Omaha daily bee., 1908-06-03
HEARING IN SUGAR CASE
Grand Island Presents Argument for
sTen-cent Rate.
ROADS MAKE STRONG PROTEST
State Board Of Edueation Reergsniaes
~ Election OF c. ~. GreeE ~
Presiden4-one Member Goes
oct This Month.
Fron : go corresponaentl

AEr0m a EtaEL oIIt1NaHNNhh
LINCOLN. June 2-Cspecisl)-fhe
complaint Of the Donaid-Porte company
and the Nebraska Mercantile company
Of Grand Island against the Union Pac-
flies rate on sugar from omaha to Grand
Island was heard bay the railway com
mission today and the attorneys given
time 10 file briefs. Among the Fallroad
men present were J. c. @Ftubbs, traffic
director Of the Union Pacific, General
Solicitor Loomis. J. A. Munro. freight
traffic manager. Charles Lane. assistant
freight agent for the Union Pacific; for
the Burlington. G r spens. Represent
ing the compliments were Attorney Ryan
of Grand Island. A r Cady and J. b.
Waldo.
While little attention has been paid to
tsis hearing It is considered one Of the
most important ever brought before the
commission because it Is liable TO become
national in that the rate for the shipment
Of sugar has been a bone Of contention
between the railroads and shippers for
years and the findings in this case may
be adopted ty the country generally
The railroads have made a so per cent
rate on sugar from the coast effective
Jaiy 10. but the Grand Island jcb0ers are
not satisfied with this rate but insist on
being heard on their prayer for a rate
of 10 cents from Omaha 20 Grand Island
the same as the eastbound rate from
Grand Island. The railroads contend the
Grand Island dealer seeks an advantage
in that he seeks the lower rate on which
20 buy rather than to ship. The price
Of sugar they contend is fixed by New
orleans Plus the freight rates to the Mis-
souri, river point and in turn this measures
the cost in the interior towns. even at
Grand Island where sugar is bought at the
factory.
The contention Of the Grand Island
people is that Il cost no more to ship
sugar from Omaha to Grand Island Than
from Grand Island 70 Omaha and there
fore the freight rate from Omaha TO
Grand Island should be the same as from
Grand Island 10 Omaha J. B Waldo Of
Grand Island testified that both Lincoln
and Freuiont on the Union Pacific received
better rates than did Grand Island and
he ffleds with the commission a compil-
alton OF rates showing a comparison OF
towns about the same distance from
Omaha as Grand Island to show his town
is getting the worst of 1t.
The hearing was more informal than
FORMAL and considerable Of the testimony
of Senator Cady was In answer TO ques-
lions By Mr.. Stubs regarding the adj
vantage to Grand Island Of a sugar fac
tory and the fact that the factory was
made possible by the low rates out of
Grand Island.
When Mr.. Munro was placed on the stard
he told how the i9-ccnt rate happened tc
be made. That it vas put into effect solely
10 assist a Nebraska industry. Attorney
Ryan asked Mr.. Munro If it were not q
fact that the Union Pacific had catered Il
the through traffic and had never done
anything for the interior towns Of the state
This brought forth a warm defense Of the
Union Pacific from the traffic manager
who sad be was ashamed to admit II. bul
It was a fact that the returns on its taxable
value IN Nebraska was less than / per cent
on Nebraska business. and he thought it ar
injustice that because the Union Pacific by
wise investments had made some money
that any one in Nebraska should ask for :
lower rate to try to get hold Of some q
the money made IN, other states. Then th'
recent 10 per cent dividend Of the UnioI
Pacific came In for a lengthy discussion an,
Mr.. Munro rrade the statement that tn
average divideuds Of the Union Pacific. leal
years at fat years. was about . per cent
During the proceedings an effort was mad
TO find out whether the consumer woul'
get any Of the benefits Of the lower rate
but no one could speak with authority Of
that point,
Commissioner Clarke and Williams beinl
absent. Chairman winnett heard the cas-
aloLe.
Attorney General Thompson returned THU
morning from Washington and New York