The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1914-03-24
L. and the 0. n. as he drew the con
Cutting OFF Competition

Mr.. Spencer asked why it was not
possible for the 0. \. Railway TO
make a rate into Ocala from Silver
Springs. in connection with the boat
lines and If the contract between the
two roads forbade this Mr. Caps
stated that the contract gave the
Ocala Northern the exclusive use OF
the Seaboard's spur from the juno
ton to the springs, and the joint use
Ocala, together with the Seaboard' 5
terminals here. He admitted that
the contract prevented the Ocala
Northern from making any rate from
the springs or from Palatka, that
would compete with the Seaboard s
rates, but justified his roads posi-
ton in the matter by stating that
this was only ordinary business
would resort to any legitimate bust
ness methods to prevent competition
either by the Ocala Northern or other
lines. He did not admit the Okla
waha river as competitive line;
said it was possible but has never
proven practical.
Mr.. Spencer asked him if this was
not working against Ocala. He stat
ed that it was not so intended, but
was good business on the part of his
road, and Ocala had to bear her part
of the hardship, common in such
cases. He stated that the A G. L.
was not once mentioned in the ar
ticles of agreement.
Railroad has not Complied with Law
The discussion brought out the
fact that the contract had never been
filed with the railroad commission.
which is d violation of the law, as
Chairman Burr told Mr. Caps. and
the same must be filed at once.
Has Strange hold on the o. y.
Mr.. Spencer asked Mr.. Caps if
the o. \. should build and operate
track Of its own from the springs to
! Ocala would his road, as well as the
A c. L., not see that it was cut off
from any tonnage from the west. Mr..
Caps evaded the question for awhile
and then stated that his road would
certainly use all legitimate means of
preventing such and to protect the
line from loss of business, as any
other business firm would do in a
like situation.
Mr.. Spencer: Mr. Caps, the profit
of your road U will call it profit for
short) is % cents on each dollar of
traffic If your road can make this
profit on hauling grain from Jack
sonville to Tampa, can it not make
more profit on the same commodity
to Ocala at the same rate; and why
is a lucent rate necessary to Ocala?
| Is the rate to Ocala not made nee
essary to make up a loss on the Tam
pa rate?"
This Mr.. Caps would not admit.
He did not know, and no one knew,
whether the rate to Tampa was
loss or a profit, but said it was COM
PEELED by competition.
After much questioning by Mr..
Spencer, Mr.. Caps admitted that
the rate to Tampa did represent a
profit, but could only give the old
answer as to why Ocala should not
enjoy a lower rate, on half the haul,
instead of a higher one-lack of wa
ter competition here.
Then the learned gentlemen
thrashed back and forth over the
question, of whether Ocala was not
paying for a loss at Tampa or wheth
er the rate at Ocala was not made
necessary owe rthe competitievly en-
| forced rate at Tampa, ETC.. etc. In
not so many words, but Mr. Caps
was forced to admit that the interior
points are compelled to swell the
average of earnings of the road, if
not to make up the loss at competi-
tive points. Mr.. Caps stated that
there were points on the line where
the rate in existence was probably a
net loss.
Mr.. Caps stated that the interior
points did not contribute much to-
wards the earnings of the road, and
then was forced by Mr.. Spencer to
admit that Ocala cut a very consid-
cradle figure in the roads business,
and did amount to a grea. deal as
compared to Tampa. Mr.. Caps
| compared the freight rates with
mans profits in the wholesale busi-
| ness; that one item would bear a
greater profit than another and it
took the whole to make up his av-
erage, the low profits and the great
er ones.
so that Ocala," interposed Editor
Harris, of the Banner, has to make