The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-12-24
FREIGHT RATE CLASSIFICATION
Subject of Hear ng by the Inters tate
Commerce Commission

commerce COMMISSION
Washington, Dec. 22-The hearing be-
! fore the interstate commerce commission
/ called on account of complaints made by
/ shippers against the proposed new
! classification of freight by railroads OPP
! Grating under the official classification"
| was resumed today.
/ By agreement Mr.. Frank Harriott
/ general traffic manager of the Erie rail-
| road and a member of the official clas-
/ sification committee" went on the Wit
ness stand to testify as to the new clas-
! sification. He reiterated Mr.. Gills state
/ ment of yesterday that the new classifi-
! cation was adopted because the railroads
! absolutely needed the increased reve-
nues. On many carload rates no ad-
vance, it was felt by the committee, could
be made, but it was felt that on short
hauls the less than carload lots could
afford to pay added rates. This agree
ment would enable shippers to take adj
vantage of carload rates to a general
distributing point, the railroads there get
ting some advantage from added rates
on the short, hauls from distributing
points. The classification committee did
not consider the market prices of arti-
! cles on which the classification was rails
ed. Mr.. Marriott said abe controlling
reason in raising the classification was
and this was deemed the best way to
get it. So far as was practicable, sthe
committee and the railroads were ready
and anxious to remedy, so far as posi-
BILE, any iniustices that might exist in the
classification He said it would be neces-
sary for the sixty-odd roads using the
official classification, but also to main
tain existing commodity rates in order
to obtain additional revenues.
/ ~
Mr. Harriott that, on the average, mis-
ceTaneous cars carrying articles paying
less than carload rates were being more
heavily loaded now than heretofore, and
therefore that the earnings on that class
of traffic were greater.
It developed at this point that at a
meeting of the shippers and those repre-
senting their interests, the former attor-
ney general of Ohio, +. S. Monet, and
Hon. J. II. BrOmwell and Mr. Mortimer
Matthews of Cincinnati had been appoint
ed to present TO the committee the action
of the shippers. Mr.. Monet presented
a set of resolutions adopted by the COM
mercial interests, directing attention to
testimony adduced at the present hear
ing showing, it was maintained, dlscrim-
nations by the railroads against the
small shippers in favor of the large ship
pers, and to the fact that the railroads
had declined to extend the time for the
new classification to go into effect. These
resolutions were supplemented by a pc
tition by a large majority of the shippers
in attendance upon the hearing, asking
that the committee lay the testimony be-
fore the attorney general Of the United
States with a view to have him bring sc
ton against the railroads to prevent the
new classification from becoming effective
on January l. 1900.
The petition of the shippers follows:
'The undersigned shippers and represen-
tatives of various shipping interests
would respectfully and respectively petit
tion your honorable body, in view Of the
testimony disclosed at the session held
in this city on December p, I'm the mat
ter of changes in freight classification
and advances in freight rates by carriers
using the official classification, request
that such testimony be laid before his
honor, the attorney general Of the United
States, for the purpose of informing him
of the necessity Of taking action by in
junction or otherwise, in the premises.
In view of the principles laid down in
Thurber versus Railroad company.
March , 1892, and in view Of the decision
of the supreme court in the Trans Mis-
souri, case and the decision in the Joint
Traffic association case, We think the ev-
ideuce viii warrant such proceedings, as
the action Of said official classification
committee is clearly in violation q the
federal statute known as the Sherman
antitrust act"
For some time the attorneys OF the
shippers argued in favor of the committee
taking the suggested action, Chairman
Knapp, of the committee. maintaining
that the committee had 10 more author
ity to make recommendations 10 the at
nf the shippers The committee had no
objection to furnish TO the attorney gen
eral at the suggestion Of the shipping
interests. a transcript Of the evidence a6-
duced al the hearing. together with the
petition Of the shippers for action under
the antitrust law. The attorneys for the
shippers offered 70 furnish testimony
showing that the operation Of the new
classification would be in restraint o,
trade and 20 that extent violation Of
existing l2w.
Il was determined finally that the ship
pers would offer some testimony. and B.
W. Brown. representing Sch0feld, Shur-
ner K Teag,e. " Cleveland Ohio. was
sworn. He said Tire new classihcati
on petroleum would De absolutely ruinous
II small shippers. on less than carload
lots the Increase above the rates on car
load lots was II some instances as much
as 27S per cent. and in no case was I
less than $ per cent. Air. Brown said
the small shippers OF oil could not sue
Cessfuuy compete with tNA Standard CT.
company, because the rates given the
STANDARD or carload tots we're 50 much
less than the small shippers could Ee;
on less than carload lots that the latter
practically were shut out % much terri
to-.
This closed the testimony and the hear
ing was adjourned.