42 UNIVERSITY OF COLORADO STUDIES 



The freight rate was usually from 50 per cent, to 75 per cent, more 

 from Denver to points in Arizona and New Mexico than from Kansas City 

 600 or 700 miles farther distant. Much the same situation prevailed 

 with regard to the freight rates from Omaha. 1 These rates show that 

 the man with the capital to invest in manufacturing enterprises would be 

 driven out of Colorado and would probably locate his factory at some 

 point on the Missouri River. 



From the railway point of view some light is shed on the above table 

 of rates by the testimony of Mr. Hamblin, the general freight agent of 

 the Santa Fe. He stated that the rate tariff was made the last of 1882 

 or early in 1883, and that according to this tariff, the rates were as 

 shown in the table. The aim of the railroad at that time was to increase 

 its revenues. Since January, 1884, Mr. Hamblin said this tariff had not 

 been in use. Formerly, however, this road had discriminated against 

 goods made in Colorado and was not anxious to encourage manufactures 

 there. He verified the statements of Mr. Davis concerning the purchase 

 of the hoisting engine. The freight rate on this machinery was higher 

 if the article was made in Colorado. 2 In explanation of the desire of the 

 railroad to prevent the growth of manufactures in the state, Mr. Hamblin 

 said the Santa Fe was at that time getting 19 per cent, of the business of 

 the Colorado pool, "and of course, controlling all of that line from Kan- 

 sas City clear down here, we naturally wanted to make as much money 

 as we possibly could and we made a distinction between manufactured 

 articles and those that we shipped in." 3 



Mr. Hughes, traffic manager of the Rio Grande, stated that the 

 freight rates were made before there were any manufacturers in the 

 state, and that it was the desire of the railroad companies to bring in 

 manufactured products cheaply enough so that people could live in 

 the Rocky Mountain region. The railroads tried to favor the con- 

 sumer rather than stimulate manufacturers. He said there was some 

 justice in the complaints that were at that time made by the persons 

 desiring to start manufacturing in Colorado, and that his railroad was 



1 Evidence, Special Railroad Committee, p. 107. 



* Ibid., p. 254. See supra, p. 25. » Ibid., pp. 254, 255. 



