Omaha daily bee., 1899-11-16
RETAIL MEN ALSO COMPLAIN
Small Buyers on Pacific Coast Endorse st.
Louis Wholesaler Action,
SHUT OUT BY DISCRIMINATING RATES
Practice of widening Difference
between Carload and Less Thnn
Carload Rates Gives the Big
Buyers a Big Advantage.

ST. LOUIS, Nov. 15.-When the session Of
the Interstate Commerce commission began
today kilograms from retail dealers in sew
cral California cities. endorsing the st. Louis
Business Mems league, were read.
The Duluth Chamber Of Commerce, through
it's counsel, filed a petition OF Intervention
on behalf of the complainants.
j. Il. Hickman of the st. Louis Manu-
facturers and Jobbers' bureau continued his
testimony, showing how the wide difference
between carload and less than carload rates
affected the iron and wagon material trade.
He was followed by e. C. simmons at the
head OF local hardware house. who said
he did not desire to discuss the existing rate
schedule as a traffic man. but as a mer-
chant who desired that competition should
be unrestricted.
THE discrimination which Is being prac-
ticed" he said, "is not alone detrimental
to the st. Louis wholesale trade, but to the
Pacific coast retailer as well. The class
rate being high and the carload rate much
lower. the retailer, though ne cannot really
afford to do so, is tempted to buy goods in
car lots thus overstocking himself and
being forced TO either distribute part of
his stock among other retailers or to cut
his prices and destroy his profit.
"It is clearly in restriction OF trade and
healthy competition to force a small dealer
to conduct his business at loss. have
no complaint to make against existing rates,
except that the difference between car
load and less than carload rates is too great
and should be diminished. AS the tariff
now stands it favors the rich as against the
poor"
Injuries Small Dealers.
The most interesting testimony during the
morning was that of j. j. Wait Chicago
traffic manager. representing the hardware
trade Mr.. Wait devoted much OF his time
to showing that some extraordinary influ-
ence was brought to bear upon the Pacific
coast roads to adopt the tariff Of 1895 and
read extracts from the proceedings of the
st. Paul meeting in 1898 to show that the
influence was that of Pacific coast jobbers.
He had prepared tables showing how the
trade of his house had, as a result of the
difference between the carload and less than
carload lots, been cut down in California and
how a restoration of the old rate by the
Great Northern and Northern Pacific had
increased the business in Washington and
Oregon.
During the examination Attorney Calhoun
asked Mr.. Wait:
"What would be the effect upon the COM
mercial interests of the country if the prac-
tice became general of widening the differ
erce between carload and less than carload
rates, so that the big buyers would get car
loads cheaply and the little buyer would have
to pay exorbtant rates for less than carload
lots?"
1T would be to shut the little buyer out
OF business"
1.-THE big buyer already has the advantage
by reason of his capital, has he not, and
when this advantage is supplemented by rail-
road rates, what would become of the little
buyer?"
"He would not have much show
What is your opinion of the influence of
water rates on railroad rates?"
II think our friends on the other side have
got the cart before the horse. The railroads
control the water rates, not the water rates
the railroads. The freight rate over the
Panama route Is little lower than the rail-
road rate across the continent, and when
the railroad rates change the Panama rates
follow them"
Mr.. Wait was the last witness examined.
He may be recalled to the stand either to-
morrow or when the commission convenes
on the Pacific coast to hear the defendants
side of the case. The hearing adjourned at
o'clock to meet tomorrow morning.