FREIGHT RATES AND MANUFACTURES IN COLORADO 21 



rates on the raw material for the manufacture of soap were the same as 

 the rates charged for bringing in soap. The factory was able to make 

 a large product but experienced the greatest difficulty in marketing it as 

 the rates were so made by the railroads as to favor the long haul. At 

 this time there were four roads in the pool and the division on a carload 

 of freight hauled from the River to Colorado points would be more than 

 that resulting from a car of soap shipped from Denver to Las Vegas, 

 or other points in the neighboring territory. 1 After the factory had been 

 running for three or four months and had turned out a soap that would 

 take the market, the freight rate was changed. When the factory was 

 opened, the rate on soap from the Missouri River to Denver was one 

 dollar a hundred pounds and the rate from Chicago to the River was 

 forty cents a hundred. This $i .40 rate to Denver was lowered as soon 

 as the factory appeared to be successful to 60 cents a hundred pound 

 case. 



About 1880 another soap factory was started in Denver. Some time 

 after it had been in operation, the rates on soap from the East were low- 

 ered and a great fall in the price occurred. This was the current report 

 in Denver at the time of the investigation by the legislative committee 

 and a number of witnesses testified before the committee. It was the 

 custom to buy the soap that was shipped into Denver with the freight 

 prepaid and this tended to surround the matter with more mystery and 

 lend color to the suspicion that the report was true. At any rate the 

 factory had gone out of business. 2 



The evidence taken by the committee shows that the freight rate, 

 as in the case of the factory in 1876, was the same on soap and soda, 

 although one car of soda would make many cars of soap. It appeared 

 that there were good opportunities for the manufacture of soap in Denver. 

 It was stated by witnesses before the committee that the price of grease 

 in Denver was lower than it was in the East. 



The rate on soap from the Missouri River to Denver was maintained 

 rigidly and honestly from November 1, 1882, to February 28, 1884. 

 On the latter date rate cutting was begun and one cut followed another 

 till the rates were 30 or 40 per cent, of the published freight tariff, 



1 Ibid., pp. 43, 218. • Ibid., p. 131. 



