THE OMAHA DAILY BEE
TWENTY-SECOND YEAR. , , , .
OMAHA FRIDAY MORNING MARCH 10 1893. NUMBER 262.
Facts Concerning the Establishment of the
Hawkeye Maximum Tariff Charges.
DOTH CARRIER AND PATRON BENEFITED
Operation of t'ao Law Ha ? Baen Profitable to
Railroads and Shippers ,
OPINIONS OF THE COMMISSIONERS
'
.
Considerations on Which the Famous Schedule
Was Formulated.
COMPARED WITH THE NEBRASKA LINES
Clitft lllc tloii of the Komi * of the Two
Stiite * Under tliu ICMVII l.uw Ilntc *
In Force Set Out SlUa
tij Side.
that railroad regulation is fairly be
fore the legislature It may bo Interesting to
review the history of Iowa railroad regula
tion and Institute comparisons between Iowa
and Nebraska rates.
The Iowa legislature of 1838 passed a law
similar to the interstate act , but it also
"empowered and directed" the railroad com
mission to maito n maximum schedule of
reasonable rates and fix a classification as
soon us practicable. Tlio schedule was com
pleted in July , 18&.S , but the railroads fought
it In the courts , and it did not become
operative until February U , 188'J. There have
been a number of changes in the schedule
binco , but they have been of so limited
effect that the present tariff is substantially
the same as that adopted by the commission
moro than four years ago. Changes of moro
importance have been made in the classifica
tion. The commission adopted the western
classification of the railroads with such
modifications from time to time ns seemed
Just to Iowa Interests without being burden
some to the railroads. These variations now
number about seventy-five.
Since the conclusion of the legal contest
the corporations have submitted to most of
the rulings of the commission with a show
of grace. They have abided by the schedule
of rates and have accepted the modifications
of the classification with little opposition
beyond a dignified argument at a hearing
before the board. There is ono important
point , however , which is yet in controversy.
Charging tlio Hum for 'Two I.oculn. "
Previous to the enactment of thlr. law the
railroads had given joint rates on shipments
passing over twoor moro lines , but thereafter
they maintained their right , to charge the
sum of the local tariffs' on the several lines.
For example , the schedule rate for a car
load of hogs was ? 18 for 100 miles and $24 for
00 miles. It a shipment wcro over two
lines , say 100 miles on each , the
railroads claimed the right to charge $ . ' ! < ! , as
thoi'gh ' there wcro two shipments of 100
inllvs.cuchi The legislature then passed an
net requiring the railroads to make joint
rates and the commission ruled that no
Joint rate should exceed 80 per cent of the
Bum of the several local rates. Thus , in the
example already used , the Joint rate could
not exceed 80 per cent ot $30 , which would bo
rw.so.
This had been the practice of the railroads
themselves , but they resented legal control
and took advantage of a defect In the law to
fight It in the courts. The statute unfor
tunately contained this clause : "Carload
lots shall bo transferred without unloading
from the cars In which such shipments were
first made , unless such unloading In other
cars shall bo done without charge therefor
to the shipper or receiver. " The railroads
contend that this act Is unconstitutional , be
cause It requires them to render u service
without compensation. The corporations
seem to have the best of the argument thus
fur. and the Joint rate provision is not likely
to bo operative until the legislature amends
it , but the railroads are merely delaying the
" "day of judgment. The rates established by
the commission are higher than the joint
rates voluntarily granted by the railroads
themsclyes before the enactment of the now
law and also higher than the Joint rates now
in effect on Interstate trafilc.
Argument * of the Lnl > liyl t . ,
AVhen the Iowa law was under considera
tion in the legislature the cnpltol was over
run by n horde of railroad men of high and
low degree , who prophesied all sorts of dis
aster. They asserted that the corporations
would have to recoup themselves by raising
the interstate ratrs and by decreasing tlio
transportation service in Iowa. They main
tained that the commissioners could not
determine , lho reasonableness of a rate with
out nn elaborate calculation of the cost of
every Item of expense , even to the waste
' and oh used on hot boxes. They Insisted
that rates could not bo reduced without
gross injustice to the stockholders of
the corporations. In ono breath they eon-
tended that anything less than 0 per cent on
their stock would bankrupt them and in an
other admitted that they had averaged
much less than that when entirely free to
manage their affairs to suit themselves. Atone
ono moment they asserted that the local
business of the state was so small the pro
posed reduction would be of no benefit to
nny ono and a moment later they wore sure
the losses under a mlueed schedule would
throw three-fourths or the roads Into the
hands of receivers. For n short time after
the pass'igo of the law some of the railroads
tried to make it odious by reducing their
1 train service , but with that exception none
i of the evils predicted by the corporation
officers am ! attorney * came to pass.
Their Prosperity Increased. * "
It is an indisputable fact that the Iowa
railroads luivu Iwcu moro prosperous since
thu adoption of the maximum schedule
of rates than ever before. Under the
I old system the railroads sought the long
hunt , and it is well known that Iowa
lobbing and manufacturing industries wern
being crushed out or driven from the stato.
It is conceded that these Interests have been
greatly benefited by the change and that
many now Industries have been fostered.
The loss to th railroads was not nearly so
prcut as they tried to make the people bo-
Hove , because they were alreadv secretly
giving many of the largest shippers cut rates
oven lower than these established by the
commission. The now system put a stop to
this rank favoritism and cress injustice. It
l-avo every man nn equal chance with everv
other , and robbed the corporations of the
cruel power to ruin a weak shipper by favor
ing a competitor with low freight rates. It
pave a stability to the rates which In turn
lent stability to trade. The people of Iowa
nro satisfied with the present rates , the
clamoring of jobbers and manufacturers U
heard no moro , the railroads are doing moro
business than over before , the acitatlon has
ecnscii and the transportation problem Is out
of politics. ' ! his Is the testimony of the
commissioners inul of the business men of
Iowa. Hew Is the statement of the commls.
S 'lc. ' ! l .t.l 01lvlt rt for the year ending Juno
1S' )
SO. | , the last published ;
That tin ) rates have benatltoil lowalspvl-
iteneeil by tlio liierenseil mislnesmlitTimiirter.
rlho testimony of ilu > rallionil olllehiU In tlm
couclswiix that they i-ttuseil u reduction of
iihoiit iirt per eent on local rntos. which hud
been exorbitant. The i-ifeel Mas been to
stlmululo luurti Industries by BlvliiB them
el.eiip . fuel timl low rail's for goftins 11-lrpro- ,
ilueo to iniirkel. It Ims euiisiid thu oiienlnir of
new coal mines , thn erection uf
tills
now i , has
wonderfully en jlvemxl the Jobbing luti-rcsln
n4 rudnccd pricuti to Ute couiuiuor * ami at
the same time largely Increased tli" tonnage
nml rovi'nucs of the roads. To ennblo
I'lilenKi ) to compute with town Jobber * , Intur-
main rates wuro reduced und prices cut , and
the lively competition and reduced rates Imvo
resulted In lower prices to the consumer. Tlio
farmer gels his supplies cheaper , his lumber ,
coal , suit and other heavy commodities nt fair
rales. Ilo Uriels u market fora portion of hi *
surplus corn , oats , hay , wood. tlnih r , etc. . at
homo anil saves transportation. He markets
many of his hogs In lo\vu packing houses and
saves frclitht charges. Wood and IOK.S ( lint Iny
In thu Umber rotting , thu Iowa rates are mak
ing a market for , and new mills nro miwlng tlio
latter up for USD In nxcolslnr. feii.-Min ; pickets ,
handles , boxes mid other Industries unknown
before. Tlio railway policy ot the long haul
has In a measure been supplanted by thu new
Hystein , and nn t-xchnnijo of products between
dlircrcnt parts of tin1 Ntutn Is one of ( He com
mendable results. May and corn from north
ern Iowa are now sold at better prices In tin )
dairy counties of eastern ittul southern lowu
In lurgoipiantltles , u thins hitherto unknown.
These formerly paid trlbutu to I'hlcngo.
U'lmt the Ofltrliil figure * Show.
The figures which represent Iowa's rail
road business are an emphatic refutation ot
the coriwrutlon arguments against reason
able regulation. Previous to the adoption of
the maximum schedule the revenues of the
railroads wcro decreasing , while their ope
rating expenses were steadily growing
larger. The now system gave assurance of
stability and stimulated business , and the
result has been a handsome increase in the
traffic of the railroads. In spite of the
threat of Inferior service , tlio operating ex
penses have Increased in proportion to tlio
growth of the traffic. The following state
ment of tonriago and earnings of low.i busi
ness tolls its own story :
( irosi .Net
Year Tonnnuo. Kariilnva. Knniltus.
Juuoiu. : t.W SIT.SW.TM
Juno IK ) , H -
Juno.'tu. lisa 1:1,72 : .VIA i
.luneSD , IS'.H ' ) I8,7W,4 : I
JunoSU , 18'JI n. IIW.S ! '
It must bo remembered that the maximum
schedule did not go into effect until Feb
ruary of 183 ! ) . und the now system htmily
had time in live months to make Its results
strongly felt In the traffic for that year. The
report for IbU'i has not been published.
in some respects the comparison Is oven
moro favorable when the distinctively Iowa
raids nro considered. Following is a table
of tlio earnings of these lines whoso mileage
Is totally or almost wholly within the state ,
the comparison being between Ib'Jl and the
last year under the old system :
* R now line which bauati operation In Jitntiury.
18"0 , nml tlio UUihiasa of Ita Mrat yunr U Klron lu tlio
IsSS column.
tiU'crcnso. These nro short , unimportant coal
ruads.
t thu Inet four were narrow tiling ronda.
Kvltlenru of lieiinllclnl Kifects.
Thirteen out of fifteen lines showed a
marked increase in traffic. The falling off
on the two insignificant coal roads is attrib
uted by the commission to exceptionally mild
winter weather and strikes In the mines.
Many of these lines were operating under
the class ' 'A" rates , although they were en
titled to charge ! ! 0 per cent more.
In 1837 seven railroads in Iowa were in the
hands of receivers. "In IS'Jl there was but
one , and the receiver of that reported it in u
prosperous condition.
The niileai.'o of the Iowa lines has not in
creased appreciably since IBSd. It is ad
mitted that the natural growth of the state
would account for some of the increase In
railroad traffic , but the commissioners main
tain that the now system was responsible
for much of the favorable showing. They
insist that it not only stimulated business ,
but that it effected a saving by cutting oil
rebates , frco passes and other special priv
ileges and by preventing rate wars. There
had been but a slight growth In the mileage.
Consequently the business of 1S91 showed a
handsome Increase In earnings per mile and
a substantial gain in the percentage of in
come on the Investment.
Improvements in the Service.
The railroads said they would bo com
pelled to stop construction If the rates were
reduced. As a matter of fact less than 150
miles were added to Iowa's lines during the
tlirco years ending Juno UO , 1891 , hut the
cause is far removed from the maximum
schedule. Though a now commonwealth in
the far west , Iowa ranks fifth among the
states of the union in its railroad mileage.
Its commissioners assort officially thai there
is not a spot within her borders moro than
fifteen miles from a railroad , and they argue
that construction ceased because the state
had all the lines it needed , there being no
now territory to bo occupied with u proba
bility of remunerative returns.
The railroad lobby laid particular stress
upon the assertion that the companies would
bo forced to eeonomizo not only on their train
service but also upon their road bed , rolling
stock , buildings , etc. , all to the danger and
this disadvantage of the public. A most dole
ful picture of decayimr bridges and streaks
of rust did they paint. They talked for
ellect , for millions have slnco boon spent on
the betterment of Iowa lines. During the
year ending .luno ! ! 0 , IS'Jl , the improvements
included Sl.ItOO.OOO expended for buildings
( mostly now depots ) , now rolling stock , auto
matic couplers , air brakes , yr,7bU tons of steel
rail to replace Iron or worn out steclttiiS- ! ! :
000 tics , etc. Two roads were changed from
narrow to standard guago. the Northwestern
unlit seventy-six miles of double track anil
an enormous sum was spent for stone cul
verts , for Iron bridges to replace wooden
structures and for other extensive Improve
inunts. In addition to these outlays it cost
the railways moro than $500,000 to repair the
damages of fioods during tl.o year.
Hfiw the Unto Will Computed ,
j
The hlqh-aalaried officials who pleaded the
cause of the corporations before the legisla
tive committees insisted that men must bt
endowed with power n Httlo less than mir.ie
ulous to compute rates and protect the stock
holders ( the protection of the people never
entered Into their picas ) , but the Iowa com
mlssloners found a simple , direct and of
foctlvo solution of the problem. lion. I'otcr
A. Dey Is the conservative member of the
Iowa commission , so much at that he is oven
charged with being a tool of the railroads
and yet his testimony condemns the corpa
rations. In o.xpUinlu the metliil of niak
Ing the maximum schedule und Its operation
his statement was sub.stanti illy as follows :
1 In computing our Rchettule wo did not
find It necessary to figure the earnings of the
railroads or the dividends of their .stock
holders or to consider the thousand and ono
things which go to make up tlo cost o
transportation.Vo aSs'imed that rates
made voluntarily by the mails wcro ro
muneratlve or the official : * wouM not have
made them. Therefore in computing oui
schedule wo took as the basis of our work
the rates secretly made to favored shippers
In the past and the published tariffs of low :
and Illinois. Each of the commissioners prepared
pared a tablo. That of Mr. C'ampocll was
extremely low and mine was the highest
Mi. Smith's scale was medium betweci
the two extiemes and was adopted. The
schedule now In force Is suosuintlally the
s mo ns Mr. Smith's original tariff.
' \Vhie ! the cut rates given secretly to
favorites were an Influential factor In torni
Inp : the legal srhfdule. yet I think our tariff
is in no particular us towns some of thos
seo-et rates. The Iowa schedule Is higher
than the maximum schedule of the Illinois
commission , which has been argued as un
fair on thu ground that the smaller amount
of business In this state entitled U to a
higher rate , but these goiitbtncn forgot to
explain that the iMllroarts inago as far
below the legal schedule as thev please.Vo
had evidence that the lines In Illinois wuro
actually doing business on rates consider
ably under the legal maximum , and ( -onso-
quentlv that schedule Is not a fair compar
ison with the Iowa schedule.
"Ordinarily it wight have been difficult to
ascertain the special rates given certain
shippers in this state , but the law brought
these gentlemen forward to testify freely on
the secret manipulations. The statute pro
hibited discrimination. The shippers enjoy
ing special privileges saw In that provision
the menace of higher charges for them , and
they came voluntarily before the commis
sion. They mturally wanto.t the low rates
continued oven if It was necessary to five
competitors the benefit of them.
Competition ltt-jiilUe : It.
"Class n and class C roads iaro permitted
to charge higher rates than those fixed in
the schedule , but as n rule I think they do
not take advantage of that privilege. The
reason la simple enough. Tha state is such
a network of railroads that junctions are
numerous , and a line charging higher than
the class A rates would lose the business.
The weaker roads are consequently forced to
meet the competition of stronger lines nt
common points. Tlio B and C Hues once
asked tlio commission to permit them to use
tno B and C rates on shipments not affected
by their competitors , but nt the same time
they wanted to continue the A rates on com
petitive business. The long and short haul
clause in the law prevented that kind of an
arrangement , and tlio Iowa commission , un
like the interstate commission , has no au
thority to suspend the operation of that pro
vision. As a result almost all the local
tralllc Is done on the rates fixed for class A
roads. The weak lines never come to us
low asking favors for themselves. They all
vant concessions for the strong roads.
'It is practically impossible for the com-
nlsslon to figure with exactness the amount
of the purely local tr.ilfio of loxva , that
vhlcti is subject only to the state laws. .Ton
years airo wo estimated It at 18 to ! 20 per
out of the whole amount of Iowa traffic. I
lave Just completed a computation for our
forthcoming report and find it to bo about
J5 per cent. I have made a most careful and
ixhaustlvc calculation from tlio statistics in
our possession , and I am confident that con
clusion is approximately correct.
.Slimming Up H * lOll'cctH.
"As to the effect of our system , I am not
inito as enthusiastic as some of its friends.
1 think it has stimulated the Jobbing inter
ests of the state by giving the wholesalers
distributing rates which enable them to
compute with Chicago. Our Jobbers were
complaining continually under lhr > old order
of things , but they seem to bo satisfied now ,
for wo near no moro grievances from them.
I'ho Chicago jobbers , in the houa of rotria v-
ing sonic of this loss , orcen tno railroads to
make concessions on Interstate rates to
secure the long haul. Some claim that the
now system lias led to the establishment of
many now manufacturing enterprises and
the extenslonof others , but I am not sanguine
on that point.
"The greatest benefit from the Iowa law ,
I apprehend , lies in the fact that the rail
road question has been taken out of politics.
Lhat unjust discriminations between shippers
Imvo been done away with and that nn ele
ment of stability has been added to business.
I thought at the time of its adoption that
our schedule was too low to do the railroads
full Justice , and I am not fully convinced
that I was mistaken , but on the whole I
rather think I would not favor a change.
The people arc satisfied , and the corporations
have ac'-nutcd the situation. It would prob
ably bo unwise to disturb the equilibrium.
Only Ono Taint of Dlllerence.
'At ' present there is only ono point of Im
portance in controversy botwcen the rail
roads and the commission. That is the
question of joint rates. The legislature
passed an act requiting the roads to make
joint uites for shipments passing over two or
moro of them. Under our schedule the rate
decreases as the distance increases. The
charge for 100 miles is therefore less than
double the rate for fifty miles. After the
law of 18S8 went into effect the roads sus
pended the joint rate system they had
had in effect and a through shipment
over moro than one line was treated
as though n separate shipment
over each , each line exacting the
full charge for the distance over its
own system. The sum of these local rates ,
of course , would bo considerably larger than
the rate for the aggregate distance if carried
over ono road. The commissioners issued an
order that the maximum joint rate should
not exceed SO per cent of the sum of the
locals , in this respect following a principle
long established by the railroads themselves.
The law had n clause requiring the railroads
to send their cars through with shipments
of this kind or else to transfer the freight
without charge to the shippers. The corpo
rations refused to put in joint rates and in
the courts raised the point that the statute
required them to render a service without
compensation. The question Is now in court
being adjudicated , and I am inclined to
think the railroads have justice on their
side and will win their case. "
Itustul tin an llunuU Ksttmiite.
Hon. Spencer Smith of Council Bluffs is
the commissioner to whom belongs the credit
of having made the Iowa schedule , and ho is
concedcdly a fair-minded man. lie was
neither as rabid as the extreme nnti-monopo-
lists nor as "conservative'1 ns tlio friends of
the railroads , and ho evidently was actuated
by the desire to do oven and exact Justice be
tween corporations and people.
"While we carefully considered the cut
rates given favored shippers , " said Mr ,
Smith in explaining the manner of compiling
the maximum schedule , "that was not a
controlling factor. Ur Qr the old system
the roads got an oxoi oltant price for some
freight , a fair rate for some and accepted an
extremely low rate on some. If the whole
traffic had been done on the lowest rate it
probably would have been unremuner.itivo ,
but the railroads apparently reasoned that
so long ns their trains wcro made up and
running they could carry a few moro cars nt
a low rate and still make a little profit
from It.
"Tho commission made an honest effort to
ascertain what would bo an equitable rate ,
and at the same time it aimed to give Iowa
industries the benefit of reductions wher
ever they could bo mudo without an unreasonable
enable cut. Wo called in the Jobbers ono
day to state their grievances and to give
their reasons for the various concessions
they demanded. In like manner the coal
miners , the millers , the stockmen , the
fanners and other classes of shippers were
given a hearing , and of course the corpora
tions were represented by their attorneys
and tralllc managers , who presented their
side of tlio case. These discus
sions brought out many valuable
suggestions and throw much light
upon points that might otherwise have been
obscure. We then took the Interstate tariff ,
tlio published and the private local rate :
and the rates of Illinois , Kansab and Mis
souri. These and their controlling condi
tions were compared , and from a careful con
sldcrnUon of ail these points our schedule
was formulated. A number of minor changes
have been made. The rates on s'ft cotil for
distances less than 10'J miles , for example
were found to bo too high , and they wen
slightly reduced , but these modifications
have been of so limited effect that 1 may say
the tariff now in force is substantially the
s'imo as I made up nearly four years and !
half ago.
r.oiii ; anil Short lliuil.
"The controlling principle of the comtnis
sion has been tlio desire to build up Iowa in
dustries and to'lncreaso ' the local interchange )
of homo product ? . Wo have no control over
the Interstate haul , and wo have studied the
best means of putting the shipper on the
short haul on a footing where ho could cpm
pctu with the shipper on the long haul. Wo
found , for example , that Illinois 83ft con
was being carded into northwestern Iowa ai
a r.ito that sl.ut out Iowa coil , By mnklng
a small reduction' In the Iowa rated out
miners have been enabled to eompoto foi
that tr.ule , and our railroads have sccuroi
an Increased tonnago.
"Somo time ago manufacturers and others
began usin ? stuck for making steam. This
slack was simply eoal dust that before hud
been thrown out on'the dump as waste am
was a source of no profit to any ono. Hero
was an opportunity to croato-u now Industry
and tho. commission thought it wise to mak
a tarlJT for this product averaging about "
par cent of the rate on lumpco.U , Tills en
ubleil the minors to market the slack nt i
PHollt , and the result to the railroads Is an in
creased tonn-jge.
TJiU U u Sample Instance.
"Thero was in DCS Molncs a firm munufac
[ CONTINUED UN SECOND IMUC.J
COULD NOT BW DEFEAT
Commander of Brazilian Forces Loses a Battle
and Commits Suicide.
RIO GRANDE DO SUL REBELS VICTORIOUS
Suntu Aunt Cnpturotl After n Protracted
by the Army ( if tlio Itcvohi-
tlonUU Oetullnnftlia Hon
duras A IIi : I r.
[ Coi > urtyhtnl 1333 bu james ( tordiii lic
VAM'AttAiso , Chill , { via Oalvoston , Tex. ) ,
March U. [ By Mexican Cable to the Now
York Herald Sncuhf to Tun Bnn.l 'llicro
ias been received here a rumor that Santa
Anna , In the st.ito of Hto Grande do Sul ,
vhich had boon besieged by the rebels , had
alien and the loader of the government
roops , General Isldoijo Fernandez , had com-
nltted suicide. Previous to the receipt of
ho rumor thu Herald corrC9K | > ndcnt in Mon-
cvidco telegraphed that General Favartz ,
vlth 2,000 well armed troops , was encamped
hrec leagues from Santa Anna. Ho was
hen planning to give battle to the govern-
nent troops commanded by General Isidore
' " 'ernandcz.
On the result of this battle will depend
ho f.ito of the revolution. Foreign rcsi-
lents in the state of Hio Gr.indo do Sul have
icon attacked by adherents of both sides.
Previous reports of the defeats of the rovo-
utlonlsts , except at San Lome , are now vig
orously denied. j
The Herald's correspondent In Hucffos
Ayres telegraphs tlmtMi'iister of War Vic-
.orlcn has resigned owing to the unfortunate
Mjsitlon of his son , who was one of the con
demned officers of the war ship Hosalcs.
Again the procurator , fiscal has demanded
.hat the extreme penalty bo meted out to
condemned officers of the Resales. Tills
would mean death.
Secured u 1'rovl.slotml 1'rcsldt'iit.
PANAMA , ( via Galyeston , Tex , ) , March U.
By Mexican Cable to the New York Herald
Special to THU UER. ] News lias been re
ceived from Honduras confirming the report
cabled you of the battle near Tegucigalpa.
'urther ' reports indicate that now every
thing favors the gqvernpcnt's cause. ICx-
Prcsldent Ponclano" Lqyiu is in no danger as
ic remains neutral. .Ex-President Bogran
ias sided with the. government and will aid
the minister of war , General Yasquci.
Kosentlo Aquo , who \v s secretary of state
under President J-.Qvin has been proclaimed
provisional president of Honduras by Gen
eral YasqucHo was a warm supporter of
Bonllln ut the last election and has many
friends among the liberals of Honduras.
This situation further complicates matters
In the republic.
An insurrection is reported in the Galla-
l > ages islands. The residents killed the local
Ecuadorean goveniDr and wounded many of
the police.
Wilt i\tciul the Canal Charter.
BOQOTA , Colombia a'Galveston , Tox. ) ,
March 0. [ By Mexlpan Cablo. to the Now
York Herald Special to TIJB Ben. ] Negotiations
'
tiations for the exto'nslon of" the canal com
mission have been tgmporarily suspended
owing to an accident to Felipe K. Paul , the
resident attorney of the Pjtnama Railroad
and Canal company. Ho whs thrown from
his horse and seriously Injured. M. Mango ,
however , wires his friends on the isthmus :
'Wo ' have Information now that the exten
sion is virtually assured , " v
In the Panama Star und Herald tnore np-
> oars a dispatch from this city indicating
that the extension will bo granted. Edi
torial reference is also mudo that Receiver
Monohicourt is still confident that ho will
eventually succeed in reorganizing the canal
company and resume work on the canal.
El Porvenier of Cnrthafrcna , however , ex
presses grave doubts that Colombia would
best conserve her own interests by granting
further timo. In the Colon Telegram is
published n reported djclaration of the )
foreign minister that unless satisfactory
evidence is given by April 1 of a purpose to
continue the work , Colombia would take
possession of the canal property.
SI U > K A CI.KAJ ? lliAT Of IT.
M. Itnlliut , One of the -I'mmum Ciimil Con-
milr.ltors , MuliCH n Colifrnilon.
PAHIS , March 0. There was a sensational
scene In the Panama trial this morning.
Marius Fontaine , the first witness , stated
that ho was a member of the board of
management of the Panama company. Under
the direction of Charles do Lcsscps ho visited 1
Blondin and found Baihut thero. Baihut
said : 'CTho money in question will bo used l
in promoting the interests of the country. "
Charles do I essops then discussed with
Blondin the question of the 7,500 francs
claimed by Baihut. The matter was ovcntu
ally settled at the resiJenco of Fontaine.
Fontaine continued : "Some of the drafts
were issued to pay for advertising and others
to satisfy the robbers who waylaid us like
footpads. "
Then Baihut was ealled. At flrsthos'iidho '
acted at the Instigation of Blondin , hut finally
broke down and , in a broken volco s.iid : "I
acknowledge having boon led atUr.iy. I am
guilty. I feel I do not yet unJcrstan.1 how I
could'havo fallen so low. I ask the pardon
of my country , whoso good name I have , per
haps , disgraced. "
As soon as M. Baihut regained his self-
control ho said : "I submit In advance to nni
sentence which the court , may pass upon
mo. "
SI. IHoncllii's Tot Illicitly.
M. Blondin , being called..was questioned
as to how ho came to .act as Intermediary be
tween the Panama , cbrnpmy and Baihut.
Blondin denied that ; it was at his instiga
tion that Dalhut icmamleil ( the money for
his services In airiiglng | matters between
the ministers auditho directors Ho had ar
ranged the meeting botwosn M. Baihut and
Charles do Lossops In the belief that it
would bo for the best Interests of the canal
company. Ho admitted that ho had settled
'
matters connected wUh'tho payment of the
bribo. Charles do Ibsscis had hnnded M.
Uaihut VO,0)3 ( ) francs , at the hitter's ' .louso
and I'JS.OOU moro In tholobby of the senate.
M. Baihut , recalled and cross-examined by
counsel for the Panama creditors , stater
that M. Bloudin had obtained a comniissloi.
for the transaction between him und M , do
I esseps. ;
In the midst of M. Buihut's statement M ,
Fontaine sprang to hs feet and shouted ,
"That statement is a tissue of falsehoods
The witness has not sjioko a word of truth "
Turning to his accuser M , Baihut said ,
slowly : "I affirm tint what I have said is
the exact truth , and nothing but the truth. '
In examining M. Sans-Lerov , the next
witness , tlio Judge recalled that while ti
mcmbar of the parliamentary commlttoo 01
the lottery bill , the prisoner had opposed the
canal company then making proposals to
deputies. v
M , Sans-Loroy hardly waited for the Judge
to ceasa sr-o iklug before exclaiming angrily
"I am amazed that the prosecution aliouli
dare fasten on a word or two , i > 6ken by me
to the examining magistrate , in order to
throw mo into prison , v'hlle they forget to
urrost many others , who they know , are
really criminals. "
The JuJgo then asked ; "Why , nftor votinj ,
fora report hostile to the bill , did you re
verse your votel"
' There were three of us who favored
abandoning the bill , " replied M. Sans
* roy , evasively , "I was not nwnro when I
hanged my opinion that the canal company
vonlcl approach deputies. I never spoke
vllh Lobbyist Arton. " *
\VlicroMain-l.rroy ( lot Ills Money.
"Where did you get the 100,000 francs
vhlchyou paid to the Credit Lyonnnlsln
April , 1S8S1"
"It was the reinvestment of part of my
vlfo's dowry of 20,000 francs. "
"Can you produce the deeds of the mar
riage settlement to prove that ! "
"Certainly. "
"Why did yon not explain this sooner ! "
"I wished to avoid having the Indictment
against mo thrown out ; Iprefcrcd to bo tried
iml acquitted. " [ Laughter. ]
Senator Beral next was asked to explain
vhy ho received -tiKX ) ( ) francs from Baron do
iciimch. Ho said : "This was the amount of
ny fees for having given Baron do Kcinach
utvico concerning the Tunis railways. " This
itatement Senator Bcral supported with
loeumonU.
Deputy Uongodo la Fauccnncrlo said that
, ho 'Jo.OOU francs given him by Baron do
{ chinch were part of his profits as a member
) f ono of tlii- guaranty syndicates. Ho
ould produce no letter from Baron do
{ einach , however , to show this.
Ex-Deputy ( louron admitted having
cashed a check drawn by Baron do Ucinnch
Tor 'JOO.OOO francs , but denied that the check
vns in nny way connected with the Panama
ottery loan bill. The check was given In
laymcnt for shares in a foreign tannery
company.
Deputy Proust said that the 210,000 francs
eccivcd by him from Baron do Kcinach con
stituted his share of the profits from the
juaiMiity syndicate.
Charles do Lcsscps said ho believed that
, he accusations brought against Proust
ivcro utterly unfounded.
GJtKAT ICKVUIjATIONH KXl'KOTKl ) .
Today's Session of the. I'mmum Trial 1'rom-
to lie SciiHHlloiiitt.
/ JIMIM orlim llcun'tt. ]
PAULS , March U. [ New York Herald Cable
Special to TUB BEI : . ] The second session
of the Panama corruption trial today
was characterize ; ! by the public con-
'ession of ] ox-Mintster Baihut. Ho con
fessed that ho had taken money , but
vet his confession did not produce the
ffect one might suppose , bceauso it was not
sufficiently dramatic. It is true the inter
rogatories of the other accused persons pro-
luced ,1 painful Impression upon the audi
ence.
The parliamentary regime was hit very
: iard. Great revelations are expected to
morrow. JACQUES ST. CEIIR.
INVKST1OATINO I.M.MKJU.VTION.
Great Ilrltiiln Sends u Commission to
Amcrlcn for Tluit Purpose.
LONDON , March ! ) . In the House of Lords
today , Lord Lyon Playfalr explained that
the mission of Messrs. Burnett and Schloss to
America was part of a general injuiry into
the subject of immigration of pauper aliens
to the united kingdom , and especially the
Immigration of Russian and Polish Jews.
Since IS'.U about 200.000 alien immigrants
had landed in Great Britain , of whom 17,0K ! )
were Russians and Poles , against an immi
gration to America of 177,1A ! ) The commis
sioners were charged to learn how these
.lows conducted themselves in America , and
how tlio American immigration laws opera ted
and what was the feeling of Americans on
the subject , so as to assist the government
to deal with the question In England.
Jt'E.lllti OVA M.UUU.
lee Gorco in tlio Mlmlnslpplciir Keoknk
sliiK Trouble.
KBOKUK , In. , March 0. Nearly an Inch nml
a half of rain foil yesterday and last night ,
starting the ice in the river , which is gorged
at Warsaw , causing n rise of four feet In two
hours. The gorge Is intact and the sur
rounding country Is in danger of nn over
flow.
flow.CUDAU
CUDAU RAVIUS , la. , March 0. [ Special
Telegram to Tun Bnc. ] Heavy rains the
first of the week have brought the water in
the Cedar river up seven feet above low
water mark. ' This 1ms taken out part of the
Ice which was gorged at the lower end of
the city. Should the gorge become much
larger the entire lower end of the city will
bo Hooded.
Interfered with by the Strike. .
Cniun RAI-IDS , la. , March 9. [ SpecialTele
gram to Tin ; BEE. ] The officers of the differ
ent railway organizations were to have met
hero today and tomorrow for the purpose of
completing the business of thoi meeting held
hero in December , but late last night Grand
Chief Clark of the Order of Hallway Con
ductors sent out messages postponing the
meeting indefinitely on account of the strike
of engineers and firemen on the Toledo , Ann
Arbor & North Michigan , which requires the
attention of the executive members of these
organizations. As soon as that strlko Is
ended u meeting will bo called in this city ,
when the proposed plans of federation will
bo completed ,
Alleged lltirclnm Cnptiurd.
CfiPAii HAi'ins , la. , March 0. [ Special
Telegram to Tin : Ben. ] The police have ar-
rested Pat F. Quigley and M. J. Fuller , mem-
hers of n gang of gamblers which has in-
fcstcd this city the past winter. The first
of tlio week a number of during burglaries
were committed mid' suspicion pointed to
these men. A search of their room disclosed
tlio fact that they had in their possession
the finest kit of burglar tools over captured
hero. Nothing that would indicate that
they committed the robberies was found.
These men formerly operated at Ur.ind
Hapids , Minn. , and Grand Forks , N. D.
Dentil of Capt'iln Diiwley.
DunuQun , la. , March 9. The death at the
age of 8' > of Captain D. V. Dawloy Is an
nounccd. Captain Dawley has been well
known in river circles since 18-11.
UOVKKSOlt Ofilt j.V ' .K
Cheyeniiu Touts Inimortitll7.it Them In Song
iluklnt ; Wyoming's ICxecutlvu.
CHEYENNE , Wyo. , March. 0. The local
poets have had a world of fun over the misfortune -
fortune of Governor Osborno. A few days
ago the governor got up ono morning and
found his trousers missing. Ho thought
that Dr. ( ilmstoad , who occupied the next
room , had played him a practical Joke , and
robed in his night shirt crawled In on the
doctor and told him to bring back his clothes ,
but the doctor did not take the Imputation
kindly and thu two men had n violent quar
rel , which was so wordy that it attracted
the attention of people occupying other
rooms In the building. After much search
the missing articles were found in n closet
in the bath rojni. The governor h/is not
shown nny disposition to talk about it , but
It got abroad and rhymsters of Clioyo.nno did
full Justice to the missing pants.
But all the fun has ceasccl slnco It Is
learned that the United States marshal , Joe
Rankin , has been employed to look Into the
matter , and that the trowsers contained over
$ 'JOO In gold. It is said that Rnnkln has a
elcw ns to what became of Ut ) gold coin and
that a very prominent individual will bo
shown up to bo no bettor than a thiof. This
promises to bo a sensation of the first water ,
and the case will bo pushed to the fullest
extent ,
MuvmnunU of Oceim Sti-umiTH Miirrli I ) .
At Antwerp Arrived Pennsylvania , fron
Philadelphia.
At Queonstown Arrived Britannic , from
New ' ork.
At 'Boston Arrived Angloraan , from
Llveriwol.
At Ixswls Passed British PHncessifron
Liverpool.
At Nov/ York Arrived Welnian , from
LiverK | > ol ,
Hiring .Men In ll.iltiiiiurc.
B.u.TiMoiti : , Md , , Maroh ! ) . A. J. Robinson
is here , the agent of all railroads leading
westward from Chicago , among them
ho Hock Islarid , Chicago' & Alton , Illinois
Central , Chicago ft Northwestern , Grand
{ aplds & Indiana , Mr. Robinson Is author-
zed to employ as many men conversant with
ho duties of switchmen , yardmen , conductors
ind the handling of freight trains as come
iloiig. Mr. Robinson tells each applicant
hat his pay will bo fM and $75 u month ,
'otnpotent yard bosses are in demand also ,
o promises are exacted about Joining labor
rganlzations.
.1 LOT or tSri.irr.VM.
> Ioro Itottou ll riirerlpniit l.liieiiln Olllrliils
llctlil Iteipiintlble.
LINCOLN , Nob. , March ! ) . [ Special Telo-
'ram to Tun Btn. : ] The cell housa Investi
gating committee was to have submitted its
'cport to the house this morning , but u
llfferenco of opinion developed as to the re
tort as It had been prepared. It touched on
he filthy condition in which tlio cells were
uund , and the report stated that ex-
"iovernor- Boyd and ex-Warden Million are
leserving of censure for this condition of
iff a Irs as well as the Board of Public Lauds
iml Buildings. Tlio democrats on the com-
nitteo at oneo took this up and declared
hey would never sign the report unless
ho objectionable clause was stricken
int. The republicans insisted that the re-
> nrt should bo nonparti.san , and that the
ilamo should bo bestowed where It was do-
.ervod . , regardless of the politics of the party
censured.
The outcome was that the committee was
xcused for the remainder of the forenoon to
visit the penitentiary and take additional
cstlinony ns to the condition of the cell
louso. The committee was to have reported
this afternoon , and reports wcro also ox-
iccted from the bribery committee ami the
committee that bus been Investigating the
steals nt the Lincoln Insane asylum , but
lotion was deferred. The latter will show
that of 9S.OlH.-ll ) , paid out on fifty-four cattle
nut grain vouchers during IS''O ' nn.l IKOi ,
< : . ' , ir > r > .45 of the amount was overcharged ,
iml that fl,08S.U ! was paid out on twenty ,
'orged vouchers. The report will censure
! ) r. Knapp , the former superintendent , for
gross neglect in not pronurly investlnatini ;
, hu mutter , when ho had every reason to
" : > uliove that the state was being robbeJ and
: iad so expressed himself.
It will also show that nearly $ ' 2.000 was
stolen by overcharging on the Ilour account
'or goods that were never delivered , and
Lhat the state was robbed of over gllUKM on
the coal account by the same system uf over
charging.
The wrnnelo over the railroad bill pre
vented the investigating committees from
submitting their reports this afternoon , and
they were made a special order for 10:110 :
o'clock tomorrow mornlntr. '
The cell' house committee completed its
work this afternoon. It found the cells at
Lhe penitentiary in a much worse condition
than had been supposed , the budding being
: tositlvelv filthy , and the testimony of con
victs and prison employes was to the efl'ect
that bedbugs and cockroaches made life at
, ho institution almost unendurable. The
: lause of the report reflecting on ex-Governor
Boyd and ex-Warden Million was chanu'cd to
suit the democratic members of the com.nit-
Leo by including es-overnor ! Thayer and ex-
Warden Hopkins as being likewise eensur-
iblc for the general air of neglect and de
struction noticeable around the penitentiary.
If further action on the railroad bill does not
liroveiit it these reports will bo presented to
the IIOHSO tomorrow morning.
Tiir.iu iib.iur.'i .iici ; it.ti ) .
Iinlhiim In Montana threatening the AVIllte
Settlers on the Crow Reservation.
LAUIIKI , , Mont. , March 0. Open warfare
has been rife among the settlers of the
newly opened portion of the Crow reserva
tion and the Indians , the wildest excitement
prevails at the new town of Wilsey , and the
country around is alarmed. Ranchmen are
moving their wives and children to places of
safety , and preparing to defend their claims.
The first bloodshed occurred tills morning.
Little Fnt'o , a Crow Indian was killed. His
body was brought to Wilso- this evening.
The Indians who have just been allotted
land in severally have become angered at
the encroachments of the whites and under
took to drive off a settler named Henderson.
On Monday they drove Henderson away ,
but he returned with a couple of friends , all
armed. The Indians gathered in a clump of
timber and sent Little Faro forward. Ho
told Henderson if ho remained on the tract
of I land which , ho had honiesteadcd
another I twenty-four hours ho would bo
scalped and his body fed to tlio crows. Ho
then whistled and his companions began to
pour out of the woods. At the same time
Little Face reached for his gun , which he
had set against a trco. lie was not quick
enough , however , as Henderson shot him
through the heart. With wild yells his
companions disappeared , into the woods.
The Crows are making medicine and prepar
ing for actual warfare. Tills is the first
time the Crows have ever shown hostility
towards the whites.
It is expected ttfdt two or three companies
of United States regulars will bo ordered t
Wilsey as soon as the War department can
be Informed of the critical state of affairs.
FIHH UKVOUU.
H1II7.0 nt Stllwuukee Nine I'lre-
ineii Injured.
MIUVAUKHC , Wis. , March 0. Several per
sons were injured this morning by a fire
which completely destroyed Romadka Bros. '
trunk factory. Loss , about & . " > ,000j insured.
All the injured are firemen. Some fell from
n broken ladder and the others were hurt hy
falling timbers. They are :
JOHN Knr.irz.
AMIKKT SIHIISTEIN' .
CIIAHI.KS UAFFUUTV.
Fi.OKK.vcr. DoNoitri : .
LlKUTKNANT Mt'SKOlV.
CAPTAIN SEIUSTI.VN liiiANn ,
JOHN GCZWIMKI.
Anoi.rn COTTON.
JOHN HADKI : .
o
1'ntrlcits lYuvliled Tor.
WASIIISOTON , D. C. . March ' . ) . The presi
dent sent tlio following nominations to tlTo
senate :
loslah Qnincy of Massachusetts , assistant
secretary of state.
Hubert A. Maxwell of Now York , fourth
assistant postmaster general.
Isaac 1' . Gray of Indiana , minister to
Mexico.
Patrick A. Collins of Massachusctts.consul
general to London.
F. P. dale of Now Mexico , receiver of
public moneys at Roswell , N. M.
Cni/.eil by rliiiiiutltl : Trouble * .
BEATiiiru , Neb. , March ! ) . jSpwlal Tele
gram to Tin : BEE. ] J. M. Ramsey , an old
and esteemed resident of this city , was
today adjudged ins'ine and ordered t.iken to
the asylum at Lincoln. Ho has been in
feeble health for several years and has re
cently been b.ully distressed about his finan
cial affairs. Hn was also subject to epilepsy.
Ramsey Is a veteran of the Into war and lus
many friends throughout this section who
will regret to learn of his mental wreck.
No Union IMc'llu KxtoiiHlunn.
Su/r LAKE. U. T. , March ! ) . [ Special
Telegram to TUB Buc. ] Recently the Salt
Luke Chamber of Commerce passed u reso
lution requesting the Union I'acliio railroad
to extend Its line to Ploeho , Nov. Today
Secretary Sears of the Chamber of Com-
murco received a letter from President Clark
of the Union Pacific saying that the present
financial condition of the company would not
warrant the building of the oxteimum.
lloitonVool Mii'kcl.
BOSTON , Mass. , March a-Tho wool mar
ket has been quiet and the sales 2 , < 78,000 ,
iwunds , the smallest for two weolcs , Prl cos
steady and unchanged ,
TATY1"P1rPTl"P TOOTHS
JOINED HIE ISSUE
Railroaders and Antl-Railro.idors Shy Their
Oastora in the Lower House.
ONE SHABBY TRICK QUICKLY EXPOSED
Howe's Subterfuge to Stampoilo tlio ludo-
paadeuts Almost Reached Success.
CHAIRMAN PORTER SAVED HIS REPORT
Prompt Action Knocked Over a Pritty Plan
of the Railroad Engineers.
DEBATE ON THE RATE BILL BEGINS TODAY
Committee' * , Siiltstltuto fur the Xowborrjr
I1I111'liicoil on Us rasuiRe After it lint
Struggle Ajriuust Trickery mill IJov
rtcrnte Opposition.
LINCOLN , Nob. , March 0. [ Special Tclo-
gram to TUB Bnc. ] A sail commentary upon
the republican "party was the action of sov-
cral of its representatives iti the house this
afternoon , when tljuy upcnly csi > ouscil the-
cause of the railroads by making u desper-
atu attempt by mentis of. the grossest mis
representation to knock out the maximum
rate hill on the eve of Us passage
through the assertion that it was
a more radical bill thaii'had been supposed.
The claim of the railroad tools to the
offcct that this was a newly discovered
feature of the bill , was altogether too irituzy
to bo Riven any credence , but backed up aa
it was by figures that were ostensibly cor-
reel , it proved u stnffgerer momentarily for
the ardent champions of the Vill. Several of
the anti-monopoly republicans , and some ot
the Independents as well , began to doubt If
some great mistake had not been made sonic *
whore , and they wondered if the committee
had not been reached by some uniluo influ
ence , and persuaded to draft a substitute
containing fatal defects in order to stave oft
action on the bill.
Porter was nonplussed and the position In
which ho was placed was a most embarrass
ing one. Ho proved 01111:1 : ! to the emergency ,
however , and discovered the imposition that
was being practiced Just in time to prevent
the plans of the conspirators from being suc
cessful.
Worn Working u Smooth ( Jiuno.
That it was the result of a conspiracy ,
born of railroad desperation , it admits of no
doubt , and it was skillfully conceived and
executed. Its discovery was more of an ac
cident than anything else , as the imposition
was of a iiaturo that could bo counted on to
bafllo detection ninety times out of a hun
dred , and especially in view of the fact ( hat
tlio railroad emissaries were in possession of
tlio figures , and when the independents , or
anti-monopoly republicans , evinced a dispo
sition to investigate for themselves they
found the documents in the hands of the op
position , who , although .ready and oven
anxious to show them , at the same time took
particular pains to direct attention to the
wrong column in making comparisons In
order to further carry out the misrepresent
ation und perpetuate the erroneous impres
sion that was prevailing.
The scheme was deliberately concocted
and most brazenly worked , and would have
been thoroughly successful but for the timely
discovery made by the chairman of the rail
road committee. It was the seeming fair
ness and sincerity of the railroad engineers
that deceived the conscientious and really
fair minded men in the house , but subse
quent developments proved conclusively
that , the cloak of sincerity masked a schema
as unfair and contemptible as over charac
terized any of the machines of the railroad
lobby.
Church Ilimo Sqcmi-liiK lllmsoir.
The gentleman from Ncmaha claimed
afterward that ho was misled in the , matter ,
ana that he acted in all good faith , but mas-
much as ho Is very generally accorded credit
for keen perceptive powers , his assertions In
that direction arc received with a largo
grain of Allowance , nJ his persistent grand
stand playing for fifty days and practice on
the feat of climbing into the independent
hand wagon every time the legislative proces
sion turned a corner is not sufficient in this
case to avert suspicion from the lieutenant
governor's ancient enemy regarding hia
action this afternoon.
It Hulpp.l UK. 11111.
The affect of the inovo will bo quite the
reverse of what was intended , as several of
the repub'Icans who wcro thus Imposed upon
feel indignant because of it , and for this
reason the bill will receive moro republican
votes In the house than would otherwise
have been the case. Jt is believed that the
bill will-pass the lower house by at least
sixty-five votes , although the railroads Imvo
not relaxed their opposition.
Another good result of the occurrence this
afternoon lies in the fact that It will do
away with an argument that WI\B \ being
prepared to ho usud against it In the
senate to the effect that the bill was
not discussed in the house commit
tee of the whole , as the time there
was occupied by an attempt to HUbstituto a
commodity bill and that nothing was known
ns to the real provisions of the bill. It has
now been settled that the bill is in reality a
measure nrovidlng for n reduction of 20 per
cent In freight rates. It ulso prevents dis
criminating , and at the same time gives tha
roads the right to go before the supreme
court at any time and on a showing that any
portion of the schedule is unjust have tha
Injustice corrected.
Itri > nhllciii9 : for It ,
Several of the republicans showed by
their action today Just where they stood on
the question of railroad regulation , voting In
favor of the committee bill on all
matters where the interests of the bill
wcro at Issue. ICeokley , Hallcr and Slsson
wera openly arrayed In Its behalf , and whenever -
over its champions are called upon to stand
up and Ira counted they will bo found in lino.
Hallcr was actually abused by some of the
railroad republicans because of the stand ha
took In Its favor before the committee , but
his actions up to the present time do not in
dicate that ho was swerved very many mllea
from his course.
Kcckloy assured the Independents of the
support of twelve or fifteen republicans in
behalf of the hill or any other bill that pro
vides for , a reduction of rates of not moro
than 20 per cent.
THKlllTltlL'lt I'AILKU.
Itallroail .Minified Overreach ThuunuU
III TryliiK In Dufeut a Hill ,
LINCOLN , Neb , , March -SpecIal [ Tolo.
gram to TUB lir.i ! . ] House roll No , S3 , tba
railroad coramlttee's lubstltuU Igr ( h
