New-York tribune., 1899-12-22
FREIGHT RATE HEARING.
TESTIMONY TAKEN BY THE INTERSTATE
COMMERCE COMMISSION.
REPRESENTATIVES, or RAILROADS GIVE KEAsoNS
FOR THE PROPOSED ADVANCE IN HNiA
ATTITUDE OF THE NBw-YoRk
MERCHANTS ASSOCIATION.

advances IN freight rates by carriers using the OF
fclsl classification. Many complaints n"'o
aled with the Commission alleging that olscili'i'"'
tns- changes IN freight classification by carriers
hive been agreed upon TO take ehect on JahualS -
1eo To determine this question the nearing l.
bo,d Most OF. the prominent railway freight OF
ecials ~ the Eastern part OF the country ana rep
r.sentatives Of large shipping interests Oh '"e
came section were present
Al the opering Of the hearing C. h. Gill; oi -e"
vi chairman OF the Ofical Classification COM
,rittee said that the railroads were without KNOW
dc. ~ the persors who had requested the near
ING and asked that they be called upon 70 s,a'e
wherein the proposed changes were UNJUST vi
Gill maintained that the proposed advances ~
freight rates were due to the increased cost VI
railroad plants and maintenance. ana the au'dIlo1 %
had bccn applied TO classes Of freights that couo
y.ou nav them Mr. GilTs contention that the snip
ners no first interroeated was overrued' anu ho
was put upon the stand =, .os.s
uc said that due consideration of all protes'S
would be- considered by the Classification Noini"i'-
Tee but the committee was satisfied that '"e p'0
nosed advances were necessary on account OF 'he
increased cost Of railway operation. lie ih.iina''u
,ba. for the same reason. still further advances
,roha hlv would have to be made On many afucles
Ar Gin maintained that existing rates OF irels"'
were "uniustlhably low.
ARGUMENTS FOR HIGHER RATES
In the course Of long examination oy W. a.
Dav. attorney for the Commission MI Gill gave
no reasons for the proposed advances upon speVld.
articles or classes OF freight except the genera
ones which applied to all freight He maintaineo
that the proposed classihcatons' general'y
s,eakine were restorations of freight rates Whlch
prevaIled in times past. when commercial ana udue
conditions were similar 10 what they now are MS
replies 10 long series Of questions INDICATED that
his own belief and that Of his colleagues on the
Classification Committee was that the recent
marked advance In the price Of railway equipment
and operation-in steel rails and all forms OF steel
and iron etc-rendered II necessary for the rail-
roads 10 advance freight rates in a proporuonate
degree. He said freight rates had been on gradu-
ally descending scale for about twenty years but
he was unable 10 say whether the proposed ne"
rates would be higher or lower than those whlch
prevailed in 1892
Mr Dsv said a comparison OF the proposed rates
on certain specific articles showed that the new
rates would be higher than had ever existed since
the Commission created.
Judge Prouty a member OF the Commission, in
stituted a line Of inquiry, the questions and an
swers indicating that in 1857 the railroads paid
more for steel rails and other articles OF equipment
than they had TO pay now. In view Of these facts
he desired 10 know why the Classification Com
Inittee deemed II necessary 10 increase the rates
Mr. Gill replied. as ne had previously, that In the
Judgment Of the committee articles on which ad-
yances were made could well stand them and that
railroads neene0
the advances would give them. He indicated by his
answers that the present prices OF articles and the
prices in 1887 had little If anything TO do with the
action Of the committee. except that In general
way the committee felt that the articles or which
increases had been made could afford to pay them
While protests against the proposed rates had been
received from shippers. the shippers had not had
an opportunity to be heard by the committee. as
It was not the practice Of the committee TO ac-
cord such hearings As chairman he heard the
protests and communicated their substance TO the
committee. These protests against the proposed
classification had not been considered by the com
rnttee and would not be until after the classical
tion had gone into effect
AN AGREEMENT THOUGHT POSSIBLE.
Al the afternoon session William R Corwine,
representing the Merchants Association of New
York suggested that If postponement Of the
hearing could be had he believed the shippers and
carriers might come TO A reasonable agreement
the proposed classhcations whhch would prove
satisfactory TO all concerned. Hefmaintained that
the interests Of the merchants and those of the
railroads were common. and thai the two bodies
must stand fan together. He assured
after conversing with several railroad representa-
tyes that readjustment Of the proposed classica-
tions could be brought about, and that, therefore
the complaints later 10 be considered would be re-
duced 10 minimum.
n B. Kelly, secretary OF the Trade League Of
that the cassihcations should go into effect on
April ! instead OF January ! 1900 II the railroads
would consent TO this proposition he anticipated no
trouble. Other representatives Of the shipping IN
Ierests seconded Mr. kellys proposition, but as no
representative Of the railroads present had author
ity to aeSept me proposition it went by default
Mr Gin, who was on the stand in the morning.
protested against being examined further as he
was not prepared 10 20 into the question Of all the
eTsfsisihcauons IN detail lie DID not approve Mr.
not 20 into effect until April l. that would de-
months lie asked for recess OF thirty minutes
IN order that he might consult the railroad men
a J. Aanlandingham, representing the ST. Louis
Trafhc Bureau, said that the question interested
entire United States Changes in Western classi-
ncation have already been made in line with those
are not so radical as in this territory A Western
railroad vce-president said 10 me a few days ago:
the great spread between carloads and less are
revolutionary in character and in my opinion
Mr.. vanlandinsham believed that II a postpone
oa memt OF me GATE when when me ocal cassiHeations
lines would take similar action.
although protesting against what he believed was
The witness stand He Was ouesfioDeS nv severai
stance declined to give detailed replies. He de-
opinion compensate the railroads for the increased
F s Monnett Attorney General OF Ohio oues-
toned Mr CHI as TO the cost Of shipping petroleum
endeavoring TO elicit from him some statement TO
the effect that the Standard oil Company
favored BY the railroads at the expense Of the
small shippers. Mr. Monnett said that on less
than carload lots Of petroleum the proposed class-
fcatiOn Increased the rate 269 per cent depending
on the distance. This: he said. was discrimina
tiOn which would break up the small shippers
Mr GIL explained that his committee had moth
Ing 10 do with the carload rates petroleum. and
that the changes IN the classification OF less than
carload lots had been made by the committee on
suggestion from J. +. Tucker. chairman Of the
Central Freight Association OF Chicago. A few
questions addressed 10 Mr.. Gill by other rep
resentatves OF shippers present. but further in
formation Of importance was ELECTED.
ROADS READY TO DO JUSTICE
Nathan Guiltord. traffic manager Of the New
York Central Railroad. made long statement to
the commission in the course OF which he said
that he did not 10 defend the proposed csssi-
hcations because he realized there might be in
consisiences and mistakes in them. He declared
the readiness OF the railroads however to correct
any inequalities or injustices that might be found