The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-22
THE SHIPPERS PROTEST
The Classification Changes Are Radical IN
Many Instances
A THREE MONTHS DISAPPOINTMENT ASKED
lint Roads Contend Operating Ex-
pcnscs Are Increasing ana IL IN
Necessary TO Have Revenue.


was begun today by the interstate COM
merce commission In the matter OF
changes In freight classification and ad-
vances In freight rates by carriers usins
the official classifications
Many complaints have been fled with
the commission alleging that discrimina-
ting conditions in freight classification by
carriers have been agreed upon to take ef-
feet January /. To determine this ques-
ton the hearing of today was held. Many
Of the most prominent railroad freight
officials OF the Eastern part Of the coun-
try attended the hearing and representa-
tives Of large shipping interests of the
same section were also present.
At the opening OF the hearing Mr.. G. q.
Gill of New York. chairman Of the classi-
fication commission. said the railroads
were without knowledge of the persons
who had requested the hearing and asked
that they be called 10 state wherein the
proposed changes were unjust. Mr.. Gill
maintained that the proposed advances
in freight rates were due TO the increased
cost OF railroad plants and maintenance
and the advances had been applied TO all
classes of freights that could well pay
them. Mr.. Gill's contention that the ship
pers be first Intercepted was overruled
and he himself was put on the stand.
He said that due consideration of all
protests would be considered by the
classification committee but the commit
tee was satisfied the proposed advances
were necessary on account OF the IN
creased cost of railroad operations. He
ntimated that for the same reason still
further advances probably would have
to be made. Upon many articles, he main
tanned, the existing rates OF freight were
"unjustitably low.
Mr.. n, B. Kelley, secretary of the Trade
League of Philadelphia said that wAat
the trader wanted was that the nav
classification should go into effect April
/. instead of January /, 1900. II the rail-
roads would consent to this proposition,
he anticipated no trouble. Other repre-
sentatives OF the shipping interests Sec
onded Mr.. Kelley's proposition. but as no
representative of the railroads present has
authority to accept the proposition, it
went by default.
MIR. Gill. who was on the stand during
THE morning session, protested against
being examined further. as he was not pre-
pared to go into the question of al the
classifications in detail. He did not APP
prove of Mr. Kelley's proposition thai the
classiflcations should not go into effect
until after April ] as that would deprive
the railroads of added revenues for threa
months. He asked for thirty minutes
recess of the hearing in order that he
might consult the railroad men present
as TO the action they should take
Mr.. A. j. Vanlandingham. representing
the st. Louis Traffic bureau, said that the
f,,ta ID all, H. II,
fication territory, nbut the entire United
States. Changes in Western classfica-
ton have already been made In line with
those of the official classification he said
but they are not so radical as in this
territory A Western railroad president
said to ME few days ago: The change
in official classification, particularly the
great spread between carloads aud less,
are revolutionary In character and in my
opinion should not be made.
MIR. Vanlandingham believed that IL a
postponement of the date when the official
classihcations would be effective could be
effected, the Western lines would take
similar action.
Mr. Gill withdrew his request for re-
cess and although protesting against what
he believed was the irregularity of the
proceeding. again went on the witness
stand He was questioned by several rep
resentatives OF shippers, but in almost
every instance declined 10 give detailed
replies. He declared that the increased
rates would not, In his opinion, compen-
safe the railroads for the increased cost Of
transportation.
Mr., +. S, Monett attorney general OF
Ohio questioned Mr.. Gill as to the cost
OF shipping petroleum. endeavoring 10
elicit from him some statement TO the ef-
ect that the Standard Oil company was
favored by the railroads at the expense of
the small shippers. Mr. Monet said that
on less than carload lots of petroleum,
the proposed classification increased tho
rate 269 pei cent, depending upon the dis
lance, This. he SAID, was a discrlmina-
tion which would break up the small ship
pei.
Mr.. Gill explained that his company had
nothing to do with the carload rates on
petroleum and that the changes In the
classification of less than carload lots had
been made by the committee on a sugges-
ton OF j. 4. Tucker. chairman of the Gem
trail Freight association OF Chicago. A
few questions were addressed to Mr.. Gill
by other representatives or shippers pres
ent, but no further Information OF i'm
portance was elicited.
Mr.Nathan Guilford, traffic manager OF
the New York central ana the Boston and
to the commission In the course of which
he said that he did not care to defend
the proposed classifcations because he
realized there might be Inconsistencies and
IN them. He declared the read
mess of the railroads. however, to correct
any inequalities or injustices that might
be found TO exist, He did not think the
railroad ought to be asked to lose three
revenues from the new classihca-
ton, because operating expenses and ex-
penses OF maintenance were constantly
increasing, He said that his company was
now building 10000 cars for which the,
would have to pay nearly double the
amount they had formerly paid for car
The increased cost 10 the
railroads OF transportation made 1t alb
solutely necessary for them to secure in
creased revenues. While the revenues Of
many railroads had Increased from month
to month. the net earnings had not pro-
increased, because OF the
heavy increase In operating expenses and
In maintenance When his attention was
called to the statement OF the earnines
OF the last quarter OF the New York Gem
trail as compared with the Corresponding
quarter OF one year ago. showing an in
crease in this year OF the net earnings.
he said that the railroads had not felt vet
as they would feel the increased cost OF
operation and construction OF plants.
Without reaching any conclusion the hear
ing was adjourned until $3.50 a. m. to-
morrow.