Omaha daily bee., 1906-10-25
Maintain Patss thss Keep Certain Grain
Cut Of Omaha Market
LARGE CONCERNS FX THE PRICES
They, with Railroads, Unite 70 Tresss Out
khoysl Houses
STOCK YARDS COMPANY GIVES FAvoEs
Commissioners lane aud CLARK Com
duet InvestiEation With Attorney
Marble Under tho LaFoIIette-
senate ResoIution.

Tnat tau railroads combine to discrini- |
male against the Omaha grain market by
maintaining certain rates that prevent grain !
from certain localities from entering this |
market; that the railroads and line ele
vators combine 70 freeze out Of business
the small or so-called shovel houses" h
that the big elevator firms combine to reg
ulate the price OF grain; that the Updlkc
Grain company enjoys special privileges
from the South Omaha Stock Yards COM
pany-these were few OF the principal
points of interest which evidence tended
to bring out yesterday 10 the first days
investigation by the Interstate Commerce
commission OF conditions Of grain and ele-
vator trade at Omaha.
The hearing was begun Wednesday at
10 a. m. in the north federal court room
before Commissioners Clark OF Iowa and
Lane OF California. The court room was
crowded with grain men and lawyers in
terested Ia the outcome. The hearing IS
being had under the IaFollette resolution
adopted by the United States senate on
June g.
The inquiry is being conducted by At
torney John II. Marble OF Washington, at
torney for the Interstate Commerce COM
mission. stenographers J. J. McAuIiffe and
the testimony for tho commission and
Charles W. Pearsali is keeping a steno-
graphic record OF the inquiry for the Omaha
Grain exchange. Among the interested
spectators are numerous members OF the
Grain exchange, including Secretary Nc
vann.
Commissioner Clark Of Iowa announced
at the outset that the hearing was being
had here and elswhere pursuant TO the
senate resolution,
Discrimination by Railroads.
I'VE are friendly to the Omaha market
but ! should say the railroads are not
friendly to this market In that they have
S,perasteRtly made a discrimination against
omaha in the matter OF freight rates. II
has always been this way in Omaha.
because OF railway discrimination all ter
ritory tributary 10 Omaha does not ship
here. The grain men are not in a position
to bring the grain TO Omaha because OF this
railroad Discrimination. This Is particularly
true OF northern and southern Nebraska
and OF that territory along the line Of the
st Joseph & Grand Island railroad and In
South Dakota points We have given up
any hope Of being able to receive or ship
from ST. Joseph a Grand Island points
The switching charges are ,generafly re-
funded TO the operators by the roads taking
the grain ont. This Is a universal rule
with the railroads. ] believe.
''T would like 20 ask that the commission
will see that this discrimination against
Omaha In the matter OF grain and other
freight rates by the railroads be stopped
and that we be given some protection"
This bit Of testimony was given by Ma
than Merriam OF the grain and elevator
firm OF Merriam & Holmquist.
Gould Road AGAINST "shoveIs..
Mr. Merriam was the first witness called
! at the morning session, J. o. Phulippi.
assistaut general freight agent Of the Mis-
souri, Pacific railway. who testified in the
afternoon. disclosed the fact that his road
was inimicai 20 the shovel house" He
said.
''NTe make 40 discrimination between ele-
vstors btt Ne do discriminate against the
man whose oihee is IN his hat with
shove, ip his hand Ho is not entitled to
,he sanr confederation of man who has
s., 90 iny sted IN an elevator. Al all coun-
ry stations where VIC have facilities we
'opdnc those facilities 10 two elevators
ld discourage ihe small shovel houses
haye advised against the granting Of
es Tor farmers elevators where we have
solpte facilities for the grain elevators
/, Vady thcro, | should not recommend the
hiding OF sidings on the tracks for
ieh nrmers."
commissioner Lane-Do you think this Is
tie proper way or the right way 10 dis
courage lanseis from erecting their own
elevators along your road. even though
there be two elevators al the station? why
should Il be TO your interest 70 exercise
the right railroad TO discourage me
from investing money IN an elevator At
such stationg
Mr.. Phillipp-Have YOU a case IN mind?
a. n
great many eases OF that kind
Mr Phhlippi-f have no further answer
20 mako,
Updiles Get Eight Thousand.
n. B updke. OF the Updike Grain COM
pany introduced the contract between his
company and the South Omaha. stock
yards company, relating 20 certain privl-
logcs gisen the Updike company M the
matter OF traokage and switching facilities
TO and from its elevators because OF its be-
ing terminal elevator and IN considera-
ti0n Of building the elevator az south
Omaha. The object OF the contract War 10
give % this terminal elevator the same
incoming ana outgoing advantages accorded
20 other elevators and put Il on an equal
basis With the free elevation PRIVILEGES
granted 10 shippers and grain men b,, he
elevators established by the Great western
IN that gsme genersl vicinity This con.
tract calls for a reimbursement OF the
Updlko company a sum equivalent 40 tbs
sllowanccs made 10 other grain hauline
-sOads and shippers. On this basis M
ITpdike said
'Re billed on the Union Stock Yards
company sSoO for claims on the basis of
he contract which was paid US by that
company during the las, crop year.
same s~itrhinE Charges.
1--WE naId the same switching charges az
are PAID ~ other companies which Was !.
Tor IN and = for outgoing cars. We aiso
\. pay Tor ears ordered az tho rate OF 81
lar cars ihet we may load al the elevate,
fnd 60 cents for cmpsies that We 90 pot
use In fact we 40 not pay the q far IN,
outgoiue ears and 40 psrt OF the switch.
ina chersN aus remitted 10 %. eacept
that pt iansL bS this contract De- placed