The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-10-12
STIRS THEM UP.
Private Car Monopoly Called
Son the Carpet"
Big Packers Force the Rail-
roads to Their Terms.
HOW 1T is DONE.
Own Their Cars and Able to
Force Concession.
Interstate Commerce Commits
sion Is Investigating.


taken on the private car monopoly
which il is said forces the railroads
to discriminate in favor of the big
packers in the matter of freight rates
to the disadvantage OF the consuming
public ~,
Packing company was put on the VII
ness stand Monday and questioned IN
regard 10 the contracts which his com
pany had with the railroad companies
lie protested to have forgotten most
everything in regard to their contracts
He stated, however. that MS company
owned $4,000 refrigerator cars
The big packers who own their own
refrigerator cars can dictate terms ~
the railroads They force the ran
road 10 do everything required unuer
threat of Withdrawing their freight
shipments unless their requests are
complied with.
For instance. when any railroad ac-
cepts car load or train load OF
meat from a packer, say IN Kansas
City and it is to be hauled to Denver,
the railroad has to haul the train TO
its destination on express train time.
must pay the packer mileage on each
car hauled out, and must return the
trainload of empty cars Immediately
The railroad company rarely ever
has an opportunity of loading the cars
for the return trip. They are not al
lowed to hold the cars long enough
to load them. Consequently they are
forced to haul the train of empty
cars back to the packing center empty
and at the same time pay the packer
mileage on every car thus shipped
back. Notwithstanding the fact that
it is empty and that the railroad in
stead of securing a tariff for hauling
the car back is doing SO at loss
For hauling the trainload of meat
in the private cars of the meat pack
er the railroad receives but the same
tariff that would be collected for haul
ing the same tonnage in cars belong
ing to the railroad company and must
in return pay the packer mileage
amounting to q of cent a mile for
each mile that each car travels both
going and returning. So when the
cost of hauling the loaded train on
its outward trip from the packing cen |
ter to its destination and the cost OF
hauling the same train of empty cars |
back TO the packing center is COM !
puted and added to the amount of /
the mileage at q cent per mile for !
every mile which of the cars trav-
eled both outward and home /
ward bound, which latter amount |!
roads frequently find that they have |
handled the business at a loss or at 1
so narrow a margin of profit that the |
business is not desirable.
Many railroads however are COM |
pletely at the mercy of the monopoly.
The private car companies control so |
large an amount of freight tonnage /
that unless the railroads accept the |
terms of the monopoly they are not /
given Ony of the business.
A few railroads are strong enough /
however to do without the shipments
or the private car lines. The Santa /
Fe railroad. for instance. has for quite
a while refused to accept their freight
shipments in large quantities and on
the terms demanded by the packers. /
The Santa Fe has all the business it !
can conveniently attend to. it is said
without attempting to move the ship /
ments which require the fastidfous care |
k1 n~-Sr 70
the Santa Fe does not try to get those /
shipments.
J. w Midgely was asked by Commits
Eloner Prouty of the interstate COM
merce commission how it was the pack /
ers were enabled to compel the rail- |
roads to send their empty cars back on
express time, and pay the packers for /
so doing
He replied:
If any railroad dares to disobey the
orders or the big packers a. boycott is
instituted at once by these. the largest
shippers in the United States and the
most renorseless and arbitrary power
in the world
Mr.. MidgIey was the first witness at
the investigation which the interstate
commerce commission began in the
morning into the use of cars owned by
private corporations J. Ogden Armour.
from whom little of value was obtained
was also witness. and many of the
biggest railroad officials in the country
We're in attendance.
BY the payment of excessive mica ge
by the railroads for the use of these
cars" continued Mr.. Midgley, .the
packers are enabled to control the traf-
&c and to peddle it out to the highest (
bidder do not mean to reflect upon
any traffic man, for they have got 10
get business or lose their positions
know personally that W K Vanderbilt |
and men like him ask for results. and
they do not care nor inquire how they
are secured
other industry from building private
cars and operating them, the witness
replied:
No one could compete with the big
packers Their power is unlimited. But
Tor them there would be no market
Tor they are the market. The same !
th1ng Is true of the dairy and fruit 4
business. and if this thing is not stop
PEG the time VIII come when the pri-
Nate car interests viii sidetrack all I
equipment now in - by the railroads
Why, even Pabst < Co. the brewers.
are now engaged in the dairy bust
What IS the effect of all this?~ ask
ed Commissioner Prouty
1T creates an effective monopoly of
the commodities carried in these cars
replied Mr.. Midgley-
er2'' I'M
all eat meat We have seen the price
60 up and UP as the price of cattle
went down and down.
In 1886, according to the witness. the
railroads reduced the mileage on oil
tank cars to five mills, when a half
was called by the Standard Oil COM
pany. conference followed between
some Of the highest railway rnagnates
in company with NJ Nfidgley and the
Standard Oil officials.
At this conference 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 II neither was done i
w. H. TillfOrd of the Standard OH