The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-07-15

ca tnal the proposition was simply one OF
through rates from initial point in Eu-
rope as against the local concentration
at Galveston
AS solution for the difficulty. Mr.
Johnson of the Santa Fc suggested that
on shipments going into store the present
rate from each point be observed. the
galveston lines to absorb no wharfage On
| through shipments the minimum proper
Ton from Galveston to be rs cents ana
the minimum from westwego, Gretna and
New Orleans to be 26A cents. This was
accepted as satisfactory by the Katy. the
southern Pacific, the International ana
Great Northern and others, and II was
agreed that the proposition should be-
come effective.
The above having been satisfactorily
disposed Of, the application OF the Cot
ton Belt, the Southern Pacific and the
International and Great Northern. for a
revocation OF the crude and fuel petroleum
tariff, was taken up and Mr.. Bein OF the
Southern Pacific asserted that since the
erection of refinery at Corsicana but
little crude oil has moved. The refined
OIL rate OF % cents is low enough, he as.
serted, and he did not. from a revenue
STANDPOINT, see any necessity for rate
lower on crude petroleum than the rate
on refined petroleum. When he applied
for the revocation of the crude petroleum
rate he did not have in mind the Grip
ping of the refinery at HoustoR he de-
clared, Had heard that the Standard oil
company controlled the Corsicana re-
fnery. The Houston refinery could not
operate with the difference between crude
and refined petroleum rates wiped out,
but he did not think It logical that re-
tineries should be located anywhere but
in the oil fields.
Mr.. Farrell OF the Cotton Belt agreed
with Mr. Bein and asserted that the man
ager of the Corsicana refinery had indig
nantly denied to him that he was con-
trolled by the Standard Oil company.
Mr.. Allen of the Katy wanted all oil
was a necessity for the classification of
oils TO keep the roads from being taken
advantage of.
Mr.. Turner of the International and
Great Northern could not understand how
refinery could be operated at Houston
his opinion the next thing in order would
be demand for a milling in transit rate
on oil.
Recess to 2 p. m.
After recess President Kirby of tho
Southwestern Oil company of Houston
argued that II the crude petroleum rate
was withdrawn 1t would have tendency
to turn the oil refining business of the
State over to the Standard Oil company
The rate on crude oil had been entirely
satisfactory to the railroads until a re-
finery was projected at Houston. From
revenue standpoint the crude oil was COM
pensatory to the railroads. 1t had been
put in at their request and had developed
I'M so.. tlf.s.a Ilsts ,sr,.v 49,.
refinery at Houston had made somebody
mad and now the commission was asked
to take out a tariff which would enable
said refinery to operate. Until 1t can be
shown that the railroads are losing money
under the existing rate, Mr.. Kirby saw
no necessity for taking up the commits
sion's time further with this matter.
Mr.. johnson OF the Santa Fe favored
the abrogation Of the crude rate because
if the oil is refined at Houston his road
WIN not get 10 haul any of the refined
product consumed in Houston Would
rather get TO haul refined oil for Hons
ton and Galveston from st. Louis and Coy.
sicana than to have it manufactured In
Houston.
Mr.. Bonner of the Southwestern Oil
company said that the purpose of the ap
plication was to discourage the establish
ment of Independent refineries in Texas
If the Houston refinery should prove a
at other points in competition with the
Standard Oil company. Before II became
known that the Southwestern was going
into business. crude oil was selling at
Corsicana at 80 cents per barrel; as soon
as its plans were made public oil went up
to 60 and rs cents per barrel
The oil matter was taken under advise
ment.
The proposition to make emergency re-
auctions in class rates lumber rates. cat
tie rates, etc, on lines cutting interstate
rates was taken up.
General Freight Agent McCabe of the
Rock Island, referring TO certain charges
that his line was responsible for the re-
cent cut In the rate on cotton ties from
Chicago and had contracted with the Illi-
nois Steel company to demoraliZe said
rate, denied the allegation and produced
correspondence TO the effect that the rate
had first been Manipulated through New
Orleans and alleged that the rate from
Pittsburg had first been cut. He also read
a telegram from the freigb. department
of the Chicago, Rock island and Pacific
authorizing him to e.Gphatic;tlly state that
there was positive evidence That one of
the lines which ha9 announced to the
commission that 1t would not protect the
AZ cent rate from Chicago was in fact
produced statistics TO show that his line
had carried but a small percentage Of the
ties coming into Texas in the past three
months. Could not name the roads that
had secretly manipulated the tie rate
Knew that 1t had been. however.
At this point Judge Reagan interjected
the following: That's the trouble; the
railroads will never tell on one another"
Mr. Bein of the Southern Pacific read a
statement to the effect that he had received
positive information that one of his COM
petitors would participate in the Accent
tie rate published by the Rock Island,
hence the course pursued by himself in the
matter OF reducing the rate through New
Orleans. He denied emphatically, also.
that he was In any way responsible for the
decentralization OF the tie rate; had reduced
II only on information that the Rock
Island was Joined by another Texas line
In the Accent rate from Chicago Did not
name which line 1t was. Insisted that his
action had been taken In order to maintain
the parity between Texas distributing
points. Claimed that the question before
the commission was one affecting distribu-
ton and not manufacturing points and
that the railroads should be complimented
for having placed the former on an equal
footing in the matter OF ties instead oil
punished for having done so. Asserted
that. so far as he Knew. no road In Texas
owed allegiance to any outside agency