The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1905-01-21
REBATES
ST. PAUL ELEVATOR MAN GIVES
PARTICULARS.
Railroad Hen Brought 10 Their Feet
With . Jerk BY lnterview-lnde.
pendent Dealers Cannot Com.
pete With Combine in Handling
Wheat and Flour.

st. Paul, Mimi, Jan. l6.-Citing
numbers under which alleged reba tes
have been paid to favored shippers and
giving details down to the numbers on
cars involved in the subject matter of
claims, George 8. Lotus, of the LOT.
tus-Hubbard Elevator Company, of
this city, came out in an interview
Saturday that brought railroad off,
Gals to their feet with jerk.
Mr.. Lotus declares that all the rep.
resentative roads of the Northwest are
involved in a system of rebates for IA
vored shippers and that the practice is
being carried on so fagrantly that it is
now possible for the Peavey Elevator
Company to buy grain from him in
Minneapolis, ship the same to the head
of the lakes and then sell back to him
and make profit on each trade.
Specifically he states one case where
be says the Great Northern paid a big
rebate to the Stone Ordean- Wells Com
pany, of Duluth, under claim No. 1885,
al. Under claim No. 219,O78 he
charges that shipment of 81 cars of
grain to the -four trust at Superior was
related to the extent Of half the tariff.
This, he says, was done under the guise
of credit for elevator charges. He
gives numbers Of cars, dates and quail
tiles of merchandise that he alleges
were the subject of drawback and re-
bates. He charges that trust goods
are stored and handled free by the
Terminal Dispatch Company and that
independent shippers are held up for
the published rate of S. car for the
same service.
Related Over Half.
Mr.. Lotus tells of one case where
the Wisconsin Central contracted for a
shipment of $50 cars of coarse grain
from the Armour elevators in Chicago
to Minneapolis and st. Paul. He says
the contract rate was 12H cents a
hundred but that the shipment was re-
bated ~ cents. The st. Paul road
he says also met the cut IF the Wiscon-
sin Central and although the grain was
billed through at the regular rate the
rebate was paid, bringing down the
cost of the shipment to 5 cents q hun
dred.
Railroad officials declare that Mr..
LOTUS is trying to follow the example
Of Thomas W. Lawson and is preparing
the opening chapter Of Craving Rail
reading" They say that the matters
charged are all susceptible Of quite a
different construction than the one put
on them by Mr.. Lotus, but aside from
a denial Of law breaking, they decline
to discuss the charges until they are
called upon to do 80 by the proper au-
thorities.
Mr.. Lotus. after citing the prefer
el,ces shown trust made goods by St.
Paul railroads, said:
"Another feature of the situation
which deserves attention relates to
reconsignments. Trust goods received
in St. Paul are reconsigned to Mime
apolis cars either full or partially full,
for nothing. The operation is cover.
ed by letter of instruction to the To-
cal freight agent Of the line handling
the business permitting him to dead.
head the car or cars in question. COT
fee, sugar, whisky and other trust prod
cuts are included under the agreem emit.
St. Paul firms wishing to reconsign to
Minneapolis, or Minneapolis firms re-
consigning to St. Paul pay IS for the
service.