San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-03-21
CHARGE ROAD TRIED
TO DESTROY INDUSTRY
CONTINUED from page one.)

November is, 1921, Docket POO
at a hearing before the railroad com
mission Mt Austin, ]. A. Brown, gen
eral freight agent of the Gulf Coast
Lines, testified that the Gull Coas'
reduced the rates on sugar from New
Orleans 10 Texas for the purpose oil
transferring business from the Sugar
land refinery, Texas industry, 10
New Orleans interests. Mr.. Brown adj
mitted at the hearing that the sugar
rate was the only rate ON which pre-
war differential had been restored,
and that this restoration to the pre-
war differential was established by
IT, Gulf Coast Lines"
Mr.. Yandell further stated that the
San Antonio Chamber OF Commerce
has concluded that the public must
agree with that organization in its be-
lief that the Gulf Coast Lines have
used their tariffs for the purpose OF
bringing about conditions which make
il difficult for industries TO survive
competition on the part Of localities
which they favor in preference TO the
industries of this state, following the
the records in Austin.
Would Cripple Industry.
The records in the case referred 70
will show that the Gulf Coast Lines
were willing to reduce the rates on
sugar from New Orleans to Texas
points, in the face of the fact that such
a reduction would be staggering
blow to a Texas industry which oc-
cupies a legitimate field that New Or
leans interests were seeking TO de-
stroy," Mr.. Yandell stated. This is
on all-fours with the contention that
If the existing policy of the Cult
Coast Lines is perpetuated and f0rti'
fled by the acquisition of the I.-G. N.
the merger will place in the hands of
the former railroad weapon which it
has heretofore not hesitated to use 10
the detriment of the distributing and
manufacturing interests not only oil
San Antonio but of the entire state OF
Texas. The rate, had it been allowed
to prevail. would have completely and
absolutely destroyed the only sugar re-
finery in Texas. Thi. business, had Il
been forced ont by the Gulf Coast,
would have gone to outside interests,
and many people employed in the state
would have gone elsewhere to live. The
state of Texas would have lost a
large portion of the taxes it receives
from Sugarlsnd and its allied inter
ests; in 1928, the company paid in
excess Of S5S,000 in taxes to the
state"
Become q Pawn.
Mr.. Yandell explained how the l.
G.. n. railway, in order TO save the
situation, put into effect an import
rate which protected the Texas indus
try against the giant foreign interest
which was seeking TO invade Texas
with the encouragement Of the Gulf
Coast Lines.
"The situation becomes more acute
when it is realized that the I.-G. N,
which has heretofore been able to in
tervene and prevent the discrimination
referred to, will. il it is merged with
the Gulf Coast Lines, become a pawn
in its hands, with the result that ii
will be denied any initiative or rights
which the I.-G. y. has exercised IN
the past for the protection of Texas
shippers" Mr.. Ysndell stated.
In regard to Mr.. Pyeatt's statement
that he will oppose the construction
of another line into the Rio Grande
valley from San Antonio, Mr.. Yandell
said that IL the Gulf Coast had the