The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1905-01-30
FRUIT CAR LINE
EARNS AN INCOME
OF $4,000 A DAY
Testimony of E, NJ. Fer
guSon Before the
Committee.
MR.. ELKlNS ASTONISHED
Remarkable ConditionsExist-
ing on the Northwest
ern Railroads.

SlIi NdlII OdQS.
Seventy-two thousand dollars as the
daily income of one Of the private car
line systems operating refrigerator cars
in the fruit sections of the country, TO
the exclusion of independent operators.
was one of the statements made today
before the Senate Interstate Commerce
Committee.
The witness was E. n. Ferguson. of
Duluth. representing the Western Fruit
Jobbe-s Association and other trade or-
ganizations, who began his testimony
before the committee last week. The
committee adjourned at noon to meet
again tomorrow morning.
The estimate of enormous earnings
surprised Chairman Elkins and other
Senators. The West Virgin:an frankly
said SO, declaring his impression had
been that 81 a ear, or $4,000 a day. was
considered good earning capacity.
Legislation Needed.
The testimony given by the witness
was concise. and Senators showed evil
dent interest In his explanation of how
the Armour private car system has
throttIed competition. he said:
IL doSOAuLtlS no nope the
individual, for the Armour people can
sell their product at less thar cost and
still make a profit through the rates
they charge on their refrigerator car
system"
Witness explained that the Armour
people had made exclusive contracts
with railroad systems so that indepen-
dent owners of refrigerator cars are not
able to use their OWN cars or furnish
them TO other shippers
Elahofdting his answers on the earn
ing capacity of refrigerator cars, witness
quoted the official statement of the In
terstate Commerce Commission that the
mileage alone reproduces a cars cost In
| three years time.
Not Under the Law.
Chairman Elkins inquired whether the
rates are posted for public inspection.
| Witness replied in the negative
Then that against the law" said
the chairman.
| THE interstate commerce law is ap-
plicable to railroads and not to private
companies declared Mr.. Doinver
Well, IL ought to be made to cover the
ground was Mr.. El1ins' reply
Reverting To witness estimate of tn,
earning power of the private car line
system. Mr.. Newlands said he had mad,
a hurried calculation and found the an
nual income from such a source woulC
be s., ,20e 900. The Senator expressed sur
prise at this large amount.
Some authorities represent II to b.
; So. .OO0. .000 Co., was the witness comment
Senators Inquire.
Mr.. Ferguson. reading a statement il
| NTr ,sy,v
TEN, declared it had been found tha
| witnesses summoned TO testify on tn
evils of the system evaded answerin
all questions. Witness asked The com
5 mittee to indicate along what lines the
t desired him to speak.
I 1--WE all know the evils exist" com
9 mented Mr.. Kean Of New Jersey. ''Te
2 US the remedies you propose"
al Mr. Dolliver said he was not quit
convinced about the extent of the evil.
= and asked information on that poin
t Witness cited cases of refrigerator ca
t traffic In Michigan, in which Armou
;, refrigerator cars were to be handled eH
e cIusively. The rate mad been $40 a ca
On an average. bur after this order Wer
= into effect the rate was increased
n $45 a ear. Distance did not enter Int
T the question in making the rate" sal
wi
: sidered by the railroads was 'Ho
G much can we get
= Investigations into the facts of thes
t cases disclosed openly and fully thu
t the system could not live in the face
| free competition, yet those companl'
| will come here and claim the syste
exists in consequence of great publ
II demand.
: Crowding Out Rivals
n The witness said the Armour priva
e car system was getting exclusive col
e troll of refrigerator contracts with sma
e railroads. and connecting lines. theret
IS nrevertins individual car owners fro
getting their cars into use at ali WI
II ness is a fruit shipper and said he VI
l. Disseminated against IN being preVent'
y from getting any other car than an A
Y rnour one
il Witness declared the operation Of SUI
&c = system amounted to a great discrin
a nation against all individuals and
- loss 20 some of them
v II understand they rob the rest OF "
IF impartiauy." suggested Mr.. Dolliver
he mot impartially." replied Mr.. Ferg
= son. They have their friends. Tn
- do not call il rebate, OF concse, becau
thev have evolved a system for accol
ul.shing the scheme in other ways"
Chairman Elkfns inquired wheth
4 other roads could supply the shlppt
III II the Armour cars were withdraw
j. Witness said other railroads were OF
too .nrious TO put in their ears TO ca
10 mileage. but that under the exelusi
lg contracts which the Armour people hf
Sc the local shippers were refused int
Witness said the great question n
- has become this: rs the carrier gol
o. 10 become the merchant II 81
re said he, lit is only question OF u
ne partment store and the individual
CONTINUED on Ninth Page.)