The Indianapolis journal., 1899-10-10
CALLAWAY'S TESTIMONY
NEW YORK CENTRAL's PRESIDENT
BEFORE INDUSTRIAL COMMISSION.
Has No objection to Arbitration, and
Objects to Ticket Scalping-
Barry on Gain Rates.

WASHINGTON, Oct. 9-President S. r.
Galloway. of the New York Central Rail-
road, and Frank Barry, secretary OF the
National Millers' Association, were before
the industrial commission to-day. Mr.. CAL
loway said that since he had been con-
nected with the New York Central there
had been no troubles with the employees.
No objection was made on the part or the
management to labor organization or to
arbitration of differences, except upon vital
questions, but there was, he thought, very
little utility in a law like the present fed
eral statute, which provided no means for
compelling compliance with the findings OF
an arbitration board. He would not, how
ever, want TO arbitrate the question OF
wages, as a slight advance on the general
pay roll, amounting to sl7.0OO,OOo year.
would make a very material difference in
the company's income. Speaking OF dis
ordinations and rate wars, Mr.. Galloway
said that the possibility for them had grad
ually decreased until there was little or
such opportunity left. Rates had been re-
duced from 1SS cents a ton per mile to .19
cent. He said that the dfferential rate
awarded to Philadelphia and Baltimore
twenty years ago had been responsible for
much of the complaint of discrimination
Whatever reason there had been originally
for. this advantage TO those cities it did
not now exist, and he thought it would
be wiped out eventually. Speaking Of ticket
brokerage, the witness characterized 1t as
1.-THE most demoralizing business In the
country" He was also opposed TO grant
ing of passes and SO far as he could con-
troll the practice he had limited it to en-
characterized as bad, but the competition
Mr.. Galloway said, is such that he saw
for the present no way of remedying the
evil. He favored net earning tax in pref
erence to the general practice at present.
saying that this company last year had paid
81. 100000 in taxes or about II per cent. or its
net income.
Speaking of the rate on articles for ex-
port, Mr.. Galloway said he would admit
that exports were carried cheaper than ar
tices for domestic consumption. The rail-
roads were compelled to do this TO meet
foreign competition and he did not consider
heard no complaint of discrimination in
favor of grain as against flour. He Favored
the legalization of pooling, saying he did
stances, such authority would result in the
general increase of freight rates. He was
willing, in case of such AUTHORIZATION, the
Interstate-commerce Commission should
have certain supervision. He thought any
suggestion made by the commission would
be needed. but he believed 1t would not De
one place to fix rates intelligently and with
justice He did not, however, admit that
the government na0 any more flSnt 10
terfere with the management of railroad
system than with any other lines of busi-
ness He believed the government owner
ship of railroads was not practicable.
Mr.. Barry's testimony related largely to
the export rate on flour as compared to
that of wheat, which, he said, Is so discrim-
mating as TO work great hardship upon the
American millers. He instanced the falling
off in the shipment abroad of -four from
Minneapolis and Duluth in September of
the present year, showing that for 1899 the
total amounted to 362, $40 barrels. compared
with 4S5 4S5 barrels in September, 1898. Mr..
Barry concluded that there must be some
concerted purpose TO injure the milling in
terest of this country. The inevitable re-
suit of this course was to throw the sur
| plus flour product upon the domestic mar
| ket and also demoralize prices of wheat TO
| the farmer. In this connection Mr.. Barry
| divulged an extensive movement for the
| amendment of the interstate-commerce act,
| saying twenty-three national commercial
| organizations were preparing to band to-
gether to secure an amendment of the law.
| so as to make the findings of the Inter-
| state-commerce Commission mandatory.