The Houston Post. (Houston, Tex.), Vol. 21, No. 295, Ed. 1 Thursday, January 4, 1906 Page: 6 of 12
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HOUSTON DAILY POST: THUBSDAY MORNING, JANUARY 4, 1906.
THE HOUSTON DAILY POST
HOU8TON PRINTING COMPANY.
K. M. JOHNSTON President
G. J. PALMER Vice President
OFFICE OF PUBLICATION,
Nos; 60.2-604 Travis Street.
Unlertil <it the Postoffice at Houston, Texas,. as
Second-Class Mail Matter.
SUBSCRIPTIONS BY MAIL—In Advance.
One Six Three One
, • Year. Month*. Months. Month.
Daily and Sunday $8.00 $4.25 $2.25 .75
Seini-W eekly ,.00 .so .j5
TRAVELING AGENTS—J. H. Barton. S. M.,f,ib-
•on, C. A. Nichols, E. E. Norfleet and VV. Peterson.
I-GRF.IGN OFFICES—Eastern business office,_4.1.
44. 45» 4<>, 47. 48, 49, 50 Tribune building. New York
(The S. C. Beckwith Special Agency); Western, 510,
St 1,. 5'2 Tribune building, Chicago (The S. C. Beck-
with Special Agency); office of Washington corre-
spondent, rooms 9^6-947 Colorado building.
THE CITY—The Post is delivered to any part of
the city by carriers. Mr. Theodore Bering has charge
°f the city circulation and collecting. Messrs. Theo-
dore QBering, W. F. Edwards. Nat Brush and A. W.
Palmer are the authorized collectors of all city bills
(both advertising and subscription), and no money
•hould be paid to any one other than those named,
unless special written authority, signed by the busi-
ness manager, is shown. All accounts of any sue
should be paid by check in favor of "The Houston
Printing Company." Subscribers failing to receive
The Post regularly will please notify the office
promptly. Every paper is expected to be delivered
not later than 6 130 a. in.
Houston, Texas, Thursday, January 4, 1906.
The Post accepts advertising. on tho
guarantee that it has mors bona fide paid
circulation among the buying classes In
Houston and South Texas than any othsr
paper. Bool s and records art open to ad>
vertisers at any time.
THE WATER PROBLEM.
The report of Commissioners Appleby and
Thompson of ihoir investigation of the water
nystem of Cleveland, Ohio, should he read by
every citizen of Houston. The water problem is
the most Important, as well as one of thefcnost
difficult with which the city government, is con-
fronted. We all know that present conditions
are not satisfactory and thiY an improvement
must be had. Whether the necessities of the
public are to be adequately met by the present
water company or whether municipal ownership
of the water works must be undertaken are
questions which concern every citizen.
The report of the commissioners on the
Cleveland water system shows plainly how far
behind Houston is both as regards the water
supply and air to the methods of furnishing water
for public and private use.
It is clear that, conditions must be improved
here, and it Is t^ie purpose of the authorities to
bring that Improvement about. Water rates
both for the consumer and the city must be ad-
justed upon a basis that is fair to both the water
company and to the people, and If the water sup-
ply is to remain In the hands of a private cor-
poration, the city must, have not only every guar-
antee that there shall be at all times a bountiful
supply at a fair price, but that there shall be
such extensions of the mains as will put water
within reach of all the Inhabitants of the city.
Water is a necessity to every individual.
There Is no possible substitute for it as there Is
for other public utilities, such as lighting facili-
ties and car service. Therefore, it is the
first duty of a municipality to procure an ade-
quate water supply. Under all the circum-
stances, it would be best for I he city to own the
water works and supply the public at the lowest
possible cost. It may be that there Is some ques-
tion at the present moment as to the feasibility
of city ownership, but In another year when the
floating debt of the city shall have been can-
celled, municipal ownership of water works
might be advantageously undertaken.
Mayor Rice's statement that all the issues in-
volved are to receive thorough consideration
and that a businesslike settlement of the prob-
lem may be expected Is encouraging.
SENATORS AND THEIR MOTIVES.
Quite a number of papers have commented
upon the speech of Senator Bailey, discussing
the Burton case In the senate, in twhich he used
this language: "We have our differences, and
sometimes they are acrimonious. I have no
doubt that on that side of the chamber you
sometimes think that on this side we are dema-
gogues; and I know that on this side we some-
times believe you are the mere creatures of cor-
Itorate greed; but at the bottom of his heart
there is not one senator In this chamber today
who believes that there are four members of this
l>ody who are actuated by other than high and
It was not difficult to change Senator Bailey's
language and some newspapers quoted htm as
having said that there were only four senators
who were actuated by other than high and lofty
motives. And, of course, a demand for names
has been made. Senator Bailey's language is not
sufficient to warrant a demand for names, and
Senator Bailey would hardly place himself In a
position to assail the integrity of any of his col-
leagues In an off-hand way.
Nevertheless, there are more than four sen-
ators whose conduct does not command public
approval. There are two senators from New
York, who certainly fall to maintain those stan-
ards of Integrity which people look for In a sen-
ator of the United States.
8enator Dryden of New Jersey Is the presi-
dent of a life insurance company that contrib-
uted money to the Hanna and Cortelyou cam-
paign funds as well as to the Andy Hamilton
fund. These disbursements could not have been
made without Senator Dryden's knowledge and
consent, nor hardly without his express au-
Senator Bulkeley of Connecticut publicly
stated several months ago that he believed
wherever It was necessary to purchase votes in
order to carry an election the purchase of
votes was justifiable. We are unable to say how
far he pot his theory Into practice oa the occa-
sion of bh election to the
Senator Warren of Wyotnl
some kind of motives In
Federal pay roll, although
hla son on the
jroufcg aw Was
doing no work for the money. He thus provided
for other relatives at public expense, one of them
drawing pay as an employe of the senate while
engaged in private business in Cheyenne. The
senator has had a few land transactions which
were not altogether to his credit.
I^et those who are interested read the testi-
mony taken before the committee on privileges
and elections when the first election of Senator
Clark of Montana was investigated. And it is
known in Montana that the second election was
only less disgraceful than the first in the ratio
that the expenditure of money was less, most of
the legislators who were bought the first time
apparently remaining bought.
Senator Boies Penrose has a stock of mo-
tives that has not always appealed to right-
minded people as a proper part of the senatorial
These are not all. There are other senators
whose ideals do not rise to extraordinary heights.
It Is unnecessary at this time to mention their
names, hut the people do not appraise them high-
ly as exemplars of civic, moral or political right-
There was not the slightest excuse for any-
body becoming excited over Senator Bailey's use
of the word "four." It was merely an estimate
with a leaning to the side of mercy. Anybody of
the slightest acquaintance with the gentlemen
who make up the personnel of the senate will
not be greatly agitated over the suggestion that
four senators might be unworthy.
We admit that, if Senator Bailey had specifi-
cally asserted that a dozen or a score of senators
might bo classed as men actuated by sordid mo-
tives, some curiosity might have been excited.
But why should the Washington Post wonder
who on earth the four could be? Or why should
there be demands for names so long as the esti-
mate Is below a dozen?
NEGROES AND EDUCATION.
In his message to the Mississippi legislature,
Governor Vardaman again takes strong ground
against , the spending of public money for the
education of the negro, and doubtless in a few
days he will be subjected to a raking criticism
from the press. While TJie Post does not agree
with Vardaman's view, it recognises much force
in what he says, and the country at largo will
find it difficult to reply to soma of Ills state-
"Time has demonstrated that he. is more
criminal as a free man than as a slave," says
the governor, and the assertion is further backed
up by census statistics showing that those who
can read and write are more criminal than the
illiterate, which is true of no other element of
American population. And the governor asks:
"Is it your duty to put a qtop to wasting half a
million dollars annually—money taken from the
toiling white men and women of Mississippi—
and devote it to the main purpose of trying to
make something of the negro which the great
architect of the universe failed to provide for in
the original plan of creation?"
There are not a few in Texas who agree with
Governor Vardaman wholly. It has even been
suggested In this State that the property of
white people should not be taxed to educate
negro children, but public sentiment has never
favored that view.
But just what education is doing for the ne-
gro in the South is an important matter. Has
the sum of $300,000,000 spent on the education of
the race been wisely expended? Is the largest pos-
sible amount of education the very best thing
that can be done with the negro? These are
questions that will call for serious consideration
some of these days.
Thinking men are gradually reaching the
conclusion that our system of education is funda-
mentally unsound in that it is increasing its
scope of mental training to the neglect of man-
ual training. Take the tens of thousands of idle
able-bodied people in the country today and they
are persons of more or less education. Their
training or something has created within them
an antipathy to manual labor. Throughout the
country there is a demand for people who can
work with their hands. They are needed in the
household, on the farms, in the shops and in hun-
dreds of avocations. The idle educated classes
do not know how to work with their hands and
there seems to be an insufficient amount of em-
ployment to provide for all the head wyrkers.
And it is a fact that the demand for manual
labor is increasing faster than the supply, in
spite of the enormous immigration pouring into
the country, while on the other hand, the open-
ings for educated people are not increasing in
the ratio that educated population is.
It is a fact that the negroes are suffering more
than the whites because there are fewer open-
ings for negroes In avocations requiring edu-
cated workers. Therefore, when a negro does
not know how to perform skilled labor and Is
not inclined to perform common labor, he is
about "all in," as Bob Fitzsimmons would say,
for opportunities ace limited for him in office
work or the professions.
But the truth of the matter is, the negro is
not the sole sufferer in the matter of ignorance
of how to work with the hands. The white boys
who never learn how to do anything are fre-
quently In the ranks of the idle and tens of
thousands of them never accomplish anything In
life because they lack the independence and op-
portunity which manual training affords.
It. would be a good thing if most of the money
now 8pent for the education of negroes were
devoted to manual training. For many years to
oome 95 per cent of the negroes will have to
earn their living by manual labor. Then why
not give them the rudiments of education and
teach them how to work? And why not make
manual training an important part of the cur-
riculum for white children? Our educators
should consider the Importance of equipping
children for the struggle of life. They have neg-
lected it too long. The solution of the labor
problem lies In a system of public education that
will equip the children of both races with knowl-
edge that they can realize upon when they go
forth into the world to make their living.
Louisville, but Houston's clearings were $170,000,000
John II. Rhagan, noble soul, served the people of
Texas for more than sixty years, and never touched
an unclean dollar in his life. He was as poor in this
world's goods when he retired from public life as
when he entered it. The stalwart and courageous old
commoner made the Houston-Galveston rate to de-
stroy a monopoly, and in order to give Texas farmers
competitive markets. John H. Reagan had made a
careful study of these Galvestoa philanthropists for
almost fifty years. He was a farmer, a practical
farmer, and he fought for the farmers all his life
long. Galveston never did believe in a square-deal
policy. The hog-all policy prevails on the island.—
Dallas Times Herald.
Not long before he died Judge Reagan expressed
himself on this subject, and had not changed his mind
in the slightest degree. What he thought of it may
be found on this page today. He wrote the opinion
of the commission and always stood by it as fair to
all concerned, and he especially negatived the absurd
charge that the so-called "differential" involved a spe-
cial tax on the farmer.
And yet, the Galveston-Dallas News has not an-
swered Mr. Colquitt's questions.
Mr. Thomas H. Stone, in retiring from the of-
fice of city attorney, leaves a record of splendid pub-
lic service behind him. During his incumbency of
the office, he was called upon to meet grave emer-
gencies and he met them in a wa,y that proved great
capacity and a lofty devotion to duty. His work in
drafting the new charter under whick, the city is now
governed will be a monument to his constructive
statesmanship, for it is evident that the new system,
already successfully adjusted to our municipal affairs,
will play an important part in the making of Houston.
The people of Houston owe a debt of gratitude to
this worthy gentleman, and this fact will become more
and more apparent as the new form of government,
which is constantly growing in the people's estima-
tion, brings about the many reforms for which it was
"Are country churches declining?" inquires the
Washington Times. Declining what?
The Sherman Register intimates that in 30,000,-
000,000 years the Galveston-Houston cotton rate may
be adjusted satisfactorily to both Houston and Gal-
veston. No; not to Galveston. The distance will
still remain, and so long as it does, Galveston will
The water wagon loses some of its occupants
every time it passes a lifesaving station.
Commissioner Garfield is now investigating the
Standard Oil concern. Judging from what Garfield
developed in his investigation of the beef trust, the
public may as well get ready to contribute some-
thing for the relief of the Standard.
• - It is pretty certain that if the president was ever
jealous of Odell he has recovered from it.
Congress now has the statehood question on its
hands and congressional eloquence will commence to
flow. The prospects are that it will be difficult to
reconcile conflicting views and a postponement of
statehood legislation is possible.
Mr. Carnegie should not fail to tell "where he
got it" in that forthcoming autobiography.
A new town in Canada bears the euphonious name
of Jackport, and it offers inducements to capitalists
and others who want to build a great city. If they
will knock out the "r" probably they might induce
John W- Gates to move there.
It will -not be long until February 1, when another
crop of Shaw resignation rumors will be due.
This is the time of theiyear when the merchants
cultivate' patience and the other fellows economy.
In this way the Christmas bills are finally paid and
preparations made for the next Christmas rush.
Only four weeks more in which to pay your poll
taji. If you are a man, pay it; if not, it makes no
It isn't a question so much as to whether Bern-
hardt shall play in Texas, but whether a vulgar and
greedy combination in New York shall control the
theaters of Texas in violation of law.
The new weather man at Galveston is having some
strenuous experience in his prediction department at
the present time.
Galveston cotton men: "What a picnic we would
have if Houston were not in the cotton business.
Why, we used to get $2 per bale until that nasty Hous-
ton cut the price to $1 per bale."
The talk of bottling up Senator LaFollette is all
moonshine, but, of course, there are senators who do
not object to bottled moonshine.
The St. Louis Globe-Democrat says: "No one has
sounded a better New Year keynote than Tennyson:
Ring out the false, ring in the true." Yes; pretty
good advice for ringers.
As between eight hours and no beer and nine
hours and free beer, the thousands of brewery em-
ployes of Cincinnati stuck to nine hours.
Ellen Beach Yaw returns to the United States
with a new name and there will be no repetition of
those old "Yawping of Yaw" headlines when she sings
TEXAS PRESS COMMENT.
It is announced that it it not customary for Paris
actresses to pay for their gowns, the dressmakers
being more than willing to supply them for the ad-
vertising they get. Those Paris actresses seem to
have a great many customs which do not prevail else-
Ths Louisville Goofier-Journal publishes a state-*
showing that Louisville's bank clearings for 1905
$60**000,00% That is a fins showing for
The money has been flying out of all proportion
to the amount of dirt that has been made to fly down
on the isthmus.—Baird Star.
With the incoming of the new year the itch for
office is aggravated. Many are beginning to scratch
now, and the people will do the scratching later on.—
The governor may feel bored by the talk about the
necessity for an extra session of the Texas legislature
to correct the election law; but we do hope his excel-
lency will open his mouth about it before a great
while and let the people know whether or not they
can have fair elections in 1906.—Gainesville Register.
The farmer in Smith county who raised no crop
but cotton last year has a balance against him on his
ledger account. There is no excuse for Smith county
fanners buying anything that they can grow. To buy
forage, meat, molasses, corn, oats, canned goods or
vegetables means poverty to the farmer. A Smith
county farmer can, if he will, always fare sumptuous-
ly, live on the fat of the land, and be his own master.
Wholly applicable to Navarro county and is well
worthy of careful consideration by every farmer, as
the many who have tried diversification fairly will
tell you.—Corsicana Sun.
"Brownsville, Texas, and other ports of entry
where collections are smaller than the expenses of the
collector's office, may be abolished as customs points
*if congress passes a bill introduced by Representative
Curtis of Kansas, authorizing the secretary of the
treasury to reorganize and consolidate customs dis-
tricts as he may deem proper in the public interest.
There are about fifty such ports at ten of which not
a cent was collected last year."
The above paragraph has appeared in the daily
press and has occasioned considerable discussion as
well as apprehension on the coast. The belief is held
by some of our citizens that the custom office at this
point will be don«^ away with, but this is not certain
by any means for there are many points on the coast
where the expense of collecting a dollar is much
greater than it is here and besides the Saluria district
of which Port Lavaca is the seaport is a paying one.
It must also be considered that this is the second cus-
toms house on the coast in number of seamen, Galves-
ton being the first. For the convenience of this busi-
ness a deputy should certainlv be retained here. It
would subject the fleet of sloops and schooners to
much inconvenience and expense to compel them to
go elsewhere for papers and to transact other affairs.
—fort Lavaca lYw*
TAMPERING WITH TRIFLES
By J. M. Lewis.
THIS COSTLY WORLD.
Not a thing this year
Just bills; je
Bills for furbelows an<i/gear,
And pills, /
Bills for this and bills for that,
Shoes and tie and coat and hat;
Till we don't know where we're at;
For the Christmas tree
Christmas gifts for you and me
Everything for every tyke,
From yarn socks to gleaming bike;
Oh, for just somewhere to hike
If the stork has called,
Ev'ry wee tyke that has squalled
When I'm done with earthly cares.
And have climbed the golden stairs,
For my funeral send my heirs
HER CHARITABLE FRIEND.
"Yes, she was terribly excited right up to the
moment of her marriage."
" Traid, he'd manage to escape, I presume."
WHAT IT WAS FOR.
"Does your papa punish your for running away
"But he whipped you for it yesterday?"
"That" wasn't for runnin' away, it was for bein'
WHAT SAVED IT.
A woman was making a gusset
Which dropped and the kitten did musset,
And she sat like a sphinx
Only saying, "By jinx!
If I wasn't a lady I'd cusset!"
WHAT KILLED HAM.
"Yes, Uncle Rube died of heart failure; he was
visiting in a town out West and some one sold him a
"And it was too much for him when he discovered
that it was brass?"
"No; he discovered that it was really gold."
"But my daughter knows nothing about house-
keeping! Why, she could not manage her servants."
"Can your wife manage the servants?"
"Why—er—no, by jingo I she can't."
THIS CHANGING WORLD.
"But I want you to meet Miss Pertie, you'll love
her at sight."
"I met her last week; I don't like brunettes."
"Well, come and meet her again, she's a blond
"Your wife has eloped in your automobile.''
"Happy New Year! Wife and auto both gone!
Here's where I save some money!"
HAS NO CHANCE.
"Do you consider marriage a game of chance, Mr.
Henpeck ? "
We hev received a letter f'm a fine drinkin* man
up at Jasper named Kellie; Kellie sends us four-bits
in real money an' has asted us to put him down fer
one copy of our "Darned Nonsense," th' same to be
published in July. We air proud ter do it. Th'
readiness with which Kellie pungles sorter convinces
us thet he is one of our kind o' people an' that this
ain't th' first four-bits he has squandered on darned
nonsense. We air hopin' it won't be th* last. Kellie
has asted us ter come up to Jasper an' git on a growler
jag with him an" we air 'most inclined ter do it; this
same growler bein' made as we understand it f'm
fermented cane-juice. Th' Jaspers raise cane an' then
git on a jag; when we hit thet burg with our sub-
scription jug they'll find theirselves up agin a geezer
thet gets on a jag an' then raises cane. Kellie sez
he has a bar'l staked out fer us an' he is hereby asted
ter spike it with blue vitroil an' save it till we come.—
"No, thank you, old fellow, keep your cigars; to-
bacco poisons me."
" But these won't hurt you; they're some my wife
OF COURSE, NOT.
"Dear, the doctor says you ought to take a rest."
"I believe he is right; how would you and your
mother like a trip to the Sandwich islands?"
"Could you get away long enough to go so far?"
"I'm not thinking of fcoing."
The fun we have each New Year
Is worth a year of age;
And turning a new page.
And swearing off on this thing,
And other things we've did;
In canning all our cussedness
And nailing on the lid.
And then ere January
Of this new year '06
And cutting up old tricks;
And falling off the wagon
And getting good and queer;
The fun we have each New Year
Is worth the added year.
THEY ALL HAVE.
"I wish you'd send a man up to look at our meter."
"What appears to be the matter with it?"
"I think it's got galloping consumption."
Dear Old Girl. 1906.
Riley carols down the lane,
" Sing a song o' cheer!"
Land o' cotton and o' cane
Who's a-keerin'—let 'er rain !—
Back we pipe the gad refrain
"Happy Noo Y'rl"
—Dan G. Campbell.
San Ar.tonio, Texas.
Same to you, and please send me two copies o' your
new book. »
Same to thee and same to thine,
Sorter seems to me
Shakespeare never writ so fine,
And rhythmically, as that line;
That last line, you know of thine;
That's true poesy!
"Send to me two books of thine,"
That's what tickles me!
"Did that magnetic healer do you good?"
"Yes, he did me good and plenty; merely touched
me and made me give up $5."
A fool is born every minute."
I'm gld I'm not a fool; being born so often must
REAGAN'S OPINION OF THE SO-CALLED DIFFERENTIAL
THE DE.CISION OF THE COMMISSION
Below is submitted the opinion of the
Texas railway commission on the subject
of the so-called Houstou-Galveston tot-
ton differential. It was written by Judge
Reagan, concurred in by Commissioners
Foster and Story, and dated December 1,
1894. The Post does not recall that it has
ever before been given publicity by a
Texas newspaper, but it was incorpo-
rated i\y the annual report of the com-
mission in 1895, a year later.
It will be noted that the commission
gives a plain statement of the facts in
the ease, including the conflicting conten-
tions of both Galveston and Houston,
and, after hearing evidence under oath
and oral argument by able counsel, ar-
rives at its conclusion and decision.
One year after the decision referred to
had been delivered, or on December £6,
1895, the following appeared in the an-
nual report of the commission and was
signed by Commissioners Reagan, Storey
In the making of freight rates on cot-
ton, we were called on to consider tne
question as to whether the differential
rates which then existed between the
cities of Galveston and Houston should
be preserved, or modified, or entirely
abrogated. This differential was then 8
cents on the 100 pounds, equal to 40 cents
on a 500-pound bale of cotton. Our reg-
ular tariff rate was, at that time, 24 cents
per 100 pounds, equal to $1.20 on a 600-
pound bale, for fifty miles, which is the
distance between those cities. But on
account of water transportation through
Buffalo bayou and Galveston bay the
year round, competing with the trans-
portation by rail; because of the large
shipments between those cities; because
we believed this freight could be car-
ried by the water route for less than 8
cents; and because the shippers were
entitled to the lowest rate consistent
with a just compensation to the carriers,
we made the local rate between them 8
cents per 100 pounds, and reduced the
differential rate between these cities to
6 cents per 100 pounds 011 shipments
passing through Houston to Galveston,
which was equal to 30 cents for a 500-
pound bale. And having made this the
differential on freights passing through
Houston to Galveston, it became a neces-
sity to apply the same differential on
cotton going into Galveston by other
roads than those which went to Hous-
ton, in order that our rates should not
discriminate between different railroads,
and between different routes from the
same points in the interior of the State,
Persons representing Galveston insisted
that the differential between those cities
ought to be abolished; and had a suit
brought in the State district court of
Travis county for that purpose. In this
suit the judgment of tne commission in
fixing the differential ->t 0 -ants was
sustained. If there had been no line of
water transportation between these cities,
there would have been no necessity for
a reduced local rate between them, and
no occasion to establish differential
rates between them. The attorneys for
Galveston gave notice of an appeal from
this decision, but we are advised have
filed no transcript in the higher court.
We are not advised whether they pro-
pose to take the case up by writ of er-
ror. On account of the importance of
the question involved, we insert a copy
of the opinion and judgment of the
commission on this case in the appendix
of tKfis report, marked Exhibit 3.
Much lias been said recently lay the
opposition to the present arrangement
about "changed conditions" since Judge
Reagan wrote that opinion. There is
nothing in this contention. As a matter
of fact the facilities at Galveston have
not kept up with the increased demand,
and it is well known to cotton men that
that port is already getting all of the
cotton it can expeditiously handle. True,
the Southern Pacific has built docks
there, but they are taxed to the limit to
handle the through business of that in-
dividual system and the cotton which
formerly went to New Orleans over that
line. But hei*e is the opinion of the rail-
way commission referred to above;
STATEMENT OF FACTS.
Galveston is situated on Galveston bay •
and is a seaport city on the gulf of
Mexico and accessible by ocean steam-
ers. Houston is situated fifty miles in-
land at the head of navigation on Buf-
falo bayou, a tidewater stream which,
uniting with the San Jacinto river, emp-
ties into Galveston bay, connecting the
two cities by navigable water the year
round. They are also connected by rail,
the International and Great Northern and
the Gulf, Colorado and Santa Fe rail-
road companies operating lines between
the two places.
Competition, in the carriage of freight
between the water and railway lines is
real, and has resulted in a material re-
duction in the rate of charges on cotton.
At one time it was $1 per bale, subse-
quently it was reduced to 50 cents, and
later 40 cents per bale. By commodity
tariff No. 1, adopted by this commission
and effective September 1, 1894, toe local
rate on cotton between Houston and
Galveston is fixed at S cents per 100
pounds, and the differential rate at 6
cents per 100 pounds.
The local rate applies on all cotton
shipped from Houston to Galveston on
bills of lading issued at Houston, and
the differential rate on all cotton passing
through or by Houston on through bills
of lading to Galveston from points east,
north and west of Houston, for the
distance between Houston and Galves-
Rates from the Interior to Galveston
are made by adding the differential rate
between Houston and Galveston to the
rate from any given point in the interior
to Houston, thus making Houston the
basing point for existing rates of freight
The maximum or highest tsic ficm
common point territory in the interior
to Houston is 59 cents per 100 pounds,
and to Galveston 65 cents per 300 pounds.
These are substantially the rut3 con-
ditions that have existed between the
two cities for years pa3t.
Both Houston and Gal^Mtm have ex-
tensive facilities, such as tsompresaes,
railroad trackage and storage room for
receiving, storing, classifying and ship-
The amount of cotton in bales which
went to Houston in 1893-91 rvas l,10f.,3P9.
Of this amount 382.142 bales were for
Houston proper; 387,847 bales went to
New Orleans, and 713,781 bales went to
Galveston. We are not informed as to
what proportion of the cotton destined
to Galveston was carried by the barge
line and what by ine railroads.
The foregoing are the material facts
upon which this commission is culled
on to determine the question as to
whether the differential between t'ne.se
two cities shall be abrogn^d.
The contention of Galveston, as pre-
sented by her representative in written
and oral arguments d^fore the commis-
sion, may be fairly summed up as fol-
1. That Galveston is the natural out-
let for the commerce <•' Texas, and
should therefore be mule M10 basing
point for rates on cot*>a from the .11-
terior; that this would involve iess ex-
pense and time in '.lie shipment of cot-
ton to its ulttmi'e destination and i.at-i
urally benefit the producers of that7
j. That the conditions under wh'ch the
r»t« adjustment between Houston and
Galveston was originally made, vcftilt-
ing in the establish ii"it »f the differen-
tial, have been changed by tne building
of the Gulf, Colorado and Santa Fe rail-
road as an independent through hne
from Galveston to the interior of the
State, thus necessitating a. readjustment
of rates on u dtif-?r»:it basis.
3. That the differential is an "arti-
ficial" means of maintaining the com-
merce _ of Houston in competition with
Galveston, and is' therefore a "discrimi-
nation" against the commerce of Gal-
veston. and that it is in effect a special
tax upon the whole State for the benefit
of industries locatid in Houston.
Two remedies are suggested for the
correction of the evils complained of.
The first is the abolition of the differ-
ential between Houston and Galveston
and the adoption of a strict mileage
tariff. Second, the reduction of the dif-
ferential to a figure bearing a more rea-
sonable relation to the local rate be-
tween Houston and Galveston.
The representatives of Houston in their
3. That the differentia! is the result of
water competition with railway lines be-
tween Houston and Galveston, necessi-
tating the fixing of an arbitrary rate on
the railroad lines equal to the water
rate between the two cities, and practical-
ly making Houston a basing point.
2. That the abolition of the differen-
tial would seriously cripple if not destroy
Houston as a competitive cotton market,
to the great injury, of those whose
means and enterprise have developed the
cotton interests of the city, in particu-
lar, and to the detriment of the public
3. That a further reduction of the dif-
ferential is unwarranted by reason of the
fact that it is already below the cost of
water transportation between Houston
Those who defend the claims of Hous-
ton insist that differential rates grew
up out of conditions of trade, and were
adopted by the railroads before this
commission had an existence, and that
they were long acquiesced in by those
cities; that Houston has constant open
water navigation which enables her deal-
ers in cotton to ship cotton to Galves-
ton bay and load it from the barges
which convey it to the exporting steam-
ers in the bay without incurring the ex-
pense of drayage, wharfage, etc., neces-
sary when taken by way of Galveston,
except in cases where loaded on steamers
tied to the wharf, when wharfage
charges accrue; that ten railroads enter
Houston besides the road from that city
to Galveston and the Gulf, Colorado and
Santa Fe, which connects with both
Houston and Galveston, making Houston
an important trade center for cotton;
that the abrogation of the differential
would deprive the people of these ad-
vantages, by which they are enabled
to reach the markets of the world at
a minimum of expense; that the d-
vantages which they enjoy as a cotton
market have not been acquired at the
expense of Galveston, but are the result
of Houston's location, supplemented by
the public spirit and enterprise of the
REVIEWING THE FACTS.
In reviewing the facts and arguments
in the case we shall confine ourselves
mainly to those bearing upon the mate-
rial points at issue.
This commission has adopted the mile-
age basis of making rates, and only in
cases where natural conditions, or busi-
ness and trade relations built up under
a different system of ratemaking, made
it necessary has it been deviated from.
No reason, however, could justify prac-
tices or customs inherently wrong,
though their abolition might involve the
deprivation of advantages to individuals
or communities, and even the impair-
ment or loss of property.
In the examination of this subject we
are met on the threshold by Galveston
with the allegation that the differential
between Houston and Galveston is an
"artificial advantage," the purpose of
which is to deprive Galveston of the
benefit of her natural advantages as the
chief cotton market of Texas, and the
maintenance of a competitive market at
Houston, and therefore is an unjust dis-
crimination against the commerce of Gal-
veston. The evidence before us does
not in our opinion support this conten-
tion, but does show that the differential
sprung from natural causes and is not
in any sense an artificial creation. It
is the result of conditions which neither
the railroad companies nor this commis-
sion created, and which neither can abol-
ish nor ignore in the making of rates
from interior points to Galveston on a
just basis, without creating conditions
that would be alike unsatisfactory ta
Galveston, Houston and the public in
The actual water rate of transporta-
tion on cotton, however low it be, be-
tween Houston and Galveston, a dis-
tance of fifty miles, fixes the rate of
transportation for that distance on every
shipment from the interior of Texas to
Galveston, on the well known princi-
ple of ratemaking that the through rate
between given points can not exceed the
sums of the locals to and from in-
termediate stations. The rate into Gal-
veston on cotton will always be the rate
to Houston plus the rate from that point
to Galveston as fixed by water trans-
But it is contended that the Gulf. Colo-
rado and Santa Fe railroad, which has
an independent line from Galveston to
the Interior, and over which cotton need
not necessarily pass through Houston
on its way to the gulf, should not be
subject to the differential rate. It is
unnecessary to do more than cite a few
figures taken from existing cotton rates
to show the futility of any attempt to
exempt any road from Galveston to the
interior from the operation of the differ-
ential. The rate prescribed in the com-
mission tariff for fifty miles is 24 cents
per 100 pounds. The rate charged by
the Houston Direct Navigation company
from Houston to Galveston, the distance
by rail being fifty miles, is 8 cents per
100 pounds. The rate fixed by the com-
mission tariff for transporting cotton 100
miles is 45 cents per 100 pounds.
Suppose a shipper living 100 miles out
of Galveston on the Gulf, Colorado and
Santa Fe railroad desires to ship cot-
ton over the road to Galveston, and that
said road was not subject to the differ-
ential rates applying between Houston
and Galveston, it would cost him $2.25
per bale to get it to Galveston. He could
haul his cotton across to the Houston
and Texas Central railroad, which is a
strong competitor of the Gulf, Colorado
and Santa Fe railroad, and ship it from
thence to Houston over the Houston and
Texas Central and thence to Galveston
over the Galveston, Houston and Hender-
son railroad, or by the Houston Direct
Navigation company's barge line, an equal
distance, for 32 cents per 100 pounds,
or $1.60 per bale, a net saving of 65 cents
HOW THE LOWER RATE IS MADE.
The lower rate Is made by taking the
rate to Houston for fifty miles, which
is 24 cents, and adding thereto the local
rate from Houston to Galveston, which
is 8 cents per ICO pounds. It is not
necessary for Houston to be made a
basing point by act of the commission
to secure this result. It would be the
same regardless of such action, because
shippers would ship their cotton by rail
to the head of navigation at Houston,
and thence by water to Galveston, and
the all-rail lines, whether running through
Houston to Galveston direct, or from
the interior to Galveston, independent of
Houston, would be compelled to meet
the rates fixed by the combination of
the local rate in and out of Houston
to the gulf. Possibly a fraction higher
rate might be maintained on the former
road on account of cost of wag«>n trans-
portation to its competitor at points
where the two roads are widely sepa-
But in all cases, whether cotton was
destined to foreign markets through the
port of Galveston or by all-rail lines
north through Eastern ports, rates fixed
through Houston to Galveston, either by
mileage of the Houston and Texas Cen-
tral railroad and connecting lines, or by
the International and Great Northern
railroad and connecting lines, as cheap-
ened by water competition on the last
fifty-mile haul between Houston and
Galveston, will be a controlling factor.
The Gulf, Colorado and Santa Fe rail-
way is not the short line from Gal-
veston to any point in the interior, and
must meet rates fixed by .the shortest
and most direct route, which are still
further cheapened by water competition
as above stated.
It is urged, however, that the operation
of the Galveston, Houston and Hender-
son railroad by the International and
Great Northern railroad makes thosa
two lines practically one route from in-
terior points to Galveston, and that the
application of the differential rate neces-
sarily applying when they were under
separate managements is now unjustifi-
This involves, to some extent, the ques-
tion of a division of earnings, and need
not here be discussed.
Suffice it to say that the stockholder*
of the Galveston, Houston and Hender-
son railroad would doubtless object to
a further depletion of the earnings of
that road, already reduced by competi-
tion with the barge line from Houston
to Galveston, which would be a result
of the elimination of the differential,
unless the road was in position to de-
mand its full local rate from Houston to
Galveston on all cotton received from
The contention that the differential is
prejudicial to the interests and a tax
upon the productive capacity of the cot-
ton producers of the State Is, in our
judgment, negatived by the fact that
rates o>i cotton between Houston and
Galveston have been reduced 60 cents
per bale since 1877 by the low water
rate fixed by the barge line between
Houston and Galveston and on which th*
differential is based. During 1877, 1878
and 1879 the rate was $1 per bale; in
1880 and 1881, 75 cents per bale; from
1882 to 1889, 50 cents per bale, and from
that date to the present time, 40 cents
per bale. The commission has simply
recognized and adopted the local rata
thus fixed as the basis of the differen-
tial rate fixed by it. and the facts show
that it is now 2 cents per 100 pounds less
than the local rate which would be ap-
plied in the building up of rates from
the interior to Galveston, if the differen-
tial had not been fixed at 6 cents per 100
AS TO A MILEAGE RATE.
f As a solution of the controversy and
a means of eliminating this differential,
the representative from Galveston pro-
poses a strict mileage rate on cotton be-
tween all railway stations in Texas. The
proposition was accompanied by the
suggestion that it might appear to the
commission "impracticable and inexpe-
dient to abolish the differential as a
fixed figuro in building cotton rates
from the interior to Galveston." This
we have already shown.
A strict mileage rate, if adopted, would
give Houston the advantage within a
certain territory, the size of which would
depend upon the distance at which the
maximum rate would be reached there-
under. To avoid this Galveston proposes
that a "constructive mileage equal to
one-third of the actual mileage between
Houston and Galveston" shall be applied
in computing rates from such points to
Galveston as under actual mileage rates
Houston would have the advantage.
This would be a differential under an-
other name. It would be illogical to use
one differential, though hidden from pub-
lic view under the term "constructive
mileage," as a means of securing re-
lief from another. The chief contention
of Galveston is that the existing differ-
ential is maintained for the purpose of
putting Houston on a parity with her in
the markets of the State, and yet in
the tariff which she proposes as a rem-
edy the same means are invoiced to
place her on a parity with Houston in
territory from which, under her proposed
mileage tariff, she would otherwise be
excluded. Under any system of rate-
making founded upon principles of jus-
tice and equity there will be a differ-
ence in rates between Houston and Gal-
veston to interior points which will need
adjustment 011 account of the waterway
to Houston. The extent of this differ-
ence or differential would depend upon
the manner of constructing the tariff.
Under a strict mileage tariff the differ-
ence would be greater than under a
As a subsidiary proposition. Galveston
asks that if the differential be not elimi-
nated entirely, that it be still further
reduced, on the ground that It is out of
proportion to the local rate between
Houston and Galveston. The following
instances are cited where the differen-
tial rate between certain markets and
consuming points is fixed at a much
lower rate than the regular local rate
011 first class freight, to establish the
relation between the differential and local
"The Little Rock first class differen-
tial under St. lx>uis and Texas common
points is 10 cents per 100 pounds, w.iile
the local rate between St, Louis and
Little Rock is $1 per 100. Galveston,
under New Orleans differential 25 cents,
rate 70 cents; Houston, under Galveston
differential 7 cents, rate 20 cents."
The above citations are each of cases
where the rate adjustments by differen-
tials to competitive territory is purely ar-
bitrary and are in no sense analogous
to the case under consideration. They
are based on entirely different condi-
tions. In this case water competition
fixes the rate and is the controlling
factor; otherwise there would be 110 rea-
son for making the rate between Hous-
ton and Galveston less than for the
same distance in any other part of the
State. Except for the existence of Buf-
falo bayou Houston would stand in the
same relation to the commission tariff
sustained by other Inland cities. The dif-
ferential tjs now fixed Is approximately
the difference that would exist between
the two places under a strict ) mileage
tariff to all parts ot the State;/ that is,
It Is about equal to the average differ-
ence in rates that would exist! between
them under a nfiileage tariff, j and the
fact has already been pointed]out that
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The Houston Post. (Houston, Tex.), Vol. 21, No. 295, Ed. 1 Thursday, January 4, 1906, newspaper, January 4, 1906; Houston, Texas. (https://texashistory.unt.edu/ark:/67531/metapth443337/m1/6/?q=Vacancies: accessed June 21, 2021), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Library Consortium.