Omaha daily bee., 1899-12-22
DEFEND ADVANCE IN RATES
Chairman Of Classification Committee Says
Railroads Need the Revenue,
HIGHER PRICES EVERYWHERE The CAUSE
Representative of Carriers Using the
Omcini classification Tell Reasons
for intended Incrensc-Hcar-
ing ut Washington.

ioT lnteTlfb
ing at Washington.
WASHINGTON. Dec. 21.-A hearing was
begun today by the Interstate Commerce
commission in the matter Of changes In
freight classification and advances In freight
by carriers using the official classification.
Many complaints have been filed with the
commission alleging that discriminating
changes Tn freight classification by carriers
have been agreed upon to take effect Jan
uary l.. 1900. To determine this question the
hearing Of today was held. Many Of the
most prominent railway freight officials in
the eastern part Of the country attended the
hearing and representative of large ship
ping interests in the same section we're also
present.
At the opening Of the hearing c. e. Gill
Of New York, chairman Of the official CLASH
hration 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.
He 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 well afford to pay
them. Mr.. Gili's contention that shippers
be first Intercepted was overruled and he
himself was put en- the stand. He said that
the consideration Of all protests would be
considered by the classification committee,
but the committee was satisfied the proposed
advances were necessary on account of in
creased cost Of railway operations. He in
timated that for the same reason still fur
49,. .--f4 t L. =
made. Upon many articles Mr.. Gill main
tanned that existing rates of freight were I'M
justlfably low.
Holds Advance Necessary.
In the course Of a long explanation by w.
A.. Day, attorney for the committee, Mr..
Gill gave no reasons for the proposed ad-
vances upon special articles or classes Of
freight except the general reasons which
applied to all freight. He maintained that
the proposed new classiications. generally
speaking, were restoratioas of freight rates
which prevailed in times past when com
merCial and trade conditions we're similar
to what they now are. His replies to a long
series of questions indicated that his W
belief and that of his colleagues on the
classification committee was the recent
marked advance in the price of railway
equipment and operation-in steel rails and
all forms OF steel and iron, etC.-rendered it
necessary for the railroads, in a degree
propOrtionately to 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 At
tCrney Day said a comparison of the proposed
rates on certain specific articles showed that
the new rate would be higher than had ever
existed since the commission was created.
Says Railroads Need the Revenue.
Judge C. A. Prouty, a member of the COM
mission, instituted a line of inquiry, the
questions and answers indicating 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 COM
mittee deemed it necessary to increase the
rates. Mr.. Gill replied, as he had previously,
that in the Judgment of the committee arti-
Giles on which advances were made could well
stand them and that the railroads needed
the additional revenue 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
tne committee, except lndt III u general way
the committee felt the artic es on which in
creases had been made coull afford to pay
them. While protests againGt the proposed
rates had been received from shippers the
shippers had not been a.Iorded an oppor-
tunity to be heard by ne committee. as it
was not the practice f the committee 10
accord such hearing5. As chairman he heard
the protests and communicated their sub
stance to the committee. Protests against
the proposed classification had not been con.
sidered by the and would not be
until after the classification had gone into
effect.
The committee then took a recess until .
o'clock.
At the opening of the afternoon session,
William r. Corwine, representing the Mer-
chauts' association of New York, suggested
that II a postponement of hearing could be
had he believed the shippers and the car
riers might come to n reasonable agreement
upon the proposed classification which would
prove satisfactory to all concerned. He
maintained that the interests of the mer-
chants and those OF the railroads were COM
mon and that the two bodies must stand OF
fall together. He was assured in conversing
with several railroad representatives that a
roadjustment of the proposed classification
could be brought about, and that therefore
the complaints later to be considered would
be reduced to a minimum,
Ask Extension of Time.
n. b. Kelly, secretary OF the Trade league
of Philadelphia, said that what the shippers
wanted was that the new classiications
should go into effect April /, instead of Jan
uary l, 1900, II the railroads would consent
TO this proposition he anticipated no trouble.
Other representatives of the shipping inter-
ests seconded Kelly's proposition, but as no
representatives of the railroads present had
authority to accept the proposition it went
by default,
Mr.. Gill, who was on the stand during the
morning session, protested against being eX-
nmined further, as he was not prepared to &C
into the question of all the classifcations in
detail, He did not approve Of Kelly's propo-
sition that the classitications should not &c
into effect until April !, as that would de-
prive the railroads of the added revenue fol-
three moHths, lie asked for a thirty minute
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