The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-12-22


New Classification Would Be I'm
fair to the Majority of Shippers
Railroads Have an Argument to
Offer I'm Favor of It.
WASHINGTON, Dec. 21-A meeting
was held tonight at which thirty-one
shippers, some Of them holding proxies
or representative commercial organiza-
TONS were present, and it was decided to
introduce several witnesses tomorrow be-
lore the Interstate commerce commission
Tor the purpose Of showing the Injurious
eHects Of the new classification and ad-
vance In rates.
AT the opening of the afternoon session
Mr.. William r. Corwine, representing the
Merchants Association of New York.
suggested that If a postponement Of the
hearing could be had he believed the
sh'opers and the carriers might come to
reasonable agreement upon the propos-
ed classification, which would prove sat
lsfactory to all concerned. He main
tanned that the interests of the merchants
and those of the railroads were common.
and that the two bodies must stand or
fall together. He was assured, after
conVersing with several railroad repre-
sentatiVes, that a readiustment Of the
proposed classification could be brought
about, and that, therefore, the complaints
later to be considered would be reduced
to minimum.
Mr.. N. B. Kelly, secretary OF the Trade
League Of Philadelphia, said what the
shippers wanted was that new classii-
cations should go into effect April in
stead of Jan. l, 1900. If the railroads
would consent to this proposition, he an
ticipated no trouble. Other reports of
the shipping interests seconded Mr.. KEEL
ly's proposition, but as no report Of the
railroads present had authority to ac-
cept the proposition it went by default.
Mr.. Gill, who was on the stand during
the morning session, protested against
being examined further, as he was not
prepared to go into the question of all
the classifcations in detail. He did rot
approve Of Mr.. Kelly's proposition that
the class1fications should not go into eff
feet until April 1, as that would deprive
the railroads Of the added revenues for
three months. He asked for thirty
minutes recess of the hearing, in ord az
that he might consult the railroad men
present as to the action they should take.
CHANGES IN CLASSIFICATION.
Mr.. A. J. Van Landingham, represent
ing the st. Louis traffic bureau, said that
the question interested not only official
classification territory, but the entire
United States. Changes in Western clas-
siflcation have already been made In
line with those in the official classical
tion." said he, but they are not so rad
ical as in this territory. A Western rail-
road vice president said to me few days
ago:
g The changes in official classification,
particularly the great spread between
carloads and less, are revolutionary in
character, and, in my opinion, should not
be made "
Mr.. Van Landingham believed that if a
postponement of the date when the Of
fetal cassihcations would be effective
could be arranged the Western lines
would take similar action.
Mr.. Gill withdrew his request for a re-
cess, and, although protesting what he be-
lieYed was the 1rregularity of the pro-
ceeding. again went on the witness
stand. He was questioned by several rep
resentatiVes of shippers, but in almost
every instance declined to give detaiYed
replies. He declared that the increased
rates would not in his opinion, compen-
safe the railroads for the increased cost
of transportation.
Mr.. +. H Monet, attorney general Of
Ohio, questioned Mr.. Gin as to the cost
Of shipping petroleum, endeavoring to
elicit from him some statement to the
effect that the Standard OIL company
was favored by the railroads at the cost
Of the small shippers. Mr.. Monet said
that on less than carload lots of petro-
leum the proposed classification increased
the rate 269 per cent, depending on the
distance. This, he said, was discrimi-
nation which would break up the small
shipper.
Mr.. GIL explained that his committee
TT
On petroleum, and that the changes in the
classification of less than carload lots
had been made by the committee on a
suggestion of J. F. Tucker, chairman of
the Central Freight Association of Chi
cago. a few questions were addressed to
Mr.. Gill by other representatives of ship
pers present but no further informa ton
Of Importance was elected.
RAILROADS DEFENDED.
Mr., Nathan Guilford, traffic manager
Of the New York Central and Boston &
Albany railroads, made long statement
to the commission, in the course Of which
he said that he did not care to defend
the proposed classilications, because he
realized there might be Inconsistencies
and mistakes in them. He declared the
readiness of the railroads, however. to
correct any inequalities or injustices that
might be found to exist. He did not
II ink the railroads ought to be asked to
lose three months revenue from the new
classification, because operating ex-
penses and expenses OF maintenance were
constantly increasing He said that his
company was now building ten thousdnd
cars, for which they would have to pay
nearly double the amount they formerly
had paid for car construction. The in
creased cost to the railroads of transpor-
tation made it absolutely necessary for
them to secure increased revenues While
the revenues of many railroads had in
creased from month to month, the net
earnings had not propOrtionately increas-
ed, because of the heavy increase in OPP
Grating expenses. and in maintenance
When his attention was called to the
statement of the earnings for the last
quarter Of the New York Central as
compared with the corresponding quarter
of one year ago, showing an increase in
this year of the net earnings, he said
that the railroads had not felt yet as
they would feel the increased cost OF
operation and construction of plant.