The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-06-12
commissioner Reagan Goes Into the
Subject at Length.
AN ANSWER TO NUMEROUS LETTERS
IN Embodied in One Letter Dc.,,,.
WIN the Question of Texas
ana Outside Jobbcrs,

|
Austin. Texas, June 10.-Dear Sir: We
| are IN receipt of your letter of Yesterday
| with which you enclose to us petition
signed by number of the citizans Of
Merlin, in which objection is made to GER
tain freight rates therein named. and In
whieh we are requested to Investigate tn s
matter and to lay the subject of your COM
paint before the interstate commerce
commission.
IL Is proper for us to call your attention
10 some matters in this connection which
may have escaped your observation. When
| this commission was organized 1t found
| the local freight rates in this State con-
siderably higher relatively than the inter-
state rates from st. Louis and other cities
| outside of Texas, and that the effort OF
those cities was to have the rates on car
loads and on less than car loads made 80
| nearly the same as to make such places
| the jobblng and manufacturing eenters for
Texas, by making the car load rate into
Texas and the local rates between points
In Texas added together greater than the
less than car load rates from these places
to common point territory in Texas.
This commission then commenced the
work of trying to secure the freight rat
In this State as nearly as practicable rel
ativeiy equal TO the rates from outside
points, SO that the people of Texas should
not be unjustly taxed with high rates to
make up the loss of revenue by the rail-
roads resulting from the low rates on in
terstate shipments, and also to get the
difference in rates between car loads and
less than car loads put far enough apart
TO enable the merchants of Texas to 10 A.
wholesale business, and TO enable the peo-
pie of Texas to engage in manufacturing
such articles ds might be manufactured In
this State; that is, to enable them TO ship
into the State merchandise at car load
rates and ship it out on local rates 4 in
competition with the less than car load
rates from such places into Texas. and as
would enable them to ship raw material
into the State at such rates as would
enable them to manufacture and
ship out on local rates the manufactured
articles in fair competition with similar
manufactured articles shipped from out
sizes points into the State at less than car
load rates.
This contest in one form or another has
gone on ever since the commission was
organized. You can see what it means TO
the people of Texas. If the policy of put
ting the rates on car loads and less than
car loads SO close together as to prevent
wholesale business and manufacturing in
Texas, the effect would necessarily be to
exclude from this State the classes of peo-
pie who would be engaged in those pur-
suits, and to prevent the Investment In
Texas of the great amount of money
necessary to carry them on, and to drive
the great number of people who might be
SO employed, and the large amount o.
money which might be so Invested. out Of
Texas and into ether States. Surely no
good citizen could desire such result.
Hence, one OF the reasons for making a
difference in the freight rates on car l0ais
and less than car loads. Added to this the
cost to the carriers of less than car load
shipments Is much greater than OF ship
ments in car loads. A part of the reasons
for this is that as a. rule less quantities
are carried in shipments of less than car
loads than in car load shipments. Trains
carrying shipments of less than car loads
are generally required to stop at many
places on the line of transportation to
deliver parts OF their shipments, which
involves loss of time and labor not in
cident to car load shipments, and the
clerical labor Of preparing and noting bills
Is much greater in the less than car load
shirments than in car load shipments.
These are among the reasons which have
caused the universal rule in railroad trans
portation of charging higher rates OF
freight on the less than car load shipments
than on car loads.
Now, as we understand your contention.
1t is: l. That we should insist on allow
ing shipments of mixed car loads OF diff
naA rntp n
break down and violate a business rule
in this respect of universal application
heretofore And in the next place, II We
should consent to the policy which YOU
seek to get established, and could get 1t
established we would necessarily drive
the wholesale merchants. the men, bust
ness and capital, and the manufacturers
their men and capital, out of the state
which we feel sure you would not wish
to do.
And we think 1t is possible that there Is
another feature of this question which
YOU may not have fully considered. You
demand that you should receive your mar
chandise in less than car load shipments at
the same rate OF freight which the man
who buys at wholesale has to pay, and you
assume that this Is necessary 10 enable
YOU to compete successfully with the
Wholesale merchants Of the State.
Now let us see as to this, II the whole
sale merchant is required to pay the same
rate OF freight on his car load shipmen s
that you pay on your less than car loads,
YOU see he must 70 out OF business, an
IL we should drive the wholesale me cha Us
out of business. and take away from the
reople the advantages growing out OF treir
competition with the wholesale merchants
Of other States, then our people wou'd
be placed at the mercy OF the latter, WHO
could Ak their prices uncontrolled by COM
petition.
THEN let us take another view basel en-
actual facts The present rate say on
nails. in less than car loads rom 81. u. u
TO Marlin Is 90 cents per 100 pounds. ihe
rate on the same in cer leads TO naii,s,
Texas, is IS cents per 100 pounds. aad re
local rate on nails in less than car ioa =
from Dallas TO Marlin Is As cents ner luo
pounds. making the through and rev
rates from ST. Louis by way OF D'lias %
Marlin 81 6 per 100 rounds. As thesa rat's
now stand you can undersell, by using ns
present less than car load rate from ST.
Louis. your brother merchant OF Marin,
who gets his goods by car loads to the
II