The Topeka state journal., 1899-12-21
RAILROADS FIRM.
Announce That They Need the
Revenue to Be DerivedFrOm
Freight Advance.

Washington, Dec. PA hearing was
begun today by the interstate commerce
commission in the matter of changes
in freight classification and advances
in freight rates by carriers using the
official classification.
Many complaints have been filed with
the commission alleging that discrim-
mating changes in freight classification
by carriers have been agreed upon to
take effect January 1, 1900. To de-
terTnine this question the hearing today
was held. Many of the most prominent
railway freight officials of the eastern
part of the country attended the hear
ing, and representatives of large ship
ping interests of the same section were
also present.
At the opening of the hearing Mr.. c.
E. Gill of New York, chairman of the
official classification committee" said
the railroads were without knowledge
of the persons who had requested the
hearing and asked that they be called
upon to 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 classes of freights that
could we'll pay them. Mr.. GilPs conten-
ton that the shippers be first interrO-
gated 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 com
mittee was satisfied the proposed ad-
vances were necessary on account of
the increased cost of railway operations.
He intimated that for the same reason,
still further advances probably would
have to be made. Upon many articles,
Mr.. Gill maintained that existing rates
of freight were ttunjustifiably low
In the course of long explanation by
Mr.. w A. Day, attorney for the COM
mittee, Mr.. Gill gave no reasons for the
proposed advances upon special articles
or classes of freight except the general
reasons which applied to all freight.
He maintained that the proposed new
classificationS, generally speaking. were
restorations of freight rates which pre-
vailed in times past when commercial
and trade conditions were similar to
what they now are. His replies to a
long series of questions indicated that
his own belief, and that of his col
leagues on the classification committee,
that the recent marked advance in the
price of railway equipment and opera
tiOn-in steel rails and all forms OF
steel and iron rendered it necessary for
the railroads, in degree, to proportion
ately advance freight rates. He said
freight rates had been on a gradually
descending scale for about twenty
years, but he was unable to say whether
the proposed new rates would be higher
or lower than the rates which prevailed
in 1892.
In a statement to the commission,
Attorney Day said a comparison of the
proposed
ticles showed that the new rates would
be higher than ever had existed since
the commission was created
Judge G. A. Prouty, a member of the
commission, instituted a line of in
quiry, the questions or answers indi-
eating that in 1887 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
to know why the classification commit
tee deemed it necessary to increase the
rates. Mr.. Gill replied as he had pre-
committee articles on which advances
were made could well stand them ana
the railroads needed the additional rev
enue which 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 q. general way the COM
mittee felt the articles on which in
creases had been made could afford to
pay them.
While protests against the proposed
rates had been received from shippers,
the shippers had not been afforded an
opportunity to be heard by the com
mittee as it was not the practice Of the
committee to accord such hearings. As
chairman, he heard the protests and
communicated their substance to the
committee. Protests against the pro-
posed classification, had not been con-
sidered by the committee and would
not be until after the classification had
gone in to effect.