Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-10-07
MILLERS ARE HURT
Effect of Discrimination by Rail-
ways.
| WHEAT PREFERRED 10 FLOUR
Testimony Before the Industrial
Commission.
LARGE DEALERS FAVORED

The Industrial commission. meeting in the
Bliss building, on street opposite the
Capitol, began the examination of wit
nesses today at HIS o'clock. Mr.. A. J.
Vanlandingham. commissioner of the st.
Louis traffic bureau, being placed on the
stand.
Senator Kyle, chairman of the commits
sion. was present and presided Senator
Mallory leading In the examination
Mr.. Vanlandingham explained that the
bureau he represented had been in exist
ence two and half years, being cont1nu-
alton Of similar organization that had
been in existence in ST. Louis since 1890 1t
has 5000 members and was formed for the
purpose Of preventing determinations prac-
ticed by the railway companies against st.
Louis. They do not investigate complaints
Of secret or favorable rates. which. 1t Is
charged ST. Louis merchants obtain, but II
such rates are believed to be obtained by
merchants of other cities they at once look
into the charges.
Mr.. Vanlandingham explained various
methods of obtaining favorable or dtscrfm-
mating rates, but said that in the year
1898 there were fewer charges OF d1scrlm-
nation than in any other year he knew or,
and he had been in the railroad business
for twenty EIGHT years.
Determination Favorins Chicago.
One Of the abuses they had corrected was
in the discriminating rates which chicago
had secured from the railroads. The Ia
vored Chicago merchants obtained an ex-
port rate on all corn and wheat going INTO
Chicago to whatever place 1t was destined
1t could not be told whether this was ex-
ported or not as no record was kept of 1t
after 1t reached Buffalo via the lakes. Inc
result of this discrimination was that wheat
shipped east via Chicago cost 81 cents
hon q
Louis. There had been at times an excuse
for lower rate for wheat transported for
export, on account of the foreign markets,
where a certain price had to be met but
there was no such excuse during 1897 and
1898. There never was any excuse, he said,
for lower export rates on corn.
Mr.. Vanlandingham said that In some
cases the export rates on flour are as much
as thirteen cents hundred pounds higher
than on wheat, and the effect of this dis
elimination was to send wheat instead of
-four abroad. The millers of the west, he
said, were now arranging for a conference.
when they will suggest legislation to cor
rect this discrimination, which is lessening
their business.
Low export rates on wheat sent via Gal
weston had resulted in much wheat going
there instead of to New York. that in
the last five years the export of wheat from
Galveston had increased 1000 per cent.
Large Dealers Favored.
The published railroad rates. he thought,
had not been greatly disregarded during
the past year. They had been lived up to
during that period, except perhaps In the
case of wheat corn and products of large
packing houses. Where the rate has been
cut even in the case of wheat. corn and
meats. it had been done in an indirect way.
by which a few large dealers got advan-
tages. At the present time five large ex
porters handle all the wheat that goes out
Of that port for export. This discrimina-
ton is secured on wheat and corn by means
of large elevators in Chicago, the charges
on wheat going through them being so
ranged that it virtually became discrim-
nation. These elevators belong to the rail-
roads, at least some Of them are owned,
and it was through that fact that the dis
elimination was secured. In Kansas City
the same abuse had existed and yet there
the elevators are owned by parties other
than the railroads. These determinations
are not so great today as they have been
in the past.
General Freight Rates.
The general freight rates in this country.
the witness said. were lower than on the
&C ntinent Of Europe. but the longer haul
here affected that. The rates throughout
the southeast have never been made on the
long and short haul clause. The discrim-
ination against the short haul was the re-
suit. he believed. OF the competition Of
water communication enjoyed by the large
cities on the gulf. and this competition
caused the railroads to favor such cities.
The witness explained that there are six
classiications for all freight, and he did
not believe a single classification would be
practical, though some shippers are now
advocating such a rate. He thought that
a commodity that is the product Of a par
ticular section should have low classif-
cation in the section in which it is pro-
dGced.
Mr.. Vanandingham continued his testi-
mony this afternoon. He said he had found
that discriminating rates were given by
railroads because they thought they were
losing business which they thought they
should get. The witness was on the stand
when The Stars report was closed.