railroads are the largest users of ties, and as far as my information goes and the contracts we have had, about 51 to 51 1-2 cents—that is the price we get. Mr. Flory: During this same period, if you can state from memory, what was the minimum? A. Right in that neighborhood, pretty much one price. Q. By Mr. Musick: I will ask you to state if you bought ties from other points on this railroad? A. Yes, sir. Q. I will ask you whether or not the rate was raised all along at other points? A. Yes, sir; all the same. Q. Now I will ask you to state to the Board, whether or not you continued to or ceased to buy from other points? A. We ceased to buy. Q. For what reason did you cease to buy from other points? A. We could not pay the freight. We had certain contracts running along where we had agreed to take ties from the people, and of course we were compelled to take these, except from Pope & Bradford. We had 10,000 engaged from them, but they did not insist on delivering all-delivered what they had on hand and released us. Q. How far east on the road did you buy ties? A. I am not familiar with the location of stations along there. I think we got some from Mountain Grove, some from Norwood, and some other stations; I forget now. A. No, we did not get any from Cabool. Q. Now I will ask you what you know about Sedgewick & Com pany buying ties from points on this road? A. Very little except they seem to be buying. Q. They continue to buy? A. That is my information. I am not acquainted with them, have no business relations with them. Q. Do you know of any other parties that buy ties on this. road? A. No, sir. Mr. Hennessey: What is the highest price paid for any good, number one ties, now in Kansas City? A. There has been no change, as far as I know. Of course I have no information of any other contracts than our own. The only contract we have on hand is with the Burlington railroad, at 51 1-2 cents per tie. Mr. McCully: Delivered at Kansas City? A. Yes, sir; we do not actually deliver the ties in Kansas City. We deliver them in St. Joseph, with the understanding that they do not charge us with their portion of the freight. Mr. McCully: So it is practically a Kansas City delivery, so far as you are concerned. A. Yes, sir. Mr. Dana: When was that contract made? A. I do not remember the date. Mr. Dana: What month? A. I could not tell you. Mr. Dana: Before October? A. Made sometime during the summer. Mr. Dana: How many ties? A. 25,000. Mr. Dana: How many have you delivered? A. I could not tell you. Mr. Dana: About how many? A. No, sir; I can not tell you. We have a man in the office who keeps check on the order book, and I do not know. Q. By Mr. Musick: At the present freight rate, thirty cents per tie, what could you pay for ties on the cars at Norwood, and do a living business--pay you to handle them at all? A. We would not be able to pay over eighteen cents for them, probably. Q. What freight rates could you afford to pay and deal in ties at Kansas City at the present price? A. We managed to handle them on the 21-cent rate. We have not bought any since that rate was established. Q. Was that during a prosperous or depressed time of business? A. It was generally considered a good time for all kinds of railroad material, and the general conditions were favorable. Q. A. Suppose times were poor and conditions were depressed? I understand two years ago when conditions were less favorable ties were worth 42 cents. In handling ties of any quantity we have to send a man out to inspect them and receive them and pay spot cash and wait thirty to sixty days to get our money. Mr. McCully: I understand you to say there has been no material advance in the price of ties in Kansas City at all? A. Not as far as I know. Mr. McCully: In the last six months? A. I do not know about the last six months. Mr. McCully: That would be July or August. A. We have not got any better contracts. Mr. McCully: Ties bring no more now in Kansas City than they did in August or September? A. No, sir. Mr. McCully: There would be no material difference? A. No, sir. Q. By Mr. Musick: I will ask you if you know whether or not the Kansas City, Fort Scott & Memphis Company has itself dealt in ties as dealers? A. I could not say of my own personal knowledge. I have never made any purchases of them. I had a talk with their purchasing agent sometime ago about handling railroad ties. He said they had given the matter some consideration and did not want to move the ties, that it would interfere with their white oak tie business. He said if we wanted any ties-I inferred from his talk if we wanted any ties and would come to him that probably we could buy them from him. I have heard one or two others say that they had bought ties from Mr. Jaques, the purchasing agent of the Fort Scott road. Q. Who did you hear say that they had bought ties? CROSS-EXAMINATION. Q. By Mr. Dana: Bought ties from whom? A. Mr. Jaques; that is what I understood him to say. Q. They never offered to sell you any. Q. How long have you been in that business? A. We have been handling lumber-the company was incor porated about two years ago. Q. A Missouri corporation? A. Yes, sir. Q. Principal office in Kansas City? A. Yes, sir. Q. What are you incorporated for? A. We have authority for almost any kind of business. A. Yes, sir. Q. Buying and selling anything? A. Yes, sir. Q. As a matter of fact, what has been your business in the last two years? A. Lumber business, grain, hay and piling. Q. You commenced to deal in ties, you say, about August? A. That is the first we handled off of this road. Q. Had you handled ties before? A. Some. Q. How much. A. Not a great many. Q. You do not consider your firm as primarily a tie buying and selling firm? A. No, sir. Q. Not as Sedgewick & Company? A. I do not know anything about them. Q. Your main business is not a tie business, and never has been? A. No, sir. Q. Now all the tie business you have done off this road is since last summer? A. Yes, sir; beginning in the summer. Q. You say you made a contract with the Burlington road to sell them ties at 51 1-2 cents? A. Yes, sir. Q. What kind of ties? A. White oak. We had other contracts. That is the only railroad contract we have on hand unfilled. Q. Have you made any offers or any attempts to furnish ties to any railroads during the last three months? A: Yes, sir; we have corresponded with two or three railroads with the view of furnishing them some. Q. Have you had any offers for ties, any railroad company offered to pay you any certain price for ties, in the last three months? A. No, sir. Q. Have you made any offers to sell at certain prices? A. Not formal offers. We have simply inquired whether they would be in the market for ties, and if so we would make propositions for a few ties and see if we suited them, and then make them a proposition on a contract. Q. You never got any contracts? A. Recently we got this contract. We are not trying to sell in very large quantites at present. We depend on getting them if the Fort Scott road Q. What road did you get ties from formerly? Q. You have not got any ties from either of these routes since? Q. How many? A. Possibly we have 20,000 on hand on the Missouri Pacific of white oak. On the Frisco we have some white oak and some red oak. The Missouri Pacific ties we have been shipping to the Burlington. We are waiting on the Frisco to see what they are going to do about the rate. Q. That is the Burlington ties you deliver at Kansas City? Q. They are brought in over the Iron Mountain to St. Louis, and then over the Missouri Pacific to Kansas City? A. Yes, sir. Have Q. What I had in mind a few moments ago was this: you, from conversation or dealing with any tie user, or purchaser in Kansas City within the last thirty or sixty days, found out what they would pay for white oak ties? A. No, sir. Q. What have you offered to sell these ties for in the last thirty days? A. We are not making any offers; we are not in a position to do it. Q. What I want to know is how much, if you know, is being paid for first-class white oak ties in Kansas City now? A. The only information I have is our own contract. A. Yes, sir. |