Omaha daily bee., 1899-11-17
MORE UNEVEN RATES SHOWN
California Jobbsrs Are Given a Monopol,
on b Coast.
FIRMS IN MIDDLE WEST ARE SHUT OUT
Can Only DO Business by Making
Freight Allowances to Customers
i'm California which Eat
Up the Profits.

ST. LOUIS, Nov 16-The Interstate Com
| merce commission which has been holding
an inquiry into Pacific coast rates, will ad-
journ tomorrow forenoon. Only one witness
remains to be examined.
| The hearing today developed no new phase
of the controversy. The witnesses all testi-
| fed to substantially the same facts that were
| given by preceding witnesses, and the evil
dence was therefore in measure merely
cumulative.
Chairman Knapp and Mr.. Clements were
the only members of the Interstate Com
merce commission present at the hearing.
Messrs. Prouty Yoemans and Fifer were
absent on other business.
! Saunders Norvell, third vice president OF
the Simmons Hardware company of st.
Louis, testified that the tariff OF June %,
1898, had clearly affected the business OF
his firm with California retailers. After
the adoption of that schedule the volume
OF trade with the entire Pacific coast was
curtailed. That the tariff of 1898 caused
this falling off was shown, he said, by the
fact that since May, 1899, when the Great
Northern and Northern Pacific abrogated the
tariff and lessened the difference between
carload and less than carload rates. business
in Washington and Oregon had increased
and reached its original level, while that in
California had steadily retrograded
The firm he said, was obliged to compete
not only with the natural advantages of the
California jobbers, but also with the artii-
cial commercial advantages accorded them
by the railroads in adopting the tariff of
1898 The firm could only do business in
California by making freight allowances to
its customers This allowance, he said,
amounted to an average of so cents on each
100 pounds of freight shipped. This was
clearly loss of profit, due to discrimination.
He placed in evidence charts and tables
Illustrates by Use of Charts.
showing the fluctuations of the firms sales
and profits in california business during
the last three Years. They indicate an in
crease in sales and a decrease in the per-
centage of profit.
w. F.. Herrh, attorney for the Southern
Pacific, in cross examination, attempted to
show that " railroad rates were not re-
sponsible f fuctuation in the volume Of
business Y Eacted in California during the
last eigl months since these rates had
renal same during that period.
"P ht would make that chart more
int was Mr.. Norvells answer, 'if
wet d another line showing what our
pre- lid have been had the former
fri es obtained. l am complaining
OF fits there, not of our volume Of
le cannot give regular freight rates
I'd profits for others,' retorted Mr
1raG Guignon, traffic manager for the
Paddock Whaley Wharf company of st.
Louis, followed Mr.. Norvell. He made the
point that Pueblo has a better rate to Pa
cific coast points than st. Louis enjoys.
THE carload rate from Pueblo to San
Francisco is 56 cents per 100,'' said he,
while the carload rate from st. Louis to
San Francisco is 20 cents per hundred
weight. Il Certainly, if Pueblo has better
rate than ST. Louis, then st. Louis ought to
have a better rate than Pittsburg but she
has not
Denver is Satisfied.
Chairman Knapp introduced telegram
from w. A. Hover, president of the Denver
freight bureau, stating that Denver jobbers
entered their protest against any change in
the present classification between carload
and less than carload rates.
Attorney Pillsbury, representing the job
bers Of the Pacific coast introduced a tele-
gram from Barrett. Hicks g. Co., of San
Francisco, saying that their telegram of re-
cent date to "use every effort to have less
than carload rates reduced" was sent under
a misapprehension and was withdrawn.
N. o. Nelson of st. Louis was the last
witness summoned by the complainants.
Asked to describe the effect of the tariff
of June 25, 1898, upon his California bus-
ness, he said he went to that state and
found out that there were two clear alterna-
tives for him, either to retire from the
field or ship in carload lots. If he shipped
goods in less than carload lots, his whole
profit would be more than absorbed in the
dfferential. Asked If he could serve all
of his territory except the Pacific coast
by shipping in less than carload lots, he
replied in the affirmative
A. T. B. Jackson, representing a line OF
steamships which ply between New York
and San Francisco via Cape Horn, was
called to the stand for the defense His
testimony related entirely to the question
of competition between the railroads and
sea routes TO traffic to the Pacific coast and
the effect this competition had in making
the rates on all transcontinental rail lines
The commission then adjourned until to-
morrow morning.