The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1899-12-23
That the RraSOn Given for the Pro-
posed Advance in Freight
Rates.
Shippers Contend the Action of
Railroads Violates Anti
Trust Laws.
Proposed Rates Would Ruin the
Small Shippers, it Is
Claimed.

iA hS lStlN
ing before the interstate
commission. called on account OF COM
plants made by shippers against the
proposed new classification Of freight
by railroads operating under the .'of.
hclal classification" Mr.. Frank Har-
riot. general traffic manager Of the
Erie railroad and a member of the of
fetal classification committee went on
the witness stand to testify as to the
new classification. He reiterated Mr..
Gills statement that the new classified.
ton was adopted because the railroads
absolutely needed the increased V
nues. On many carload rates Il 8 al
vance. 1t was felt by the committee,
could be made, but it was felt .that..on
short haQls, the. less than carload
lots could afford to : Iayc added
rates. This arrangement would enable
shippers to take advantage Of carload
rates to a general distributing point,
the railroads there getting some advan-
cage from added rates on the short
laul from distributing points. The
classification committee did not con.
slider the market PRICES Of articles on
which the classification was raised.
MI. Harriott said the controlling rea.
son in raising the classification was evi.
dent necessity for more revenue and
this was deemed the best way to ct it.
Inquiries developed the admission by
Mr.. Harriott that on the average mis-
c~ellaneous cars carrying articles carried
at less than car lots We're being more
hoo ~ y 1,oIaj Yh,,, Iora&orco ,,3 49,.
and the railroads earnings on that
class Of traffic were greater.
shippers Have q Word to Say.
1t developed at this point tina, at a
meeting Of the shippers and those rep
r~esentiug their interests. former attor-
ney general Of Ohio, +. S. Monnett,
Hon. j. II. Cromwell and Mr.. Mortimer
Matthews Of Cincinnati, had been APP
pointed to present to the commission
the action OF the shippers. Mr.. Monnett
presented a set Of resolutions adopted
by the commercial interests directing
attention TO the testimony adduced at
the present hearing. showing. 1t was
maintained, discrimination by the rail-
roads against the small shippers, in
"a SAiS GAAktSAc Ia l " LIZ
fact that the railroads had declined to
extend the time for the new classical
ton to 60 into effect. These resolutions
We're supplemented by a petition by a
large majority Of the shippers in at
tendance upon the hearing, asking that
the commission lay the testimony be-
fore the attorney general Of the United
States, with a view to have him bring
action against the railroads to prevent
the new classification from becoming
effective on Jan. /, 1900. The petition
OF the shippers follows:
Petition of the shippers.
The undersigned shippers and rep.
reseniatlveS OF various shipping inter
ests would respectfully ana respectively
petition yoar honorable body, in view
Of the testimony disclosed at the ses-
sion held IL this city OH Dec. 81. in the
matter Of changes III freight classical
ton and advances IN freight rates by
carriers using the official classification,
request that such testimony be laid be-
fore his honor, the attorney general Of
the United States for the purpose Of
informing him Of the necessity Of TAX
ing Legal action by injunction or other
wise, in the premises.
IN view OF the principles laid down
in Thurber versus Railroad Company,
March u, 1890, aud in view of the de-
cis.on Of the supreme court Of the
United State in the trans-Missouri
case, and the decision IN the joint traf-
tc association case, We think the evi.
dence will warrant such proceedings as
the action Of said official classification
committee is clearly in violation Of the
federal statute known as the Sherman
antitrust act"
Would Ruin Small Shippers.
The attorneys for the shippers offered
to furnish testimony showing that the
operation OF the new Classification
would be III restraint Of trade, and to
that extent a violation Of existing law.
1t was determined finally that the
shippers would offer some testimony,
and b. V. Brown, representing Scho-
field, Schurmer q Teagle Of Cleveland,
O., was sworn. He said the new classl.
tication on petroleum would be abso-
lutely rulnous to small shippers. On
less than carload lots the increase above
the rates on carload lots was in some
instances as much as 27j per cent, and
in no case was it less than 50 per cent.
Mr.. Brown said the small shippers Of
oil could not successfully compete with
the Standard Oil company. because the
rates given TO the Standard on carload
lots were so much less than the small
shippers could get on less than carload
lots that the latter practically were shut
out Of much territory.
This closed the testimony and the
hearing was adjourned.
KiD Mass NeetinD IN re IfelI