Omaha Daily Bee Newspaper, July 1, 1887, Page 8

J ! | | | THE OMAHA DAILY BEE: FRIDAY, JU MR. KIMBALL ON REBATES, The Traffic Manager of the Union Pacific Again Called. THE PACIFIC COMMISSION. Lawyer Poppleton Gives Another Manifestation of His Impaticnce at the Results of the In- vestigation, Yesterday's Session, Governor Pattison and Judge Uittler, of the Union Pacific investigating com- mitte: :companicd by thestenographer, Mr. Davis, and the Sergeant-at-arms,Mr. Walsh, retur to Omaha from Sioux Minneapolis & Omaha evening. The gentle- themsclves as hav- g enjoyed the trip very much, Gover- nor Pattison being especially pleased with the rich soil and the evidences of prosperity which he observed along the rotue. It onlv lacked about ten minutes of 11 o'clock when Generai Traflic Man- ager Kimball carrying a roll of papers under his arm entered the room, and after shaking hands with the commis- gioners, took the witness stand. On being asked what papers of those called for by the commission were ready, he sub- mitted a statement showing the basis of regular passenger rates on the Union lines down to the present time. A ement was also produced showing the on freight rates during the same d. On his attention being called to he fact that the special rates were not shown, Mr. Kimball said that would be shown in the statements of rebates al- lowed, which was being prepared. — State- ments W also submitted showing the written and printed instructions as to rates during that period and also in- structions as to the granting of passes, This showed that passes were issued to news agents, eating house men, sheritls, the press, principal representatives of re- ligiou denominations, temperance workers, to legislaiors as a matter of policy made necessary by the action of other roads, persons accompanying live stock, elevator men, merchants, min § millers, and others who had interests in different localities and did a large amount of shipping over the road were allowed annual passes pursuant to ar- rangements with other roads. “‘\.\'Iu\t do you mean by ‘customs of other roads’ with reference to the grant- ing of passes to members of the legisla- ture?” inquired Governor Pattison, “I mean,” replied Mr. Kimball, *‘that where other roads granted these passes we would do the same thing.” Mr. Kimball also submitted a list of re- bate vouchers of which an explanation had been asked. The explanation was printed by atype-writer and was at- tached, &s an exhibit, to the testimony. The statement showing the cost of transportation over the territory covered by the Union Pacitic road from 1850 until the completion of the road was not ready, Mr, Kimball said he would prepare and forward it to the commission. The car mileage paid by the Standard and Conti- nental oil companies from 1852 to 1886, inclusive, was also shown in a statement submitted. The witness produced a statement showing rebates allowed and money paid to other roads on account of pools. Mr. Kimball had a printed explanation of the items. One showed that $6,128.25 had been paid to the Atch- json, Topeka & Santa Fe and the expla- nation was that this amount was the ex- cess earned by the Union Pacifio road over its share in the transcontinental 0ol. Another item showed $3,228.95 al- lowed to the Omaha and Grant Smelting works. This was the result of a cut rate of $3 per ton below the open rate. Den- ver and Pueblo smelters were allowed the same rate. “‘You say Senator Hill of Colorado, complained of the rates charged him,’" obseryed Governor Pattison, “‘why was that?” - : “I'he senator’s complaint,”’ replied Mr. Kimball, “was that we charged a lower rate for lead ore containing gold and silver than we charged him for cop- per ore. The matter s discussed at some length and finally we gave him a rate of $5 per ton.” The general trafic manager went on to explain rebates allowed other ship- pers and was asked by the governor, if these rebates were allowed to all ship- pers. “They were if they asked for them,” was the reply. ‘“‘But how were other shippers to know that the rebates were allowed!” asked the governor. ‘‘You say they were not publishea.” g “They generally knew of it,” said Mr, Kimball, “Suppose a man had paid the regular rate when he was really entitied to a ra- bate,” pursued the governor, ‘‘and didn't know it,would the company hunt him up and pay back the overcharge?" The “witness thought the company would not, but added if the shippers were charged less than they should have paid, he never knew them to hunt the company up and pay what they owed. “‘lwn asked about a payment to the Pacitic steamship company, the witness said this was a subsidy paid by the Union Pacific company as a member of the transcontinental pool, When the ques- tion was asked if the branch lines con- tributed to this payment, Mr, Mink said they did not contribute because they de- rived no benefit from the arrangement with the Pacitic Mail company. It was necessary to pay this subsidy in order to got the oriental trade, Another item explained was the allow- ance of a transcontinental rebate to Murphy, Grant & Co., of San Francisco. ‘This rebate was allowed in order to get their entire eastern shipment and pre- vent them from using the water route. Speeial rates, the witness said, were given to the Standard, Oil company for the same reason. ‘I'he Standard Oil com- pany ve the Union Pacitic 50 per cent of its Pucific coast business under this ar- rangement. This rebate amounted to 15 per cent of the open rates, When asked if this rate was allowed to all other oil companies shipping over the same route, the witness said it was not. In explaining a rebate allowed to Mr. Wells, an Indian supply agent at Schuy- ler, Mr. Kimball said these rebates were universully allowed to government su ply agents and the inter-state commis- sion had recently decided that the rail- road company could make what rates it chose on these supplies, because it 1n- ured to the benefit of the government, “Could any bidder who was not aware of this rebate successfully bid for furn- ishing Indian supplies” in competition with a bidder who did receive this rater" lnnlnirod the governor, “'Such a supposition is not tenable,” said Mr. Kimball, “because it was uni- versally understood that cut rates were allowed on Indian supplies.”” In explanation of rebates allowed to the Willow Springs Distillery company of this city, amounting to $2,775.58, Mr. Kimball said this was allowed on ship- ments of corn to the distiliery from va- rious parts of Nebraska pursuant to an agreement by which the distillery was to fi:“' the Union Pacific road 1ts entire shipments to San Francisco. In explana- tion of rebates allowad to the Union Cat- tie eomfiunk‘ol Ch“ye?n" amounting to ,704, Mr. Kimball said this was done cause the Sioux City & Pacific had wade similar rebate to the cattle com- any, - . p " “wun other cattle companies allowed Sho snme sobateat’’ asked tho governor, “They would circumstances.” Mr. Kimball was asked what aplana- tion he had to offer of a sutement of & citizen to Sioux (ity, to the effect that Sioux City shippers to points in . Washington territory were charged twice as much by the Union Pacific as shippers from Kansns (ity. hat ean’t be true,” said Mr, Kimball, he mayor of Sioux City so estifed before the commission,” said Goverror Pattison. “Well, he was off his base,” replied the traffic manager. He was told that the explanation afterwards given by the mayor was thut 1x City shippers were obliged to ship gouth to Omaha ov horn & Missouri over the Union tic, whereas the Kan. sas City shippers had a di points of destination in W ritory. This matter was still being di cussed when the commis: irned for dinner. AFTERNOON SESS10! When the commission was calied to order at half-past 2 o'clock yesterday af- ternoon General Trafli ny < ball again took t things explained by the witness were the rebates allowed to the Horn Silver Min- ing company. In 1880 an arrangement was entered into with this company by the Union Pacific company whereby they were to reccive $1.50 per ton on all ship- ments from visco to points on the Missouri . This rebate was al- lowed on the ground that the Horn com- puny, by an arrangement with the Fran in & Brown Steamship company of New York, could ship cheaper by the ocean route to New York from San Francisco than they could if obliged to pay the open rates of the Union Pacific in shipping across the country. Rebates amounting to £76,123.97 to the Boston & Colorado ing company, of Argo, Col., were given, Mr. Kimball said, because the smelting company had a large amount of low grade ore which they convinced the Union Pacific could not be shipped at the open rates. The open rate of §12.60 per ton from Argo to Omaba _was reduced for the Boston & Colorado Smelting Com- puny to $10, but since that time #10 has been made the open rate. A rebate al- lowed to Whittier Fuller & Co. of Minne- apolis was explained as having been given as a protection in oil shipments to points in Idaho. The stenographer then read from the testimony of the mayor of Sioux C the eflect that shippers from Sioux City were obliged to pay from 30 to %40 per ear more than shippers from Kansas be under the { and then west City. I\Yr, Kimball in explanation of this said that 1t resulted from the freight the peo- ple of Sioux City were obliged to pay over the Chicago, St. Paul, Minneapolis & Omaha road to Om If a line were built by the Union Pacific from Norfolk, Neb., to Sioux City, a distance of seventy- five miles, the rates asked for by the Sioux shippers, Mr. Kimball said, could be ven, The witness then proceeded to explain various items in a statement showing rebates and overcharges given to various firms and individuals, The explanation given was that the concessions in rates were made in order to secure shipments which would not otherwise have been made, or because they ren- dered necessury in order to compete with other lines. After the witness had explained several of these items he was asked to submit his explanations in writing and have them made a part of the record in order to save time. overnor Pattison inquired of Mr. Kimball if he was ready to produce statements showing how long rebates have been allowed to the Omaha Eleva- tor compuny, and when they com- menced. Mr. Kimball said they com- menced on November 1, 1882, and con- tinued until April 5, 1887, ‘A further research may show,’ added Mr. Kimball, ‘‘that rebates were aliowed prior to that date,”* *‘When were the allowance of rebates to the Standard Uil company begunt'’ asked the governor. ‘‘Rebates were allowed to the Con- tinental and Standard Oil companies from 1874 to 1884. In 1884 the Standard and Continental Oil companies,were con- solidated,” was the reply, Mr, Kimball was asked what was the net riite of rebate allowed the Standard Oil company prior to 1884, and also what was the rebate from Jan- uary 1, 1884, to April 1, 7,0on shipments from Omahato San ancisco. Mr. Kimball had not yet looked this up and us he seemed to have no.record of the call, Mr. Poppleton got up and said in a tone of impatience. *Let's have a record of these calls so that we can know what have been an- swered, what are to be answered and what are to go unanswered, so that we can strike bottom somewhere,* Having thus expressed himself, Mr. Poppleton left the room and Vl‘ciun!lv returned with his stenographer, Mr. Carroll, who proceeded to take down the calls as they were asked for by the gov- ernor. Mr. Kimball was asked to furnish a statement showing the amount charged the Standard Oil company, for the return of empty tank cars and also the amount charged other oil companies. He said that over certain portions ot the route these cars were carried free and over other portions of the route a charge was made, To furnish a statement showing ust what these charges were, Mr. Kim- le said, would require a vast amount of labor. “The dillerence between the amount charged the Standard Oil com- pany and that charged other companies was insigniticant, anyway,” he added: “‘One of the charges you know,” ex- plained Governor Pattison, *‘against the Union Pacific road, is that the tank cars of the Standard Uil company were hauled back from San Francisco free, while other oil companies were harged for the servie f your answer is that the difference in charges was insigni- ficant, let it go down so in the record." “Did you discriminate in favor of the Standard Oil compuny by allowing their cars to go back to New York free, while you charged rival companies for hauling their cars?’’ inquired Jlmlgu Littler. £33 “When we made our arrangements in regard to allowing rebutes to the Stand- ard Oil company, replied Mr. Kimball ‘“‘we sometimes made the free hauling of their tank nars one of tho conditions.” “Have you consulted your diary in re- gard to the part you have taken in influ- encing legislation on subjects in which the Union Pacific ralway company was interested?" inquired Governor Pattison, Mr. Kimball said he had consulted 1t, and was asked to name dates when he had appeared before legislutive com- mittees, “On_February 12, 1879," he replied, *Mr. Vining and 1 appeared before a legislative committee at Lincoln to dis- cuss rallroad bills that were then pend- ing. On February 8, 1881, I appeared before o similar committee for the same purpose, 1 think the Doane bill was then under discussion. On February 16, 1881, Mr. Vining and myself and Messrs. Wil- liams and Usher, the attorneys of the Kansas division of the Union Pacifie, ap- peared before the legislature at Topeka. This was also to discuss pending bills in regard to railroads.’ One or two other dates were given, 'Have you any record in your diary,” said Governor Pattison; *‘of payment of money to legislators for the purpose of influencing them on the subject of legis- Iation " “I have none," replied Mr, Kimball. The witness also said 1n answer to a question that he had no record of letters written to members of the legisiature on the subject of railroad legislation. He “did "have,- however: a printed specen which hé made before a legislative ' commjttee. and which -he wikied to bave recorded as showing Whal ] sane Fremont, Elk- | were the arguments he employed - to in: duce the leglslators to think as he did on railroad legislation. He was permitted to submit the specch, and it was made part of the record. Mr, Kimball was asked to name the lowest rates allowed the Himebaugh & Merriam Elevator company, the Standard Oil company, the Union Cattle company and the Omaha & Grant Smelting works. He estimated the lowest rate to the ele- vator company at 1 cent per ton per mile; to the Standard Oil company, 3 to 4 of a cent per mile; to the Union Cattle company 1} cents, and to the Omaha & Grant Smelting company § of a cent per | mile. Being asked to piroduce a statement showing the diflerence in the amount re- cewved by the Union Pacilic road from pools and from ordinary business since 1881, both as to freight and passenger carnings, Auditor Young said it was im- possible 1o furnish sueh statements as no separate record was kept of the amount ved from pools and from ordinary business. Mr. Mink and Mr. Poppleton observed that the bulk of business was done under the pool system. In order to illustrate the advantages of the pool- ing system, Mr. Kimbull said that when the Santa Fe road first bult into Colo- rado the Union Pacific company pro- pused a pool and the Santa Fe retused to enter into a pool. A freight war ensued which lasted for three month: At the end of that time both cowpanies were tired of the fight and a pool was formed. “The res $," said Mr. Kimbh “that while during the three months of the tariff war the Urion Pacitic did three times the amount of business it did after the pool was formed, the earnings dur- ing the three following months were three times as lurge.” Mr. Kimball was asked, in the course of the cxamination, if it was true thut during the past sixty ds freight, orignmll{ illed to go over the Union Ps diverted and shipped over the Santa Fe road. He replied that he didn’t think such a thing was possible, although sometimes after Im\'infiz secured the shipment of an amount of freight the Union Pacific road found 1t had not the cars ayailable to carry it and was obliged to turn 1t over to another road. Considerahle more freight had been diverted to the Union Pacifio lines in this way, said Mr. Kim- ball, than had been divi d by it to other ronds, Some times, owing to a cutting of rates by some rival road, freight which the company thought it had secured was taken away from it and given to the rival road. Mr, Poppleton wanted to know whether the freight referred to was shipped through Kansas City from eastern points or whether the cars w originally loaded at Kansas City. vernor Patti- son replied that the freight was loaded on the cars at Kansas City. *‘If there has been anything of that kind going on,” said Mr. Poppleton, rising, “you can save this company thousands of dollars, governor, by giving the name of the party who was responsible for it. We want to know whether that was done to the extent of a s ear, or whether some able bodied, nak liar has been trying to muslead this com- mission.” ‘I'he governor smiled at this outburst on the purt of Mr. Poppleton, but with- outreplying turned to Mr. Kimball and deliberately re-read the question from his note book. *'1 thought the question an important one,” he observed, “‘and have written it down.” Mr. Kimball promised to look up the record and report as to what extent cars had been diverted from the Union Puci. to other roads, Mr. Kimball was asked if a man named O. P. Mason was paid by the Union Pacifie road for muking polit- ical speeches. He said no man by that name had been so paid and thatif O. P, Mason, the secretary of the state railroad commission, was referred to, he would say he, Mason, had always been hostile to the Union Pacific road, and was par- ticularly so just now. Mr. Kimball, referring to a letter {o the rom North Platte, in which it was asserted that the Union Pacific road is now charging $1 more ru ton for ship- ping Rock Springs coal to North Platte than to Omal snid that this was not true and had not been for years. 'he commission adjourned until 10 o'clock this morning. Saturday morning railway investi rle next the Pacific ing commission will start from Oms upon a_personal in- spection of the lines of the Union Pacilic railway and to inquire into the relations of the railroads to the communities through which they pass. They will take testimony at the following places, on the days and at the hours indicated: Suturday, July 2, Columbus, at9a. m.; Grand Isfand, at 8 p. m. Monday, July 4, Lincoln, at 9 a. m. Tuesday, July b, St. Joseph, Mo., at8a. m.; Muarysville, at2 p. m.; Lawrence, at 8 p. m. Wed- nesday, July 6, Leavenworth, at 10 a. m. Thursday, Fridav and Saturday, July 7, flixmd 9, Kansas City, at 10 a, m, of each day. —_——— J. McDonnell. F, A, I. A,, Architect, N. E. cor. 15th and Dodge. P — THE MUDDY, It is Transferred in Slimy Richness to Parched Throats, The water which 1s now being supplied to consumers through the public mains in this city, is perhaps the dirtiest to which our people have been subjected. It has been so filled with sand asto grate upon the teeth, and the indignation of consumers has been most pronounced. Yesterday morning a certain person crea- ted some excitement by making a jocose announcement to the effect that the price of the water uua been raised. Thereport circulated rapidly, but when some one said that the raise had been occasioned by the amount of valuable Omaha real estate which was being given away, the object of the announcement became ap- parent, A BEE reporter in- guired at the water oflice to ascertain the truth of the rumor of the ulleged rmse and found that no change had been contemplated. The explanation vouchsated of the muddy condition of the water, was that a new settling basin was being built at the works, and water was being let into it, and it would be a few days before the latter would be able to be as clear as it was before the eraof mud. Fourth of July, The Chicago, Rock Island & Pacific Ry. will sell round trip tickets to all pointsin Iowa at one fare for the round trip tick- ets. On sale July 2d, 8d and 4th, Good toreturn on or before July 6th. Ticket oftice, 1305 Farnam st. 8. 8. STEVENS, General Western Agent. —————— The Veteran Firemen, Chiel Galligan bas received the tim card of the route to be followea by the members of the Veteran Firemen's asso- ciation, They leave Wehkawken Sep- tember 5, reaching Chicago, on the 6th inst., leaving there at midnight on the Tth, and arriving in Omaha on the Sth at 4 o'clock in the afternoon. They will re- main here until midnight of the 0th, dur- ing which time they will take part ina E:mdu. a reception and in a concert to given by Gilmore's band, Less Water. Considerable complaint has been made at the BEE offlce with regard to the muddy . condition of North Sixteenth street, The. complaint is ' directed against’ the street sprinklers, who, it ‘ageid, laviah water in reckless quantitics . upon the asphalturn, As a consequence, the stroet is muddy and elippery, and both unpleasant and dangerous to drivers and pedestrians, Estimates for. glass furmshed by Com mings & Neilson, jobbers of Plate, Win- dow and Ornamental Giass, Paints, Oils, ete,, 1118 Farnam 8| e Boara of Pablic Warks. Yesterday morning Messrs, Fanning & Slaven were notified by the board of pub- lic works to immediately commence the grading of the alley in block 23, between California and Cass and Sixteenth and Seventeenth strects, the contract for which was made last May. This docu- ment, however, has taken all this time to get back to the board from the coun- cil. The same firn was authorized to un- take the graling of Pierce from Eighth to POWDER Absoluely Pure. This powder nevevaries. A marvel of pure ity, strength and whiesomeness, Maro eccon- omical than the ordiary kinds, and cannot be 80ld in competition ‘ith the multitude of low gost shiort weight alm or phiosphate powdors. Sold only in cans. ~bvAL BAKING POWDER Co, GEORGE A. GLARK, SOLE AGENT. The BEST asl MOST POPULAN Sewing Thresl of Modern Times. BEWARE OF IMITATIONS, Sold at wholesale by Rilpatrick-Koch Dry Goods Co. M. E. Smith & Co. Paxton, Gallag| & Co. by al ail Dealers, DIANONDS, WATCHES, JEWELRY, BRONZES AT Importer's Prices HAX MEYER & BRO. OMAHA MEDICAL & SURGICAL INSTITUTE. 3 o Cor, 13th 8t. and Caplt: FOR TIE TREATMENT CHRONIC i SURGICAL DISEASES BRACES AND APPLIANGES FOR DEFORMITIES, TRUSSES, AND THE NEW VARIOOGELE SUSPENSORY CLAMP COMPRESS. Book on Diseases of Women FREE. 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Last week we mentioned a few good things in fur- nishing goods; thev are going off like hot cakes. people know that we never advertise bargains unless we can show them. For this week we will offer a few special drives in PANTS. 1000 pairs good Cassimere Pants, everv fiber wool, in two shades, both nice and attractive, well cut and made; a Pants which other dealers are offering asa bargain at $3; onlv $1.75. 600 pairs good all wool hair line Pants in several patternsat $2.25; full worth $4. 600 pairs finer grades at $2.50. '{ Several lots offine Cassimere Pants, striped and checked, some all wool and some silk mixtures, at $2.90,$3.25, $3.50 and $3.7 5. Some of theseare equal to custom made goods, and fullv worth double the monev asked. For the laboring man we offer good substantial Jean Pants, well madeat 50¢, 75¢, $1 and $1.25. A Remember we have no special leaders but everv article we offer ig a leader in itself. All goods marked in plain figures and at strictly one priceat the Nebraska Glothing Gompany, Cor. Douglas and 14th sts., Omal*a. | GREAT REDUCTIONS New York & Omaha Clothing We desire to call specianl attention to our great reduction on Summer Suits which we can prom- t prices, the cheapest goods in the market. Our §6, §8, $10 and §12 sults, we now sell for &4, £5, 86 and §7- Also asplendid line of all wool Cassimere and Worsted Sults that were sclling for $13.50, 815, 818 an of summer Coants and Vests has been replenished, and now we can again show the largest assort- 1, Serge, Secrsucker, and all manner of Summer Goods and put- our 75¢ Underwear? been paying $1.25 and §1.50 for. ise are, at their pres: ment of these goods, in F Have se Knife at work, and now we show our cnormons line at extremely low prices. Think! suit for $1.50, $1.75 and §2. $4.50. had the good fortune to look upon. Do not forget that each purchaser of goods to the amount of §2,50 will recelve a ticket on the Pony and Cart, which is to be given away on the 4th of July, THE NEW YORK & OMAHA CLOTHING CO 18308 FARNAM STRERET. DRS. 5. & D. DAYIESON 1707 Olive St., St. Louis Mo. Of the Missouri State Museum of Anatomy, St. Louis, Mo., University College Hospi- tal, London, Giesen, Germany and New ‘York. Having devoted their attention SPECIALLY TO g‘l‘l E TREATMENT Nervous, Chronic and Blood DISEASES, More especiaily thse arising from impru- dence, nvite ail so suffering to correspond without delay, Di s of intection and contagion cured safely and speedily with- out detention from business, and without the use of dangerous drugs. Pa- tients whose cases have been neglected, badly treated or pronounced incurable, should not fail to write us concerning their symptoms. 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