THE OMAIIA DAILY DEE: MONDAY, FEBRUARY 20, 160ft.
FEDERAL REGULATION OF RAILROADS AND RAILROAD RATES
of the legislature; hy combining with parties who had Job to log-roll through
the legislature, and by becoming hackers of those John. and. In return, trading
and exchanging voted, the railroads succeeded in defeating every effort made so
far to get legislation, until thin Inst winter. , There have leen bills passed through
one house excellent bills, and bills that were moderate that would be defeated
In the ntlier hniife. and vice versa.
The Chairman What additional legislation have the people been seeking I
lnce the first law was passed?
Mr. Rosewater They have sought. In the first place, for a reduction of the
passenger rates. That has been sought right along in every legislature, and it
was not obtained until Inst winter. It Is very moderate. The Inw provides for a
8-ceut rate this side of the lOMth meridian. The general demand was for a law
that would define much more clearly what unjust discrimination should Ik, and,
If possible, that there should be n rate law fixing n maximum, and perhaps also
a minimum rate, with regard to four or nve classes or rreignr-tnai is. upon
charge per ton Per mile. I have heard a great many railroad men at different
times with reference to railroad legislation. They invariably snld that nobody
but a railroad man could iosslbly arrive at any rational conclusion on this sub
ject; that It Is one of those mysterious intricacies that no person can solve, un
less he Is right in the offlco himself.
HATK MAKIXfi SOT SO DIFFICILT A9 IS IXT! MATED,
T'non lnnnlrv among railroad men as to how they arrive at the cost of trans
portation I find that they have no difficulty about It. They arrive at It by the
basis of carload rates per ton per mile. It cost the railroad so much per ton
for a given amount of freight to carry it one mile; and they aggregate the miles
and thereby ascertain very nearly whether they are losing or making money
In getting certain rates. But In making rates they do not govern themselves by
the cost, or anything of the kind. They usually ascertain, first, the character
of the commodity, and the business of the party who has It in hand, and the
grain, cattle, coal and lumber. I'pnn the ordinary lines of merchandise no one amount of charge he could staud without entirely stopping his traffic. They de-
has sought for. or, at least, no general effort has been made for, and no one ad
vocated, a tariff.
PROPORTION OF STATE ASD HTKH STATK TR AFFIC,
Senator Harris I would like to ask you about what proportion of your
railroad traffic begins nud ends in the stnte of Nebraska, and what proportion
begins in another state and ends In Nebraska, or lieglns In Nebraska and ends
In some other state? In other words, I want to know how much of your traffic
is state and how much Is Interstate commerce.
Mr. Hosewater That would be n very difficult question for me to answer.
I have no necess to the railroad records. Various statement have been made.
pend also upon the local necessities; where there is no competition, rates are
arbitrarily fixed. It seems to me if a railroad company can carry coal to Omaha
and deliver It there, and sell it for ?7 a ton. which Is at the rate five-eighths of
a cent per ton per mile, after deducting the cost of mining and loading on tne
car, they ought not to be allowed to charge Vh cents per ton per mile for hauling
coal to one town on the same rond and Vt cents per ton per mile for hauling to
another. It seems to me that they ought to be able to deliver that coal at the
same ratio, or at least something near it.
1 TUB SHORT AM) I.OXG IIAI U
The question would arise whether a short and long haul should be treated
I remember Mr. Dillon, In his last report to the stockholders, made a statement i alike. I would say no. I do not say. of course, that the short haul should have
that a lanre iter cent, something like ;n or T per cent, of the entire traffic of
the road was local that. Is. that It began nt Ogden nnd ended at Omaha. But
even thnt would be Interstate, because n great percentage of that, such as the
coal traffic, logins in Wyoming and ends here. To get any Idea of the approx
imate percentage of local and through traffic would be very difficult.
Senator Harris I supposed you would probably have an approximate idea
as to the percentages.
Mr. Hosewater I have not. I will proceed with regard to this legislature.
These bills, as I say. have been defeated; nnd when I say there were corrupt
Influences used, I mean exactly what I say, nnd I have evidence of It I was
traveling, for Instance, last winter on my way down to Lincoln, and I met a gen
tleman from Columbus.
LEGISLATOR FAVORKD HV RAII.ROAIJS,
He said the memler representing thnt county in the previous legislature of
1881 was sent there under express Instruction, and with pledges, to assist In
ffettlns ur a railway law. and he had systematically voted the other way, or
had absented himself, when he did not vote ngninst railroad legislation. He j
said: "That man now has sieclnl facilities nnd special rates over the rond In his
business, nnd he Is mining my business." This man Is In the hardware and I
machinery business, and he snld: "I cannot begin to compete with him. This
man has an annual pass over the road to go where he pleases. Besides that. I
believe he has also lower freight rates, so thnt I cannot sell or compete with
him at all." There are other Instances thnt I might cite where members of the
legislature, within a few weeks, or nt the outside a few months, found their way
Into Omaha. They did not even dare to go bnek to their own constituents, and
they went directly from the stnte cnpltol into the employment of the company,
either in the shops, or at the headquarter, or for the bridge company. I do not
say that Is the present regime of the road, but that was the way up to the last
legislature.
PROPOSED COMSTITl'TIOXAL A MEM DM EXT REJECTED.
When the last legislature convened there was an expression of opinion upon
the part of the people of this state upon the question of legislation that was very
emphatic. The legislature preceding thnt one had submitted to the people of
Nebraska a constitutional nmendnient providing for the election of a railway
commission. Our constitution prohibits the creation of any new state officers
beyond those already named Jn the constitution Itself of 1N7". So thnt this rail
way commission could not have been constitutionally created. We hnd an opin
ion of the court upon thnt question. Therefore this constitutional amendment
was submitted. That amendment was snowed under, so to speak, by a very
large majority nearly 2 to 1.
Senator Harris By the popular vote?
v THE PEOPLE'S DECISION FRISTRATED.
Mr. Hosewater By the popular vote. It would have been supposable thnt
when the people voted that down nnd Indicated that they wanted no such ma
chinerywhatever their motives might have been the legislature, elected nt the
same time, should have shown respect for this expression of opinion by the
people who elected them. But instend of thnt, there wns Introduced in the legis
lature the usual volume of railroad regulating legislation. There were bills es
tablishing tariffs; there were bills reducing the present mtes; nud in the general
wrangling over these bills, the same tactics being exercised and the same rail
road lobby being there pretty nearly every prominent railway manager was
there they deliberately strangled every measure that promised relief from ex
tortionate tolls and discrimination. Even the 3-cent a mile passenger bill was
Toted down.
Senator Harris That was for a passenger rate?
Mr. Hosewater Yes, sir; a uniform passenger rate. They voted that down,
and finally forced upon the legislature, and I say delllerately forced through the
legislature, the bill creating a bogus railroad commission. I say "bogus," for the
reason that a commission could not be constitutionally crented, and therefore
this substitute was provided in the shape of three secretaries. They are the sec
retaries of three stnte officers. The officers are supposed to be the commissioners,
but the secretaries are really to be the commission. This was certainly not In
conformity with the letter and spirit of our' constitution, nnd it wns in open de
fiance of an expressed popular vote given two years ago this fall. There was
every effort conceivable made by the railroad mnnngers and railroad lobby to
have that bill passed, and It was put through at their Instance. They alone are
responsible for It. What we have to hnpe or to expect from a measure that has
been forced upon us by the parties who are opposed to regulation, and who cer
tainly do not want any regulntion that will decrease their Income, I fall to see.
Senator Harris This last act does not repeal the former act, does it?
Mr. Rosewater it does not.
Senator Harris Does this last act require the commissioners to enforce the
former act?
Mr. Rosewater I do not remember clearly about that, I have not examined
it with that view. .
Senator Piatt I notice that they are to listen to all complaints that are
made under it.
Mr. Rosewater While that provision may be tnken as strictly applying to
the previous law, the fact does remnln that the commission Is clothed with no
authority except to Inquire Into complaints, and to report the same from time to
time to the governor, and through him to the legislature, for redress. Of course,
any person who Is aggrieved under the old Doone Jaw on account of discrimina
tion may bring suit; but there are some features of that law that are very lame.
( WHAT 19 AN TREASONABLE CHARGE?
For instance, It Is a very difficult thing to establish what Is an unreasonable
charge. Our constitution says that charges shall not be unreasonable. So does
the statute. But that Is a very indefinite thing. What might be regarded as ex
tremely unreasonable In Massachusetts or New York might actually be reason
able in Nebraska. Again, what might be unreasonable here would be regarded
as reasonable in Wyomiug or in Nevada. Without a specific maximum charge,
or some limitation by law, that would show just exactly what you would regard
as unreasonable, there is no possibility, in my opinion, of enforcing any penalty
upon the railroads in Nebraska under that part of the statute,
WHAT IS INJIST DISCRIMINATION!
There might be an enforcement of it so far as discrimination was concerned.
But there come In the words "unjust discrimination." 1 have heard my friends,
the railroad managers, contend a dozen times In the legislature that there is a
discrimination that can be Just and reasonable, and that should be allowed.
Where will the line be drawn between Just and unjust dlscrimluatlon? For in
stance, they say that when a man ships KM) carloads of freight he ought to be
entitled to a better rate than the man who ships ten carloads or only one car
load; and that It Is no discrimination against the shipper of the smaller number
of carloads to charge the shipper of the 100 carloads a lessor rate per carload.
I would hold. If we were to establish it and that Is what should be estab
lishedthat the carload should be the unit, and that the shipper should have no
rebate for any larger shipment, whether he shipped a thousand cars or one hun
dred cars or any other number.
Senator Piatt lo you know practically how much rebate the roads give on
large shipment over a small one?
REBATES.
Mr. Rosewater That Is, of course, kept very closely in the auditor's depart
ment. They employ a large number of clerks In the offices of both of the -railroads.
They are called "overcharge clerks." Those overcharge clerks handle not
only the proper overcharges that come along during the courso of business, but
also the rebates. I have reason to believe that there have been rebates allowed,
but, under this statute, the railroad company Is not likely to come forward and
notify anybody that they have allowed rebates; and those parties who are en
Joying that privilege are not likely to come forward and tell upon themselves,
and hare the privilege withdrawn.
The Chairman Do you think that could be practiced very long without being
found out?
Mr. Rosewater It might be, and it undoubtedly is, with regard, for Instance,
to the grnln truffle.
Senator I'latt The railroads hold that they have a right fo do it. They say
It Is not unjust discrimination, as I understand It.
Mr. Rosewater That probably would be the answer. If we should flud
them discriminating In that line that would be their answer. But they never
tell that they do make rebates. They deny that rebates are not being made.
Senator Piatt Yet the course of business, nnd the way people conduct their
business, satisfies everylnwiy that rebates nre made?
Mr. Rosewater All I know W. for instance, that I have a letter in my pocket
from s man in (iraud Island, who says that when he was shipping grain there
he was constantly growing poorer and poorer. Vnd that he could not compete
with the other men. The others were getting drawbacks, which enabled them
to earn a large Income, where he was actually losing money. Thnt man, too, is'
not a man who asks me to have It kept In confidence. If there is any desire for
it, I will give his name. Iu fact, he makes this quite a serious complaint I
.have already stated today and have shown that the rates on those particular
necessities, like coal, are very different In different places, and are extravagantly
high In the western part of the state as compared with this end of the state.
So that there Is no doubt some legislation is necessary, unless the railroad com
panies artt willing on their own account to right the wrong.
THE REQUSITE LEGISLATION.
The Chairman Tell us what legislation Is needed, in your opinion.
Mr. Rosewater-In my opinion, cougress should enact that clause of the stats
law it probably Is In the Rengau law which provides that they shall uot charge
a higher rate for a short distance than for a longer one.
Senator Harris That they shall not charge a higher sum or a higher rate
per mile?
Mr. Hosewater No; a larger sum.
Senator Harris In the aggregate? '
Mr. Rosewater In the aggregate. That would be one way of stopping dis
crimination. There should also be a statutory enactment that would tlx the
a higher rate than tlie long haul, nut mere must ne some (lennniou m a smui
haul. Does It mean ten miles, fifty miles, 1(H) miles, 150 tulles or 200 miles?
There should be a national law declaring what a short haul Is, and defining what
a medium haul Is nnd what a long haul is. If that were done, and it were di
vided up in such a way as to say that the charge for 100 miles should be so
much per ton per mile as a maximum, leaving the roads a reasonable margin In
which to come down to the lowest rate, or make a maximum and minimum rate,
and then say that for any distance under 200 miles the charges should be so
much, and for any distance over 5O0 miles It should be figured as a long haul,
and the charge allowed would be so much per mile, I think there would be no
ground for complaint.
Senator Piatt The medium and the long and the short hauls would have to
vary according to the length of the railroads, would they not?
Mr. Rosewater Not necessarily. They do not transfer, because they have
short railways nowadays.
Senator Tlatt If you had In the state a railroad that was f00 miles long,
and you had another railroad In the state which was only 2.V) miles long, you
would wnnt to mnke a difference between those roads In determining what was
the short and what the medium nnd what the long haul, would you not?
Mr. Rosewater I do not think I would. I think we would have to treat all
rallronds as a continuous line nowadays. They are practically, in operation, a
continuous line. They now load a carload on the shortest Hue and transfer it
to any distance. 1 would treat the roads In that wny.
MAXIMUM AND MINIMI'S! RATES.
The Chnlrmnn Do I understand you to tnke the position of favoring the
fixing of maximum nnd minimum rates by congress?
Mr. Rosewnter Upon a few eonimoiMties only; as I say, upon the heaviest
classes of freight. Upon that clnss, for Instance, which the people of the United
states are mostly concerned in. They certainly are more concerned in the agri
cultural products. In live stock, In provisions, coal and lumber, and In that class
of commodities, thnn In anything else. Terhnps the best thing would be to make
an experiment, and not to undertake to legislnte too much and on too many
different subjects at the same time. It seems to me that upon those mentioned
it would be proper enough to legislnte and fix a maximum as well as a minimum
rate.
The Chairman Do you believe your maximum and minimum rates would
be of any practical value, because of the fact thnt you would have to fix them
so wide apart? '
Mr. Rosewater Yes, sir; I should not think they would necessarily be fixed
so wide apart. They certainly would not Interfere with the present railroad
charges. If, for Instance, we were making the maximum charge today for Iowa
railroads, and we made that the charge for all railroads in the United States, it
would have to be a very elastic charged I suppose in New York, Massachusetts
and Connecticut, a rate that would be regarded as very reasonable in Iowa as
a maximum rate, would be extravagantly high there. I admit that. But con
gress could enact maximum nnd minimum rates on lines that take into consid
eration location and conditions.
MILEAGE TICKETS AT FIXED RATES.
Senator Piatt I am told that the New York Central carries passengers from
New York to Albany for $1.40, which is less than a cent a mile.
Mr. Rosewater Yes, sir; and if the deadheads and all the drummers were
cut off they could enrry passengers in Nebraska for 2 cents a -mile. "It is main
tained by the railroad men, and some of them, I suppose, would Insist upon It,
that it is to the advantage of the railroads to reduce the passenger rate for a
commercial traveler, because it increases the traffic on the railroad. That is the
only ground that they could give me for carrying a comnuircjal traveler at a
lower rate thnn they charge to a fanner, or anybody eluet : n.i i-
Senator Piatt Do they make a lower rate to commercial travelers?
Mr. Rosewater Tbey sell them a thoufiand-mlle ticket "at 2 cents in Iowa,
and in this state at 3 cents. tr ,
Senator Harris Do they not sell that ticket to anybody at the tame rate?
Mr. Rosewater No, sir. There are 200,000 commercial travelers in the
United States who enjoy this privilege. As I claim, there is uot one pound more
enrried over any railroad by reason of those commercial travelers going over it
than would be carried without them, excepting alone the samples which the
commercial travelers carry In their grips nnd trunks.
Senator Flntt I think the eastern roads do not mnke any difference as to
the person to whom the tickets are sold.
Mr. Rosewater We will admit that there is a much heavier population In
the east, but they treat all people alike. They sell at a minimum or very low
rate to anybody who can pay the money. Here a large percentage of the people
pay nothing. .
The Chairman If they did sell to all alike there are a great many men" who
do not want a thousand-mile picket and who would not ride a thousand miles
in very many years. They would have to pay the regular rate, so that you are
discriminating against the poor or the man who occasionally travels. ,
Senntor Piatt Very likely, but that Is not quite so bad as to sell a thousand
mile ticket to one man and not to let another man have one who travels Just as
far.
The Chairman Is It right to sell a thousand-mile ticket at all at less than
the ordinary fare which everybody pays?
Mr. Rosewater I would consider that the proper way to do would be to
sell everybody such a mileage as they need at the regular fixed price, Just as
we buy postage stamps at the postoffice. Here Is one of the causes of discrim
ination, and also of favoritism, because In this very matter there are those who
are favored and those who are not. The retail merchant has to pay the full
price. He Is. to some extent, a shipper, but is not a commercial traveler; he does
not ship enough to warrant him in making nn application In the proper form.
They have to show that they are heavy shippers over the road. The result is
that those who have heavy traffic have the advantage.
Senntor Tlatt You touch on the system of issuing passes; to what extent is
that done in Nebraska? '
THE PASS SYSTEM. . . .
Mr. Rosewater The system of Issuing passes on the Union Pacific, up to
Mr. Adams' administration, has been very extensive. I have talked with the
conductors, and they have said that at least 10 per cent of the traffic Is free.
Since Mr. Callaway has come In, a large army of political strikers and followers,
who have passes all over the state, to go at leisure, has been disbanded. The
Burlington rond still transports, according to my best information, not less than
10 per cent of all its passengers free.
Senator Piatt Do you think, if the pass system were absolutely abolished
by the roads, it would le better for them, and that one great cause of irritation
of the people would be done away with?
Mr. Rosewater Certainly; because, when men travel who are paying, and
they see large numbers of people who do not pay, they feel that there is some
imposition upon them, or that there are people who are favored.
The Chairman It Is a source of irritation to those who do not get the favors?
Mr. Rosewater Yes, sir; and It ought to be abolished. I believe if they had
cut down their pass system entirely five or six or seven years ago, and had then
adopted a 3-cent mileage rate, instead of keeping it at 5 cents tip to within two
years, and at 4 cents since, they would have a larger income In the aggregate
from the passenger earnings than they got at the 4 and IS-eent charge.
COMMISSIONS FOR SELLING TICKETS.
The Chairman What do you say as to the commission allowed to agents
for selling tickets? '
Mr. Rosewater That Is a subject I have not investigated. That is an in
ternal arrangement among railroads that 1 have heard no complaint of.
Senator Harris You have scalpers?
Mr. Rosewater We have scalpers everywhere, but I do not think those
scalpers arc employed by the railroads. They are parties Who buy through
tickets from parties whose destination is to a certain point and who have bought
tickets through, and when they have reached that point sell the balance of the
ticket. , -
Senator Piatt Every city has a ticket office for every principal road. How
are those ticket offices supported?
Mr. Rosewater In the large cities it is quite an outlay on the part of the
railroads. The scalpers are not employed by the railroads. There Is another
thing about the scalpers' offices. Th scalpers are a sort of detective system,
In my opinion. They are used by the railroad companies to detect frauds upon
the pass system. Parties who want to sell their free transportation to some
scalper are generally immediately spotted, and notice Is served and they are
usually arrested. I think that is one of the causes for doing that If the pass
system was done away with the scalpers would follow.
Senator Plntt Do you not understand that It Is the practice of the railroad
companies to allow a commission to ticket agents who have their offices in the
different cities for doing business?
Mr. Hosewater Tbey may do so. I should not be surprised If that were
true. Instead of salaries they may be paying commissions.
effected could be deducted from the price of tickets. It would be a considerable
item in the way of reduction. ,
Mr. Rosewater I have covered that branch. I presume. I have shown, so
far as the people of Nebraska are concerned, that they will still continue to agi
tate the enactment of laws that will establish a maximum rata, or at least a
limit to the charges, and they will undoubtedly continue to agitate until they
get a more stringent penalty for violations of the law with regard to discrimina
tions and have It defined much more clearly than at present.
THE JURISDICTION OF TUB NATIONAL. GOVERNMENT.
Senator Piatt I understand you to say, with reference to all these roads
that have been chartered by the government In the territories, which have stnee
become states or which nre still In a territorial condition, that the government
has full power to deal with all passenger and freight rates?
Mr. Rosewater I think the charters of those roads are all drawn pretty
much after the July, 1WV2, charter of the Union Pacific railroad. They are all
about on the same model. They all state that congress reserves to Itself the
right to regulate tolls. There is one proviso In the charter of the Taclflc
road which says that congress reserves to Itself that right only when the road
can earn more than 10 per cent upon Its investment. But I think It has been
generally construed and held that congress can at any time legislate upon that
Question.
Senntor Harris Congress reserves the right to alter, amend or repeal the
charter?
Mr. Rosewater Y'es, sir; there is no doubt that congress could regulate the
tolls, so fnr as passengers and freight are concerned, over the main lines of
these two great rallronds in Nebraska.
Senntor Plntt Because that is Interstate business? But Is there anything,
now that Nebraska has become a state, which makes it any more dlffltrult for
the government to say what passenger rates shall be charged from point to point
within the state than It was before Nebraska became a state, with reference to
the government roads?
Mr. Rosewater I do not believe that on those land grant railroads there Is
any question nut tnat congress can reguiaie win ircigm ana passenger xaruxa
In Nebraska. On their branches 1 suppose it would be difficult.
Senator Piatt Those have been built under the laws of Nebraska?
Mr. Rosewnter Thev have been built under the Irene ral laws of Nebraska.
They can be regulated, of course. iy the etate proper, becanse by accepting the
right of eminent domain they have placed themselves directly unaer the regu
la ting power of the state.
Senator Flatt Have you a locnl pool of the railroads which compete for
business east of Nebraska?
Mr. Rosewater Yes, sir; I think there has been a local pool here all the time,
or most of the time.
I think I have got about through, so far an that part Is concerned, and the
only thing I wish to speak of further is as to the questions you have put In the
circular. With regard to the remedies to be applied by congress, my idea would
be. in the first place, that the primary remedy to be applied is, if possible, to
wring the water out of all the land grant railroads. That may be a confusing
statement.
WHINO OCT THE WATER.
The Chairman Would you not wring It out of some others also?
Mr. Rosewater If congress had the power I would have it wring It out of
all of them. 1
Senator Piatt If congress is going to fix rates on Interstate commerce, of
course it can fix the rates with reference to .what is the real, honest capital of
the railroads.
Mr. Rosewater These parties who operate railroads for gambling purposes
do not seem to be satisfied, no matter how much wringing there Is, and will not
be satisfied until there is a congressional regulation that will limit stocks, and
will say how much stock a railroad company shall be allowed to Issue above its
Indebtedness.
PRESENT RAILROAD Bl'REATJ S1TFFICIENT.
Right here I will say that the bureau of railroads, which for some six or
eight years has been established at Washington, Is amply competent to handle the
matter, as far as Its Jurisdiction should go. It already has Jurisdiction over the
land grant railroads, and, in my opinion, all the railroads could be required to
retiort to the commissioner. But Its scope should De enlarged. There siiouia
be a limit to the issuance of stocks and also of -bonds by railroad corporations.
When thnt Is done, the first step will be taken townrd curbing speculative rall
rond construction. The real investors In these railroads have probably had noth
ing to do with their construction.
PROTECT THE MASSES RATHER THAN THE ORPHANS.
I have heard a grent deal said about the orphans, and that congress should
protect the poor widows and orphans in Massachusetts and in New England
generally. If anybody who Is an administrator for orphans and widows invests
their money In stocks that are gambled in on Wall street, he should be Dranaea
and sent to the penitentiary. No person should Invest orphans' money in such
elastic securities. If he does. It would make no difference whether ho Invested
It In the Union Pacific or Wabash. If he had invested It In Wabash, he would
have been wrung out entirely. A receiver has been appointed for it, and other
railroads have had receivers appointed. It seems to me congress should not look
to the few widows in Massachusetts, but to the millions of producers and con
sumers who are subjected to this perpetual railroad tax. The tax should be
made uniform and reasonable, and the tax should be made in their interest rathej
than in the interest of those who have put their money into railroad stocks that
are liable to be up or down from day to day.
I do not think the stockholders of railroads have been suffering so much.
I received this table a day or two ago from Bell & natch, bankers and brokers,
No. 4S Wall street, showing the average value of eighteen leading stocks be
tween September. 1SS1. and June. 1885. I will not be sure about the other roads,
but I refer to those we are interested in. We will take the first, the Burlington
& Qulncy. In September, 1873, Its stock was quoted at 90; In May, 1884, at 108;
on the loth of June. INKS, 123; so that the orphans in tnat nirecnon are not very
much Injured, or very badly off, even with the terrible squeezing the roads have
been subjected to.
In 1S73 the Chicago & Northwestern was 40, in 1884 it had gone up to 03,
and now it Stands at W. I suppose that road has been pretty well Inflated, too,
by its watered stock. Still, it Is held at 00.
A CASE OF DISCRIMINATION.
There Is a case of discrimination, by the way, right in that line. The Chi
cago & Northwestern nre building a line through this state, in the northern part;
and, as I am told, nobody can reasonably ship into Omaha from any point on
that road, because of the determination of its managers to send everything on
the long haul to Chicago. I do not know the exact figures, but I am credibly
informed that parties up in Fierce county, Nebraska, who wanted to purchase
white lead in Omaha could not afford to do so, because the rates were so high
from Omaha as to be prohibitory- They are obliged to get their white lead from
Chicago. This kind of discrimination does not come under interstate commerce.
Still, it points the way. The railroad mnnagers seem to be determined to dictate
where their patrons shall buy or sell. They not only seem to want to carry on
the affairs of the railroad, but they want to be sure they can entirely control
the commerce of tho country.
COMPARISON OF STOCK VALVES BETWEEN J873 AND JSS5.
Rock Island Is also in the same category in this stnte. We deal with that
road. We find that In 1873 its stock was 80; iu May, 1884, it was 108; and now
it is 114, on the 10th of June.
. The Union Pacific was 45 In 1873; 35 in May, 1884; and on the 10th of June,
1S85, it was 53. I do not know what It Is today. On what? That was the price
of the stock not only of the Union Pacific as it was quoted In 1873, but of some
twenty-odd millions additional stock that has been merged into It rrom the Kan
sas Pacific, worth 5 cents on the dollar, and lnrge amounts of other fictitious
stocks thnt have been merged with it, all now called, in general, the Union Pa
cific railway. Still, its stock is 53.
. Certainly the widows and orphans in Massachusetts are not so bad off, '
after all, as I thought they were. So far as congress Is concerned, It certainly
could legislate with regard to these railroads without actually Impoverishing
these widows, and at the same time do justice to our people. I think the fixing
of a maximum rate thnt would le rational and reasonable per ton per mile, and
the establishment of two units, loo pounds for broken car lots and a carload as
the unit for each carload lot, would be very essential for our section of the
country.
Senator Plntt If you hnve thought on the question, let us hear what you
think the effect of a reduction of rates would be on the aggregate or net earn
ings of the roads. What would be the effect of the 25 per cent reduction all
around?
Mr. Rosewater I do not think a cut of 25 per cent would be admissible. I
do not think the traffic of the roads would Increase proportionately to make up
that amount. There is a limited amount of overland traffic, now that four or five
Pacific railroads are competing with the Union Pacific.
EFFECT OF TWENTY-FIVE PER CENT REDVCTION IN RATES.
Senator Flntt The cost of a ticket from New York to San Francisco, I think,
is $125. Supixise that ticket was reduced to $100, which would not be quite a
reduction of 25 per cent. That would have some effect to Increase business over
the road, would It not? .
Mr. Rosewater I think that with regard to passengers the 25 per cent re
duction could be made very safely, because In that case there would be an In
centive to travel that would increase the number of passengers very materially.
Senator Piatt It would increase the amount of immigration, too, would It
not?
Mr. Rosewater Yes, Immigration and population.
Senator Piatt And when immigration came, that would Increase the freight
business.
Mr. Rosewater On the other hand, the freight traffic of railroads Is not to
be Increased materially by any Incentive of that character. A reduction on
freight rates would not create new freight
Senator I'latt Not immediately; but if it stimulated immigration and the
settlement of the country, it would eventually stimulate freight.
Mr. Rosewater Thnt would be at some distance off. There Is no doubt a
reduction ought to le made, not a horizontal reduction, going through all classes
of freight Indiscriminately.
Senator Piatt I speak of that only for illustration.
Mr. Rosewater I think there should be more than that on some classes of
freight, as I find the traffic now. I think there should be 50 per cent on some
classes, according to the rates now exacted by the Union Pacific road, because
There are lots of delicious
ways of using Ghirardelli's
Ground Chocolate. In the
preparation of cakes and
pastry it is unsurpassed. It
makes the sweetest confec
tions, and Ghirardelli's
Ground Chocolate has been
famous as a drink for over
half a century.
More convenient
than cake chocolate.
and economical
Two Ways
Hare vou noticed a. dlffleultv In hrMth.
tng ohort Quick breath when vou are
walking-, going up stairs, slnplnjr. or ara
angry and excited? Vou may not think
what this mean, but doctors will tall you
U mmni wenk heart action.
Take Dr. Miles' New Heart Cure at once,
ft will strengthen and build up the weak
ened nervea and muscle of the. heart, mid
make you strong- and healthy.
rnis la one way the right way.
Neglect It a little while, nnd vnn will
then notice Fluttering. I'nlpllatlnn. Dizzi
ness, Fainting Bnells, Vain In region of
heart, aide and shoulders. Stomach and
Kidney trouble. This I.e serious.
it la the other way the wrong- way.
Dr. Miles' Heart Cure
1 a safe, auns remedy, and la ourtng
Heart lnsenee right along, aa thousanas
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"I had enlargement of th hiutit Th
doctors said I could live but a short time.
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restored me to perfect health."
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The first bottle Will benefit. If nut tha
druggist will return your money.
OverworkKilling Us
In the Great Straggle-for Wealth and
Position We Are Becoming Weaker
Tnaa Our Forefathers.
By the cares of business and social
life we Me up or waste away the moat
Tital elements of the human body be
fore we realise onr weak and run
down condition. It seises on us so
quietly at first that little or no at-,
tentlon Is paid to the Bymntoms.
which commence with a queer, bewil-
aering sensation in the head. later the
power to concentrate the thoughts, so
necessary to brain workers, Is lost
Following this will come deficient
eight or blurred vision, muscular
weakness and a dull pain In the small
f the back. There Is a tendency to
tire easily; the digestion becomes Im
paired; the temper irritable: spirits
depressed, ending In complete lack of
confidence and a general feeling of
disgust at our own weakness. When
the blood and nerve forces have been
wasted by disease, overwork, worry,
braln-tlre, high living, dissipation or
other bad habtta. Dr. Chase's Blood
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Dy replacing the same substances
that have been lost Price 60 cents.
Sold and gnannteed by Mrers-DtU
Ion Drug Cn, Omnlin. Kelt.
SPECIAL
VERY 10W ROUND TRIP RATES
omeseekerS
VIA
UNION PACIFIC
February 21, March 7 and 21, 1905
From Omaha.
SI5.00
$11.00
One Fare
plus $2.00
(minimum rata
11.00) not to -ml
IH.OO In
Nabruka ana
WMUrn Ksnui
nor 111.00 in
KaniM ot
Oakley er
Colt.
Inquire at
City Tfeket Offleo, 1334 Farnam
Thon 810,
To Cheyenne, Laramla.
Rawlins, and all Intel
mediate Wyoming polnta,
Llmon, Ft Morgan, Ster
ling and all Intermedial
Colorado pouts.
To Oolby, Oakley and ail
Intermediate Kansas
points.
To polnta In Kansas and
Nebraska, west of and In
eluding Manhattan, Kan
sas, Columbus and Beat
rice, Nebraska.
The I'tinlrmnn t III, rnnl mnv rtnv n anlflrv nnd nthop mnjld nav nAmtnlu. i
. " " . . ,. n. '. i ' i , ' . ,' J, , a """ jtB rates are not uniform. conHlrlerlng distance and service.
B'.w". ."?.. "","" V:. " Tr. "f.-i . l",B nu- Senator Hatt-ln the case of Kas companies, when any
.v.: ' """ ur:.,"',u, "dU 'ZULV'i:?. "l!lrl of gM ha l.n made in any city, the result ha. been that t
. :.":",," : . C . "fX Kan have kept P to what tbey were at the former price. Would
ile operate as to railroads to some extent?
ageut uhcs bis Influence to get him to go on a line from which, If be sells a
ticket over that line, be will be imUl a commission.
Mr. Hosewater 1 think that Is done here also.
The Chairman What do you think of that?
Mr. Rosewater I should think that was an Imposition, In part, because It
causes Just that much more outlay to the railroad company, and consequently
prevents It from reducing the fares. As far as I can see, the object should be
to give the public the lowewt Mssible rate for which It can affonl te carry pas
sengers. ,
Senator I'latt It haa lieen testified before us that very large commissions
were allowed Iu some Instances. by tho roads to agencies In dlstaut, cities for sell- i
lug tickets. If the pass system should be cut off, and all the savings tbu
reduction In the
he receipts for
not the same
princlri
Mr. Hosewater The gas receipts depend on the meter a good deal. They
can probably regulnte the meters so as to make the Income keep up. Hut I do
not think the railroads have meters enough, or rather they hare not the ma
chinery to do It.
! Senator Tlatt In other words, the freight busiupaa Is limited by the capacity
' of the company ?
I Mr. Rosewater Yes, sir.
, Senntor I'latt And the production?
I Mr. Rosewater And the production, and the commerce, and Its manufac
tures. Hut 1 will say this as to this general matter: I wus before the Judiciary
(Continued ou Seventh Page.)
DOCTOR
SEARL.ES
AND
SEARLES
We uae our own nama
in our business; you
know who you are 4S
lng bUBlnesa wll&
Consultation PraS
VARICOCELE HYDROCELE
cured. Method new, without pain or loss
of time. CHARGES LOW.
Dl nnn OnlCnU cured for life, soon every
01UUU rUldUn n, aymptom (sores on
body, In mouth, tongue, throat, hair and
eyebrows falling out) disappear completely
forever.
Weak, Nenous, Men ar5SS
resi. nervous debility, early dscllna, lack
of vlKOr and strength.
VKINAHY. Kidney and Bladder Troubles.
Weak back. Burning Urine, Frequency of
Urlnatlns. Urine iflsh Colored or with
Milky Sediment on attending.
Treatment by niall. 14 years OF 8UC
CE8HKUL, PRACTICE IN OMAHA. Car.
ear of 14 Lb, aad Eeut'laa, Omaha. Neb.
I.F'OAb KOTICKS.
MEET.
reaular
of tho
NOTICE OF BTOCirHOLriBRB1
INQ.
Notice Is hereby given that Ihe
annual meeting or tne storsnomera of
Bouth Platte Land Co. will be beid "A the
office or aald company in Lincoln, No
braiika, at 11 o'clock a. m., on the 1st uay
of March, A. l .
By order of the Hoard ef Directors.
C. H. MO H RILL, President
A. 13. MINOR, Secretary.
Lincoln. Neb., Jan. X), 1j6.
JS1 d30t
NOTICE TO PTOCK HOLDERS.
The regular annual nii-etlng of ritockhold
era in The Hee Publishing- company will be
held on Monday, Mart li 6 Miu5. at 4 -o tlork
p. m. In the office of the iWe RulUliiis. cor
ner 17th and rarnam stn.-ct. Hy order of
tl president
UliOKUJi B. TZEC'iJ I'CK, Hee-'y.