1
m
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iIV
i
ISHUGHMTIS
Inter Stato Commerce Com
missions Hearing
MANY GRIEVANCES RECITED
Business Men and Railroads
Well Represented
COMMISSIONER PROUTY IS PRESENT
Mini WltneMCH nro Ililug Sworn Hiul Im
portant Testimony In Ileitis Taken Sc
ulnn May Contliiuo During Toniurinw
hitting Is lu vhu City llnll
Fium Mouilnyfl Dntly
Tho heuriug of tlio complaint filed by
Olias II Johnsou boforo tho interstto
commerce commission last July in
which it is nllejrpel that Norfolk is dis
criminated against in tho matter of
freight rates was commenced at tho
city hall this morning beforo Commis
sioner Prouty of Vermont who is tho
only one of tho commission present In
opening the case tho commissioner an
nounced that it was not a hearing
but simply n sitting to tako testimony
A quorum of tho commission is required
to give a hearing While it had been
expected that n quorum would bo pres
ent when tho dato was announced
since then the plan of tho commission to
go to tho Pacillc coast had been changed
and only a sitting could be given at this
time He had expected to meet ono
more of the commission here but he
had not arrived Aftor tho testimouy is
taken the case will be submitted on
briefs to the commission
The case is being conducted on tho
part of the complainant by Spencer
Smith of Council Bluffs nu attorney of
wide reputation in railroad matters and
who was chairman of tho Iowa commis
sion that formed the freight law of that
state He is being assisted by Fred H
Free of this city
The railroads are represented by G F
Bid well general manager of the Elk
born system B T White general so
licitor A H Merchant assistant gen
eral freight agent W H Jones of the
freight department of the same road
H M Pearso of St Paul general freight
agent of the M O Lyman Sholes of
Omaha division freight agent of the M
O O J Lane assistant general
freight agent of the Union Pacific Jas
Orr attorney for the Missouri Pacific
In opening the case the commissioner
stated that tori lis are usually considered
on file which does away with the neces
sity of presenting testimony as to what
they are
Attorney Smith asked if financial re
ports of earnings of railroads on file
with the commission could be offered aa
evidence There being no objection
tbey were offered
The commissioner stated that he had
read the complaint and answer on file
with the commission while enroute to
this place and that it would not be nec
essary to read them again
Mr Smith stated that the complaint
was prepared some time ago by an
attorney not now connected with the
case and he outlined what it is proposed
to prove That Norfolk is a town of
considerable importance 75 miles from
the Missouri river and 129 miles from
Omaha that it is composed largely of
retail business houses which sell to
territory round about from 50 to 100
miles distant many of the institutions
aro somewhat of the character of de
partment stores T1m3 contention is that
the rate in and out is in excess of the
rate from Chicago and Duluth to other
towns of equal distance which takes up
so much of the profits that it lias been
impossible to establish jobbing trade
here many industries here are discrim
inated against Mr Smith recited tho
fact that tho car load rate to the
Missouri river on first class freights is
5G000 which means either to Sioux
City or Omaha the rate from Chicago
to Lincoln is 0800 a car Chicago to
Fremont 0800 a car Chicago to Yank
ton 7200 while the rate from Chicago
to Norfolk only SO miles farther than
Fremont is 1 2200 this is discrimina
tion against Norfolk The discrimina
tion applies to all classes of freight
Attorney White stated that it is tho
manifest desire of Norfolk to bo put up
on the same basis as Fremont and other
towns of like character If this desire
wero granted and Kearney and other
towns which are contending for the same
issue should bo placed upon the same
standing it could not bring any advan
tage to Norfolk There are no towns of
great importance on the Elkhorn line
uono west of Norfolk Beyond this
place the road passes through a sparsely
settled country which does not bring a
revenue to the road as compared with
the through lines which pass Lincoln
and other points so located Those towns
should not be considered a criteriou bo
cause of the difference in the situation
and the roads should be justly entitled
to charge a higher rate to Norfolk than
to Lincoln Liuolu had a ditterenjial
of 10 cents when tho Miseouri Pacific
built into that town and reduced the
rate to o cents more than the Missouri
river rato Now Fremont and fill towns
between Lincoln and tho river have
practically tho samo rato
Tho commissioner stated thnt he
camo through several towns botween
Blair and here and asked as to the rates
in those towns Tho reply was that
thoy aro all bnsed on the rates to Blair
Tho commissioner stated that there
nro two kinds of discrimination ono an
unreasonable rate and the other that
sonio town In competition has n better
rato
Mr White stated that Norfolk stands
on a parity with other towns around
for a distance of 75 mile9 and that tho
rate into this city is mado tho samo as
into other towns similarly located Ho
claimed that it is not discriminated
against in any sense Tho ruihoud
companies do not wish to tear down
I Norfolk nor to build up other towns at
tho exponso of Norfolk All rates to
tho Missouri river between Sioux City
and Kntisas City aro the same and
west of tho river tho territory spreads
out and is reaohod by many roadB
Fair treatmont to all U tho aim of tho
companies
Mr Smith admitted that tho competi
tion of the roads at Fremont and Lin
coln probably justified tho rates there
but tho road was built into Lincoln from
Fremont after the lino had boon ex
tended to Norfolk nnd in building to
Lincoln tho Elkhorn must have been
looking for trouble along that lino
I u reply to tho commissioner it was
stated that tho short lino haul from
Sioux City to Norfolk was 75 miles and
from tho Missouri river to Fremont it
was 27 milf s
Tho first witness sworn wns Mayor
Simpson who wos asked to give a sum
mary of the industries nnd advantages
of Norfolk Ho gave tho population at
about 52G0 Ilavo three railroads elec
tric light station beet sugar factory
which is tho leading industry stato in
sane asylum sheep feeding business
creamery cold storago plant foundry
which makes a specialty of warm air
furnaces steam laundry high school
four ward schools and cereal mills that
manufacture a special brand of break
fast food
On being crossexauiiued by Mr White
he said he had lived here 1 years nnd
that tho railroads are tho Union Pacific
F E M V tho O St P M O
and a branch running toVerdigre Tho
sugar factory only manufactures sugar
about three mouths in tho year Mr
White asked if tho F E ic M V com
pany was not instrumental in getting
the factory here Thought it was prob
able they had aided Had heard of no
complaint from the sheep feeders
Asked if he knew there had been an ad
justment of rates in regard to the cream
ery Said ho didnt Said ho consid
ered the territory of Norfolk extended
south as far as Humphrey north to
Oreighton and west to ONeill Depend
mostly on the west Mr White by
questions sought to show that this was
an agricultural country and that it
ceased to be of agricultural importance
west of Norfolk and depended on stock
grazing and feeding He also desired to
show that there was a large influx of
people west in the hope of building up
agricultural interests but that they had
been compelled to leave the country
Mr Simpson admitted that there were
no packing houses here and that tho
market for live stock was in Sioux City
and Omaha Commissioner Pronty also
interrogated the witness in regard to a
number of points on which he wiBhed
more information
Col S S Cotton was the next witness
on the stand Said he had lived here 18
years and was first interests in the
milling business but was now in no par
ticular business other than that of look
ing after his property interests It was
desired that he givo his best information
as to what benefit a lower rato would be
to Norfolk Mr White objected to the
question and asked the commissioner it
it was customury for objections to bo
made Tho commissioner said it was
but that it was also customary to over
rule them and this objection was there
fore overruled Witness thought au
ewer could propably best be made by
citing an instance Two years after he
came here Poxtou Gallagher started a
wholesale house oud did a good busi
ness but a few years lacr tho honso
was discontinued because of a change in
freight rates he understanding that tho
railroads didnt desiro to make Norfolk
a distributing point At that time Nor
folk had tho Union Pacific Elkhorn and
Omaha lines Dont know what changes
were made at that time A lowor rata
would be a benefit On being cross-examined
by Mr White witness thought
the rato to Paxton Gallagher was be
foro tho interstate commerce law had
ueen passea saia JxorioiK naa uu or
700 inhabitants when ho came in 1681
aud had enjoyed a steady growth since
with the exception of the last two or
three years Tho growth of Norfolk
compared favorably with the growth of
neighboring towns during hard times
Snid his property consists largely of real
estate including farm lands Farm
lands near Norfolk worth 50 or G0 to
100 an acre
N A Bainbolt Cuine to Norfolk in
1882 occupation a banker aDd was
familiar with different industries was
not posted in regard to rates One of
the leading industries was the sugar
THE NORFOLK NEW THURSDAY MARCH 1 1000
fnctovy which was conducive to tho
prosperity of tho people It cost origin
ally botween 500000 and 000000
About f2M000 has bcon placed on im
provomeuts sinco outsido of land pur
chases Cost now appioxlmntoB 700
000 or fSOOOOO During campaign
employs botween 225 to 5100 men
Farmers in hatidllug tho crop employ
an equal uuinbor and possibly more
They havo a working forco employed
the year around of perhaps 25 tot0 men
Tho city paid ubonusofl50 000 in cash
Ho told of tho Paxton Gallagher en
terprise Had a conversation with their
representative who said they quit be
cause of discrinitnutloii in out and in
shipping rates Mr White wanted to
know if the railroads had contributed
toward securing tho sugar factory
Witness said thoy contributed 5000
but wero solicited for 10000 Privatu
citizens had contributed 5000 Was
not interested in tho sugar factory oth
erwise than as a oitien Asked if ho
didnt know that beets were limited for
practically tho switching charges ho
said ho didnt Know
W 11 Dexter came hero in 1SS I was
now in acetylene gas business formerly
with Paxton is Gallagher llouso was
established heroin lbSl Ho came Jan
1 lSbl to take charge and business was
discontinued about October 1 1S85
The rates wero tho losult of an agree
ment between tho Union Pacific and
Elkhorn lines Was able to nieot fair
competition west to tho end of tho
line east to West Pont south to
Humphiey nnd north to reighlon
Tho last year their business amounted
to nunut 155000 Goods were shipped
and billed from here A not tier man
beside himself with a family wmh on
gnged in the business also two young
men and two draymen Withdiow
principally on account of railroad
ireight rato and because they had to
build in order to accomodate a glowing
busiuoss Tho main house was in
Omaha Had not been engaged in a
similar business sinco About April or
May of 1885 Mr Gallagher was hero for
the purpose of buying lots and building
but alter ho was notified of tho with
drawal ofratos bo made no f urthor oflort
Hsd his information from Mr Plckon
now geuorol mauager of tho house in
Omaha Aftor withdrawal of rates
honso did nothing except to closo out
tho stock on hand Tho freight was
prepaid at Omaha and in outshipments
was paid by tho purchaser Goods wero
shipped in car lots at about 0 cents a
hundred Gotiirobatn of about 0 or
i3 per cont Thought rate with tho
rebate would porhaps equal about 2l
cent rato Rato was secured by an
undorbtauding between the honso aud
railroad company Mr Gallagher he
thought represented tho house and Mr
Morohouse the railroad company
R A Stewart was the next witness
sworn Moved hero in 1888 was in
banking busiuesfor eight years and
now in creamoryWbusiness He recited
tho experience of Jas II Hamilton who
claimed to havo boon driven from Nor
folk to Sioux City by a discriminating
freight rato Didnt know tho exact
circumstances Said tho creamery busi
ness covered a largo territory and was
represented by 21 creameries and sepa
rator stations Mr Harding endeavored
repeatedly to get a reduction of freight
rates Thought companies could afford
to ship by freight as cheaply as by ex
press Result was express rates were
raised They shipped east and west
Mr- Haskell of Lincoln buys cream west
of us and in competition Tho cream
cry makes about 2000000 pounds a
year Demand west is good and grow
ing Didnt know the rates
Mr White examined witness who
admitted that ho had lately increased
his interest in tho business and thought
it was a good business Asked Avhat a
reduction of rates wonld benefit ho
said they could pay larger prices to
dairymen and farmers and thus increase
the amount of finished product Hnd
facilities nnd men here to handle a
much larger quantity and while profits
would not bo increased the more but
ter mado the more they would receive
Mr Harding left because could do better
elsewhere Mado a profit of ono cent a
pound
A H Allinson was sworn and asked
about creamery business Couldnt say
what class freight butter was shipped
under Paid about 01 cents to Chicago
and 1 08 to Deadwood Had never
made a complaint Was manager since
December boforo that had been secre
tary of tho creamery company
H H Patterson Run electric light
plant and bny coal This was objected
to because coal rates hnd not been com
plained of Mr Smith then desired
that the coal rate bo incorporated in the
complaint and request was granted
Buys coal hi Wyoming price was 25
cents at the minoa and freight charges
wero 325 Had bought coal from Iowa
but Kommerer and Rook Spring was
better quality Asked as to chargo per
month Mr Patteason said for incandes
cent lamps it was 80 cents Mr White
thought he could havo no objection if
he got it but the commissioner thought
the people who paid it might have ob
jection to the rato ho also thought tho
showing was important ns showing why
manufactories conld not prosper
E A Bullock was sworn Had been
in tho foundry business and manufactur
ing a warm air furnace for seven years
Pig iron was shipped in and manufact
ured and distributed Couldnt com
pete with like business in other towns
because tho regular tariff rato from tho
Missouri river was practically a loss to
the manufacturer A shipmont could
be made west of Norfolk from Sioux
City at practically tho same rato that
same shipment could bo made
Norfolk therefore the Norfolk
lost what it cost to get the
material from Sioux City to
folk Had tired of shariug his
fit with tho railroad company
from
man
raw
Nor-pro-and
had transferred a largo share of his in
terest to Sioux City Had 15 men em
ployed at Sioux City nnd two nt Nor
folk Business was still continued here
Mr White wished to know what it cost
to moke tho furnaces but Mr Bullock
objected to revealing his private business
aud objectiou was sustained by tho
commissioner
The hearing was here adjourned for
dinner and met again at 1 0
II CASHilfflR
Freight Rate Hearing Before
Commissioner Pronty
VAST AMOUNT OF EVIDENCE
Representatives of Citizens and
Railroads Heard
CASE LASTED A DAY AND A HAM
ArKiiuiMitx Will lie lliiiitl llifiii tin
Wliolo ConitiilHnloii Iriiliiitili In Mil
lniiollilo to Iliillrt tin ItrMilt lint
IikiIih IliMirulili to Niirfulli
It
l im TiiisilniH Dallv
Tho sitting given by tho interstate
commerce commission to hear the com
plaints of Noi folk merchants in regard
to alleged height rato discriminations
against Norfolk inoiohnnts was conclud
ed today between 12 audi oclock It
began yesterday morning at t oclock
continued through the atternoon aud up
to tlie hour stated today being practi
cally a day and n half deoted to the
hearing of testimony Daring that time
considerable interrsti ig test i nony wis
adducod and the business men generally
aro satisfied that their case has been laid
boforo tho commission in a comprehen
sive and exhaustive ninnner Alter the
testimony had beon heard Commissioner
Pronty stated that there would be an
opportunity presented by tho commis
sion for tho hearing of aiguinents per
haps in May when tho commission
would be in Omaha Ho stated that tl o
n gumonts could be presented either
orally or in tho form of briefs or both
aud the parties interested signified their
willingness to present their argumonts
at that time Tho sitting was then ad
journed
It ip impossible to say what effect this
sitting will have on tho Norfolk situa
tion but the case will bo decided on the
merits of tho testimouy and if tho com
mission can see its way clear to do so
Norfolk will probably bo granted a hotter
through rato Those who attended wero
couvincod of Commissioner Prontys
unprejudiced position and nro confident
that the decision will be a fair one to
both parties concerned
AFTIHNOOK S HSSION
When Commissioner Prouty callod
tho meeting to order yosterday after
noon E A Bullock wnB recalled to the
witness stand Ho testified that tho
freight on scrap iron from hero to Sioux
City was 10 cents a hundred pounds for
a haul of 71 miles and tho rato from
here to Council Bluffs a haul of 120
miles was nine cents a hundred The
rato from tho Iowa coal regions to Nor
folk JIGS miles wub 2 per ton whilo to
Blair a distance of 288 miles it was 1
per ton From tho same region to Lin
coln a haul of 191 miles the rato was
1 20 per ton and to Fremont JiOO miles
it was 110 per ton Ho further testi
fied that the rato per ton per mile from
Sioux City to various points in tho state
was about one half what it was to Nor
folk
R B Weller of the Chicago Lum
ber company gave testimony tho
purport of which was to show that Nor
folk under present rates couldnt bo
mado a distributing point for lumber
Tho balance of tho afternoon was de
voted to hearing tho testimony of Chas
II Johnson who again gave evidence of
tho profound study he had mado of tho
freight rato question and showed him
self thoroughly posted in every particu
lar He was asked as to what points he
considered as competitive and on which
Norfolk should bo placed at a parity
with tho rates from Ohicogo to Omaha
Lincoln Fremont and SionxCity
Ho introduced tabulated exhibits
showing a comparison of rates
on shipments from 100 to 20000 pouuds
and on carload lots showing a discrim
ination against Norfolk Asauinstanoe
his exhibit on a 100 pound shipment
from Sioux City is filed From that
place to Harrington a distance of 7t
miles the rato is 8cents to Magnet
77 miles tho rate is 10 cents toWaupa
81 miles 10 cents to Bloomfiold 01
mites 12 cents to Hope 72 miles 12
cents to Beemer 1V2 miles 41 cents
to Lincoln 151 miles 10 cents Snperior
2 10 miles 51 cents Petersburg 270
miles 50 cents Hastings 227 miles
52 cents Albion 270 miles 50 cents
Creightou 110 miles 50 cents Pierce
80 miles 17 conts To Pierco tho M
O hauls into Norfolk unloads and
reloads aud hauls 15 miles further for
two cents whilo to Croightou tho same
performance is made the consignment
is hauled 41 miles farther for five cents
Tho rate from Sioux City to Norfolk is
15 cents
Commissioner Prouty asked what
would bo a fair rato from Sioux Oity to
Norfolk and was told thnt from 28 to 80
cents would be fair Ho also asked
what established the rate of 45 cents
and was told it was tho long haul of 110
miles from Omaha to Norfolk
Mr Prouty thought it astouibhiug
that the long haul should establish the
rate but did not want to be understood
that ho considered it an unjnst rate but
it was singular and perhaps there wen
other reasons- for it unf uppiucnt on the
surfiro
Mr Johnson introduced comparative
rates from Minneapolis Duluth Chi
cago St Louis Kansas City and St Joe
by which it was shown that points from
which It wan desirable that Norfolk
merchants should have the advantage of
low aud equitable rates they did not gel
them but that from points whcio there
was nothing for them to buy us ftom
Minneapolis St Joe and Kansas Ity
where such goods us he and other mer
chants handle were net mutln a specialty
of t lime was a very lust rale bolim a
I diffuieiicn of about 20 cents pir hurnlud
pounds on car load lots
Mr Prouty asked what he claimed
would be a just into from Chicago to
Norfolk an I he thought about the same
rate as was applied to Lincoln HS a car
instead of 122 as at lucent
Mr Oirol thoMiHstinii Pacific wanted
to know if that were done how they
would get away ironi the Lincoln situa
tion
Mr Prouty said there seemed to be u
way in every case but whcio Norfolk
was concerned
Mr Johnson went on to say that ever
since he hud been doing business in Nor
folk lie had been hying to gel uittw
from Chicago to Noifolk byway ol
Sion City but hud not yet succeeded
because all tin ills stopped at Hope and
that Norfolk was not on the uiilioad
map
A fow questions were asked by At
torney Smith to make some points
clearer and Mr White wiih asked if ho
desired to question the witness lie
said he didul dcsiio tons the testimony
was all substantiated by the evidence
introduced
The sitting was then adjourned to
meet this morning at s
MOIlNINll MSSION
The session was convened at s 10 this
morning and business was at unco pro-
ccedul with
Iho first witness called was C A
Alexander manager of tho cold storago
plant 1 lis testimony went to show that
under existing rates a cold storage busi
ness hero is at a disadvantage It must
conipto with b remniit Lincoln and
other to amis in tho same territory but
must pay higher rate of freight The
rato from Fremont to Chicago is 15
cents per hundred or 108 a car while
from hero it is II cents or id l 50 a car
The Norfok plant shipped HO cms of
products lust year principally to Lowell
Mass to which point the rato is 1 I2
or il II HO per car
Chus II Johnson was again placed
upon the stand and said that in part his
contention is for reparation or damages
for tho overcharges Hint lie has paid
during tho pact ton years hi evidence
of the fact that ho has been overcharged
he filed freight bills on pianos showing
that he had paid moio than ho would
havo done had he been located in
towns no farther distant from Boston
Ho stated that lie wanted to recover
tho excess that he had paid over what
the rato would have been had the Fre
mont rate been taken as a basis He
showed that his business had been seri
ously affected by tho discrimination as
Omaha and Lincoln merchants can
invade his territory and diliver goods at
a less rate than ho can
The commissioner wanted to know to
what an effect his business had been
damaged and ho replied that it would
amount to obout 8000 for the ten years
Whenjho first commenced business in
Norfolk tho rate was satisfactory but
when tho roads changed tho classifica
tion it worked to the disadvantage of
thoJNorfolk morchnLt nnd in favor of
the Omaha dealer He showed that no
point in Nebraska the same distance
from the river has as high a rato as
Norfolk and no point in Nebraska or
South Dakota tho samo distance from
Chicago is paying as much as are the
merchants of this city Ho showed
that fireworks aro shipped into Norfolk
by express at a less rate than by freight
tho rate being 75 cents ns against 0
conts by freight Hard coil is shipped
cheaper from Duluth to Lincoln than
it is from the same placo to Norfolk
Thoro is a bettor rato to Yankton S D
from St Louis than to Norfolk
Mr White asked what benefit it would
bo to Norfolk if tho line to Lincoln be
discontinued to which Mr Johnson re
plied that Norfolk would still bo dis
criminated against
H A Pasowalk was placed on the
staud and stnted that the car load rato
on agricultural implements from Chi
cago to Norfolk is -IS conts a hundred
whilo tho rato to Omaha is only i0 cents
and tho samo applies to goods shipped
houiMoline Asked as to the actual
effect this rate has on his business he
stuted that formerly lie acted as distri
buting agent in this territory for binders
and repairs but sinco 189 1 that business
hnd been discontinued on account of the
freight rote
Attorney Smith filed a stntemeut
liaving a bearing on tho case and then
the complainant rested its case
It was announced that the testimony
would bo written out nnd copios fur
nished tho railroads interested and the
complainant It was arranged that the
exhibits should be left with Mr Smith
where they could all be seen by all con
cerned and copies made of them if do
sired
Iu opening the railroad side of tie
case Mr White secured permission to
3
Ho a mnp showing the Norfolk sltuntiou
as the rallronds see It Then Mr Whlto
wanted to know what the commissioner
wanted to henr from the railroads Tltn
commissioner replied that he wanted to
know what elleot any reduction would
have on tin revenues of the muls and
he would also like lo have a showing
made as to what makes and coiiIkiIh
the rates
Mr lHihvill stated that the H 1 V l
and i K As M V are two separate
corporations the latter owned hugely
by the stockholders of tho C - N V
but tin ler nsepiuntotiimiiiKimioiit Tho
Union Pacific and Burlington systems
me tho chief oompolilois Tho I H
M V stmts at Ptcmnii and limit that
town to Itlalr it has n tnu knge contract
over the H C v P by which f piys
one half ol the interest chmges and ilM
proportion of the expense Tho owneia
of the C St M oV mti imlltcly
distinct f i oni IlieC V N W although
the owneis of the stock of tho I V N
V own a per cent of tho St Paul road
Gciieuil Munuger G l Ilidwellol tho
l IC iV M V road wiin hit induced by
tho defense and swoin lie was asked
what ellVct on the rincuues of his iimtl
theio would bo if Nnrlolk wiih noenrdi d
I ho Lincoln rale lie stutul that the
Klkhoin would bo compelled to reduce
nil rates enst ol Not folk to Kiomonl ami
establish viitualy a blanket iiite west
of Fiemnut Wesl of Not folk they
would bine to build up a into nl a like
i eduction to tho west lino ol lliostnte
Iho icduclion would iiImi ailed all
iilhiM lines thing business in tho stato
Tho Union Pacific would ho compelled
lo make the samo lediiction toColutiihim
and would build up liont Columbus
weft to the state line Tho changing
of any into would cause the checking up
of the cntito state befoic tho chtiugo
would be entiiclv uppment Tho St
loo and Grand Island would havo to
carry the same into to Grand Island and
tho ellcct would be felt aciosH the lino
iu Kansas
In regard to the scope mid character
of the territory west of Noifoll witness
stated that for a distance of about 50
miles tho territory was agiiculliiral be
yond that for about 50 miles
and from there to tho west lino
of the stale about 200 miles it was a
stock grning region til no value to agri
culturalists
The South Pint lo country west ol a
Hue south from ViilcnlinowiiH somewhat
better for agricultural purposes but
none of it was first cIiish The popula
tion ol the South Platte country was
larger and towns more plentiful owing
to its being an older settled country
Under inigatn n the South Pintle coun
try wns buing 1 armed but then was no
iirigation along tho Klkhorn
The western terminus of the Klkhoin
was Casper in Wyoming and Bello
Fourche in South Dakota It has no
through line to the coast
Tho trnlho from South Diueotu was
largely stock shipments This tefl
mony was intended to show that whilo
Fremont and Lincoln had better rates
than Norfolk it was because of a
through line to the coast and also be
cause there was a better country west
of them
He considered the question of how
rates were established a most intricato
ono Tho roads employed tho best
talent obtainable iu their efforts to
overcome the apparent inconsistencies
existing aud it must bo believed that
thoy were thoroughly wise iu tho matter
thoroughly honest and at all times
having the interests of the communities
through which the roads passed at
heart
It is a matter of great grievance to
the Elkhorn that people are not satis
fied with that roads treatment of them
They havo done more for Norfolk thun
any other town on their line outside of
tho capital and tho stntos metropolis
Tho terminals aro established horo
repair shops are located horo and tho
company had considerable to do do with
securing tho sugar factory to locate here
Tho superintendents oillco and division
headquarters aro located hero aud tho
number of people deriving their support
directly from the railroads is approxi
mately 1000 Ho wished to correct any
impression that may exist that Norfolk
had not been fairly treated by his com
pany
Mr Bidwoll then went into detail to
show how tho rates wero established
He began at points on the great lakes
where Duluth Minneapolis and St
Paul and Chicago wero competitive
points Showed wherein St Louis
came iu for her share of business mid
by nn intricnto system of reasoning
along tho triangle basis explained
any apparent discriminations All
these points have feeders of largo
systems of railway which as they pro
ce d west come into compititiou for tho
business along their lines Whero tho
feeders of these great systems meet or
come into competition they are com
pelled to adjust tho long aud short haul
ratf s Ho stated that n shipment from
Chicago to Omaha by way of St Louis
wns carried as cheaply as a shipment
direct to Omaha by way of Clinton
Coming across the Missouri river tho
Lincoln situntion is encountered By a
nice system of reasoning ho explained
this situatiou The jobbers of Omaha
and St Louis were in competi
tion for the trade at Liucolli and west
The Elkhorn and Union Paoifiu lines
both come by way of Lincoln- and the
Union Paciflo has beeu forced to meet