TI1K OMAHA SUNDAY BEE: AUGUST C 1911
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MATTERS OF MOMENT AT KILPATRICK'S MONDAY, AUG. 7TH
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n
IN THE
BASEMENT,
Starting at
8 a. m.
All Day After,
If Goods Last.
A big assortment of fine
ginghams, odd pieces left from
various lots and qualities, reg
ular prices from 12c to 25c.
Some Scotch in the lot all
one price Monday
7i cents yd
MAIN FLOOR
Fine Cotton Good3
Section.
Starting at
11
In the Basement
a. m
Continuing till the
store closes, 5 P. M.
MAIN FLOOR,
Starting at
9 a. m.
Continuing While
the Stock Lasts.
All our regular 10c long
cloth will be sold at 89c per
bolt of 12 yards. These goods
on sale at 9 a. m.
a for twelve
h yards.
An entire square cover
ed with thousands of yards of
fine tissues, dimities, organdies,
voiles, poplins, silky cotton
fabrics. New goods this season.
Sold by us up as high as 50c
yard. Positively the best value
offered by us this season
All
MAIN FLOOR
Ribbon Counter
Starting at
1 p. m.
and from that time
on, as long as any
of the lot remains.
Odd lots of all silk fan
cy printed warp and moire
ribbons, 4 inches to 6 inches in
width; ribbons which sold by
us at 30c per yard in the lot
All 9c yard
These Art it the Rib
boa Sqiar
Al the Squirt Oppo
site Hosiery Counter
10e yd
Linen Secticn, 1st floor
MAIN FLOOR,
Starting at
10 a. m.
and As Long as
Stock Lasts.
f A big assortment of la
dies' hose and children's socks,
broken sizes in some cases, all
the left overs from goods which
were originally sold up to 50c
per pair
fit
MAIN FLOOR
Men's Hour; Noon.
This sale starts at
12 O'Clock
noon and continues
until every pair is
sold.
Somewhere about 40
dozen pairs of sox for men, all
colors, all sizes and many
makes; odd lots from various
lines which sold at 25c, No ex
cuse for Sockless Jerrys now
All
At Our Wonderful
Handkerchief
Square, Starting
Promptly at
2 p. m.
and lasting
throughout the day
if stock is big
enough.
All pure linen, plain and
initial handkerchiefs, from the
biggest purchase of handker
chiefs ever made by us; poorer
handkerchiefs sold constantly
as high as 10c
3ic each
M tie ftesili. Coanter
At the Punishing
Section
10c pr.
Hosiery Counter, 1st Fl.
g pair
We have a double object in start
ing each sale at a different hour. First object
to give all a chance at a pick each place. Second object,
to have a crowded store every hour of the day.
SECOND FLOOR
Starts at
3 p. m.
Important to Note
the Hour. Muslin
Underwear Section
A lot of messaline, taffe
ta and jersey top silk skirts,
colors and blacks, regular val
ues up to $4,95 each
At the Bndertmlii
Section
At
One price
$1.98
X
We close at 5 P. M. If you knew as much as we do about the values advertised above you would
know that we have started something which will keep business humming all day Monday. Note the time
for each sale so that you will not be disappointed. We'll be glad to have you spend the day with us.
"3) fl (r
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MAKING MTESFOR RAILROADS
Some Eiitory of the Prooesi that Eu
Been Interrupted.
STROIfO ABM METHODS OF PAST
ratal Traaspertatlow RWwr
kr tit Interstate Gosa
en CaaBBlaald,B
When tbe Interstate Commerce Commli
slon passed on tb. Spokane. Heno and other
rat. cases, tb result of which was the da
termination of th. prioclpl of "th lone
and abort haul." and th. announcement
of a new buii for rat making on ship
ments between the Atlantic and Pacific
coasts. Including Intermediate points, lt
written opinion Included a very Interest
ing historical review of transportation dur
ing the earlier days of the transcontinental
lines. A portion of this review, which gives
something of an insight as to how the
rates from eastern to western points grew,
now the opening of new lines made changes
In tbe situation and how tbe competition
by water was finally taken care of. Is here
reprinted:
Tbe Troeblews Be.
In 1M, wbea the Union Pacific and Cen
tral Paolfle railroads were united at Prom
ontory Point. I'tah, there was no such
thing as a transcontinental rate, except
ing as It was mad up of a combination of
locals. Jm tact, at that time it was not
expected. o Senator Stanford has testified
before a senate committee, that there
would be any real competition between
ih transcontinental railroad lines and the
ocean carriers. Tbe original purpose of
constructing th Central Pacific road, so
far as Its California promoters were con
cerned, was to carry eastward from the
Pacific coast to th Interior, and th rates
made aoroas th Merra Nevada mountains
were made to meet and overcome the then
existing competition of the mule team. It
u as not tbe primary purpose to extend
this road across Nevada. ut only to fur
nish a means of communication between
th city f Sacramento and th rich min
ing towns along th rldg of tb Sierra
Nevada and on their eastern slope. Con
fessedly It was the lure of the government
subsidy which Induced th extension of
this line to th eastward. Th purpose of
(lie Central Pacific was to act as the dis
tributor of the ocean-borne freight which
was brought Into the hay of Ban Fran-
fine by sailing ship coming In around th
Mora; and for eom time following th
establishment of this through transconti
nental rout no serious effort was appar
ently made ta indue th all -rail overland
movement of traffic, which did not re
quire especial er express service.
First Tkresck Rate.
The first through rate published was an
open rat of $f per WO pounds, first das.
This rat was scaled down, being lower
from Pittsburg, and still lower from Chi
cago and other points. When competition
was begun with the clipper ships out of
New Tors, class rates were reduced to a
as scale, and the wer graded from th
east westerly. Commodity rates were also
at this Urn established In an effort to
take from the ship important volumes of
business- Thee open rates, however, were
found te he nneucoessful la developing any
considerable amount of transcontinental
It-sine, owing to the fact that whatever
n'.es the railroads made were met by th
si lines. Accordingly In IfTT the Union
Pacific and Central Pacific, whirh worked
together in this matter. Instituted what is
, kzwwn a the special contract system, un
der which they published two rate sheets,
en known as the "white list" and the
other as th "pink list." The white list
contained the open or public rate; the pink
list contained the contract rate. Contracts
were made with individual shippers that
If they would give to the railroad line all
of their traffic for a year to the exclusion
of ooeaa carriers they would have a re
bate down to the figure fixed In the pink
list.
"Driving Ships Off the Sen."
The battle began In earnest at this time
between th railroads and the ooean lines.
Whatever competition there had been be
fore waa Insignificant when compared with
that which followed the year 1S77. At that
time tbe railroad Interests evidently de
termined upon driving the ships from the
sea, and they very proudly admit that
they succeeded m this effort at least to
the extent of nullifying or controlling th
water competition. Tbe jobbers of the
Pacific coast were Individually dealt with
their waybfls by the water lines were
furnished to the railroad, from which It
estimated tbe volume of traffic and the
amount ef charges paid thereon by the
shipper. Upon this basis a rate was made
by adding to the ooean charge an add!
tionaJ allowance for the saving in insur
ance arising eut of movement by rail, the
saving la interest upon the value of the
freight, and an additional amount for the
comparative certainty ef delivery and ex
pedition. Different rates apparently were
mad to different shippers. This secret
contract system, by which a rate was made
to each Individual, firm or shipper was a
logical application of the principle that '
tbe carrier should charge what the traffic
would bear. For several years this sys
tem was successfully pursued with Increas
ing advantage to the railroads; but under
the pressure of strong popular agitation,
and owing Jo the fact that tbe shippers
wer In many cases found to have broken
faith, th railroads determined upon again
publishing but one rat. To arrive at this
rat they adopted a policy of "harmonlsa
tion." an It was termed; they averaged
th rates upon various commodities which
had been charged to various shippers and
made a new schedule of rates, from which
they varied as emergency might require
or expediency advise by th current method
of rebating.
Pari Me Mall CeMae.
Thus far we have taken no account of
the Panama route, which had been open
and operated since the early days of the
rush to the gold fields. This route was In
the control of the Pacific Man Steamship
company. In 1871. hardly two years after
the opening of th transcontinental rail
rout, th I'aion Pacific and Central Pa
cific railroads entered Into agreement to
subsidize the Pacific Hall, buying its space
at an agreed figure, and often running the
steamships empty. This arrangement was
continued until 11. when the steamship
line was turned over te an association
known as the transcontinental association,
which continued Ihe arrangement until
14. so that during this period the Panama
rout offered no serious competition to
th rail line. And to continue th history
of this negligible factor la sea competition,
it may at this time b said that tb Pa
cific Mail Steamship company is aow con
trolled, through stock ownership, by th
Southern Pacific company, and ha been
since the year ISuO.
Throughout this period of competition
between ooean and rail line we find this
interesting rat condition to have existed:
Class rates to Pacific coast terminals In
creased with th distaaos and wer higher
from Atlantic seaboard points than from
Interior points; commodity rates, however,
m hlch were created to meet special condi
tions at th seaboard th weapons fash
ioned for th destruction of the dipper
ships were lower at th ports than at the
interior points. In tbe language of Mr.
Luoe, of the Southern Pacific:
Commodity rates were scaled up from the
seaboard In the first instance, but tbe class
rates were scaled down from the seaboard.
There was always a higher class rate from
New York than from Chicago, but often a
lower commodity rat from New Tork than
from Chicago.
Ssatkera Pacific's Cassia.
In 1M3 a new competitor entered the
field th Sunset-Gulf route, a water line
from New Tork to New Orleans owned by
and connecting with the Southern Pacific
line from New Orleans to San Francisco.
This new line was looked to by the carriers
generally to "take care" of water competi
tion, in the significant language of a South
ern Pacific official. It entered upon the
work with such heartiness that before long
the Pacific Mall alone kept on its perfunc
tory way between Panama and th Pacific
coast terminals. Th clipper ship as a
competitor had, been destroyed. Pacific
Mall had been subsidized, and the trans
continental lines were In control of ocean
aa well as land transportation.
It Is the estimate of the Southern Pacific
that of all the traffic moving from the
Atlantic seaboard to California from IKS
up to 1881 the Bunse-Qulf route carried
from 7 to 90 per cent, and of the balance
practically all went byrall. The aggressive
policy of the Southern Pacific company In
instituting a water line of Ita own between
the Gulf and the Atlantic drove Its water
competltora out of the field and took from
the ran lines all but the most Insignificant
proportion of transcontinental traffic
Those were th fine free daya when "all
sorts of rates could be had and all sorts
of tariff could be found."
Paata Fe Enters the Field.
By the year 1885 competition by sea was
not more than nominal. In that year, how
ever, the Santa Fe. being completed to
Los Angeles, came Into the field claiming
Its share of transcontinental business
destined to its' new terminal. California.
Up to its coming, and for sum years prior,
commodity rates had been graded up from
New Tork: that is to say. the rates from
Pittsburg territory to California, and from
Chicago to California, wer higher than
from Nw Tork. Th theory of the rail
carrier waa that they should meet th
competition at th point whsr tb cora-
I-etition actually existed at th seaport.'
But th Santa F had its eastern terminus
n Chicago. It found the Sunset-Gulf rout
carrying practically all of th Atlantic
seaboard business at rates below th all
rail rates at any rate that It chose to fix.
In ita view it was all well enough for the
Southern Pacific to send out from the
gulf its swa boats that would drive all
rivals from tb ocean, but because It had
don' this service to th rail carriers It was
not to follow that all th traffic was to
remain in th possession ef the Southern
Pacific Whatever rates, therefore, th
Sunset Gulf rout case to make at New
York th Union Pacific and Santa F de
clared they would make from Chicago.
This determination of railroad policy was
given tb nam of "market competition."
It aa said that the great middle west was
building np and should have its opportunity
to compel with th Atlantic seaboard for
th developing trade of California. Th
Santa Fs did not reach New Tork; the
Southern Pacific did; th Santa Fs would
glv to Chicago and to St. Louis and to
Kansaa City th same opportunity to feed
and cloth th People ef California that the
Southern pacific gave to th people of New
York and Boston. Than followed an inter
esting rate war. which culminated In 1SK
in the installation of a new set of graded
rates, this tim scaling loner aa they re
ceded from th Atlantic seaboard.
W find then with th first tariffs that
were filed with the commission a $3 first I
class rate from New York to San Fran
cisco, a loner rate obtaining from Pitts
burg, a still lower rate from Cincinnati,
and so by steps to the Missouri river.
These graded rates remained In effect until
1SSS when we find the first evidence of
the Institution of a great eastern blanket
of class rates. This waa at first not form
ally recognised in th tariffs, but waa ef
fected by the eastern carriers through a
system of rebates from the published rates.
Things appear to have gone peacefully
for the next few years. The only serious
competition which tbe railroads met by
water was that of the Southern Paciflc
Kunset line from New York which apparent
ly applied from the New York piers what
ever the all-rail rates were from Chicago.
Of course during this period, or any other
period, until recently it is impossible to
say just what the rates actually paid were,
e are dealing, however, with th "paper
rates."
A Mrrekaat'i Line.
Uve ocean competition being out of the
way, and the railroads having come to an
understanding as between each other, mat
ters went smoothly until the Ban Francisco
merchants, la ISM, being roused to activity
by a recent Increase in the transcontinental
rates. Instituted a boat line of their own.
This brought on another rat war. In which
th merchant lost heavily, and rates were
reduced by "the rail lines to absurdly low
figures. The lines east of Chicago and
those west fell out over the division of
the Joint through rates, and for a time
there wer no Joint through rates extend
ing from points farther east than Chicago,
and blanket rates were made by the west
ern carriers from Chicago. Mississippi
river, and Missouri river points. After the
railroad lines bad killed off the San Fran
cisco merchants' steamship line, losing
thereby several million dollars, they came
to an agreement with their eastern connec
tions as to a new basts of divisions and a
new scheme ef rats making.
Thus we eome to the year vm, at which
time the blanket system at present obtain
ing was first authoritatively announced.
This blanket extended from tbe Missouri
river to the Atlantic seaboard. We hear
very little of water competition for the
next three or four years. In Wi, however,
tbe Amerkian-Hawallan Steamship com
l-any established Its first steamer line
through the Straits of Magellan. la 1900
also, we hav already seen, control of the
Pacific Mall was purchased by the South
ern Pacific company. Neither one of these
facts seems to hav disturbed transcon
tinental rail rates.
Mexlee la the Gaaae.
In 1906 another step forward waa mad
in th matter of water eompetitlon by the
opening of the Tebuantepee route. Tbe
American-Hawaiian company, under aa
arrangement mad with th Mexican gov
ernment and with tbe sugar planUra In
th Hawaiian Islands, instituted the most
satisfactory service which up to that time
had obtained between th Atlantic and
Pacific seaboards by water. East bound
tonnage was furnished by Hawaiian sugar.
and west-bound tonnag was gathered at
th Atlantic seaboard.
In 1907 the volume of west-bound business
carried to Pacific coast terminals via this
rout was lULSK tons; ta 190. 117.3(8 tons;
in 19. XX.000 tons; In int. VM0 ton. Tb
total vol am of transcontinental tonnag
waa. two years ago. estimated by tbe car
riers at tCWiOOO tons per annum, while
the total w amr-boms traffic is about W
per cent cf this figure. Inasmuch as th
traffic of the country increases at the rate
of nearly 1 per rent per year, it would
appear that In nearly tour year ocean
competition of tbe transcontinental rail
line have been enabled to secure a total
tonnag of approximately the normal In
crease In west-bound transcontinental
freight for a single year. In giving thla
figure we are allowing to the Ametican-
Hawafian line all the advantage of the
accumulated business of th six years pre-1
ceding 1906, in which it had In operation
its steamship line through the Straits of
Magellan. Considering that this carrier
has reduced Its time of movement between
the Atlantic and Pacific to an average of
little more than twenty-five daya and
gives a service that never before has been
equaled by aa ocean line, the alight In
crease in its tonnage either evidences that
all-rail rates are more attractive for the
great volume of business or that the
water ratea are maintained at a figure
so nearly approximating those extended by
the rail lines as not to oyercom Ui dif
ference in th service.
The Ocean SetllU.,,
We have thus traced the history of this
protracted struggle between the ocean and
the land carriers that we might clearly
appreciate the strategy of the railroads
and its effect upon the ocean-borne traf
fic. One water route after another has
been rendered Innocuous. To meet the
competition of the railroads th tendency
of the ocean carriers has been to shorten
the time consumed in passing by water
from coast to coast. The clipper ship has
been forced to give way to tbe steamship
and the steamship has been compelled to
transship by rail a portion of the distance.
The routes by way of Cape Horn and the
Straits of Magellan hav been virtually
abandoned. For nearly forty years tb
Panama rout has been under railroad
control. When an attempt waa mad to
re-establish this route as a vital competi
tor, the railroad used their own ocean-and-rail
line to eliminate It from the field.
So that for several years there has been
but on ocean lin which apparently has
no railroad connection, that of the American-Hawaiian
Steamship company; and
thla line lives upon sufferance, its ratea
being made with th knowledge of the
railroad company and with a more or less
definite relation to the transcontinental
rail ratea Within the past few month
another water competitor has entered the
field, th California-Atlantic line, which
Las don an extensive business both east
bound and west-bound for th abort tim
that it has been In existence, but th
prophecy mads by the railroad witnesses
is that It will not last long.
Ceatalderatlon Dee Water Cewapetlt lea
In the light of this history it Is not to
be gainsaid that th transcontinental lines
must give consideration to sea oomi-otltlon.
For thirty years and more their effort has
been to "neutralize and control" such com
petition, in tbe phrase of Mr. Stubb, vice
president of th Southern Pacific system.
WhU they hav subsidised, bought, and
controlled th water carriers, there ha
a. a ays been present te the mind ef the
traffic manager of the transcontinental
railroad the existence of th ocean and tb
luasibility of its use. Without a ship upon
it th ocean has th i power to restrain, la
some degree, th upward tendency of rail
rates. A railroad may not safely indulge
its deslr tj. Impose al tb traffic will bear
between two ocean porta, and it may truly
b said that th least poetical of railroad
traffic managers merer looks upon the
ocean without a sens of aw.
Tb railroad, morever. must soon meet
with a competition by water more intense
than any that they hav heretofore suf
fered, for within three year another rout,
on more important, searching, and deter
minative In Us effect upon railroad rates
than any other will be opened a route, all
aster, by way of the Panama canaL Tb
cutting ef thla canal will la effect bring
the Strait of Magellan I.M0 miles to the
rorthward and with modern steamships
It Is estimated that San Francosco will
by "vatcr be removed from New York bit
fourteen days.
Evolatlea ef Blanket Systena.
While th ocean has been potent In affect
ing ratee, it would be Idle to ray that we
know or can ascertain the degree of its
influence. In the very first place we do
not know what rate the shippers paid. The
published rates until within very recent
years give no Indication of what the actual
rate paid waa. And, furthermore, rates to
the Pacific coast have been the subject of
commercial forces la our railroad history.
It may not b valueless, however, to re
view the rise and fall of class rates sine
the year 1K8V when tariffs were first
required ta be filed, and to take a glance
at the Influence on commodity rates of
the rate competition of the Immediate
past. As has already been noted, the first
tariff filed with th commission was on
which is said to hav approximated the
actual rates which had been collected, and
this was the result of a coming together
of tb carriers after troublesome rat
war. The seal as to first class traffic
ran: To San Francisc from New York. IS;
from Pittsburg. U79; Detroit. HB; Chicago.
$2.40; Mississippi river, 12-30; Missouri liver,
12.10. This tariff was soon followed by an
otherthat of January 16. 18-which began
with a rate of M from New Tork, tbe rate
from Chicago being $3.8. On September 1.
IS, however, owing doubtless to this feud
between the eastern and the western car
riers which has been herein referred to.
we find the M scale in effect; from Buffalo
and Pittsburg, as from Toledo and Detroit,
th rate, however, was tt.W; Chicago, &.;
Mississippi river. 13 70; Missouri river. tt.SO.
Four months later. January L 1W9. a rate of
M waa put In. the difference between
the New York and th Chicago rat being
30 cents. This sat of class rata seems to
hav continued until April U, lua, when
another rat war, a'w hav noted, waa
begun, these rates being oa th son! of
S3.T from New York. S3.) from Chicago. X
from tb Missouri river. But hardly were
thee rates in effect when all rates east of
Chicago were cancelled as of May U, law.
and for four years ther appear to have
been no joint through rate In effect from
any point east of Chicago. On July IS, 18M.
th rate from Chicago to the Pacific ter
minals waa reduced from $3.40 to $2.40,
which was the blanket rate from Chicago,
M.ssiesipl river, and Mlrsourt river terri
tories. Three years later came an adjust
ment with the eastern carriers, by which
khey put In from New York. Pittsburg and
Detroit, a 12.4 scale, and thus for th
year, June, INS", to June, 1X98, the $29 scale
from all points east of the Missouri river
obtained. This was the first blanket from
the MlFsouri river lo the Atlantic seaboard,
hitherto the rates had been graded up to
New Tork, the more distant point, carrying
the higher rate as to dsns traffic How
ever, on June B, I8M, a $3 seal covering
the same territory went Into effect. Nol
yet, however, was the blanket perfect, fot
neither In the scale of IWmor In that ol
1W were the same ratea carried from polnti
west of Chicago that were carried from Chi
cago and points east thereof. This wat
remedied, however, on January M, 1904. all
years later, when the rates on tb lowet
classes from the Missouri river and the
Mleslssippl river wer raised to equal those
of Chicago. For five years this condition
continued until on January L 109, a further
Increase in the lower classes was made,
but this time as to New York and Boston
territories, tbe Increase being effected h
eliminating the blanket ratea ca t all
oUa below fifth.
BITING DOG IS TO BE SHOT
C W. MrKaalek Hut Bring; His Dog
te th statlen far the F
llee to Kill.
C. W. McKusick' bulldog waa found
guilty of biting Frank Doner, a neighbor,
in the leg and sentenced to death by Judg
Crawford In police court Saturday morning.
Th dog was slven until Monday to "set
his hous In order" and pre par to h blown
to that bourn whno no dog returns.
McKusick, who was brought Into court
on a charge of harboring a vicious Bog,
promised to bring the can In to the polio
and Set them use him in target practice
Monday morning.
Th Bee i "Th Homo" newspaper.
TWEXTT-E1G1ITH AVEXVE
An. , lsll
Block 53.
Do your customers
live here
??????
, On 28th Ave. between Capitol
Ave. and Davenport Street, there
are 3 occupied houses, and in 3
they take The Bee.
Advertisers can cover Omaha with one newEpaper.
