Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-02-22
SHIPPERS AND
PACKERS CLASH
JOHN MoRRELL WITNESS BE
FORE COMMISSIONERS
YESTERDAY.
HEARING IN CHICAGO
All Iowa independent Packers are
Opposed to Proposed Rate Re-
duction to Eastern
Points,

]. H. Morrell of John Morrell & Co.,
packers of this city, appeared as
witness in the Investigations carried
On yesterday in Chicago before Com
missioner Prouty. Mr.. Morrell is OF
the opinion that if the rates to Chi
cago are reduced it will mean the. de-
struction Of the independent packing
interests of Iowa.
In an interview today Mr.. Morrell
said that he testified as follows:
The average rate on live hogs from
Iowa points to Otumwa Is approxi-
mately eleven cents per hundred
pounds.
The rate on manufactured products
from Ottumwa to Chicago is sixteen
cents, making twenty-seven from the
originating points to Chicago.
The rate on live stock from Ottum-
wa to Chicago is twenty-five cents, an
advantage Of five cents to the Chicago
competition.
An additional disadvantage to OF
tumwa is found in the fact that sup
| plies necessary for the carrying on OF
the business have to be purchased and
freight paid into Ottumwa to the ex-
tent of about fourteen million pounds
on which last year freight charges
amounted to over $4,000 were paid
and these supplies coming largely
from Chicago or east thereof are OBJ
tainable that much cheaper by Chic
ago packers. Morrell & Co., shipped
| about seventy-seven million pounds
of pork products to Chicago and east
ern points in 1907. Previous to 1899
there We're about twenty packing
houses in operation In Iowa. Following
that time when live stock rates were
| placed on the same level as manufac-
tured products large majority of the
Iowa packers were forced out of bust
ness.
Notably, Keokuk, Atlantic and
others who did not resume. Des
Moines, Cedar Rapids and Marshall
town suspended operations and later
reopened, aided by the REIMBURSEMENT
Of rates to the present basis, which en-
ables the independent packers to sue
cessfully compete with other centers.
1t was claimed that reduction in
live stock rates would seriously injure
the business Of the Iowa packers.
The western railroads appeared and
testified as to the increased cost of
transacting live stock compared with
dead freight. Chicago papers COM
ment on the hearing in today's issues
i The Chicago Tribune says: Repres-
entatives of the independent packers
of Iowa and attorneys for Iowa's live
stock producers and shippers clashed
yesterday before Interstate Commerce
Commissioner Prouty.
1t was the final day OF the hearing
Of arguments in the fight of the Corn
Belt Meat Producers association for a
reduction of the interstate rates on
, live stock shipments from Iowa points
+ to Chicago.
, j. H. Morrell of John Iorrell & Co.
packers at Ottumwa, Ia, explained the
situation from the point of view of the
: packers.
'The freight rate has much to dc
with our getting the Strengthening O.
: Iowa stock raisers," said Mr. iMorrell
ANY reduction of the rate will great
ly injure the packing Industry of Iowa
s 1--WE are able to do business in the
/ esat because we get a through rate o
40 cents to New York-16 cents tt
: Chicago, and 26 cents to New Yori
from Chicago. Chicago packers pa.
80 cents to New York But if the rat,
( on live stock is reduced, Chicago pack
i ers can beat us badly in the competi
t ton"
: w. D. Cantillion, assistant genera
j. manager of the Chicago and North
;, western, used the snow storm as al
3 illustration of the unprofitableness o
j live stock traffic.
: Yesterday the Northwestern ha
8 300 cars Of live stock already loaded,
It said Mr.. Cantillon. "Then the blizzar
e came and it was necessary to abandon
everything but live stock and passer
ger traffic, and even at that we wer
: forced to violate the federal twenty
r eight hour law"
e Members of the complaining assoc
alton renewed their demand for rt
duction.
q The hearing closed in the afternoon
: Following the proposal Of the Ger
r trail Passenger association, announce
!, In a resolution last week at the clos
; of a meeting in Chicago to maintain
is fiat summer tourist rate of cent
d with the cooperation of the Wester
I, Passenger association met during th
70 day to consider the proposition. Tn
3 conference will continue today
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