The semi-weekly messenger., 1901-05-10

Washington. May THE industrial
commission today began its May meet
ing with p. ]. McGovern, Of Atlanta,
chairman Of the southern classification
committee. as the first witness.
Mr.. McGovern stated that there are
forty-two rail and steamship lines in
the committee and that it covers the
territory south OF the Potomac and the
Ohio rivers and east Of the Mississippi
river. He said that the organization
tended that except in the items OF iron
tended tha texcept in the items of iron
and steel the advances in transporta-
ton rates have been technical rather
than real. He declared that the COM
mittee had no purpose of fixing rates
on carload lots so as to build up the
Jobblng trade of the south at the ex-
pense of outside points.
Explaining the changes in classifica-
ton since the matter had been placed
in the hands Of his committee, Mr.. Nc
Govern said that previous to that time
there had been many incongruities and
1t had been necessary to remove many
or them. and in cases where there had
been advances they were made largely
because of the prevailing extraordinary
conditions. The general advances in
prices Of railway materials and sup
plies for instance had been an infiu-
ential factor. IN many other cases the
previous ratings had been unreasona-
bly, low. For these reasons there had
Deen three different reviSions of the
classification since 1899
The rates on iron and steel had been
materially increased. but Mr.. McGoy-
ern contended that there had been no
genuine general advance. He referred
to the charge made from New York and
elsewhere. that there had been an in
crease in the rates on about LOO ar
ticles. Mr.. McGovern said that the as
sertlon had grown out of the fact that
the committee had abolished the car
riers' risk column in the classification
sheet putting all articles in the limited
liability list and making an advance
of 20 per cent. where the common law
liability bills of lading were issued.
This he contended was no advance,
because while the common law guar
antee could be secured under the old
system without extra charge it was
not demanded in one case out of
hundred. On the other hand. there had
been reduction in the rates on other ar
ticleS which were far more radical
than these advances were.
Elaborating his testimony concerning
carload rates. Mr.. McGovern took oc-
casion to contradict the charge that his
committee had attempted so to arrange
them as to build up the jobbing CEN
ters Of the south. He admitted tn at
there might be cases in which the
charge for the short haul is greater
than that for the long haul, but said he
could recall no such instance; but If
there had been such an exception it had
not been due to any deliberate effort on
the part of the classification COM
mittee. II deny most positively and
emphatically,' he said, that the class
ification committee has made any ef-
fort to discriminate against New York
OF Chicago or any far off jobbing point
in the interest of interior jobbing points
of the south by reducing the rates on
carload lots. We have no intention of
preventing the outside shipper from
doing a jobbing business at small
points in the south, nor of aiding the
outside shipper at the expense of the
nearby jobber. We try to settle each
case on it's merits"
Mr.. McGovern said that change in
the classification of cotton goods is con-
templated for the first of July. These
goods will then be taken from the fifth
class and included in the fourth class.
He expressed the opinion that under
billing is on the increase and said that
unquestionably the railroad represent
cases. He thought it a great abuse
and said the railroad companies should
prevent it. no matter what the cost.