Omaha daily bee., 1906-10-07
ALLOWANCES ARE REBATES
Wabash Traffic Man Makes Important
Admission in Peavey Hearing
HEAD OF GRAIN CONCERN on STAND
He says that Elevation Costs More
Than the Allowance and His
Company r. Not In Bus
iness for Fun.

CHlCAGO, Oct. b--AdmiSsiOn was maue
upon the witness stand Friday before the
Interstate Commerce commission that an
allowance by a railroad OF a certain amount
to a grain company operating an elevator,
ostensibly for the elevation OF grain, is
in reality a reduction in the freight rate
on the grain.
This statement was made by ID. o. Ives
Of St. Louis. trafIlc manager of the wabash
railroad. while testifying in regard to an
allowance of Ia cents per hundredweight.
said TO have been granted the Peavey Ele-
vator company by the Union Pacific Rail-
road company.
"If an allowance of a certain amount is
made TO a grain shipper who runs an ele-
vstor, by a railroad company for the eleva-
ton of grain. IL not that practically
reduction in the rate to that shipper
asked Chairman Knapp
mo 1 would not say that, because 1t
would be admitting that the railroad had
been allowing a rebate as it Is called"
replied Ives.
well, IL one railroad company sbsorbs
a switching charge on, certain commodities,
does not the other railroads do the same
thing?"
Yes"
why do they do it?"
so they won't lose the business.
Exactly, now IL one railroad allows an
amount to a grain shipper for elevation OF
grain the other roads do the same or lose
the business. Now is not that practically
a reduction of the rate?"
"I should say it is"
Allowance at Toledo.
| Ives also admitted that the Wabash rail-
| road allows a certain grain man in the
elevator business at Toledo, o.. one-quarter
Of a cent a bushel for handling grain from
the wabash road, but that no similar al
| lowance is granted grain dealers in st.
| Louis.
lis that not discrimination against the
st. Louis nien?" asked Attorney Severance,
THAT is a question which the officials OF
the road have now under consideration.
| Don't you think It a discrimination? %
MY mind is not made up on that"
! Not I'm Business for Fun.
| Frank 4. Heffelfinger. head Of the Peavey
elevator concerns, was called to the stand
and questioned by Attorney Severance.
'If the cost OF the elevation of grain
was not as much as the 1h-cent allowance
you receive, would you not be receiving
a rebate on your grain as well as that OF
your competitors?
| Absolutely not. The elevation costs
more than the allowance"
II say IL it did not cost more
THE facts do not permit Of any ifs IN
this case" answered the witness hotly.
"Of course we are not in the business
for fun and we get all the profit we cam
At the close of this testimony Attorney
Rankin, for the Chicago, Rock Island &
Pacific railroad, introduced two contracts
between that road and the Rosenbaun
Grain company on elevators "A" and "B'
lin Chicago. ~.- fa
| He explained that the elevators are ownet
by the railroad and, owing to the fac
that they were idle for some time they
had cost the railroad considerable none,
to keep in shape. Finally they were leasoe
to the Rosenbaum Grain company at 4
nominal rent of 81, the consideration being
that the grain company maintained them
AS result, he declared, much business hai
fallen to the road that would not have beeI
secured under the old conditions, and tn
railroad has received about $4,000 In extrJ
switching charges. The hearing was ad
tourned to Washington and arguments ol