Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-07-05
How the Charge Of Favoritism
on Part of Railroads Came
to Be Discussed
ORIGINATED TERMINAL COSTS
Railroads Wanted big Elevators to
Unload Their Grain at Terminal
Points So They Could Use Cars =
Then Began Paying Elevator
Charges on All Shipments,
special to Times-Republican.

Special to mes-Republcan.
Des Moines, July 5.--!There are only
two or three big line elevator COM
panies operating In the state OF Iowa,
tho there are scores of companies OPP
Grating from a half dozen to dozen
elevators on one or more lines Of rail-
road. Hence there is an open ques-
ton as to what will be the benefits or
results to the farmers and the grain
trade from the investigation of the
grain business under the LstFollette
resolution that has passed congress.
These big elevator lines operate in the
northern part of the state, and hence
if there is some benefit to be had from
the investigation by the interstate
commerce commission 1t will accrue
largely to the northern part of the
state. The northern part of the state
was the chief source of complaint last
winter at the session of the legislature
in the demands for reciprocal demur-
rage law.
The situation can be sized up partly
by an enumeration of the companies
that operate in the state. The Armour
lines are the most extensive unques-
tionably. The Armours operate under
two companies, the Nicola Elevator
Company and the Atlas Grain Com
pany, owning a large number of elee
vators along the C. NJ. & st. p, with
terminal elevators in Chicago.
The Reliance, of Minneapolis. with
extensive elevators along the Milwau-
kee, and with terminals in Minneapo-
lis, is another
The Hunting Elevator Company has
a large terminal at McGregor, Iowa,
and 1t operates along the Milwaukee.
The Transmississippi Grain Company
has large terminals in Council Bluffs,
and owns a good many elevators on
the Northwestern.
These are about the only elevator
lines that have big terminals which
they operate In connection with eleva-
tors along lines of railroad in Iowa
There are large number of elevator
companies that have several elevators,
such as the Des Moines Elevator Com
pany, of this city, with six elevators;
the Davenport Elevator Company, the
d. Rothchild Grain Company, of Da-
venport, and Anderson & Moen, OF
Baskerville, all Of which have several
along the Rock Island road; the West
ern Elevator Company of Winona,
Mimi. which has elevators along the
Northwestern and Illinois Central;
Wells-Horde Grain Company, OF Cedar
Rapids; Terrwilliger & Dwight, OF
Sioux City, and scores OF others, hav-
ing from half dozen to a score Of
elevators.
1t is the terminal elevators that the
under the LaFollette
resolution is believed to be chiefly aim
ed at and some grain men at least be-
Meve that the allowance Of 1A, cents
to these concerns is perfectly just.
Grain men explain it in this way. Rail-
reads found it necessary to have big
terminal elevators In central points SO
as to be able to unload their cars. The
Burlington, Rock Island and other
roads built such terminal elevat tors IN
Chicago and then turned their manage
ment over to grain men to run under
certain agreements. Rather than put
its money in terminal elevator the
Union Pacific contracted with Peavey
e. Company at Council Bluffs. Peavey
&c Company erected the elevator and
was given the allowance of n cents
hundred weight because of the benefit
that accrued to the railroad Peavey
& Company agreeing to unload all the
grain sent to them, the erection of the
terminal elevator by Peavey & Com
pany saving the investment of the
money to the Union Pacific, as well as
the cost Of operating it.
The question of this allowance of IL
cents hundred weight to the termin-
ais has been before the interstate COM
merce commission and that body has
held that the allowance was fair and
equitable The complaint on the part
Of other grain dealers is as to abuses
that arise outside of this allowance or
rather because of it, 1t is claimed for
instance that Peavey & Company got
this allowance on all grain that Il
shipped over the Union Pacific whether
it went thru the elevators at terminal
points or not and thus amounted in eff
feet to rebate which the small ship
pers could not command.
Senator LaFollette was not recently
advised when he made an address in
the senate the other day and referred
to the Counselman line of elevators.
Counselman himself has been dead for
three years and his line of elevators
has been sold. not as line to one per-
son or company, but sold singly and in
twos and threes. Farmers cooperative
elevator companies have bought Up the
greater number of them.
GRUNDY CENTER CELEBRATION
Large Crowds Enjoyed the Many
Forms of Amusement Provided.
Special to Times Republican.
Grundx Center I1iy h-Tha l,o-t