Omaha daily bee., 1907-05-01
COMPLAIN OF UNFAIR RATES
South Omaha OoOpers Fave Case Esfors
Interstate Commerce Commission,
COMPETITOR is FAVORED
Accuses Burlington and Tennessee
Road of Discriminating I'm
Rates for Concern at
KeOkuk, Iowa.


way have Disseminated against it and in
favor of a competitor of Keokuk, la, the
Omaha Cooperage company Of South
Omaha had hearing yesterday before
John II. Marble of Washington, as special
examiner for the Interstate Commerce COM
mission in the federal building. The eX-
animation was concluded at p. M, and
the attorneys advised to submit briefs for
final hearing In Chicago May g.
The Omaha Cooperage company charges
discrimination in freight rates on forest
product shipments from points in Tennessee
TO South Omaha.
The interests Of the Omaha Cooperage
company were looked after by Attorney
Ed p. Smith Of Omaha; those Of the Nash
vile, Chattanooga & St Louis and the Illi-
nois Central companies by Attorney Per-
kins Baxter Of Nashville and those OF the
Chicago, Burlington & Quincy by j e.
Kelby OF Omaha General Freight Agents
Barham Of the Nashville road; c. e. Spens
Of the Burlington and Charles T. Cameron
Of the Illinois Central. The ofhcial ste
nographer Of the hearing was James r.
Wick Of Topeka, Kan.
The hearing began at 10 a. m with
M. d. Welch, general manager of the
Omaha Cooperage company, as the
first witness He said the plant had
been in operation about seven years and
was engaged in the manufacture Of all
kinds Of cooperage, with a capacity Of 1000
or 1,50O barrels daily, and the products Of
the concern were marketed mostly among
packers and dstillers, with shipments out
side Of Omaha to Nebraska City, St. Jo-
seph, Kansas City and Sioux City. The
principal competing point for the Omaha
concern is at Keokuk, Ia. The great bulk
of the material, consisting very largely Of
white oak staves is received from Arkan-
sas Tennessee, Mississippi and Kentucky
points. His complaist maintains that his
South Omaha plant is unjustly discrim-
mated against in the matter Of freight
rates In favor of Keokuk from points on
the Nashville, Chattanooga & st. Louis
line in Tennessee, whence the largest pro-
portion of his stock is received.
Diverted to KeOkuk.
I These products are bought" he said,
from the originating points in Tennessee
on the Nashville road to Paducah, Ky,
from where they are diverted to the Ill-
nois Central and thence to Keokuk or st.
Louis, as the case may be.
The distance from originating points to
Keolkuk and South Omaha are practically
the same, but a discrimination is made in
the terminal deliveries at Keokuk and
South Omaha of from S12 to SIS per car in
favor of Keokuk. The cars are not un-
loaded in transit from Tennessee to South
Omaha, but they are unl0aded while in
transit to Keokuk. The result Of
this discrimination in favor of Keokuk
against South Omaha effects the price
of barrels 2 OF cents each at South
Omaha, all of which is owing to the
aaafNr frafsr A9
been compelled to buy our material re-
Gently from Arkansas to a large extent,
instead Of from Tennessee, and this on
account Of the freight rates. No stave
material is produced by the states of Kan
sas or illinois, and but a small amount in
Missouri The worlds supply OF white oak
for barrels is obtained from the states of
Kentucky, Tennessee, Arkansas and NIissis-
sippi."
Mr. Welsh fortified his testimony with
numerous freight schedules, bills Of lading
and expense sheets which were made
part OF the exhibits.
Testimony IL Prepared.
General Freight Agent Barham of the
Nashville, Chattanooga & St. Louis Rail
way company, from Nashville, was the
second witness. Mr.. BarhRm's testimony
was read from questions and answers al
ready prepared. He said:
THE rate from Hollow Rock, Tenn, TO
st. Louis was less than the sum of the
locals. There was no through rate from
Hollow Rock to South Omaha and the rate
from that point to Keokuk and South
Omaha so far as the Nashville road was
concerned was the same but recently rates
had been lowered TO both of these points.
The through rates in each instance are less
than the sum of the local rates. St Louis
was used as contributing as a rate making
point In the Nashville road tariffs. The
through joint rates are made on a basis
of Chicago, the lowest combined rate being
given. The Nashville road does not pub
lish a through rate to South Omaha.
Revenues on KeOkuk Tramc.
THE revenue derived from the Keokuk
traffic from forest products to the Nash
vile road are the same as derived from
South Omaha, never more nor less. If the
rate we're lowered to a discrimination in
favor Of South Omaha as against Reokuk.
it would involve complete readjustment OF
rates in all territory tributary to the Nash
Vile road. The basing rate to St Louis
and East St. Louis is precisely the same.
The rates from Hollow Rock to South
Omaha are not unjust nor unfair The
cost OF transportation Tor snort distances
is relatively more than for longer dis
tances. The process Of gathering emptles
is difficult and costly. The rates to South
Omaha are as low as can be justified
There has been no complaint OF unfalrness
up TO this time. The basis OF the rates to
South Omaha on South Omaha is the sar ie
as other lines OF freight originating I'm the
territory OF the Nashville, Chattanooga &
St Louis road. There is no discrimination
whatever against South Omaha"
Thinks Rates Reasonable.
General Freight Agent Charles T. Cam
eron Of the Illinois Central said
Il think the l6-cent rate from Paducah to
South Omaha is reasonable and Just and
will favorably compare with other rates
from competing points by other roads TO
Omaha and South Omaha. / understand
the rate from East St. Louis 10 Omaha Is
10 cents, which is the same rate from Cairo
TO Chicago and from Evansville 10 Chicago
We do not make the rate for the Nashville
Chattanooga & st. Louis road"
c. f. spens Of the Burlington was the
final witness. His testimony was IN effect
that the Burlington had a rate OF 10 cents
from 81. Louis 20 South Omaha. as com
pared with a rate OF cents from St. Louis
to Keokuk and that the position OF the
Burlington was not difficult 10 defend. The
distance from St. Louis 20 Omaha was 45s
r,f1aa uvhfIa fron1 Toufa n KaoIrt4ls