New-York tribune., 1902-12-17
RATE HEARING
Railroad Managers GiOe Reasons tor
MAKING 4dUaaces.

Washington Dec 16-An investigation into the
advance in the freight rates On grain and grain
products dressed meats and provisions from the
Mississippi River, Chicago. etc, to New-fork and
Eastern points, governed by the Newly ork rate,
begun to-day by the Interstate Commerce
Commission
At the suggestion of counsel and officials OF the
roads represented the commission decided TO re-
quire the railroads file written statements by
January 10 next setting forth the reasons they
rely to justify the advance in rates Another
hearing will be held probably in Washington. at
the earliest practicable date. though the time ana
place are vet to be decided. Traffic and freight
managers Of the Michigan Central, Lake Shore
Erie, Pennsylvania, Baltimore and Ohio. New
York Central, Lackawanna, Lehigh Valley, Chesa-
peake and Ohio, and Southern railways were
present.
Ry agreement of the railroad representatives.
George j. Grammer, traffic manager of the Lake
Shore included his testimony not only a de-
tailed 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 that they relatively spend
ing more money than they earned. and that TINS
was because they either spending too nluch
on the properties or their earnings were too small
Commissioner Prouty asked if the earnings or the
Lake Shore road were not sufficient, the basis
of the last months. to pay the interest on us
bonds 10 per cent dividends its preferred and
per cent dividends on its common Stock ana
then carry 81 00o0 into the surplus fund.
Mr.. Grammer did not make direct answer and
declined to say what he thought ought to be car
ried as surplus. but alleged that under present
conditions the road could not do anything more
than take care of itself. Both he and Mr. Mitchell
traffic manager of the Michigan Central, testified
that their roads were strictly observing the pub
lshed tariffs. but had not been doing so oetore
May last and acknowledged that the departure
from the tariffs in the past had caused large
losses. =.
The outgrowth of the difference in the rate OF
increase OF expenditures and earningS MI & Gram, m
mer said, a meeting held IN New Qrk on
November when the executive otG1as a 6 Of Ppaf
Association territories had agreed on the @
roads had agreed to advance the rate on iron ar ar
ticles January 1 By 10 per cent IN snippiiS an
other points. but whether this ADVANCE would e be
sad that out all wona abor IS getting not
than 10 per cent advance oyer the "ses wing in
Chicago nearly 81 ton more for coal than II hdo
to. pay, three months ago ,,o. of coal is onIv
temporary matter. do you think the increase II, IN
yoar yGuf isssh freight rates.? he was asked
'If that were the only question ne answers: YI '
NO but G9a s is not TT the oR shoTe recVed ton
ages on all other classes of freight business
Of fR cars oaded With grain from Chicago to
Buffalo Mr.. Grammer testified in ERECT that & WINE
Of 800, the cost Of operating the tr9nwages .s
fue oil waste had been MADE because Of
the advances being operative in the Milwaukee ana
n09 no9ld n b 6e made in the drerentiai ~ be
tween Chicago and Minneapolis, and that the roads
Mr.. Grammer TESTIFIED that all railroad supplies
had increased materially IN price snce @ ba we're
never more prosperous He cited the exIraoTdlnary
Ss2efnp Sr9pf q fTeisht s9ieIn rates. rGass
Additional tariff schedules fled with the In Inter. ter.
state Commerce Commission By the railroads IN the
of1cLai cassificat ton territory comprising al lines
east Of the Mississippi and north OF tne ~ Otn no r 4r
and steel articles viii be 10 per cent