The St. Louis Republic., 1902-01-25
SAYS COMPETITION
ADVANCES RATES.
j. j. Hill Tells Interstate Commits
sion Plan for Forming North
ern Securities Company.
STATUS OF THE BURLINGTON.
Veteran Railroader Says Public
Is Entitled to Reasonable Rates
and That They Should Be
Enforced by Law.
STATUS OF THE BURLINGTON.

Chicago. Jan. et-James ]. Hill. president
! of the Northern Securities Company and
| the Great Northern Railway. testified for
! three and one-quarter hours before the In
| terstate Commerce Commission here to-day
| In answer to questions tending to show
| the effect of the community of interests
plan on rates. the veteran railroader de-
clared that competition does not lower
| rates. but, on the contrary. he believed
| that 1t advanced them. He declared that
/ in the Northwest, where for twenty yeas
| tho Northern Pacific and the Great North
ern have been at peace. where one road
has agreed with the other on rates. ana
maintained the agreements. rates Were low
/ er than in any other part of the country.
In regard to the purchase of the Burlins
| ton by the Northern Pacific and the Great
Northern. Mr.. Hill declared that the pur-
chase was a matter of necessity, and not
due to "a movement in line with the trust
| idea He testified to the formation Of
the Northern Securities Company. and. in
doing SO. gave a reason far moe simple
than has generally been conjectured.
There are some old me.i me. eSted In
the management Of the Great Northern"
said he. Two of them are over SO and sew
eral over 20 years. They wanted to form a
close corDoration. into which they could
conilde their interests with the assurance
that the road would be managed along the
lines which have made it success. 1t was
to have taken over oDe-third of the stock
of the road The plan seemed TO be a good
one, and then it was proposed 10 let all the
Stockholders in. The plan met with approx.
al, and then il broadened into the idea OF
ticking in the Northern Pacific also. The
roads had worked in harmony for twenty
years, and the change In the holder of the
securities would make no difference. 1t can
make no difference. and will make no differ
ence.'
Mr. Hill talked vigorously and earnestly.
Chairman Knapp said that Mr.. Hill would
be again called to the stand tomorrow
morning.
Chicago in the morning. Mr.. Hill was ac-
compan!ed by Mc. Grover, his attorney.
Darius Miller, first vice presis eat and
and Quincy. and former traffic manager of
the Great Northern. was tine first witness.
In answe: 10 Questions by Mr.. Dag; at
torney for the commission. Jr. Miller
stated that the burlington was absolutely
indeperdent IN its operations and in the
Have you received Instructions from
either iIr. Hill or Mr. Harrison in regard
to making rates ,'..s Mr.. Day asked is ,,nass
j. g stubbs, traffic manager OF the South
ern. Pac.hc and Union Pacific, followed Mr.
was chairman OF the B)ari OF Directors of
both roads, but thas he was appealed 10
only in extraerjinary casts He said that
rates generally had bean fairly well man
tained, but that there had been denoral Ia.
ton In Colorado and Utah. He declared
that the Southern Pacific and Atchison. To-
President Hill TestfHes.
j. ]. H!Il took the stand at O'Clock. Mr..
Hin was questioned in regard to the rela- ia.
the Burlington, the Northern Pacific and
the Great NSrthern to each other He said
0wnp1 M ctnpE n ho Cbfca0o PII-lfnpt0n
and Quincy Railway Company the new
company. but owned about half the stock
road Compsny 0hc old corporation). He
explained that the new company was really
a union of the three lines which formed the
old company. and operated the latter by
virtue of a lease.
In explaining his reasons for the purchase
of the Burlington, Mr.. Hill went back to
fer J. low rate to the timbermen of Oregon
and Washington in order 10 get loads for
cars which had originally, gone West laden
with merchandise. He said:
I'm order to put ourselves in a safe posi-.
tion We had to buy the Burlington road: i
gave us the market for our Western stuff
that We had to bring back and 1t afforded
us connection in the East with all the
producers, and 1t complimented the condi-
tons that were necessary"
He also dwelt on the paramount fmpor-
tance Of the coal problem in connection with
the operation of railroads We were." he
said. ''far from coal and far from market
possible coal famine = such a famine as
would be existing now were 1t not Tor the
uSusualy mild weather.
Mr. Day attempted to show by long
line Of questions that the real reason for
taking over the Burlington was to form
Hill and his friends. To this Mr.. Hili reit-
Grated his previous st statement concerning
|, Mr.. Day: "1t is true that before YOU pur-
chased the Burlington. you were proposing
to buy the St Paul?" :.
mo. sir, an offer wes made about SELL
ing the st. Paul. and simply told them 1t
could not be done. for two reasons: First.
other that the St. Paul gave us nothing
that. we practically had not before we
" "Fix the Law.."-HiH.
The witness then entered into lengthy
dissertation on the effects of competition.
Commissioner Clements repeatedly qnes-
toned his assertion that competition does
not lower rates or tend to lower them. but
each time the veteran waved his eyeglasses
cmphatically and reiterated his statement.
.Thc railroad Is sort OF mercurial in
to- - it," he declared "If the country is
is not the result of competition. 1t merely
shows how low q rate tho railroad can
afford to give Do you suppose that man
in absolute control of a railroad. having no
competition could raise rates TO an unjust
degree end prosper? The minute he did
he would hamper the commerce en- which
would hear of n road passing its dividend.
II Is n principle that road must Give the
lowest rate 1t can. / always do. We have
Just Granted n reduction in the Northwest,
vet there was no competition to force IT,
We did II because 1t is for the gord Of the
people in our territory. ard therefore
beneficial to US also. The public Is entitled
10 reasonable rste. That is he law and
the railroads. from se.f-interest. m st
grant It,"
But SUPPOSE the rate is not reasonable
from the shinpers' point of view?" asked
Commissioner Clements.
'''rhen. he can go into court and secure a
reasonable rate"
At this point Commissioner Prouty inter-
rupted.
"out IN Iowa." he said. "it was COM
nlained that the grain rates " re too hieh.
We went out there and investigated and
discovered that the complaint was lust. and
ordered reduction. to q reasonable rate
az vou saw. The roads paid no attention
to II. ard the courts decided that our ruling
corls not he enforced"
well" Mr. Hin answered. "I was talk
ing Of what ought to be. ard of what
an willing and anxious to bring about. II
these rates cannot he enforced. the law
Should be fixed 50 that II can he done"