The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-05-08
M'GOvERN ON RATES
TELLS INDUSTRIAL COMMISSION
ABOUT CLASSIFICATION.
THE MAN WHO OUGHT TO KNOW
INCREASES TECHNICAL RATHER
THAN REAL, HE SAYS.

He Throws Light on Work of south
cIudes FOrty-twO Rail and steam
ship Lines and Covers All south
eastern Territory-He StrenuousIy
Denies Charges of Northern job
bers That the Committees Rates
Are Intended 10 Build Up southern
JObbinG Ccnters Mt Expense OF
Northern cities.
Washington May THE Industrial
Commission to-day began its May meet
ing with p. j. McGovern of Atlanta,
chairman of the Southern Classification
Committee, as the first witness Mr.. Nc
Govern stated that there are 42 rail and
steamship dimes in the committee, and that
it covers the territory south of the Poto-
mac and the Ohio rivers, and east of the
Mississippi river. He said that the or
ganization had been effected in 1899. and
he contended that except in the items of
iron and steel, the advances In transpor-
tation rates have been technical rather
than real. He declared that the commit
tee had no purpose of fixing rates on
carload lots, so as to build up the jobbing
trade of the South at the expense Of out
side points.
How Advances Were Made.
Explaining the changes in classification
since the matter had been placed in the
hands Of his committee. Mr.. McGovern
said that previous TO that time there had
be N many incongruities and 1t had been
10
in cases in which there had been advances
they were made largely because of the
prevailing extraordinary conditions. The
general advance in the price of railway
materials and supplies. for instance, had
been an influential factor. In many other
cases the previous rating had been un-
reasonably low. For these reasons there
had been three different revisions of the
classification since 1899 The rates on iron
and steel had been materially increased,
bur Mr.. McGovern 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 increase
in the rates on about LOO articles. Mr..
McGovern said that the assertion had
grown out of the fact that the committee
had abolished the carriers risk column in
the classification sheet, putting all ar
ticles in the limited liability list and MAX
ing an advance of 20 per cent. where the
common law liability bills of lading were
issued. This, he contended, was no ad-
vance. because while the common law
guarantee 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 reductions in the rates in other ar
ticles which were far more radical than
these advances were.
Matter of Carload Lots Rates.
Elaborating his testimony concerning
carload lots rates, Mr.. McGovern took
occasion to contradict the charge that his
company had attempted so to arrange
them as to build up the jobblng centers
OF the South. He admitted that 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 IL there had been
such an exception ii had not been due
to any deliberate effort on the part Of
the classification committee.
"I deny most positively and emphat-
ically," he said, that the classification
committee has made any effort to dis
criminate against New York or Chicago
VI diiy Aoi-pil JCbbihb pOlllf III hilt ihlti-
est 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 ex-
pense of the nearby jobber. We try to
settle each case on its merits"
TO Reclassify Cotton Goods.
Mr.. McGovern said that a change in
the classification of cotton goods IS con-
templated for 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 representa-
tves connive at the practice In many
cases He thought it great abuse and
said the railroad companies should pre-
unrt IL M Inatfnr uuhaI The nnat