The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-23
NEEDED THE REVENUES
The Railroads Are Not Making
Enough Money.
THE SHIPPERS PROTEST
They Ask That Action Be Brought
Against the Roads by the Attorney
General Under the Provisions Of
the Antitrust Law.

Washington, Dec. 22.-The hearing
before the interstate commerce commits
sion called on account of complaints
made by shippers against the proposed
new classification of freight by rail-
roads operating under the official
classification, was resumed to-day.
BY agreement Frank Harriott, gem
eral traffic manager of the Erie railroad
and a member of the official classifi-
cation committee, went on the witness
stand to testify as to the new classifi-
cation. Re reiterated Mr. Gill's state
ment of yesterday that the new classi-
fication was adopted because the rail-
roads absolutely needed the increased
revenues. On many carload rates it
was felt by the committee no advance
could be made, but it was felt that on
short hauls, less than carload lots could
afford to pay added rates. The ar
rangement would enable shippers to
take advantage of carload rates to a
general distributing point-the rail-
roads there getting some advantage
from added rates on the short hauls
from distributing points. The CLASH
location committee did not consider the
market prices of articles on which the
classification was raised. Mr. Harriott
said the controlling reasons in raising
the classification was the evident ne
eessity for more revenue, and this was
deemed the best way to get it.
The committee and the railroads were
anxious to remedy SO far as possible
any injustice that might result in the
classification. He said it would be
necessary for the railroads using the
official classification to follow not only
the classification but also to main
nvi CT II,
to obtain additional revenues
Inquiries developed the admission by
Mr.. Harriott that on the average mis-
cellaneous cars carrying articles paving
less than carload rates were being more
heavily loaded now than heretofore,
and therefore the earnings on that class
Of traffic were greater.
1t developed at this point that at a
meeting Of the shippers and those rep
resenting their interests Former At
torney General of Ohio Monnett, Hon.
J. H. BromweN and Mortimer Mat
thews of Cincinnati had been appoint
ed to present to the commission the &C
ton of shippers.
Mr.. Monnett presented a resolution
adopted by the commercial interests
directing attention to the testimony
adduced at the present hearing show
Ing it was alleged Determinations
against the small shippers in favor of
the large shippers and the fact that
railroads had declined to extend the
time for the new classified ton to go
Into effect.
These resolutions were supplemented
by petition by large majority of the
shippers in attendance upon the hear
Ing asking that the commission lay
the testimony before the attorney gem
eral of the United States with a view
to have him bring action against the
ha ola
cation from becoming effective on Jan
nary /. 1900
The petition follows:
THE undersigned shippers and rep
resentatives of various shipping inter
ests would respectfully and respective
ly petition your honorable body in view
of the testimony disclosed at the ses-
sion held in this city on Dec q N the
matter of changes in freight classifi-
cation and advances in freight rates
by carriers using the official classifi-
cation 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 action by injunction or otherwise
in the premises
I'm view of the principles laid down
in ThurDer-railroad March 81, 1890,
and in view of the decision of fhe SUI
preme court Of the United States in
the trans Missouri case and the decis-
ion in the joint traffic association case
We think the evidence will warrant
such proceedings as the action of said
official classification committee Is clear
" in violation of the federal statute
known as the Sherman antitrust act"
For some time the attorneys of the
shippers argued in favor of the COM
mission taking the suggested action,
Chairman Knapp of the commission
maintaining that the commission had
no more authority to make recommen-
dations to the attorney general than
representatives of the shippers. The
commission had no objection to fur
nishing to the attorney general at the
suggestion of the shippers transcript
of the evidence adduced at the hear
ing, together with the suggestion of
the shippers for action under the anti
trust law.
The attorneys for the shippers Of
fered to furnish testimony showing
that the operation of the new CLASH
fication would be in restraint of trade
and to that extent violation of ex-
listing law.
1t was determined finally that the
shippers would offer some testimony.
w. B. Brown, representing Schofield
Schumer & Teagle of Cleveland, Ohio
was sworn. He said the new classifl-
cation on petroleum would be absolute
ly ruinous to small shippers. On less
than carloads the increase above the
rates on carload lots was in some In
stances as much as 277 per cent. and
In no case was it less than IS per cent.
Mr.. Brown said the small shippers of
oil could not successfully compete with
the Standard Oil company because the
rates given the Standard Oil company
on carload lots were so much less than
the small shippers could get on less
than carloads that the latter practi-
CALL "'-re ehnt out of much territory