Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1906-11-08
Complain Of Railroad Rates.


Des Moines.-That Des Moines is
Disseminated against as livestock
market in favor of Chicago packers
and that this city is deprived In part
Of the advantages that 1t should legit-
imately enjoy by virtue of Its loca.
ton In the heart of the greatest hog
raising state In the country, is one OF
the facts which have come to light in
connection with the damage suit
brought against the Rock Island road
by the Agar Packing company.
1t is pointed out that on hog ship
ments consigned to Chicago the same
rate applies from point few miles
west Of Marshalltown all the way to
the Missouri river. That Is, the rate
on hogs to Chicago from Des Moines
is 20 cents hundred, while shipper
at Council Bluffs or Atlantic enjoys,
the same identical rate. Meanwhile
on local shipments from Atlantic, say
to Des Moines. the rate is 10.4S cents
q hundred.
In order to make 1t clear how this
condition of rates constitutes dis
orlmination against Des Moines, It
must be borne In mind that the Agar
Packing company, in buying hogs for
The local packing plant, must pay the
Chicago market price, deducting the
1lnerence between the amount of
freight from the original shipping
point to Chicago and the freight to
Des Moines. When, as now, the
freight to Chicago from points as far
west as Council Bluffs is the same
as from Des Moines, there Is no less
Incentive to ship to Des Moines than
there would be If the rate increased
In proportion to the greater distance
II the freight from Council Bluffs to
Chicago were higher than from Des
Moines to Chicago, there would be SO
much more Of margin Of freight
which the shipper would save by rout-
ing his stock to Des Moines instead
Of to Chicago. The Agar Packing
company would then be In better po-
sition to compete with Chicago buy.
ers.
For instance, when the Chicago hog
market Is $6.15 hundred pounds, (.
.. b. Chicago, the Agar Packing COM
pany Will be able to get hogs Tor So.Uu
s"Ah6 " luC uluSIcuCG III freight IL
The difference in freight were still
Sreater, hogs could be bought on the
ocal market from western Iowa on
elatively better terms than the Chi
iago market, and Des Moines would
lerive the advantage to which 1t is
Untitled legitimately NY virtue of its
ocation. The fiat rate now in effect
Encourages through shipments to Chi.
ago.
The shipper at Atlantic can land his
logs In Chicago for % cents hun
lred. To ship to Des Moines would
cost him 10.4S cents hundred. Thus
he rate to Des Moines is half the
! ate to Chicago, although the mileage
s only about one-fourth as great.
"This matter in which the new rate
aw may prove of advantage to Des
Moines," said w. G. Agar, of the Agar
Packing company. "Of course, the
railroads claim that division points
ire necessary in fixing rates; but In
his case we have arguments to show
hat the manner in which the division
| POINTS are fixed constitute discrimin-
Ition against Des Moines, and that
his city in consequence does not re-
:eive the full benefit to which 1t Is
entitled by virtue Of its location.
believe there is warrant in this condi.
| ion of rates for Intervention on the
part of the Interstate commerce com.
MISSION"