The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-22
ADHANCE IN FREIGHT RATES.
It's Necessity Explained by Chairman Gil
OF the Classification Committee.

WAsHrNoroS. Dec. &c L. Gill. Chairman
OF the Central Tranic Classification Committee
was examined this morning for tho Interstate
commerce Commission by ex-Secretary OF
ota'e W. N. Day His appearance is one fea-
lure Oh the general inquiry now being con-
/ uuc'ed by the commission into proposed adj
vance In freight rates. said to have been agreed
upon by all railroads represented in the CLASH.
ncation Committee.
Inc examination involved detailed state
ment OF existing freight rates and expenses OF
transportation. A general advance 10 hauling
tarins was the most feasible means. said Mr.
Gill. OF increasing railroad revenue. It was
POSSIBLY true that such an advance was tho
only means. The increase specified by the
commission had been agreed upon and would
go INTO erect about Jan. /. A certain increase
In the cost OF railroad constructon-such az
the present cost Of steel raiis--made some adj
vance In rates necessity. But Mr.. Gill did not
intend. he said. to accredit all the increase In
tarins. shortly to he made. to such an advance
In cost OF construction.
Mr. Gil explained the present organization
oil the Classification Committee as an associa-
tion intended solely to protect railroads from
, injudicious and unnecessary competition. Be-
fore the committee had equaizrd freight rates
said MIR. dibb. both railroads and customers
suffered from uncertain and unstable freight
charges. He regarded the committee as mu-
tunl advantage. and thought most shippers did
i rn,sS In "a meosnre. he Thought the new
stored. Formerly freight tGrifis were eauabiy
aspportioned so that thu volume Of materials
ron were able to make hauling profitable
To this Mr.. Day objected that the tariffs con-
tempIated were higher than any which had
prevailed since the Interstate Commerce Com
mission was organized.
Judge Prnuty N m ~ m her N ha ,IssI ION
added TO Mr.. Days contention that the specific
articles instanced by NIr. dill-stcel rails-were
Mr.. Gill replied TO both statements that the
present industrial condition justified the In
trairic could bear The increase. '' There was was
some objection to the new schedule. OF course.
Commit!e". had been examined by the witness usGs
o a1d r 6y him had been sommuniss,;d 10 the
upon, however. until after the new rates had
. One One other Sitpes. was heard. Mr. Nathan
taHed ut length OF the. cost Of railroad mate.
rails. explaining that the whole cost of railroad
years. Profits had mean " lille grown less Ger.
tain On local fright hauling the railroads
real profit came from long hauls He explained
the differentiation IN the new freight rates In
Sso o. usually SsR1d wsb snSss sSS
ESsItiys income 10 the sr"nsFor,iSS agent.
pletion Of a work begun before the
Interstate Commerce Commission was
Interstate Commerce act and before the Com.
mission nsse IN hled there was no uniform table
OF freight tariffs. Accordingly. q mum Der OF
railroad presidents or general managers came
together and organized themselves into an
association to maintain uniformity OF charges.
That assoc lation had grown into the
Official Glass ifcation Committee" and had
proved valuable that II would prob
ably become permanent organization.
When one. OF the roads now in the associ-
alton decided to withdraw the lines still
In the Com N ittec" would elect some one from
the roads which had apr ications on flo to MI
the vacancy. The COMMITTEES hoped by the new
schedule TO incrr ase the profits Of the railroads
II knew. however. that that object could not be
attained II tn" volume 81 freight carrying
should be reduced Nothing would be done.
therefore. which could permanently diminish
the amount OF goods shipped
In the afternoon several requests were made
by shinp-rr who were present that the new
rates should not become operative until April
]. To this Mr.. Guil'ord objected. The Com
mission reserved its decision.