The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1912-03-19
l.. S. Smith Says Large Bust.
ness Wouldn't Do Here.
Not Freight Rates That Cause
Failure.
FREIGHT RATES CUT A FIGURE
VIM. Todd Says His Business
Has Been Limited.
Missouri River Wholesalers
Are Testifying.

Leon S. Smith, president of a Kan
sas City wholesale mercantile house,
today testified before the representa-
tive of the interstate commerce COM
mission that the Wichita wholesale
and jobbing houses were more pros
porous than those at the mouth of
the Kaw and believed that freight
rates for Kansas dealers were well
regulated
Appearing as a witness for the
Kansas City interveners in the freight
rate hearing, Smith was this morning
called to the stand. He admitted that
freight rates were big factor in the
prosperity Of wholesalers ard jobbers.
He also admitted that his firm did an
extensive business in the local terri
tory of Kansas shippers, but that the
freight rates were just and equitable
Smith also related that in certain
territories profits were absorbed in
freight rates He then told Examiner
AIackley that the Wichita wholesalers
were paying larger dividends than the
Kansas City firms. This fact, he said,
was due to the limited capital in
operation and the ability TO handle
the trade in their respective terri
tories
Smith was certain that shaking up
of the freight rates would not ma
terially benefit the Kansas towns ask
ing relief. He said a million dollar in
stitution would not prosper in a town
the size of Wichita or Topeka. This
would be due Smith testified, to the
fact that the territory would not war
rant the investment of such extensive
capital, hence the location of the larger
Wholesalers in Kansas City.
Following the testimony of Smith.
which consumed the greater portion of
the morning. William Todd, Leaven-
worth wholesale grocer was called He
appeared for the interveners in his
town in behalf of the present rates.
To the examiner. Todd said that 50
per cent of his firms business was in
Kansas. He said that the regulation of
freight rates in recent years had limited
the firms territory to a radius of $50
miles. when they formerly sold to the
four corners of Kansas. Todd denied
that his house competed in the local
territory of EmpOria, Wichita, Hutch
inson or Pittsburg. The leaving of this
territory, the witness said. was due to
present freight rates. He admitted that
the firm shipped goods west to EmpOria
and competed in the local territory of
Topeka. Lawrence and other towns.
Rates are a great factor in the
business of any wholesale or jobbin
house, Todd testified land their regu-
lation means the life or death of any
business. These rates will determine
the business of the jobber in rs per
cent of cases, and are only overcome
where the dealer is handling 'Decials.''
A number of witnesses will Je used
this afternoon by representatives from
Kansas City, St. Joseph. Leavenworth
and Atchison, who are intervening in
behalf of the defendant railroads to
keep in force the old established freight
rates Beginning tomorrow morning
the railroads will introduce several wiz
nesses in an effort to show that the
rates to Kansas points by Kansas man
facturers are not excessive.