The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-17
Freight Rate investigation.

An Investigation in the advance in the
freight rates on grain and grain products,
dressed meats and provisions from the Mis-
sissippi river, Chicago. etc, to New York
and Eastern points governed by the New
York rate, was begun yesterday by the In
terstate-commerce Commission at Wash
ington. The testimony showed that 100000
revenue would be added to the profits of
one road alone by the contemplated in
crease. 1t was claimed that the advances
were justified by the increased cost of OPP
Grafton. The chief witness was Traffic
Manager George C. Grammar, Of the Lake
Shore & Michigan Southern.
At the suggestion of counsel and off,
Gals of the roads represented the COM
mission decided to require the railroads
to file written statements by Jan. 10 next,
setting forth the reasons they rely on to
justify the advance in rates. a new hear
ing will be held probably in Washington
at the earliest practicable date: the time
and place yet to be decided. Most or
the railroad officials Immediately left for
their homes. There were present yester-
day traffic and freight managers of the
Michigan Central, the Lake Shore, the
Erie, the Pennsylvania, the Baltimore &
Ohio the New York Central, the Lacka-
wanna. the Lehigh Valley, the Chesapeake
* Ohio and the Southern railways.
BY agreement of the railroad representa-
tives, Mr.. Grammar, traffic manager of the
Lake Shore, included in his testimony not
only a detailed statement regarding his
own road, but a statement of the general
situation. He contended that the roads
had been confronted for a long time with
the fact that they were relatively spending
more money than they earned and that this
was because they were either spending
too much on the properties or their earn
ings were too small
Commissioner Prouty asked IL the earn
ings of the Lake Shore road were not suffi-
cient on the basis of the last ten months
to pay the interest on its bonds, 10 per cent
dividends on its preferred and per cent
carry $2.5O0,CO0 into the surplus fund.
Mr.. Grammar did not make direct
answer and declined to state what he
thought ought to be carried as surplus
but claimed that under present conditions
the road could not do anything more thar
TO take care of itself. Both he and Mr.
Mitchell testified that their roads were
strictly observing the published tariffs, but
had not been doing so prior to May last
and acknowledged that the departure from
the tariffs in the past had caused large
losses.
When asked regarding the cost of haul.
Ing train of fifty cars loaded with grain
from Chicago to Buffalo MIR. Grammar ties
titled in effect that while the railroad would
get from such train a revenue of $500
the cost of operating the train. wages
fuel oil, waste, ETC., would amount tC
only $500. He said that some protest haC
been made because of the advances be
ing operative in the Milwaukee and no
in the Minnea polls territory, but said tina
no change could be made In the differentia
of ~ cents between Chicago and Mime
apolis and that the roads entering Mime
/ apoliS had only themselves to blame. Mr.
] Grammar testified that all railroad sup
i plies had increased materially in pric,
since 1900, but admitted that generally
( speaking the railroads were never NOR,
| prosperous. He cited the extraordinar,
| crops of cotton, corn, oats, etc, as a rea
| son for advancing freight rates.