The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1900-05-18
"A MERRY RATE WAR
Commissions Emergency Rate Is In.
iurine South Texas Interests.
COTTON EXCHANGE PROTESTS.
Chairman Reagan, However, Declines
to AbrOeate the Rate.
TEXAS JOBBERS AT A DISADVANTAGE.
ST. Louis and New Orleans Using Texarkana
as a Shipping Basis.
TEXAS JOBBERS AT A DISADVANTAGE.
NO IMMEDIATE SOLUTION IS IN sight
Unless speedy Action Is Taken, the
situation Will Become More De-
mora1ised-RaiIway News.

AS stated In these columns in yester-
| days Post, the Houston Cotton Exchange
and Board of Trade took action in refer
ence to the existing freight rate war. The
Cotton Exchange membership rolls con-
tain the names NJ not only persons and
firms dealing in cotton, but of merchants
wholesale and retail. and manufacturers
1t is the great clearing house. SO to
speak, where the general welfare and
business interests OF. the city are looked
after and fostered.
Rate wars affect every line OF COM
merce, and the Cotton Exchange and
Board of Trade, representing every branch
OF industry In the city, acting in its of
fetal capacity yesterday sent a telegram
to Hon. John II. Reagan, chairman of the
Texas railroad commission, protesting
against the putting in and maintenance
of the emergency rate applying to Texar-
kama, Atlanta. Jefferson and Atlanta
which was made in retaliation because the
Missouri. Kansas and Texas made the
'Frieco's Paris rate applicable to ell com
mon points in Texas.
Houston and Galveston rates have not
been cut to meet the Texarkana rate. and
as a consequence these South Texas job
bling centers are greatly injured by the
maintenance of the commissions emer,
genry rate. Wholesale grocers and job
bers are hurt more than any other class,
and they are filing their complaints.
The commission rate applying from
Texarkana is most sweeping 1t makes
blanket rate of 5 cents per 100 pounds on
all commodities to Texas common points,
but does not fix a corresponding rate
from Houston to interior points, The re-
suit of this Is that st. Louis and New
Orleans jobbers, by using Texarkana as
shipping basis, can undersell our Texas
houses.
Take sugar as an illustration: The rate
from New orleans to Texarkana is q
cents. Say 1t was consigned to Navasota.
Five cents would be added, making the
rate from New Orleans to Navasota, via
Shreveport, 80 cents.
Via Houston the rate is: New orleans
to Houston is cents. Houston to Navasota
"a cents or AZ. cents in ala difference on
10000 pounds OF $50.
In Difference to requests made by the
jobbers the Houston Cotton Exchange and
Board Of Trade sent the following teGe-
gram to the commission yesterday:
THE Houston Cotton Exchange ear
nestly protests against application OF
your circular 1920, as 1t discriminates
against the interests of Houston and
will, in our opinion, lead to general
decentralization of freight rates, which
will be disastrous 10 all interests IN
the State, disturbing existing cou-
tracts and interfering with pending
transactions with our customers.
Yesterday evening the following reply
was received.
''B. R. Warner Secretary Cotton ES'
. change, Houston. Texas.
! ''Austin. Texas, May IT. 19O0.--Rate
established by our circular NO. ll2O
is necessary to secure proper adjust
ment of rates in Texas. When ad-
iustment is effected the emergency
rate will be withdrawn
John H. Reagan. Chairman,
$ The answer was received too late for
further action by the exchange, but The
, matter will not be dropped.
Railway men are not clear as to the
Interpretation of the sentence; When
adjustment is effected the emergency rate
will be Withdrawn"
They would like the commission to sug'
sest some mode or basis OF adjustment
shreveport's rate was made by reason
/ of the city's location being on naviga-
4 Bile stream. Texarkana was made cents
, higher. Neither of these towns did any
extensive jobbing business. Their trade
was confined to small area right around
them. But the Dallas. Sherman, Fort
{ Worth and other North Texas jobbers
. thought that these two towns were en-
a titled to nothing and in their efforts To
I, have them destroyed have stirred up
). merry war.
y Houston looks to the railroad commis-
e sion for protection. The ST. Louis lines
{ will take care of North Texas and II Is
natural to presume that the Texas anl
$ Pacific and Southern Pacific Will see ina
e New Orleans doesn't get lost Ia the snui'
= fe.
All the South Texas merchants ana TN
traffic managers Of the big roads are aux
ious to have normal conditions res'o,el
Should they get really worked up the'
u have It in their power, by making terin'
. with other lines, TO bring St. Louis freign
into Texas by way of New York New
n orleans and Galveston. This would prop
/ ably result in a conference which woul'
hiring about an adjustment in short or
e der.
i. Another element OF dscord' though no
very serious one so far' is Tue pcs"
$ mont situation. The Kansas cry sou'n
- ern makes lower rates TO Beaumont tuAl
il the existing rates 10 Houston and Gal
It weston. Pressure was brought to boar Q
J. other roads who endeavored TO have tn
e peeree make the Beaumont rates the sam
as Houston and Galveston. but the Peese