Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-10-25
COMBINES IN GRAIN TRADE
Interstate Commission Draws Out Evidence
IF Several Different Alliances.
RAILROADS DISCRIMINATE AGAINST CITY
large Concerns Fi8 Prices and in
Confnpction WITH Railroads Com
bfne 20 shut out the shovel
Houscs.
RAILROADS DISCRIMINATE AGAINST cTY



lContinued from First Page)
on the came terms with the Great Western.
We collect from the Union Pacific for I'M
loading cars. II we did not thus recover
from the stock yards company we would
be compelled TO close our elevators.
we have a line OF elevators on the
Northwestern railroad and come in COM
petition with the Nye-Schneider Fowler
company Last year ell roads leading to
Chicago got more for their grain than II
II was shipped through Omaha. Senator
! Willard is a stakeholder In the Updike
Grain company As Is M. NJ Petzner.
agent Of the Northwestern at Sioux City.
j think the latter has fifty shares in the
company which is capitalized at sl,OOoOO0.
Mr. Petzner paid for the shares. 5000 in
cash"
Mr.. Updike also thought that Horace
g. Burt was interested in the grain bust
ness with the Nye-schneider-Fo Fowler COM
pany.
Not in Railroad Business.
Nathan Merriam OF the grain Arm Of Mer
RAM & Holmqulst Of Omaha said he had
been in the grain business for about TWEEN
ty-hve years, the corporation of which he
was a member has been in existence since
1892 or 1903
None OF the stockholders OF the firm Is
in any way interested in any railway com
pany nor does any own stock i'm a railway
company" said Mr. Merriam. The irm
operates two elevators In Omaha, which
are terminal elevators located on the Mis-
souri, Pacific railway. but the elevators are
owned exclusively by the Merriam & Holm
quist company The company Is an indie
pendent company. the capacity Of its
elevators being about 100000 bushels. and
while the company generally controls all
OF the grain stored In these elevators
storage capacity is furnished for other
customers. The company usually ships all
Of its outgoing grain over the Missouri
Pacific. and the firm receives IL cents per
hundred from all outgoing grain shipped
by that railroad. The contract was made
with the Missouri Paclnc Before the last
one OF its elevators was built. The con-
tract is still in force and these payments
have been made until the recent agitation
in grain matters, but are under temporary
suspension now. This contract was made
in 1906 and has not since been repudiated
nor is the contract limited as to time.
Same Terms with Others
1T Is understood that the same agreement
prevails with all other elevators similarly
situated. There Is no other elevator ex-
copt the Merriam & Holmquist elevators
along the Missouri Pacific in Omaha. The
volume of grain shipped by the company
Is about 500 cars per month. OF about 10000
bushels. The switching charges are re-
funded to the grain company by the rail-
road company when shipped over the Mis-
souri, Pacific and any other switch
ing charges are governed by
by local legislation. This rule has been the
custom for years All switching charges
are refunded by all roads to all shippers
with one exception and that applies to the
rules adopted by the South Omaha Stock
Yards company. which controls the switch
ing facilities at South Omaha, where the
rate was charged at the rate some time
ago OF 81 in and 81 out for each car OF
grain. A short time ago the stock yards
company raised the rate to s. per car and
then reduced It to 81 This materially
jeopardized the interests OF the Merriam &
Holmqust company, Mr.. Merriam said. and
then the rate was changed to 81 in and s:
out per car.
UpdilSes Control south Omaha.
'.The IIpdilse Grain company controls tho
South Omaha elevators and the Merriam q
Holmquist company is not charged with
that service down there, said the witness
Il understand that another rate is charged
suppose they have TO stand for any more
81 It than We do at Omaha. Such a charge
OF 81 for switching Is not made against any
other commodity at South Omaha. We
have supposed that some of the grain car
switching charges get back to the elevator
company somehow or other. A bid OF \.
of a cent per bushel would put competi.
tor In possession of the business. and We
are. hence. at this advantage.
1--WE buy our grain largely on the Unior
Pacific Elkhorn, Minneapolis & Omaha and
Burlington roads and are an absolutely in
dependent company. Mr. Holmquist is In
terested In line OF several elevators OF
the Minneapolis & Omaha road. His con
Germ is known as the Holmquist Grain anC
Lumber company We have no hestanc.
IN buying Of country elevators and mali,
no discrimination against them. We d,
very little receiving. as we buy almos
wholly from dealers and we do not asl
them where they get their grain. Most o
our bids are made by telephone"
Mr. Merriam went at considerable length
as 70 the elevation charges and the COS
OF handling grain at terminal points. Al
said Omaha Is the only market that ha
rot an elevation charge. He did not knoy
Of any combination IN Omaha to fx tn
price Of grain and D. knew OF no deal
whereby prices were fixed and did no
take part IN any such deals. Tho Unio
Pacific paid ~ cents for unloading to IN
Merriam & Homqust company on all graz
brought In by that road and the MlssOui