Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1907-08-07
Commercial Club of Omaha Protests
Against Increase.
SOME CREAMERIEs ALSO OBJECT
Companies Insist Higher Rate Helps
Small Local Creameries.
DIFFERENCES OVER THAT POINT
Many Cannot see where Increased
Rate wouI Help Anyone Except
the Express Company which
Transports Creams.
CFrom a stan CorrespondentJ


LINCOLN Aug. 6.--(Special.) Tho hear
ing before the state Railway commission
on the application OF the Western Traffic
association for permission to increase the
rate on cream, which was all day, was
noticeable for the absence OF farmers and
owners Of COWS and the great interest the
creameries and the railroads and express
companies take in the farmer. The super
intendent of the Pacific Express company
G. ID. Patterson, was on the stand until
late this afternoon when J, l.. Curtis,
who is interested in a cooperative cream
cry company at Carrollton began to tes-
tify. This man was the witness of Frank
Gaines, representing the railroads and ex-
press companies, and after telling of the
capacity of his plant, and how the revenues
were divided, he was asked how much
money the concern made in comparison
with the central creameries. This lead to
a lengthy debate between Hainer and
Smith, representing the central creameries,
and Mr.. Gaines as to the admission OF this
testimony, when the commission finally
concluded to allow him to answer the
question. II being understood this question
would lead TO question regarding the price
paid for cream in Nebraska and other
states, together with a comparison of
rates, the attorneys started another ar
BuIIltIll Inc WltnebH unAllN worked II IN
that his company paid % cents for. cream
and the Beatrice Creamery company 20
cents.
Most OF the day was devoted to dis
cussions between the attorneys and little
OF any particular bearing on the question
at issue brought OUT In beginning
at the suggestion OF Mr. Haner and A w.
Jcfferis, representing the Commercial club
OF Omaha, Mr.. Gaines set out that the
real parties at interest in the matter were
the railroads doing business in Nebraska
and the Pacific Express company. Mr. JEFF
ferris discussed at length the provisions
OF the Sibley 20 per cent reduction law,
and told how the express companies were
trying to evade them. This is just another
scheme, he said, to get around that law.
Express COmpany's Position,
Mr. Patterson testified In answer to ques-
tions that the present rate cream was
the original milk rate put in at time
a can OF milk was valued at ~ At that
time Mr.. Patterson said the milk was ship
ped to skimmng stations and the express
companies handled the finished products.
But at this time the shippers were all
using hand separators and were shipping
only what is known butterfat, one can
Of which equals about seven cans OF milk.
They are now carrying this butterfat at
milk rates. which, he said, is out OF all
proportion to other merchandise, which
is shipped at not less than 40 cents per
100 pounds. Up to thirty miles milk or
cream is shipped at Is cents per 100 pounds.
The express companies discovered the ship
pers were sending out butterfat instead
OF milk when bills were sent In for spill
ing the milk. The bills called for % to IS
cents The average price paid for ship
ping q 1O0-pound can of milk for all dis
tances in the state, Mr.. Patterson said, was
from q to 80 cents. The cans are returned
free. What the express companies carry In
the milk line, he said. is at less than
! freight rates, though the shipment goes
on the passenger train.
This should not be characterized as n
| fight over cream rates" volunteered Mr..
Patterson, but It is simply a matter Of
Justice We should not be compelled to
haul fat at the same rate as milk"
Gross Examination,
/ Attorney Hainer put Patterson through
a red-hot cross-examinaton and brouvht
I out the information that the Pacific Ex-
! press company paid the Union Pacific Rail-
/ road company 80 per cent of its gross re-
ceipts; that It was compelled to increase
rates because of It's increased facilities, and
added costs Of doing business. When the
! present rate went into effect the American
was only handling twenty-five cans OF
/ milk a day and now II is handling 100
cans; that the company had added fifteen
milk trucks to It's equipment during the
! last six months, though these trucks were
used for other purposes besides hauling
cream on them that is costs no more to
haul a can OF cream than It does milk;
that the increased business adds to the
revenue OF the company; that the salary
of the employees has not been Increased;
that the Union Pacific practically owns
the Pacific Express company and the ex-
press business is merely department or
the railroad business; that in small places
the railroad agent acts as the agent OF the