Kingsbury County independent. (DeSmet, Kingsbury County, S.D.) 1894-1929, 1904-10-21
RAILROADS HELD
IN PACKERS GRIP
Private Car Monopoly Gives a
Power None Dares to
Resist.
RAILROAD MEN ON STAND
Interstate Commerce Commission Sits
in Chicago and Hears Some Sem
sationsl Evidence About the
Rate D~ictators.

dares to disobey the orders OF the big
packers a boycott is instituted at onc
by these. the largest shippers in the
United States, and the most emorse
less and arbitrary power in the world"
This Is the reply that ]. w. Midgley
made yesterday to Commissioners
Prouty when asked how it was the
packers were enabled TO compel the
railroads to send their empty cars back
on express time. and pay the packers
for so doing.
Mr.. Mldgley was the first witness at
the Investigation which the interstate
commission began in the
morning into the use OF cars owned by
private corporations. J. Ogden Arr
mour. from whom little of value was
obtained, was also a witness. and many
of the biggest railroad officials In the
country were in attendance.
Packers Control Traffic.
"By the payment of excessive mileage
by the railroads for the use OF these
cars" continued Mr.. Midgley, the
packers are enabled to control the traf-
nc and to peddie 1t out to the highest
bidder. / do not mean TO reflect upon;
any traffic man, for they have got tot
KGL DuStIlG5S III AoGE hACA P1nAtIRAlos ii
know personally that w. X. Wander,
bilt and men like him ask for results.
and they do not care nor inquire how
they are secured"
Asked what there was to prevent any
other industry from building privatel
cars and operating them, the witness|
replied:
"No one could compete with the pack
ers. Their power is unlimited. But for
them there would be no market. for
they are the market. The same thing Isl
true of the dairy Ind fruit business,
and IL this thing is not stopped the time
will come when the private car inte-l
ests will sidetrack all equipment now In
use by the railroads. Why, even Pabst
e. CO., the brewers, are now engaging
In the dairy business"
What is the effect OF all this 2" asked
Commissioner Prouty.
1T creates an effective monopoly Of
the commodities carried in these cars, !"
replied Mr.. Midgley.
What Is the effect on the consumer
I'VE all know what that Is. for we
all eat meat. We have seen the price
go up and up as the price of cattle
went down and down"
Standard Oil Threat.
In 1896 according to the witness, the
railroads reduced the mileage on oil
Adlh GAI0 u ~ lilAAASs 1iG q AAA ~ ~tO
called by the Standard OIL company.
A conference followed between some of
the highest railway magnates, In COM
pany with Mr.. Midgley, n h Stand
ard oil officials.
At this conferences the Standard Oil
people told the railroad men that IL
they could not allow the oil people a,
certain sum in mileage on their tank
cars the railroads must buy the cars
at a certain price. IL neither was done,
w. III. Tilfford OF the Standard OIL CONF
pany threatened to single the
weakest sister among the railroads
from Chicago to the northwest and
give hat weak sister all OF their
traffic.
The late c.. II. chappeIl retorted that
il this was done the railroads would
buy their lubricating oil and other pros
ducts OF other companies. Whereupon
Tillford snapped his fingers Id the rail-
road mans face, according TO Mr..
MIdgley, and shouted:
Buy all the oil you want to Of other,
companies. The Standard Oil. company
day"
Later Howard Page OF the Standard
Oil company told the railroad people,
IL they would allow the company
mileage demanded OF its tank cars,
thnee-...a sters -ce q ee: nile
loaded and empty. the railroads were
at liberty to make whatever freight
rates they saw fit upon oil and its pro-
ducts.
and the railroads actually did raise
the rates ON oil S cents TO the Missouri
river declared MI. Midgley. II will
say for the Standard OIL company that
they always fought In the open, but we
have never been able to stand up
= o~A - Il L. -~ fl
Asked what remedy there was. the
witness replied:
IF all OF the private car companies
will make me the same offer originally
made by the Standard OIL company, we
will buy their cars. am backed by
capitalists in New York who stand
ready to organize a $50. 600, 900 stock
company, with a view OF absorbing all
these cars In the interests OF the rail-
roads. IL this il not done, let the rail-
roads reduce the compensation paid for
the use of private cars TO 30 cents a day
for stock cars. and SO cents for refrig-
orator cars
Testifes as to Rebates.
James s. Watson, formerly president
OF Porter Brothers company. now ia
the hands of q receiver. testified that
he had for years received a concession
from the Fruit Growers Express.
owned by Armour e. Co. Bills were in-i
troduced to prove that where the pub
lished icing charge had been $50 from
Sacramento to Chicago. 1902. the diff
ference between that slgure and the
actual cost, had been Sebated to Watt
son.
Armour g. Co.'s ledgers show single
loans at Walton as high as $500, 900. In
explanation OF this condition Of affairs.
George Robbins. anage for the Ar
mour car lines, said the published tariff
was meant to be a maximum tariff.
Rebates from the tariff were given
where the circumstances warranted.
IT. II. Howe, secretary OF the Miiwau-
kee Refrigerator Transportation conn
pslny. owned by the same interests on
trolling the Pabst Brewing company,
testified that all Of the brewing conn
pany's output, amounting to 1900 cars
annually. was shipped In the cars CT
the refrigerator company. h conn.,
pany exacted a commission OF 12h per-
cent. OF the rate from the railroads.
over which they shipped. He said he'
did not divide this commission with
the shippers. bur where the shipper III
the Pabst company the shipper practf-
cQIIv UofQ n all & $N