The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1910-03-18
Question of Equalizing Charges
From Gulf.
BETWEEN SHIPPERS.
Missouri River Dealers Are OPP
posing Reduction.
Business Would Be Crippled in
Favor of Southwest.

Kansas City, Mo-, March 1S.-Chas.
A. Prouty, a member of the inter
state commerce commission today
heard arguments on the complaint Of
the southwestern shippers traffic as
sociation which asks a readjustment
of freight rates from Galveston to
points in the southwest, according to
the distance from the gulf of Mexi-
co. Representatives of shippers of
Kansas, Oklahoma, Texas. New Mexi-
CO and Colorado argued for a read
justment of the rates.
It was contended by the complain
ants that, based on the cost of SER
vice, it costs no more to deliver a ship
ment of freight from the Gulf of Mex
leo to a city in the southwest than it
now costs to haul the same shipment
from the Atlantic seaboard to a Mis-
souri, river point and that such a haul
from the gulf would save to the
southwest states the additional local
rate now paid from the Missouri river.
The same ratio, according to the
complainants. would prevail on out
going shipments. The present hear
ing, however, is based on incoming
shipments. 1t is estimated that il
the interstate commerce commission
upholds the contention of the COM
plainants, a benefit of from 20 to 35
per cent in freight rates will accrue to
southwest points.
Attorneys representing Missouri
representatives
railroads argued against the proposed
reduction of freight rates for the
southwest.
The opposition of the Missouri riv-
er shippers was based upon the be-
lief that their business would be
crippled in favor of the jobbers of the
southwest should the demand of the
complainants be granted.
The complainants were represented
by Charles West, attorney general of
I'LL L, I41,~
of the Oklahoma City traffic bureau;
G. B. Bee, rate expert of the Okla
homa corporation commission; Henry
]. Allen, Wichita; John L. Powell,
president of the Southwestern Ship
pers Traffic association; John Daw-
son, attorney for the Kansas board of
railroad commissioners; Judge A. E.
Helm, a rate expert of Wichita; L. r.
Moore. of Wichita, and H. Haines.,
secretary of the chamber of COM
merce of Galveston.
Prouty Asks Questions.
All the railroads entering the south
west were represented today by counsel
to oppose the petition
John L. Powell of Wichita was the
only witness examined at the first ses-
sion. Mr.. Powell said that it costs no
more to ship freight from the Gulf of
Mexico to a city in the southwest.
based on the cost of service, than it
costs to ship from the Atlantic sea-
board to the Missouri river and that he
believed the southwest was entitled 20
a reduction in rates equal to the local
freight rate from the Missouri river to
the southwest.
Judge Prouty asked Mr.. Powell If he
thought the commission would be JUS
titled in reducing the northbound rate
in Texas to such an extent as to be
less than the southbound rate in Texas
which now seems to be satisfactory to
the Texas railroad commission. Mr..
Powell replied that he did not ask the
commission to make unreasonable
rates in favor of his territory but de-
sired that the commission make its de-
cision after a careful investigation OF
the merits of his contention.
Mr.. Powell said a reduction of rates
would benefit consumers in the districts
affected as well as commercial inter
ests. He said the nearer shipments
were brought to the consumer by fav-
orable freight rates the more he was
benefited and that many small towns
would develop into shipping centers.
The witness would not admit that the
railroads were responsible for the de-
velopment Of the southwest. He said
that railroads merely facilitated the
of a new country. He said
the reduction of local railroads rates by
the states had helped to increase tho
bank clearings.