Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-01-25
PACKERS AND
THE RAILWAYS
rroor OF Z Secret Compact Between
mem to Prevent Competition a.
Far as Possible.
VIOLATION INTERSTATE LAWS
In Favor Of the Big
Concerns-Important Disclosures
Made =. ,Mestern Shipper.

New Orleans, Jan. 23.-Document-
airy proof of secret agreement between
the railroads and the private car
lines. private instructions by the gen.
eral freight agents of the railroads to
their agents throughout the country
and general farming out of the pro-
duce activity Of whole states by rail-
roads to private corporations, was to-
day given before the National League
OF Commission Merchants by e. M.
Ferguson. Of Duluth, president of the
Western Fruit Jobbers' association.
Mr.. Ferguson has been working Sec
reilly for five years past and has &C.
cumulated mass of evidence, con-
sisting of either original copies Of
private correspondence and secret or
ders or sworn and certified copies of
them. He goes to Washington imme-
diately from here and will endeavor
to remedy these injustices on the
strength of the secret correspondence
in his possession.
Has Sworn Evidence.
Il have documentary and sworn per-
sonal evidence" said Mr.. Ferguson re-
Gently, that the Armours and other
packing houses have secret agree
ments with the railroads in direct vio-
lation of interstate commerce and
state laws, by which the packing
houses ship contraband goods under
beef classification.
For instance. car loads of packing
house products are originated from
packing house centers, consigned, say
to New York City. The car is stop
ped at an intermediate point, where
there is branch of the packing
house. The original contents of the
cars are taken out, and the car is re-
filled with contraband freight, such as
country produce, butter and eggs,
which take the first-class rate.
How the Trick Works.
"These solid cars Of butter and eggs
are sent on to New York under the
original way bill and under the orig
inal rate. The change is kept entirely
secret. The railroad inspectors re-
ceive instructions from the highest
traffic officials to take no notice of
the change in the nature of the
freight.
This iniquitOus system practically
puts out of business all the buyers of
country produce at such intermediate
points. They must pay the full first
class rate in country produce, and in
addition get bad service. They are
forced to use Armour refrigerator cars
or some other private car line re-
frigerators, and are thus doubly rob-
bed, being over-charged by the rail-
road and gouged by the car monopoly.
This gives practical control of the
New York produce and fruit market
into the hands of these private corpor-
ations and places all the consumers
of the country produce III the metrop-
oils at the mercy of the octopus.
"My investigations are by no means
finished. This system does not cover
New York alone, nor is New York the
main center of the iniquity. do not
desire, however, to publish at the pres.
ent time the region where I am maxi
ing my main investigation. I have
by no means finished, and there are
similar abuses only worse, on which
I am now working. have not obtain.
ed sufficient evidence, however, to in
dict the roads for these further prac
tices as yet.
Farming Out Territory.
Farming out or merchandising of
the productive activity of whole re-
gions and states is another abuse of
which have proof. For instance, the
San Francisco has an arrangement
with private car lines by which only
these private refrigerator cars are al
lowed to be used over the Frisco
tracks, no matter how much the ship
per may desire another style of car.
Contracts are entered into by 9TH
er connecting railroads with Armour
and the Frisco, by virtue of which
the contracting connecting line gets
the reioading of the car by agreeing
to surrender to Armour 1914 per cent
Of the freight charges they receive
for their share in hauling the car. Sell
dom is the connecting line which OBJ
tains the contract the line which can
give the best service.
"The railroad denies having any
such arrangement with the private car
lines to this effect. Yet l have in
my possession file of correspondence
with Mr.. Dodge, of the Frisco, in
which l wrote and asked for the rout
ing on my cars. They answered that
in the interest of the grower they
have to reserve this Information.
II asked again if we could use re-
frigeratOr cars that we might obtain
from any other line which we could
get on our own terms. They answer
ed that in the interests of the buy
ers they must reserve the right of
furnishing these private cars"