Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-06-20


DIR. FICKES, Dentist. 33S Bee Bldg.
Phone Douglas 537
never paid these allowances secretly. From
the outstart they published tariffs which
they filed with the I Int Gomm SISS
would be made in the shipment OF such
grain. The Chicago Great Western having
compelled all other lines to do the same,
and thus the markets at Omaha and Kan
sas City have been maintained.
Eject of Peavey Contract.
Now, let us see by a concrete example
how the Peavey contract would have at
fected the market at Omaha II the same
allowance had not been made by the other
lines.
informs me that during the past year II
has bought on the Union Pacific railroad
and shipped into Omaha more than l;W0
carloads of grain, upon which the Union
Pacific refused to make the same allow
ance which It made TO Peavey & Co. and
timating each carload at 60, 600. these thou
sand carloads of grain cost this company
in Omaha $3.50 per car, or an aggregate or
would cost Peavey e. Co. or the transmits
sissippi Grain company in Omaha.
| am further Informed that the same
chased and shipped into Omaha on all the
lines including the Union Pacific, about
1900 carloads OF grain, upon which 1t has
received no allowance by any of the roads
bringing such grain into Omaha. There
fore, estimating each carload at 5000
pounds, these 1900 carloads OF grain have
cost this company In Omaha 10000 more
than like quantity OF grain would have
cost Peavey & Co. and the Transmississippi
Grain company in Omaha,
But there is still another clause in the
Peavey contract, which is gross dis
elimination in favor of Peavey 4 Co. and
n eunigaasiDpi Grain COmnanV.
against all other grain dealers and elevator
companies doing business in Omaha. The
sixth section Of the contract reads as fol-
lows:
"Railroad company agrees to provide
said Peavey & Co, for said elevator equal
privileges and advantages as II may grant
to the proprietors of any other grain ele-
Yator or elevators that are now or which
may hereafter be located on or served by
said railroad company at Omaha, Neb., or
Council Bluffs, Ia, and that all cars COM
ing from or going to any point or points
on said railroad. to or from said elevator,
and not less than ten miles from Omaha,
shall be switched, whether loaded or
empty, to or from said elevator free Of
Hence, these two elevator companies are
entitled to have grain arriving at Omaha
on the Chicago, Burlington Quincy, the
Chicago q Northwestern, the Chicago Rock
Island & Pacific, the Missouri Pacific, the
Chicago, St Paul, Minneapolis & Omaha
switched TO their elevators in Council Bluffs
for nothing while the other nine elevators
in Omaha and Council Bluffs are compelled
eIe9Stors from to Sc u per caF and the
same amounts for getting their grain
switched from their elevators TO the out
going lines, a discrimination in favor of
the two favored elevators Of from 81 to S12
per car, amounting in the aggregate on the
1900 cars In our example to nearly as
much as the IA cents per 100, allowed IN
the previous section of the contract, which
we have been considering.
This, also, is secret arrangement not
disclosed by of the tariffs DubliShpd
by the Union Pacific company, either at
the time the contract was made or since,
led by the concern which has been before
mentioned, would probably amount to
nearly another $4,000 per anum.
| Such are the enormous advantages which
! this contract secures to the Peavey COM
pany and the Transmississippi company
| over all other elevators and grain dealers
| in Omaha. Is this a square deal?
| Evidence of other Rebates.
From this concrete example It is evident
4 referred to could not nave brought ls.O0C
/ cars OF grain or any considerable number
/ OF cars OF grain into Omaha in competition
with Peavey * Co, and the Transmissis-
! sippi Grain company unless the roads tax
ing such grains out would make the same
allowance from their freight rates that
! Peavey & 60, and the Transmissssipp
Grain company received on the grain in
and 1t Is also evident that such allowance
| on its out shipments would be useless In
the matter of equality between elevator.
! and dealers II the same allowances OF
outshipments were made TO Peavey & Co.
| and the Transmississippi Grain. company
! Hence, however Illegal these tariffs may
have been, in refusing to ship out grail
for Peavey & Co., and the Transnississipp
Grain company at the same terms that grail
could be shipped out for other concerns IN
Omaha, who did not receive such allowances
| on their grain into Omaha there seemi
to be an element Of justice and fair deal
ing in such tariffs.
Not in Published Tariff.
At the time the Peavey contract wal
made the Union Pacific railroad had pub
lished tariffs vi srGin rates between al
stations on it's lines and Council Bluffs
The rates published in these tariffs did no
cover the loading Of grain into cars, or TN
destination at Council BLUFFS but, on th'
contrary, II expressly provided that grain
by the shipper Besides this genera
schedule of rates, at the time the contrac
was made, the Union Pacific company haC
also a published schedule OF rates for ship
ping grain between Omaha and Council
Bluns of So per car which schedule i
Peavey Co. :" and the T TsgRrii dpR
Grain company. The law provided tina
n was unlawful FOR the Union Pacid
railroad 10 charge. demand, collect or re
ceive from any person or persons create
OF grain than is specified in such publishes
scale OF rates, ana that, II the said Unto
Paeino railroad. directly or Indirectly, b.
device, charged or collected from any per
son or persons a geater or less cOmpcnsa
ton for such services. the Union Pacih
Railroad company should be deemed guilt
Of unjust discrimination, which the lay
prohibits and declares to be unlawful.
In the face OF these published schedules
and In the face of the provisions of tn
law, the Union Pacific Railroad compan
entered into this secret contract wit
Peavey q Co. and the TransmississipI
Grain company TO make them alone an a
lowance of IA cents per 100 on all graf
shipped TO their elevators and to switc
grain for them only between Omaha an
Council Bluns free. Thus we're the plai
and fundamental provisions of the Inte
state Commerce Law set at naught by n
making OF this contract II is a contraC
20 do an unlawful act IL Is a contrai
which licenses robbery of the many for Il
benefit of the few, and Is therefore vi
lawful.
Contract Carefully WOrded.
1 II is true that tine contract attempts
avoid the provisions OF the law by calm
] the retunding OF ia cents 100 not
4 quoting the language Of the lava speci
L rate, or a rebate. drawback or other d.
i vice" but the contract called Il a Ftransf,
Il charge" as though "a rose by some 9th
L name would not smell as sweetly" A
i inspection OF this contract conclusive
Il shows the greatest care IN the selection
Il words, I'm order TO disguise the real natu
/ Of the allowances which the contract MAJ
II In transportation rates, but no attempt Wi
made 70 disguise the discrimination In r
II speot TO switching charges.
Peavey a. Co agreed to build an elevate