Omaha daily bee., 1900-01-27
TO AMEND COMMERCE LAW
Representatives Of Milling and Other Indus
tries Befors the Senate Committee.
PRESENT STATUTE IS ALMOST USELESS
standard OIL and Sugar Trusts Not
Cooperating to secure Amy
Amcndments-Rccc Freight
Classification cited.

WASHINGTON, Jan. 25.-The senate COM
mittec on commerce today gave a hearing
to representatives of a number Of business
organizations throughout the country in sup
pert OF the bill to amend the interstate COM
merce law The first statement was made
by Frank Barry Of Milwaukee. He is secre-
tary of the National Millers association and
the accredited representative OF the National
League of Industrial Associations. He con-
mended the pending bill, saying that it had
been framed with view to doing justice to
beth the shipper and carrier. He condemned
the present law, saying that 1t had become
mpotent and valueless and the Interstate
Commerce commission was nothing more
than moot court
In reply to questions from Senator Till
man Barry said the STANDARD Oil and Sugar
trusts and the large Touring mills of the
northwest and grain elevator interests were
rot cooperating in this movement He had
no direct information on the subject of fa
voritism but he called attention to the re-
cent change of freight classification made by
the railroads, which, he said, left carload
rates on oil practically where they were,
while 1t raised the rate on fractional car
load rates from 200 to 800 per cent. 1t was
not difficult to see that this was in the in
torest of the Standard Oil company. Barry
expressed the opinion that the Minneapolis
millers were receiving discriminatory rates
from the railroads. Barry also made COM
plant of the discrimination by the railroads
in favor of wheat for export as against flour
for export. He thought the discrimination
was due to the fact that many of the rail-
road men were large owners in the elevators.
In interest of Millers.
Augustine Gallagher of ST. Louis, commits
sioncr of the millers' national association
spoke especially of the interests of the mill
ers in the proposed legislation. He said that
the railroads were not content with con-
trolling the mines and the forests of the
country but that they were now attempt
ing to control the ballots OF the people along
their lines He contended that the railroad
systems of the middle west, so far as the
grain interests are concerned, are practically
parceled out by large firms in Chicago and
other large cities.
Gallagher in response to an inquiry from
Chairman Cullom, said he firmly believed
the adoption OF the amendment proposed by
the National Board of Trade would produce
results immensely beneficial to the whole
people. He said that the expectation OF
wheat from the United States last year was
about las. goo 900 bushels, possibly so per
cent of which went to the British isles. The
labor cost Of producing flour, he said, was
something more than zoe barrel, and Of
course that amount was lost to the labor OF
this country on the exported wheat. In an
swer TO question from Chandler Gallagher
said that the National Millers' association
and the National Board of Trade were favor
able to such legislation would restore
practically an organization similar to the
recent Joint Traffic association.
Chnndlcr's Pointed Query.
you are here today" said Senator Chand-
! Ter, ito advocate a railroad trust with
| 81, 100 900, 900 capital. Is 1t not in effect
fact that you propose to organize gigantic
railroad trust which is to abolish all COM
petition in traffic rates?"
LAS a member of the National Millers as
sociation and Of the National Board Of
] Trade, l deny that have any such inten-
ton. do not and they do not advocate
| anything OF the kind" replied Gallagher.
! "You understand I take it, said Chand-
Ter, that the great mass of shippers want
an organization similar to the old Joint
| Traffic association"
They do" replied Gallagher 'If the
resolution adopted by the National Board of
Trade does not convey that idea, ask this
committee to prepare one that will
We'll" said Chandler, some of us
| politicians cannot understand why tne -Nd-
tional Board of Trade and the National
Millers' association should desire the estab-
| lishment of a railroad trust, the idea OF
which is to crush railway competition"
| "We do not want to crush competition"
replied Mr.. Gallagher, 'and what we ask
! will not accomplish such an end"
| "You want, then" inquired Senator
Allen, "to authorize the railroads to main
tain rates without the pooling of the rail-
rcads?"
That's it,"
| well" said Allen, that's another name
for the same thing"
Give Rates TO Wheat shippers.
e. o. Stannard of St. Louis, a flour man
ufacturer, stated that the railroads for years
| had been giving rates to wheat shippers in
discrimination against the -four manufac-
! turerS.
/ This discrimination is so great" he said,
that the British -four manufacturer can
make -four from American wheat at least
! Is cents barrel cheaper than the same
| flour could be made here"
In conclusion Mr. StannaTd stated that
there was nothing in the proposed amend
ment which would enable the railroads TO
consolidate or pool their interests.
r. p Wilson of Cincinnati, secretary of
/ the National Association of Manufacturers
said it was essential that the interstate
commerce law be so amended that the
/ Interstate Commerce commission would have
some vitality and be able to do something
definite. He believed that the commission
ought to have authority TO step in between
! the railroads and shippers and settle dis
putes until the question could be adjudi-
! Gated by the courts.
He did not approve OF the idea OF permit
ting the Interstate Commerce commission to
fix the rates of railroads That would be
! an insane nnLion. in his opinon