TUB OMAHA DAILY BEE: MONDAY. FEBRUARY 20, 1903.
AFFAIRS AT SOUTH OMAIIA
Ccroncit Eifjocted to Let Contracts Tonight
for Griding and Paring.
COMPETITION tS HOT VERY KEEN
Tw Mardereas 1 hafts Slaa; aad Rob
John Consattlne, ' t'todafcr for
man,, of 0ho la Frnat of Ilia
Dm Residence,
A meeting, of the city council is to be
held tonight. Bids for the paving, curbing
and grading of Missouri avenue are to be
opened- . These bids will be received by the
city clerk; a late & t p. m. and will be
delivered to the clerk to be opened before
the rounrU. ..The work amounts to about
Stf.OnO and a, number of contractors hove
become IntereMed, but aa the curbing la
to be of artiflcluj, atone not much competi
tion la expected. . Little grading la to be
done and there la little proaiiert of warm
competition on ttieae bid.
Where the eontest will come Is on the
paving brink. Three concern manufactur
ing yltrtflsd blnok brlrk.are In the field and
aome Mycly 'bidding la expected. In the of
ficial advertisement for thia work the
council does not name the brick to be used,
b'lt the resolution paiwid some time ago Is
to the effect that i'urlngton block or pav
ing brick jiiai aa good will be considered.
About 11.800 square yards of .paring will
have to be. laid and there la to be about
tjMO lineal, feet of curbing.
It la estimated by tho city engineer that
about Moo ruble vtmli -of dirt will have to
be moved end for this he makes an esti
mate ot II. EM. ' The curbing la to cost not
more than $3,600 end the paving not to ex
ceed tt,580. This bid will Include the pav
ing of Missouri avenue from Thirteenth
street m-th east to Twenty-fourth afreet
on the Wast. Each bidder must accompany
Ms bid with a check for $1,000, payable to
the city of South Omaha aa an evidence of
good faith.
It appears to be the intention of the city
authorities to let this contract aa soon aa
possible In -order that tha work may ba
complete thle rear.
There may be some action taken on the
bide for a fire hall site, but nothing la cer.
tain on this point. a the council and the
fire commissioner: are not expected to
hold a meeting Until this afternoon.
1 ' Another Bold Hold a p.
John Consadlne, a foreman in the Job
bing department at Cudahy'a, waa held up
when' nearly l'n front of hla residence, 2S8
South Twenty-second street, Saturday night
about 10 o'clock.. .. Tha gang In which Con
sadlne la employed waa held to work ever
time "arid1 the fact that It waa pay day at
the plant probably Induced a couple of
men t follow him. At any rata he waa
knocked, down, robbed of about $30 and
severely, beaten. Three bad outs on the
back of the head 'which go clear to the
boiie ' show how severe were the blows
dealt by some blunt instrument. Dr. James
-A--Kelly, who la waiting on Consadlne,
said last flight that the Injuries were se
vere, but not fatal. Consadlne acreamed
wltan struck and bis wife ran to tha door
of their homo and saw a couple Off men
running away. She cannot give the police
any description and consequently no arrests
' have "baen made, -
The Injured man' la a brother-in-law of
Councilman. William Queenan. Last night
he aa(d that he proposed seeing to It that
a. thorough investigation ot the case waa
made aa well aa of aome other coses ot a
similar nature which have occurred lately.
Repnbllcaa Central Committee.
. Saturday night , there waa a meeting of
,;th.4 old and tha new. republican city central
committee. Jay Laverty, chairman of the
old central committee, turned In his report.
This !m read and accepted. The . new
committee waa then called to order and
A. H. Murdock aws named aa chairman.
Charles Offerman, waa appointed secretary.
A . treasurer was not named,' tha matter
being deferred until some time this week.
Plans for the Board ot Education cam
paign were talked over Informally. This
week the crty central committee will oom-'
plate its. organisation, and will then make
arrangements for tha opening of the cam
paign.'v ;The republican nominees for mem
bars of tha board are Dana Morrill, Jay
Laverty and Dr. W. U Cuttle. f
i pikers Kept Busy.
Since the transportation linea have been
opened after the storm the South Omaha
puckers have been kept buay getting out
cars of. meats. - For several days last week
not a tar of packing house products left
the yards here. There Is a big demand
for supplies of all kinds and tha packers
are now working soma ot their gangs over
time filling orders which have been hang
iag on the hook for several days.
Offices Coulter Resisted.
While not put out ' of service. Officer
Coulter is considerably disfigured on ac
count pf a, fight on Q street Sunday. Four
or Ave men were pulling oft a fight at
Twentyelghth and Q streets when Coulter
came along. Dan Houseman waa down and
the balance ran. As the officer stooped
over to helj Houseman to his feet he laid
hla' club IftwiL on the walk. In a moment
some of the gang hiding around the corner
rushed bp and assaulted the officer. Some
one In, the bunch threw his club over the
fence at Armour s and it was afterwards
recovered. After getting on his feet House
man took ',' punch or two at the officer
wne had attempted to assist him. For this
Houseman Is In Jail and the police are look
ing for the balance of the gang.
Ma Determine Opening Date.
Thia evening the Board ot Education will
meet in, adjourned session. One of the
topics to i taken up at this meeting is
the aettlng of a date for the formal open
ing ot the new high school building. Some
time ago-tha board set March $ aa the date
bijMVowliM WMay in construction the data
was Indefinitely postponed. It la stated
w by members of the board that there la
svaroe fi p4 .of. , an ' early, opening of the
lulldina-.
J While the interior work has not . been
arogreaslng as rapidly as expected it Is
bought by tha contractors that the build
ing will ba in ahape to be formally opened
cfi orftbouf, April L,
Street Car Trafflo Delayed.
For. ofcput thirty minutes yeaterday after
ljoon street Car trafflo around the loop was
delayed -bjr the breaking down of oar No.
St. The accident to the Interior arrange
raents of the car occurred at Twenty-fourth
nd N streets. A repair force was sent
ftw but the gang did not seent to be able
te Btake lb machinery start. Finally tha
cr waa pulled oft tha loop by a Benson car
d put on the side track, at Q atreet The
delay In 'getting cars over on West Q
street : compelled a lot uf people to walk
M thour homes. (
) --, au.citr uomIb. ..
A big run of live atock la looked for today
tit the yarda here,
-A oh (Pnaa. been born to Mr.' arid Mrs.
dehn Mlckiusou, Twentieth and T street.
Quantities of coal arrived here yesterday
and there is no longer any danger ot a
fcual famine.
'Harry BlooraflelA colored, Is In Jail and
Will be uhaiged with siealtng a watch from
Hugh Kennedy.
, VseUmfey'S thaw started the water run
ning on the streets and there was a no
trouble depredation of enow when evening
earner - , , . , . .
Chief Brlggs directed the police to close
the Brhllis anjuun at Tlilrtj -ninth and L.
streets : yrftrduy. jiteruut)ik A oumpitdnt
had rearhtxl him that the bartender was
aWUng liquor to minora
First class watch and Jewelry work at
jhasiaavjfrl, iJih and DojgUa
FEDERAL REGULATION OF RAILROADS AND RAILROAD RATES
Testimony taken before the senate select committee, composed of Senator
Cnlloni, chair ran u. and Senators Miller of New York, Matt of Connecticut,
Gorman of Maryland, and Harrts'of Tennessee, In pursuance of the folllowlng
reaolntlnn. adopted by the senate March 17, 1885, and submitted to the senate
January 18, 18HH.
"Resolved. That a select committee of five members, appointed to Investi
gate a Si report upon the subject of the regulation of the transportation by rail
road and water route In connection with or in competition with said railroads,
of freights nud passengers between the several states, with authority to alt
during the recess of congress, and with power to summon witnesses and to do
whatever la necessary, for a full examination of the subject, and report to the
senate on or before the second Monday of December next."
Keiwtt 4U, Part II, rages 1122 to 1154.
EDWARD ROSE WATER'S STATEMENT.
Edward Hosewater, editor of The Omaha Bee, appeared.
The Chairman You have been studying the subject under Investigation by
this committee, I understand. Will you proceed and give us your views?
Mr. Hosewater I have given the subject of transportation and regulation a
good many years' study, but the progress of the country naturally has brought
about many new phases, and some changes In my opinion with regard to the
proper course to be pursued in order to relieve the patrons of the transportation
companies, and particularly of the railroads, from existing abuses.
JIRISDICTION OK CONGRESS SUFFICIENT.
I take it for granted that congress has proper Jurisdiction over all the rail
roads in the United States, whether they nrv located within or without the
boundaries' of a state, for the reason that any railroad, no matter how short,
will assume to be a public carrier fof other railroads, and will convey passengers
and freight beyond Its own boundaries. v
The Chairman It will be an Interstate business?
Mr. Hosewater It will be an interstate business; and to that extent, at least,
congress would have Jurisdiction.
Senator IMatt Congress can regulate all the traffic which assumes an Inter
state character?
Mr. RoHewater Yea, and Inasmuch as all railroads carry on that kind of
trafllc and do- not confine themselves to business from oue terminal point to
another, congress has jurisdiction.
There are two classes of railways In the country: the land grant railroads,
that have been constructed by and with the aid of congress and under Its
authority, and the railroads that have been chartered by the states, and which
now do an interstate traffic. The right of congress to regulate the land grant
railroads has been conceded. That right has been exercised. It has been ex
ercised, in part, in their charters, and Its exercise has been reserved in their
charters.
THE LAND GRANT RAILROADS OF NEBRASKA.
Our people have a great deal mora to do with the land grant railroads than
with the roads chartered by the state. The two principal railroads In .Ne
braska, the Union I'aclfic and the Burlington & Missouri lliver railroads, are
both land grant roads.
Senator Piatt What is the Burlington & Missouri River, so far as it relates
to Nebraska? i
Mr. Rosewater It was chartered by congress as one of the branches Inter
secting with the Union Pacific railway at or about the 100th meridian, but It
has finally been extended.
The Chairman It runs from what point to what point?
Mr. Hosewater It was designed to originally run from some point on the
western boundary of Iowa, across the territory of Nebraska to the 100th meri
dian, and the right-of-way was granted by congress through this then territory,
and the road was built from Plattsmouth, twenty miles below Omaha, to Kear
ney, where It Intersected, or made Its Junction with the Union Faciflc railroad.
But that road denied the right of the Burlington to prorate, and to the privileges
granted under the original act, as Interpreted by the Burlington road, and when
the Burlington, after repeated efforts, failed to secure the legislation In congress
to compel the Union Pacific to give them a prorate, they extended their line to
Denver and connected It with the Denver & Rio Grande to Salt Lake City.
These two roads are. our principal thoroughfares, and with but one excep
tion, all of them are simply branches of these two roads that Is the Elkborn
& Missouri Valley, which belong to the Chicago & Northwestern railroad.
Senator Piatt That road runs up through Sioux City?
Mr. Rosfwater That road runs from Sioux City down. That was one of
the Credit Moblller frauds. They should have made their connection at the
100th meridian. They came down to Missouri Valley and made their connec
tion at Fremont; but they drew the subsidy all the same.
Nebraska has three trunk railroads, the Union Pacific, the Burlington &
Missouri, and the Northwestern; the Missouri Pacific being a part of the Gould
system. All the others are 'branches of one of these systems and are controlled
by one of the three companies named; so we are dealing principally with rail
roads that have been regulated and are subject to the regulation of congress.
' When those roads were constructed originally there were no railroads in
the state of Iowa within from 150 to 180 miles of the terminus of the Union
raclflc at Omaha,' or of the terminus of the Burlington road at Plattsmouth,
and, of course, the change from the stage for overland travel, at 25 cents a
mile, to a railroad, was a very great boon. The rates, although extravagantly high
at 10 cents per mile, and later on 7 cents per mile for hauling passengers, seemed
to the people who lived here at that time to be a great relief. It used to take
us a month to drive to Fort Kearney In a wagon, and It sometimes required two
or three months to get to the coast.
Hence, 'When th Unicn Pacific' whs 'constructed. It was. a great 'blessing.
even with the rates they charged. But, as the years went by, people began to
think about this matter. They began to compare the rates that were paid else
where; and then, as the state was helng rapidly Settled, and travel and tranrc
kept on Increasing, there was a good deal of complaint and effort from time to
time to get relief in some way.
' AUTOCRATIC RULE OF INION PACIFIC
The Union Pacific road, being' practically the only railway to California,
was managed by a set of autocrats who ruled this country not only by reason
of controlling the transportation rates, but ruled It politically as absolutely as
they rule Wyoming up to this date. No man who aspired to political office,
from constable up to congressman, could not get there unless he had Its backing.
That Is what caused the Intense feeling of hostility to the railroads, although
we have had considerable reduction from time to time on rates.
Senator Piatt Both freight and' passenger rates?
Mr. Rose water Both of freight and passenger rates. But these reduc
tions have only 'come through agitation and through a conflict that was very
bitter, from year to year, from one legislature to another. On the first day of
this month, we have at last got down to a 8-cent rate on passengers between
Omaha and the 100th meridian. They drew the line west of that.
Senator Piatt How much are they beyond? '
Mr. Rosewater Four cents and 6 cents, and I presume some of the local
roads maintain rates as high as 7 cents, but up to two years ago It was a 5-cent
rate. It was only by our agitating this matter and repeated demands for legis
lative action that we have finally secured it, In pursuance to an act passed by
the legislature.
Senator Flatfc The Union raclflc and these other roads were chartered by
the government Did Nebraska have anything to do with chartering the roads
or with ratifying the charters In any way ? .
Mr. Rosewater Nebraska was a territory when the Union Pacific railroad
was chartered, and It had no voice at all In the matter. The Burlington &
Missouri River road was also chartered by congress. When they began build
ing they had some state legislation with regard to an additional land subsidy.
The original act of congress simply gave the Burlington & Missouri every
alternate section within ten miles, and finally within twenty miles. It was
placed on the same basis as the Union Pacific, but with no money subsidy.
DONATIONS OF IAND BY NEBRASKA.
The state had 600,000 acres of land donated for public Improvements. That
land was all legislated away as a subsidy for various railways that were to be
built or were under construction at that time. The Burlington was not entirely
compietec at tuat rime, anu u securea its prorata. xne railroad from Omaha
to PlattBmouth, twenty miles, which was called the Omaha & Southwestern,
and the Omaha & Northwestern, running north, received 3,000 acres per mile
of tne state suBsiay lanas. in tnat way tne rxiu.uuu acres or land were ab
sorbed. To that extent the state aided the roads. Independent of that al
most every county through which they passed was induced or bulldozed into
votiug bonds.
Senator riatt But the toads still hold their charters from the United States
government?
Mr. Rosewater Yes, sir.
Senator Piatt So that Nebraska has no power to alter, repeal or amend the
charters?
" RIGHT OF EMINENT DOMAIN.
Mr. Rosewater No sir.- But when we framed our second state constitution
In 1875, we adopted the,.IlUnoiseature as to railroads; and among other things,
there was a clause put Into, our constitution that no railroad should ever acquire
the right of eminent domain :in the state of Nebraska without subjecting itself
to all the lawa and regulations which this state might impose in the future.
The Union I'aclfic railroad tip Iq thia time has not exercised the right of eminent
domain in thia state. It has avoided It by creating companies under bogus
names. The Union Pacific has never taken a foot of ground yet, or a right-of-way,
by 'exerolstfig the right of eminent domain.
Senator -riatt-Tliat was for the purpose of avoiding coming within your
state constitution? ( -'- " '
Mr. Rosewater-rTes. Still there Is one precedent that I might cite, showing
that the attorneys "of the Union Pacific railroad believe we havo full Jurisdic
tion. In 1871 I wnS manager -of the Atlantic & Pacific telegraph Hues In this
city. At that time that company was lo part controlled or owned by the
Union Pacific railroad. ' I was elected to the legislature, and their general
superintendent. General Sickles, requested me to Introduce a bill authorizing
the Union Pacific railroad to. charge and collect tolls over lfs railway and wagon
bridge across he'MlsMourl river at Omaha. . At that time It was thought it
would be a wagon aa well as a railway bridge. That bill was Introduced. The
original bill provided (hat the company should charge such a toll as from
time to time it would-, fix.-- -1 Inserted the proviso tbHt the company should
charge such toll as the mayor, and city council of Omaha should from time to
time fix. The bill passed and is now on the statute book and has never been
repealed. I take It that Mr. Popp'eton, the general attorney of the road, who
drew that bill, recognised th right of our state to legislate In regard to this
matter, although this bridge was chartered by congress. The question of a
wagon bridge, and a toll to be collected within the limits of our city, seemed
to be regarded by him as a 'matter about which it waa essential that our-atate
should be consulted. They hove never built the wagou bridge, however.
Senator riatt The Union Paiflc, and I presume, the Burlington aud Omaha
roads, have branches?
Mr. Roaewater Yes, sir,
Seuator Piatt Have their branchea been chartered by the state or by cop
greaa? - . , ,
Mr. Rosewater They have all been constructed under the general incor
poration law of our state which authorized the building of railroads.
OPPRESSED BY HIGH LOCAL RATES.
Thia, at least, abowa you that the state may regulute railroads. But Ne
braska, as yet, ha a ot exercised that right, notwithstanding that high tolls
have been exacted. tw years aad have In a great measure atlll been retained.
While there have been reductions, tho established rates have leen very arbi
trary. In many cases they are unreasonable and extortionate, and the people
of the Interior of the state, particularly, have been subjected to systematic op
pression. '
1 will say this much: That since the new administration, under Mr. Adams,
has come in, they have done awav with a great deal of obnoxious abuses. They
I have done a great deal to change and to smooth flown the differences or dlffl-
cultles between the people of this state and their road. Still there Is a great
neai to De flone. Hot Mr. Adams may not be aware that there is a great deal
of cause for complaint yet
Senator Piatt Y'ou can make known the causes of complaint, for Mr.
Adams will be here tomorrow, and it will be of some Interest to us to ascertain
whether he can Justify what the road Is doing.
Mr. Rosewater I would like to give you a few points with regard to the
general causes of complaint. Of course Nebraska Is a prairie state, and Its
largest product is corn and other grain. The thing the people of Nebraska
must have more than any other commodity outside of clothing Is fuel. Now,
In the matter of fuel and of grain, the system Inaugurated by the predecessors
of Mr. Adams has created great popular discontent.
ELEVATORS OWNED BY RAILROAD MANAGERS.
In the first place, the gralu 'elevators are substantially owned and con
trolled b.V tho managers of the railroads. The grain elevator In Omaha Is lo
cated adjacent to the Union Pacific railroad, and Its managers own 00 ier cent
of the stock. Mr. Dillon and other officers have controlled It absolutely. The
elevator on the opposite of the river Is owned and controlled entirely by the
railroad people. And the elevators along the Hue of the Union Pacific are In
the main under the control and ownership of the same parties.
These elevators, having special facilities for shipping grain, are able to fix
the rate on grain. They may withhold the advance which may take place In
the eastern market at their pleasure, to the detriment of the farmers and of
the smaller dealers out In the country. A fanner has no show whatever; even
a man who Is a merchant has no show whatever lu competition with these peo
ple In the shipping of grain. The farmer or merchant cannot get an empty
car when he wants. It; neither can he get a rebate. Of course rebates are pro
hibited under the statute,' but the law has been a dead letter to some extent.
' " ' HIGH HATES ON COAL.
The coal that is used along the line of the Union Pacific milroad for the
most part, about 05 per cent of It, Is houled from Rock Springs, Wyo. The
company has taken forcible possession of the mines and It owns them.
The Chairman Do you say the coal Is brought from Wyoming?
Mr. Rosewater Yes, sir; Rock Springs is 830 miles west of Omaha. That
coal Is brought here and used all along the road at different towns. The com
pany's agents, or the men who are employed as the company's agents, sell coal.
In the city of Omaha only one person is allowed to sell the coal, and he Is the
agent of the company. We have been liuying that coal at $7 a ton, and that is
very reasonable for the class of coal. It Is very excellent coal, of Its variety.
But the coal from. Union I'aclfic mines comes lu comietltion here with Iowa
coal, and coal from Illinois, Ohio and Pennsylvania, and from Fort Scott, Kan.
They carry it from Rock Springs to Omaha, 8.'10 miles, and sell It for $7 a ton.
The cost of the coal, mined and loaded on the cars, Is $1.23 at Rock Springs,
leaving them $5.75 for the transportation of the coal to Omaha. At Sidney,
414 miles west of Omaha, they sell that coal for $7.50. Mark you, they carry
coal the whole 830 miles to Omaha for $5.75, and they charge for the 400-nille
carriage $6.50. And so it Is from Sidney down. At North Platte, which Is
201 miles from Omaha, and at every station along tho line, except at Grand
Island, the same price prevails; that Is, they charge a higher rate than they do
right at Omaha. At Grand Island they charge from $tt.50 to $7, for the reason
that it Is In competition with some coal brought in from Denver, Colo., by the
Burlington & Missouri. ' This Is one of the sources of complaint. The people
must have the coal, and they see no reason If the road con afford to carry it at
of a cent per ton per mile, from Rock Springs down to Omaha, why they should
charge 1 cents per ton per mllo at Sidney, and at North Platte 1V4 cents per
ton per mile. This is a very serious cause of complaint. , It Is discrimination
that is very palpable. '
EXTORTIONATE RATES ON WOOL.
I have a letter from a party with regard to the transportation of wool, which
Is also one of the staples of the west The wool rate, for instance, from Evan
eton and Wasatch, Wyo'., to Omaha is $1.41 per hundred. From Cheyenne to
Omaha, which is 40O miles less than Evanston, they charge $1.50; and from
Sidney and Lodge . Pole, this side of Cheyenne, they charge $1.00. So that
actually as they come on nearer to -Omaha the rates get higher. This Is rank
discrimination. From what I erin learn, the same Irregularities In the tariff:
obtain on the Burlington system and on Its branches. The grain traffic stands
in about the same way..
I omitted one point in reference to this coal matter.. Hard, or anthracite
coal, sells at.Otnaha at $9.50, and at Sidney, 414 miles further west, at $20. In
fact the price is entirely prohibitory. The tariff from Omaha to Sidney is
made so high that It compels those people to buy the Rock Springs coal.
The Chairman Their own cool?
Mr. Rosewater -Y'es, sir; and that same coal which sells at $7 per ton here
aells at $7.50 at Sidney, 400 miles farther west.
Senator Piatt -How far is this anthracite coal brought?
Mr. Rosewater-"Over 1.000 miles, and it is laid down here for $0.50.
Senator riatfcPraetically they charge $11 a ton for carrying it 400 miles?
Mr. Rose water Yea, sir;' that is the point I am getting at
. .. . . ir . . '
.. laffiNERAL RATES OF TRANSPORTATION.
With regard to oiir general rates of transportation I wish to show that we
have good reason for complaint The rate from New York to Omaha on first
class freight was formerly $1.50, and Is now $1.30. Of this, the rate from New
York to Chicago, 900 miles, Is 40 cents, and from Chicago to Omaha, 500 miles,
it is 00 cents.
The second class rate is 03 cents from New York; 63 cents of that Is from
Chicago to Omaha, and 30 cents from New Y'ork to Chicago. The distance
from Chicago to New York is over 000 miles, the distance from Chicago to
Omaha is only 500 miles.
The rate on third class freight Is 71 cents from New York, of which 40- cents
Is from Chicago to'Omaha, and 35 cents Is from New York to Chicago. Let us
compare those rates with the rates charged from here west. The first-class
rate from Omaha to Cheyenne, 510 miles, is $1.00 per hundred. In other words,
when you carry from Omaha to New Y'ork, 1,400 miles, freight classed as first
class for $1.30, the Union Pacific charged to Cheyenne, a distance of 516 miles
west of Omaha, $1.00, and to Denver, 500 miles west of here, the first-class rate
Is $2.46 from Omaha.
Senator Piatt Firty cents more than to Cheyenne?
Mr. Rosewater Y'es, sir; Denver being only fifty-three miles further. To
Ogden, a distance of 1,032 miles from Omaha, the first-class rate Is $3; to Evan
ston, which is this side of Ogden, a distance of 055 miles from Omaha, the first
class rate is $4.25.
There is a beautiful sample of railway classification. It is about on a plane
with what we used to charge In tho telegraph business. That may be a digres
sion from the point; hut when I first took charge of the wires in Omaha we
used to charge from Omaha to New York $5.05 for a ten-word message, and
from Omaha to Chicago $3.55. From Council Bluffs to New York we could
send a message , for $3.05, and from Council Bluffs to Chicago we could send
a message for $1.55. I have kuown men to travel across the Missouri river
in a stage coach and pay their fare of 75 cents to Cpuncll Bluffs, and 75 cents
back again, and send a ten-word message, and save 50 cents In the operation.
There is about the same consistency in this railroad classification' as in this
instance of telegraphing. . -- .
PROPRIETY OF REGULATING RAILROADS AND TELEGRAPHS.
Right here. I will say that there Is the same necessity for, and the same
propriety in regulating the railroads as there is in regulating telegraphs from
time to time. When the Taclflc Telegraph was chartered cougress provided In
the charter that, in consideration of the subsidy of $40,000 per annum for ten :
years in succession, no message should cost any more than $3 from the Missouri '
river to the Pacific ocean, and no more than 20 cents should be charged for each
additional, word. From that time to this there has never been a higher charge.
But we have charged right from Omaha to Salt Lake City as high as $3.50, and
from Omaha to Helena, Mont, we used to charge $(5.50. That shows that regu
lation by congress has a very good effect It prevents extortion generally and
prevents discrimination against places.
The Chairman And between persons?
Mr. Rosewater And between persons. . ,
' Senator Piatt Have you stock yards in this locality?
OMAHA STOCK YARDS.
Mr. Rosewater We have stock yards now that are on this side of the river,
established, I should aay, about nine months ago. That is, they were put in
practical operation at that . time. v
Senator Piatt Who are those stock yards owned by?
Mr. Rosewater They are owned by a syndicate of citizens of Omaha and
Chicago. ...
Senator Piatt And not by railroad men?
' Mr. Rosewater No, the railroad men have nothing to do with that, as far
aa I know.
With regard to this "Doane" or "Tub" law, as they call it, the law is un.
doubtedly efficient as far as It goes.
Senator Piatt Its provisions ore strong enough?
THE "DOANE LAW" IGNORED.
Mr. Rosewater Its provisions are proper aud right. The law prohibits
railroads from charging any more for a short haul than for a longer one. But
the Illustrations that I have cited here would indicate that they do charge more
In spite of that law. As a matter of fact, the railroad companies have ignored
the Doane law ever since the law was passed. Not only that but they have
made a farce of It They first took the position that it waa an unwarranted
exercise of power that they should be regulated at all, and they called it the
tub law the tub thrown to the whale and the local railroad organa own the
favored shippers and parties who stand In with them in politics, or out of
politics, all set up a general howl and a guffaw at thia law.
Senator Van Wyck was a member of the legislature that passed that law.
It was the best that could be done at that time with that legislature. If en
forced today, It would accomplish a great deal and would do away with many
abuses. It can aud should be enforced. I have made the experiment. Up
to the time this law waa passed, under a very arbitrary ruling, tho Union Pacific
refused to carry our papcra on a freight train that CHriiod other papers. For
years they refused to carry them, and I had no remedy. At least I thought I
did not have. They said they would not bill them'; they had uo time to bill at
5 o'clock lu the morning. But after that law had gone Into effect I called on
Mr. Vlnlng, the general freight agent, aud wanted to know whether he waa
going to carry those papera. I was, of course, willing to pay the freight charge.
He aald, "I don't know. I suplose we will have to." I said, "Certainly you
will have to. If you do not I am going to prosecute the company and enforce
my rlghta." An order was Issued to that effect, aud the pajxra have been going
ever since.
A COMMISSION NOT APPROVED.
There is oue way of illustrating that a law la better than coiumlsslona.
There is a telegraph law, fur example, In our state today, that prohibits dis
criminations, rebatea and other abuses. I. cite that as an Illustration to show
that lawa ran be enforced and that the proper remedy is not with commissions.
As far as I am concerned, I do not believe in commissions, because I think a
citizen who is Injured ran always get redress, if the statutes will provide tha
proper remedy. ,
Senator IMatt If he will make the effort?
Mr. Rosewater If he will make tho effort. Our telegraph law prohibit
discrimination and favoritism. It prohibits higher tolls for short distance trans
mission than Is exacted for longer distances. Last January I discovered that
we were paying a great deal more for special dispatches than the other Associated
Press papers were paying, who were friendly to the railroads. I inquired into
It and was told if I would sign an agreement which would bind The Bee Pub
lishing company not to patronise competing telegraph companies for a number
of years we would have the reduction. I refused to sign that paper, and fiually
notified the telegraph people that I would sue them for the recovery of every
overcharge they had made. After I had served notice upon the Omaha manager,
I called on their general manager at Chicago. He thought I ought to sign that
agreement. I said, "It Is against my principles to sign such a paper. It la
contrary to public policy, and I will not sign It. I ccrtaluly will prosecute
your company under our statute If you do not refund to us the overcharge."
"Well," said the general manager, "I do not like threats from anybody. We do
not generally accede to any threats." "This Is not a threat" said I, "but a
demand for our rights." My appeal w a s forwarded to General Eckert presi
dent of the company, and presently the order was Issued. What we had over
paid was refunded to us, and we are getting tho same rates now that anybody
else gets. Wc had a similar experience with regard to mileage. The Union
Pacific, for Instance, absolutely refused to sell our traveling men mileage trans
portation. IJtst summer I concluded, after readlug tho Donne law over, that It
prohibits discrimination. I presented to the passenger agent bills of lading for the
paper which had been transported over the Union Pn.lflc bridge, ami showed
that we had paid the sum of $700 for freight I asked the agent, to sell tne
mlft'age thansportatlon. I said: "I hold In my hand receipts that show that
we have been a patron and shipper over your railroad, and consequently are
entitled to the same treatment to which any other shipper Is cntitlHl." He
telephoned to headquarters, and the answer came buck, "Go ahead aud sell hltu
the mileage." Up to that time for several years they had refused to do It Mr.
Adams aud the preseut administration has endeavored to remedy a great deal
of abuse. I admit that.
Senator IMatt May I ask yon If you think. In his management of the road,
he Intends to remedy these abuses as fast as It can be done?
Mr. Rosewater I should suppose he does. As far as his talk goes It is very
satisfactory. 1 have hod a conversation with Mr. Adams and have git en hlu
some outline of the complaints. He said he would do what he could to bring
about a better state of affairs and a better slate of feeling between the people
and the railroad company. Still. I believe we need the protection of the law.
The former manager of the Burlington system, Mr. A. E. Tousalln, said to me:
"Why do you persist In this agitation to force railroad legislation? We are
doing everything we can to develop the state, we are encouraging the settlement
of the state, and you know It has Increased In population and wealth through
our efforts." I admitted that the Burlington railroad had done a gjwd deal to
bring about that condition, but, said I, the people of Great Brltalu bad aome
good kings. Their kings built highways and harbors and aqueducts and bridges
and promoted other public Improvements with the people's money. Having dona
so, they were generally regarded as good kings; but. In order to protect them
selves against the bad kings that were liable to follow, the people of Great
Britain hedged their monarehs In with limitations. These limitations were put
Into the shaie of parliamentary statute, that prevented kings from overstepping
the boundary lines and tyrannizing over the people. It Is the same thing with
railroads. You are a good king, but you do not know today but that your head
may be cut off tomorrow. What we want Is protection against abuses, and we
cannot get it except by law."
Senator Piatt You do not think, then, that you have. corrected all the abuses
yet?
Mr. Rosewater I think not. A vast amount of Improvement is needed yet
i thnt can le had eventually. When ire are told, for instance, with regard to
I thoaa rallmnitfl irhnt tliov linTo tnut na nnmnnrfifi -with thn rnllwitva in Inn-A and
Illinois, I simply answer: "It does not matter how much the rallroada cost when
they were built, or how much the men who built them fraudulently expended
through side partners. The question Is simply this: What can a railroad of
equol capacity, with the best equipment, be laid down for at this day, and what
relation does its Income bear to its charges? If I were going to rent a house, it
does not seem to me that It would be the province of the owner to point to tho
fact that twenty years ago bricks cost $20 a thousand in Omnha and I remem
ber that I used to pay $20 a cord for wood and $100 a thousand for lumber. If
that man should soy. "That building cost $100,000, and I must get enough rent
out of It to pay the Interest. on that sum," my reply would be, "What can such
a house be built for todoy?"
THE OMAHA ROADS PRACTICALLY NONCOMPETING.
Senator Platt-Are these two roads, the Burlington & Missouri and the
Union Pacific, competing roods here?
Mr. Rosewater To some extent, but not very much. I question whether
they compete very much.
Senator riatt Suppose they are not competing. It is the case where a great
many roads have been built In many parts of the country, that one railroad
could do nil the business properly, and with proper dispatch, and serve the public
as fully as Is requisite. Suppose three railroads have been built, and all built
on houest capital. Y'ou have then three times as much capital Invested In rail
roads between these points as Is necessary. What are you going to do? The
transportation charges are really a tax upon tho public. Are you going to tax
the public enough to let all three of those railroads- live on a fair basla of honest
capital, or enough only to let one railroad live? There is a problcjui I would like
to have you give your views about. ; ' . -
LIMIT RAILWAY CONSTRICTION.
Mr. Rosewater I have thought of all of that The day has come when we
must limit the construction of railroads. I believe that before any railroad
should be chartered by either the state or national government there should be
some inquiry as to the necessity of building more railroads, and as to the re
sources of the'eountry through which the railroads are projected, and the facili
ties for travel ond traffic already existing. I admit that when three railroads
live on one section of the country where only one railroad con make a respectable
living on the money expended, it Is a very serious problem. But It is no worse
than where three newspapers start in a town where only one is needed, and
only one conl pay. But when newspapers start, and they find there are too
many, they cun do one of two things they can consolidate, or they can die, or
they can all starve, as they see fit But the newspapers, for nil that, cannot tax
the public. There is the beauty about that. They can only tax the owners.
Senotor Piatt On the other hand, the railroad is there.
Mr. Rosewater The railroad is there, and a railroad toll is in a certain sense
a tax. Hence the question arises, to what extent can a community be subjected
to the arbitrary taxing power of the railroad? Another company might build
another line from here to the raclflc, although there Is no need whatever for It.
and It might then pool with these other roads. These railroads must either fight
to the death or they must pool. One of those two things Is Inevitable.
BASIS FOR RATE MAKING.
Senator Piatt Suppose another company should parallel the Union Pacific
railroad to San Francisco, with an honest investment of property in each one,
so far as construction Is concerned. If the government Is going to fix rates,
should It fix rotes on which both roads can live, baaed on. the honest capitaliza
tion, or should It leave it to them to divide what should be sufficient for one to
live upon?
Mr. Rosewater In fixing rates, it seems to me, the question should simply
he to what extent can the public be taxed for the traffic that they are obliged to
carry over the public highways. If there are more public highways than are
absolutely needed, the men who Invested in those highways must take the con
sequences. They ought to have brains enough not to put money into railroads
where they can see there must be a loss sooner or later.
There are two problems. Are you going to allow an unlimited number of
railroads to be constructed, and then, Just as rapidly. as they are completed,
allow them to compel the people to pay Increased rates? It does not seem to me
that would be good policy. The policy of the government should protect the
people against all these needless encroachments.
EFFORTS TO PROCl'RE RAILROAD LEGISLATION, .
I have cited, In a general way, the causes of complaint and the dissatisfac
tion; but I have not dealt at any length with the efforts that have been made
to get relief. Our constitution, which was adopted iu 1875, made it obligatory,
or mandatory, almost, on the legislature to enact laws prohibiting discrimination,
or, as the constitution says, unjust discrimination, and authorized the legislature,
if necessary, to establish maximum rates; and required the logIsiture to pro
hibit pooling between parallel lines; and authorized the legislature, in the
enforcement of all railroad regulations, to go so far, if necessary, as cvun to re
quire the forfeiture of franchises already existing.
Tho Chairman Forfeit franchises already granted by the state?
Mr. Rosewater Already granted. There have been since 1875, I think, at
least five succeeding legislatures. ...
Senator Piatt You havo biennial sessions?
Mr. Rosewater We have biennial sessions. There have been some special,
sessions, but I think only one or two. The first practical attempt at legislation
that is, the first bill ever passed was the Doane law. That law In its general
provisions was in conformity with the constitution, but It was assailed at the
time, as I have previously stated, as being practically Inoperative, unjust, ex
travagant, and I do not know what all. The railroads declared In a general way
that they would live up to the letter of the law. They have lived up to it with
a vengeance. They started out lu the first Instance, to declare that they could
not carry any exhibits to the county or state fairs without exacting full trans
portation rates, exactly at the same tolls that were exacted from ordinary ship
pers for the same classes of commodities.
The Chairman Could they do so under the law? What waa the fact?
OPPOSITION OF THE RAILROADS.
Mr. Rosewater I think they could; they could have made a classification.
The law does not require anything more than that for a like shipment over a
like distance, like rate shall be charged. It requires that there shall be no
discrimination. There may be a classification for state fairs, Just as there could
be for excuralons. They said that no more excursions could run In the state.
They could give no excursion rates. The rate to be charged waa to be uniform.
The law does not contemplate anything of that kind, and they have no dis
covered since. But It was sufficient to create a general distrust and general dis
content They also went to work and, under all sorts of pretexts, ralaed the
rate in far western localities, construing thia law with regard to short and long
distances In a very exact way, so that the people said: ."This law, instead of
reducing our transportation rates, la actually raising them; and instead of Ita ,
being a relief. It Is a burden." In that way the thing gradually wore down until
the railroad managers found it convenient to Ignore the law entirely. I have
reason to believe that a great many drawbacks have beeu allowed, In aplte of
the law; and certainly much greater ratea are being charged for ahorter dis
tancea than for longer onea; so that that part of the law, at any rate, has been
systematically violated.
METHODS ISED IN DEFEATING LEGISLATION.
The next effort was made in the succeeding legislature. There has been no
legislature In session for the last eight years, at any rate, In which there has not
lecn a great struggle over railway legislation. The methoda. generally pursued
by the railroad managers have lx-eu these: They would get aome of their friends
to introduce multifarious bills, some of them so extraordinarily strlngentthat
no rational men would want to vote for them; aud by creating a cou fusion of
ldeaa and a conflict of opinions, aud by having a large lobby at the atata cupltul,
aud by making all sorts of promisee of reward a ad of employment to in embers
s