The times., 1901-05-09
DISCUSS RAILROAD RATES
Cincinnati Shippers Make Claims
of Unfair Treatment.
The Industrial Commission Hears
Testimony in n Long Fought Con-
troversy-SectionaI Trade Said to
be Affected by Discrimination.

Testimony in Long Fought Con-
troyersy-sectionaI Trade said TO
he 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
1882, by the body of which he is a 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 1879 between
the rail and water carriers, composing the
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
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 discrimination in favor of the
Eastern seaboard, and formulated a 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 ad-
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 a move precipi-
tating rate war.
Mr.. Wilson thought that no railroad
had the right TO practice paternalism, nor
to take under it's 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, gem
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
was much discrimination of d like nature
at the present time.
The prosperity of the Southern States
had been dwarfed and delayed Mr. VIII
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 !
mistaken idea that they must make a
low rate TO meet water competition. and |
as a set-off that they must keep all the /
interior points lacked up to prohibtive |
prices
c d. Griffith representative of the |
Denver Chamber of Commerce and Board /
of Trade. gave his views concerning the /
discrimination against Denver shippers /
and manufacturers in transportation rates |
Mr.. Griffith said, had never enjoyed a /
basis of distributive rates on either east |
or west bound business originating there |
that would enable her to compete with /
Missouri River cities on the one hand and /
with Pacific terminal points with Cali |
fornia products on the other. Denver was |
no more than way station as far as |
rate making was concerned in territory |
west Of the Missouri River. The river |
was the base line of rates to and from |
points east OF the meridian on which the |
! TlarN
distributive rates in effect were results of |
combinations and concessions from time
to time. and Of character entirely local, |
not governed by any well defined law.
Denver claimed, Mr. Griffith said, that |
her merchants and manufacturers
should reach all points west on /
the same competitive basis that /
these are now supplied from Eastern trade
centres. There was one general principle |
that should govern-the removal of the
present base line upon which Western
would mercantile and manufacturing in
terests be placed on the same commercial |
footing as Missouri River cities.
The rates to Wyoming were of an arbi-
trary character. dictated and controlled
by the Union Pacific Railroad, and so ad-
justSd as to throw the greater volume
OF business to the Missouri River and
Eastern centres. The Utah and Montana
routes We're based on Missouri River !
rates and were uniformly 60 per cent OF |
that rate a sufficiently high percentage |
from invading that terri
tory The Utah route was also based on |
R-ter rates and amounted to 40 |
per cent Of II, being also high enough to
prevent any considerable business origi-
mating at Denver. In the State Of Colo
rado alone were Denver merchants al
lowed to distribute their products on the
same basis that governed Eastern COM
petition The only equitable basis would
ensue as result of the readjustment of
all rates west Of Denver and based upon
a north and south line through Denver.
The adoption Of a uniform classification
would be alike beneficial to transportation
and shippers. 1t would sim
Dlify the present system of billing, make
more economical this class of work, would
eliminate complaint and annoyance, and
equalize and prevent discrimination which
existed under the present system.
one of the greatest evils with which a |
community had TO deal. was, according
TO Mr. Griffith. the instability OF rates | {
Rate cutting either open or secret was !
1emOraliZing and injurious and ii fol-
owed from this that to a certain extent |
railroad consolidation was corrective
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