Omaha daily bee., 1909-01-27
BIC STROKE FOR wCREAMERIES
Interstate Commissions Decision is
Hailed as Real Triumph.
LOCAL DEALERS ARE JUB1IANT
Railroad Men Conceal Their Disap-
pOIntment Under n Cloak OF
'Never-Touched-Me' Talk
of the Ruling.

Operators OF the so-called centralized"
creameries in Omaha not only consider
the decision OF the Interstate Commerce
commission, which reduces the rates on
cream from interstate points 20 the plants
OF companies in the west, of vast import
ance to the dairy industry of the entire
country. but value quite as much the stamp
Of approval the commission has put on the
centralizing system, which was attacked
by the railway companies and the Depart
ment OF Agriculture at Washington.
The news of the decision Tuesday morn
ing naturally made many business men In
Omaha happy, as Omaha is the largest but
ter making point in the United states and
the companies of this city. together with
those of Beatrice, Lincoln. Sioux City.
Kansas City. Chicago and the Wisconsin
will be benefited by It.
The case is peculiar in many respects and
brought out many new things. The first
move the creamery men made was new.
They asked the federal court for an in
junction to restrain the railways from
putting in effect a schedule of rates in
September, 1907, which would make ad-
vances of from 80 to 100 per cent in the
rates. They got the injunction and 1t was
the first ever granted for the purpose.
Since others have been issued for shippers,
but the creamery men started something,
Decision Far-ReRchinE.
The decision and its effect will be far
reaching, according to J. II. Rushton, presi-
dent of the Paramount Creamery company.
1t establishes the fact that the shipment
OF cream on passenger trains as baggage,
is a legitimate article of interstate COM
merce.
1t says that such Shipments are entitled
to rapid service and such further care as
will preserve the commodity.
For the first time the railways must have
some regard for the empty cans, as the
decision makes them property and the car
rier must issue a receipt for them. thus
assuming responsibility for their condition
upon arrival.
1t establishes the fact that centralized
creameries are affording a market to hun
dreds of thousands of farmers who have
no other market.
1t says in effect that the intervenors and
even the experts" from the Department
of Agriculture sought TO deprive these
farmers of the market made by centralized
Creameries, by advancing the railroad
rates to such a point that shipments would
70 longer be made.
Ii establishes the fact that where an in
dustry has grown up under a scale OF
rates made voluntarily by the carriers,
such a rate cannot be changed without a
reasonable reason.
No Arbitrary Rulings.
1t further establishes the fact that the
Interstate Commerce commission will not
say that this system of handling an in
dustry, or that way of buying raw ma
terial and marketing the product, is the
proper way, but will leave that for the
people to decide.
4 believe the decision shows to. the
world that the centralized .creameries rep-
resent a desirable form of handling dairy
products said Mr.. Rushton. ut says in
directly that it is a legitimate form, a
necessary form and recognizes the CEN
tral!zed creameries as a system of. CONNER
cisl industry well suited to the develop
ment of the dairy interests"
The creamery men point to the decision
as a victory fully as much because of the
way the Department of Agriculture was
''squelched' as because Of the fact they
will get lower rates. The department got
into the case because Judge Prouty of the
commission allowed them to introduce evil
NiN VI Allt 'AaN'N oA6NH nv l9ANa
Of going into the question OF rates, went
into the desirability OF the centralizey sys-
tenn Of handling the dairy business. and
also directed testimony from those con-
nected with the dairy bureau of the de-
partment, to impeach the integrity of those
operating 1t, and there was a we'll defined
effort made, more or less systematic, TO
impress on the minds of the producers OF
cream that the big were not
treating them fairly, were not paying them
enough for their butter fat. and were not
making a butter which had a favorable
standing in the markets.
Wise Man, All Right.
But at one of the hearings one of the
government representatives testified that
he knew all about the business of the
centralized creamerles and finally admit
ted. that be learned by spending an hour
or so in the plant of the Beatrice Creamery
company at Lincoln.
f. ]. Hainer, ~ Lincoln might be said to
be the leading attorney for the creamery
men. His work was of the best and Omaha
creamery men do not hesitate to speak
highly of 1t. Other attorneys for the
creameries were Il. +. Doran OF Topeka,
Kan, and Isaac H, Mayer of the firm Of
| Mayer, Meyer & Austrian of Chicago.
These men presented the case in such a
manner that Judge Prouty is credited with