The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1902-01-28

were proposing to buy the st. Paul?"
mo; an offer was made about sell
ing the st. Paul and I told them it
could not be done for two reasons;
one, simply because it vas against
the law, and the other, st. Paul gave
us nothing that we practically had
not before we would buy it."
Eyes; before a fixed price was laid
on st. Paul stock we're you or your
colleagues not ~endeavoring to secure
the st. Paul?'
mo, sir; the first thing heard of
it. an officer connected with the st.
Paul asked us to take it and I told
him no."
Mr.. Day then asked witness if af-
ter the agreement to organize the
Northern Securities company had
been reported, he had exercised any
control over, or given any instruc-
tons to the managing officers of the
Northern Pacific regarding its opera
ton.
Mr.. Hill replied that he had issued
no Instructions of any kind to Of
ficials of the Northern Pacific. He also
declared that he had issued no in
structions to officials Of the Burling-
ton, but when they had come to him
"for advice they had received it. .Oc-
%casionally he had volunteered advice
and Thought" they would listen to
it. --
Witness then entered into a lengthy
discussion on the effects of competi-
ton as he had observed it. Commits
sioner Clements repeatedly questioned
his assertion that competition does
not lower rates or tend to lower them
but each time the veteran waved his
eye glasses emphatically and reiter-
ated his statement.
"a railroad is a sort of mecurial
indication of the state of the country
tributary to it," he declared. eff the
country is poor the railroad will be
poor. A low rate is not the result Of
competition, it merely shows how low
: a rate a railroad can afford to give.
Do you suppose that a man in abso-
lutte control Of a railroad, having no
> competition, could raise rates to an
: unjust degree and prosper? The min
| ute he did so he would hamper the
commerce on which his road lived and
when he did that o would hear Of
the road passing it's dividend.
r "It is a principle that a road must
give the lowest rate it can. l al
S ways do. We have just granted a re.
S duction in the northwest, a consider
e able reduction, yet there was no com.
d petition to force it. Why did we dc
t. it? Because it is for the good of the
people in our territory and therfore
beneficial to us also. The public is
n entitled to a reasonable rate; that i
d. law, and common law, although I an
Re no lawyer, and railroads from self-in
d terest must grant it,"
ID "But suppose a rate is not reason
T. able from the shippers point O
1t view" asked Commissioner Clements
e 'Then he can go into court and sc
cure a reasonable rate"
n At this point Commissioner Prout.
interrupted with a little story of tn
r, woes of the commission.
It. "Out in Iowa." he said, "it was com
Id planned that the grain rate was to-
i'll high. We went out there and inves
le tigated and discovered that the CON
in plant was just and ordered a redut
Mt ton, a reduction to a reasonable rate
as you say. What happened? TIL
in roads paid no attention to it. and tn
n. courts decided that our ruling coul
not be enforced"
he WELL Hill answered, laughing, 8
ill was talking of what ought to be an
nd of what I am willing and anxious t
on bring about. If these rates cannt
IN, be enforced. the law should be fixe
CHI so that it can be DONE"
til Hill averred, in answer to turtle
Interrogation in regard to the effect
lfe of competition, that a commercial WE
on between roads really resulted in hig
ST. err tariffs. 'They cut each other
ok the heart" said he. "and then pate
he up an agreement whereby e%verythi1
et- is higher than ever. The rebate sy
TEN is a part of the competitive wa
mt fare and you know the rates a gener
in shipper gets thereby. He pays tt
e." freight which a large shipper h;
doged. Roads are bound to hustle Fl
ere business, and they will do much
ne, secure the patronage of large shi
ow pers."
lid Hill was then asked if any agre
ment had been made expressly
ion otherwise, respecting the division
tro Hi o. or Of oorninuc which inunlu