The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-25
J. J. HILLS THEORY.

CONCLUDED FROM FIRST PAGE)
states Perhaps you can tell me of a road
which reaches IOwan points better than the
Burlington. / know of none"
Mr.. Day attempted TO show by long
line of questions that the real reason for
taking over the Burlington was to form
rates would be absolutely in the hands
of Mr.. Hill and his friends. Then Mr..
Hill reiterated his previous statement con-
corning the purchase of the @.
Mr.. Days it true that before you pur-
chased the Burlington you were propos-
ing to buy the st. Paul?
mo, sir; an offer was made about SELL
ing the St. Paul and ] simply told them
il could not be done for two reasons, simply
because it was against the law and the
other that the St. Paul gave us nothing
that we practically had not before we
would buy il.
Yes, before a fixed price was laid on
the ST. Paul's stock were you or your col
leagues not endeavoring to secure the st.
PauI?'
"No, sir. The first thing l heard of it
an officer connected with the St Paul asked
us TO take it, and I told him no."
Mr.. Day then asked the witness If, after
the agreement to organize the Northern Sc
curities Company had been reached, he had
exercised any control over, or given any
instructions TO the managing officers of
the Northern Pacific regarding its opera
ton.
instructions of any kind 10 the officials
of the Northern Pacific. He also declared
that he had issued no instructions to the
officials of the Burlington but when they
had come to him for advice they had
received it Occasionally he had volun-
teered advice and thought they would
listen to 1t.
EFFECTS OF COMPETITION.
The witness then entered into a lengthy
dissertation on the effects of competition
as he had observed it,
Commissioner Clements repeatedly ques-
toned his assertion that competition does
not lower rates or tend to lower them, but
each time the veteran waved his eye
glasses emphatically and reiterated his
statement THE railroad is a sort of mer-
curial indication of the state of the ccun-
try tributary to it, he declared. IF the
country is poor the railroad Will be poor.
a low rate is not the result OF compet-
ton; it merely shows how low a rate the
railroad man afford to give. Do you
suppose that a man in absolute control of
a railroad having no competition could
raise rates to an unjust degree and pros
per? The minute he did he would hamper
the commerce on which his road lived, and
when he did that you would hear of a road
passing its dividends. 1t Is a principle
that a road must give the lowest rate ii
can. / always do. We have just granted
reduction in the Northwest, considerable
reduction: vet there was no competition to
force it, Why did we do it? Because it is
for the good of the people in our territory,
and therefore beneficial to us also. The
Uublic is entitled TO a reasonable rdte-tnat
is the law and the common law, although
/ am no lawyer-and the railroads, from
self-interest. must grant it
But suppose the rate is not reasonable
from the shippers point or view! asked
Commissioners Clements.
Then he can go into court and secure a
reasonable rate
At this point Commissioner Prouty in
terrupted with a little story OF the work
of the commission.
out in Iowa." he said. cit was COM
planned that the grain rate was too high.
We went out there and investigated and
discovered that the complaint was just,
and ordered a reduction. reduction to
reasonable rate as you say. What hap
pened? The roads paid no attention to it.
and the courts decided that our ruling
could not be enforced
LAW SHOULD BE CHANGED.
We'll" Mr. Hill answered, laughing, Il
was talking of what ought to be and what
1 am willing and anxious TO bring about. If
these rates cannot be enforced the law
should be fixed so that it can be done
Mr.. Hill averred, in answer to further in
terrogation in regard to the effects of COM
petition, that commercial war between
roads really resulted i'm higher tariffs.
They cut each other TO the heart" said
he. and then patch up an agreement
whereby everything is higher than ever.
The rebate system is a part of competitive
warfare, and you know the rates the gen
eral shipper gets thereby. He pays the
freight which the large shipper has lodged.
Roads are bound to hustle for business,
and they will do much 10 secure the pa
tronage of a large shipper"
Mr.. Hill was then asked If any agreement
had been made, express or otherwise, re-
speeding the division of traffic or earnings,
which involves the Northern Pacific, the
Great Northern or the Burlington.
He replied: mo understanding. directly
indirectly
"Or with the Union Pacific system" he
was asked.
None whatever" he replied He also
declared that, 10 the best of his recOllec-
ton. the Great Northern had never had
traffic agreement with any other railroad.
Chairman Knapp then produced a copy Of
the charter of the Northern Securities Com
pany and asked Mr. Hill if he recalled a
provision in the bylaws declaring that the
right of a shareholder TO inspect the books
OF the corporation shall be subject TO the
will OF the directors
WHAT THE PLAN CONCENTRATES.
Mr.. Hill said he was not aware that such
a provision existed in the charter. He gave
an estimate OF the holders OF the Northern
Securities Company I'm the Northern Pacific
and Great Northern companies and was
then asked by Commissioner Clement:
What does your plan contemplate shall be
the stock of the Burlington in whatever
name IL stands. whether In the name of a
railway company or an individual
THAT would depend upon its extensions
and the amount of money IL would need 10