
OF the 81 rate and that testimony would be
admitted bearing upon both sirbiacts.
Called to the stand Mr.. Gilbert OF the
Beaumont Lumber company testified as 10
the cost of getting out logs and transport
ing them Ito the mill and ASSERTED that his
company would newer have disposed Of It's
tramways had 1t not been for the contract
entered into by the Calf, Beaumont and
Kansas City and also that new tramways
would have TO be constructed IL the $40
rate was continued In effect, as II was pro-
hlbitory. He did not consider Mr.. Kirby's
concentration scheme practicable. The
trunk lines passing through Beaumont