The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-27
THE SCIENCE OF EXCLUSIVE
CONTRACTS FOR PAR1TCU-
LAR PRODUCTS.

in reports of various committees hand
ling questions of public import are
highly illuminating to him who takes
the trouble to delve into their musty
pages. If the public, a considerable
per cent of which is in receipt of this
literature through the courtesy of
their Congressional representatives
took the trouble to read more of this
literature instead of throwing it ac-
cording to common custom into the
waste basket, there would be graft
flying access of information as to the
'innards" of tariff and trust opera
tons which might eventually result
in the solution which thinking men
have so long and earnestly sought and
which has been so long delayed
The committee of the United States
Senate on Interstate Commerce has
searching investigation not alone Of
railroads but of the collateral cOrpor-
atoms, in control of railroad privi-
|legeS exclusively, which make the
combination the effective weapon that
it is and cause the ramifications of it's
defense tC extent to bounds that can
only be more or less measurably
imagined by the ordinary mind.
One Of thes collateral trusts which
seem to have fastened on the rail-
the one case it was doubtless a mu-
ftual and in the other a forced en-
brace, is what is called the Armour
Refrigerator Car Co. we'll known to
North Carolinians by reason of the
recent developments at and about the
trucking section of Chadbourn on the
A. G. L. railroad. From the testimony
of Mr.. Robbins, the president of that
corporation, before the committee, a
portion of which is reproduced below,
it will be observed that the sugges-
ton made in certain quarters of the
press of the South that an independ-
ent refrigerator company be organ
lied, can hope to be under present
conditions nothing but an airy dream.
The bill which the committee is in
vestigating, designed to give to the
Interstate Commission power of reg
ulation over freights and railroads
and their alliances generally, might
operate to cure the evils so blandly
testified to by Mr.. Robbins as we'll as
freight determinations. What Mr.
Robbins testified to with the greatest
assurance is in itself better argu-
ment for the bill and a stronger in
dictment of present conditions that
any sermon, argument or TRADE. Mr.
Robbins knows the facts and he states
them with cold eloquence.
Continuation of Statement of Mr..
George b. Robbins.
The Chairman. You are the presi-
dent of what is called the Armour Re-
frigerator Car Company, l believe?
Mr.. Robbins. The Armour Car
Lines
The Chairman. How many cars
have you, and what is their value?
Mr.. Robbins. We have about IA, 900
cars and other investments in icing
stations, car shops, and other equip
me.ts.
The Chairman. And what is the
value of your investments?
Mr.. Robbins. About $15,000,000.
The Chairman. Please state, APP
proximately, how many contracts you
have with railroads for operating your
cars.
Mr.. Robbins. For the ordinary bus
mess. such as the beef and packing
house business, as a rule, We have no
direct contracts with the railroads.
Our cars are rented by them upon a
mileage basis: that is an understood
basis, and settled month by month
and year by year.
The Chairman. What is the amount
of that mileage compensation cent
or what?
Mr.. Robbins. About three fourths
of cent a mile. In the through-car
business we have quite a number of
what are called exclusive contracts
with the railroads, perhaps twenty or
thirty, / do not remember exactly and
most of the through business we
handle is under those exclusive con-
tracts. The nature of those contracts
is that we agree to furnish suitable
cars for the purpose required, all the
cars and all the ice required. or, in the
event of failure to comply with our
part of the agreement, we respond in
damages for the losses which may re-
suit.
The Chairman. You say Exclusive
contracts, lHdL Is, you are exclusive
ly to furnish these private cars for the
railroads?t
Mr.. Robbins. The railroads agree,
on their part, to use our cars only for
the particular business that is involt-
ed, which is generally fruit or ber-
ries, and that leaves them free to en-
ploy the cars of any other company
The Chairman. How many of these
exclusive contracts have you?
Mr.. Robbins. Say about rs or 30.
The Chairman. Under the terms OF
those rs or 80 contracts the railroads
do not allow any other private car
company to engage in business on
their lines?
Mr.. Robbins. Not in the particular
business involved which originates on
their line.
The Chairman. And that provision
was included in this particular Pere
Marquette case?
Mr.. Robbins. Yes, sir.
The Chairman. Would this con-
tract exclude other refrigerator ears
that might come on other connecting
lines?
Mr.. Robbins. 1t would exclude
them for the particular business in
volved, which, in the Pere Marquette
case, is substantially the peach bust
ness