The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1909-09-23
THE HERMDREPUBcN SALT LAKE CITY, UTAH. THURSDAY SEPT g. 1909

added, but Commissioner Prouty inter
rupted to say that there was no reed of
going further into the business Mr. Bauer
was then excused
J. W ABBOTT of Ogden also engaged
in the hardware business, was next called
and testified along the same lines as Mr..
Bauer saying that the consum az pays
the cost of transportation on the goods
sold by the merchant Ninety per cent
of the goods in which he deals come from
east of the Missouri river. He also tes-
titled that traffic business is not being as
actively sought by the railroads as for
merly.
Commissioner Prouty here interrupted
TO ask Attorney Dey the purpose of this
query. Mr.. Dey replied that it was pro-
posed to show that there is no competition
amOEg the railroads and that they have
virtually a combination on rates
f'Oh, We are all being good. since get
ting good laws" inteTjected Attorney
billiard.
Commissioner Prouty asked Mr. Abbott
whether the freight rates had been ad-
vanceG during the last five years. He
replied that he did not think there had
been an advance. Mr.. billiard offered the
information that there has been a reduc-
ton at several points since 1900.
Nj. Abbott was asked by Attorney Dill
lard whether ne thought it fair that the
railroads should make only from to 10
per cent on their investment He replied
that he objected to the roads making D
out of the s per cent in the intermountain
country.
DO you know that is the case?'' asked
Mr. billiard.
only by comparison with the rates at
other points, was the reply.
Suspects Pools.
Mr. Abbott was asked whether he knew
Of any pooling of traffic by the railroads
and replied that he knew of none posi-
lively, although he had strong suspicious.
Mr.. Abbott said the local people come
INTO competition chiefly with Salt Lake
Boise, Portland and San Francisco, and
nave no real competition with Chicago or
San Francisco. He said that a reduction
Of rates would have the effect of building
up TINS district and would better business
conditions, as it would enable the people
TO buy more. He said 1t also would make
competition keener here by encouraging
more to enter into business.
Mr.. Munroe, freight traffic manager of
the Union Pacific, then took the stand
and remained there during the rest of
the morning session. He said that he has
general supervision of the freight traffic
department for the Union Pacific. having
been connected with the freight traffic
department since 1882
He went into the history of the building
OF the various roads and was asked about
the rate war which existed following the
building of the Denver & Rio Grande mar
row gauge about 1888 He admitted the
existence of the rate war and Mr. Dey
or the pooling of interests. when Com
missioner PrOuty interrupted to say that
he did not think it was necessary to go
INTO the ancient history, as the commits
sIoners were Familiar with the conditions.
Course of Traffic.
The witness said the great movement Of
uaIflc in this country is east and west
saying that this was accounted for by the
TACT that the grain of the country is pro-
md no CO.,
ing interests are in the middle west and
eastern states He said that the general
tendency of rates had been downward.
He said that freight traffic between Utah
and the east had increased steadily with
the growth of the country here. He was
asked whether he believed the railroads
responsible for the growth instead of the
force of the natural resources and said
that he was free to confess that he
thought the development of the natural
resources was responsible in the main for
the growth.
Mr.. Munroe was asked to explain the
basis upon which the rate from the Mis-
souri, river to Utah points is fixed and ne
replied it is the idea to make the same
rates from Missouri river to Utah points
as to Montana points
Commissioner ProUty asked whether the
rate from the Missouri river to Utah
points determined the rate from Utah
points to San Francisco and the witness
replied that II does. The railroads sprac-
d ~
miles west Of the Missouri and 20 per
cent for a 5O0-mile haul east of the river
IN the division Of the rates from Chicago
west.
Commissioner PrOuty asked the witness
whether he considered that this was just
division, and he replied that he thought So
as conditions in the east and the west are
so different He was inclined to think the
local rates a fair measure for rates Most
OF the traffic moves under a commodity
rate between Chicago and Salt Lake.
Chicago Water Competition.
When asked by Mr.. Babcock to explain
the reason why the rates from Chicago to
San Francisco are less than the rate from
Chicago TO Salt Lake the witness replied
that the California rates are based on the
water competition. He said that Chicago
comes into competition with New York on
the water rates from New York to San
Francisco and this rate must be met.
Mr. BabcOCk asked the witness whether
the rates from Missouri river to Utah
points were not entirely arbitrary. The
witness replied that the rate from the
Missouri river to Utah common points was
determined by 'ge ting the remainder after
from the rate from Chicago to
Montana the rate from Chicago to the
Missouri river.
Mr. Babcock made inquiries concerning
conditions which existed before a road
was built to Montana and asked whether
the rate between the Missouri river and
Utah points at that time was not an ar
bitrary one. The witness replied that this
was not the case,
Were not the rates to Montana lower
for some time than to Utah?" asked Mr..
BabcOck.
I think not" was the reply.
Commissioner PrOuty asked Mr.. Babcock
whether the rates established between the
east and Utah and Montana points were
not as fair for one as the other, and