The times. [volume] (Washington [D.C.]) 1897-1901, 1901-05-09
DISCUSS RAILROAD RATES
Cincinnati Shippers Make Claims
of Unfair Treatment.
The Industrial Commission Hears
Testimony in n Long Fought Con-
troyersy-sectionnl Trade said to
Dc Affected by Discrimination.

Testimony in n Long Fought Con-
troyersy-Sectionnl Trade Said to
Dc Affected by Discrimination.
M. p Wilson. commissioner of the Gin
cinnati Board of Trade and Bureau of
Transportation, testified before the Indus
trial Commission yesterday concerning
the fight which has been carried on since
1892 by the body of which he is member
to secure relief from the discriminating
rates against manufactures in Cincinnati
and other points in central territory
These alleged discriminating rates against
central points in favor of Eastern sea-
board territory were the result, he claim
ed, of an agreement made in 1873 between
the rail and water carriers, composing ths
Southern Railroad and Steamship Asso
citation, which gave Eastern manufactur-
ers a practical monopoly of the Southern
trade.
1t was claimed by the Commissioners of
the Board of Trade in their hearing be-
fore the Interstate Commerce Commits
sion, at the institution Of the proceedings
in 1892, that the conditions prevalent at
the time the agreement was made had
materially altered and that manufactur-
ers had moved westward and now de-
manded an equal chance for competition
In the Southern territory. The discrimf-
mating rates in effect restricted the
growth of central industries, it was said,
and facilitated the growth of industries
on the Eastern seaboard.
The Interstate Commerce Commission
decided that the rates complained against
were a discrimination in favor of the
Eastern seaboard and formulated new
set Of rates to the South from Eastern and
central points, which they ordered the rail
carriers to adopt. The case was appealed
by the railroads to the United States
courts, which ruled that the Commission
had no jurisdiction in the matter and no
power to force the railroads to accept an
arbitrary set of rates.
Mr.. Wilson claimed that the case had not
| been decided upon its merits in the courts.
! or he felt assured the Cincinnati shippers
| would have secured what they believed
was justly due them. AS it was. the COM
plainants had been so discouraged by the
! failure of their previous attempt that no
= active steps had been taken of late TO adj
vance the case on the Supreme Court
/ docket. AT the. time of the hearing before
! the Industrial Commission many traffic
/ officers of different roads admitted the in
! justice of the discriminating rate, but said
that they could not make a change owing
! to the likelihood of such move precipi-
| tating rate war.
! Mr. Wilson thought that no railroad
had the right to practice paternalism, nor
/ to take under its guardianship any city
or town and discriminate in favor of such
place. Such a practice. he said, had been
more common in the far West than in the
central section and South, yet in the lat
ter sections it had been frequent Ship
pers, too, had been favored, he said, gen
orally the larger shippers as against the
! smaller fry and of the latter a number
had been driven out of business by such
| discrimination. He believed that there
Z was much discrimination of a like nature
I at the present time.
The prosperity of the Southern States
had been dwarfed and delayed, MI Will
son thought. through railroads in that
section ignoring the long and short haul
clause. All the trouble, he said, lay In
the Southern territory the other great
railroad systems generally observing the
provisions of the law The policy OF the
Southern roads in this matter arose from
d mistaken idea that they must make q
low rate TO meet water competition, ano
as a set-off that they must keep all the
interior points lacked up to prohibltivt
prices.
| c. d. Griffith. a representative Of tins
Denver Chamber of Commerce and Boarc
of Trade gave his views concerning tbs
I discrimination
and manufacturers in transportation rates
fixed by the railroad companies. That city
Mr.. Griffith said. had never enjoyed 9
basis of distributive rates on either eas
or west bound business originating there
that would enable her to compete witt
Missouri River cities on the one hand ant
with Pacific terminal Doiit with Can
fornia products on the other. Denver wa
no more than way station as Tar al
rate making was concerned in TERRITORY
west OF the Missouri River. The rive
was the base line of rates to ana iron
| points east of the meridian on winch TN
| Missouri was located From Denver ives
distributive rates in effect were results o
| combinations and concessions from tim,
to time. and of character entirely local
not governed by any well defined law.
Denver claimed. Mr.. Griffith said, tina
! her merchants and manufacturer
| should reach all points west oil
| the same competitive basis tina
these are now supplied from Eastern trad
centres. There was one general prlnclpl
that should govern-the removal OF IN
present base line upon which MesteIl
would mercantile and manufacturing In
terests be placed on the same commercial
footing as Missouri River cities.
The rates to Wyoming were of an arb
trary character. dictated and ccntrolle,
by the Union Pacific Railroad, ard so al
, justsd as to throw the greater Volum
of business to the Missouri River an
| Eastern centres. The Utah and Montan
? | routes were based on Missouri Rive
, | rates and were uniformly 30 per cent o
that rate, sufficiently high percentag
! to effectually deter Denver merchants an
manufacturers from invading that terri
tory The Utah route was also based O
Missouri R..er rates and amounted TO
per cent of it. being also high enough I
prevent any considerable business origi
| mating at Denver. In the State of Colo
RADIO alone were Denver merchants al
l lowed to distribute their products on tn
| same basis that governed Eastern com
| petition. The only equitable basis woul
| ensue as a result OF the REIMBURSEMENT o
| ali rates west Of Denver. and based upo
a north and south line through Denver.
The adoption of a uniform classihcatio
: | would be alike beneficial to transportatio
companies and shippers. 1t would sim
| plify the present system of billing, max
more economical this class of work, woul
) | eliminate complaint and annoyance, an
| eaualize and prevent discrimination whlc
, | existed under the present system.
one of the greatest evils with which
> | community had to deal was, accordin
to Mr. Griffith, the instability of rates
| Rate cutting either open or secret wa
: | demoralizing and injurious, and 1t fo
| lowed from this that to a certain eXter
3, | railroad consolidation was corrective.
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