Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-05-17
ON TRANSPORTATION
Preliminary Report Of the Industrial
Commission.
DISCRIMINATING RATES STILL EXIST
Suggested Increase Of Interstate
Commerce Commissions Powers.
GOVERNMENT OW NERS HI P

GOVERNMENT OW NERS H P
The preliminary report of the industrial
commission on transportation. including
review of evidence, topical digest of evil
denCe and testimony taken up to May l.
1900 was presented to Congress today. The
report contains recommendations for
legislation. Senator Kyle. chairman of the
commission. in his letter of transmission.
states that owing to the incompleteness of
its inquiry the commission is not prepared
at present to make recommendations to
Congress or to the state legislatures. but
contcmpiates the making of such recon-
mcndationS hereafter
The review of evidence that is furnished
by the commission is embraced in twenty
seven printed pages of the report. 1t re-
cites that the witnesses that have appeared
before the commission the subject of
transportation include representatives of
oil the important organizations of railway
employees. representatives of many organ-
cations of shippers and commercial bodies,
as well as other shippers. officers of rail-
ways and of railway associations. members
of the interstate commerce commission and
special students of transportation queS-
tIOns-cOllege professors and others. 1t Is
expected that additional testimony will be
taken certain topics which have been
investigated least fully, such ticket
brokerage. capitalization of railways. con-
solidiuon of railways. state railway COM
missions. taxation, conditions of water
transportation. etc.
Discrimination Still Exists.
There is a general consensus of opinion
among practically all Witnesses the report
states. including members of the interstate
commerce commission. representatives OF
shippers and railway officers. that the rail-
ways still make Determinations between in
dividuals. and perhaps to as great an extent
ever before. In fact it Is stated by
numerous witnesses that determinations
were probably worse during the year 1898
than at any previous time. 1t is admitted
that there is great difficulty in proving in
dividual cases where shippers have been
given special rates or other favors but the
witnesses declare that it is common knowl-
edge among all familiar with the subject
that such concessions are largely granted.
The arguments presented by many railway
officers in favor of pooling assert directly
or indirectly the existence of discriminating
rates The representatives of the railways
declare that so long as competition exists
the attempt 10 get traffic by secret rates
must continue
II is thought generally. the report states.
that there has been considerable improve
ment in the situation in 1899. This is at
tributed in part 20 the exceedingly heavy
traffic. which rendered it unnecessary for
the railroads to secure shipments by dis
eliminating rates. and partly by a better
spirit among the railways themselves.
According TO the testimony. diScrimfna
t0us sometimes granted 10y direct re-
bates and secret rates commissions for
securing freight. billing goods at less than
the actual weight. carrying traffic within a
state not subject 10 the Interstate com
mercc law at lower rates and by allowing
advantages in handling ana storing goods.
1t * very generally acknowledged the re-
port says. that discriminating faVors are
granted chiefly to large shippers at the
expense of small shippers.
A considerable amount of testimony has
been taken concerning the practice of the
large elevator owners, especially at Chi
CAgn. in buying grain. The opponents of
the elevator owners declare that there is a
growing monopoly of the local elevators.
those each line being largely controlled
by single firm. Sooner or later all COM
petition will be driven out. No evidence is
presented to show specific cases where
prices have been depressed by elevator own
Low Rates on Grain.
cit appears clearly from the evidence"
the report says. that the railways have of
late made specially low rates on grain
hauled to the seaboard for export while
higher rates have been maintained on grain
intended for domestic use and flour.
whether for domestic use export"
The determinations were so great at
times during 1879 that. while the Chicago
pounds to get his flour to New York the
English miller could take wheat from Chi
Cagu to New York for Il cents The evil
dpnCe seems conclusive that the effect of
this discrimination has already been dis
astrous to our milling interests. These dis
ordinations are justified by some because
American grain can be sold abroad only in
competition with the supply all over the
world. Commissioner Prouty declared that
the investigation of the interstate com
Inerce commission showed that the market
conditions in Europe during 1899 did not
necrSsitate low export rates. hut that the
reduction Of these rates was the result OF
the bitter competition of the American
trunk lines.
The testimony is reviewed on discrmin ma
tons between various places, pooling, rea-
sonabl-ness of freight rates. classification
Of freight and passenger traffic, capitalizat ton
posed increase If powers of Interstate COM
MERGE commission. etc.
There is very general feeling shown
by the witnesses representing shippers. by
members of the interstate commerce COM
mission and others that the interstate COM
rncrce act should be amended so as to III
crease the powers of the interstate COM
rnerCe commission in one way or another.
the report says. 1T is asserted that the
commission has found its powers constantly
C..-".g sod esp ."iallE 10y fhe 1--WE ~Trtt 80 'rnS
Of the courts. and that It's influence is at
present chiefly an ciESatOlia4 ole l II"
evils Of railway management, these wit
nesscS claim. are still many The public
character of railways. their great influence
upon the general welfare and their depend
euce on the state for their privileges JUS
tify a greater degree of government regu-
lation of railways than of almost any other