The Savannah morning news., 1902-01-25
HILL ON COMBINES
AN AUTHORITY ON THE SUBJECT
TESTIFIES.
MEANS LOWER RATES HE SAYS
COMPETITION DOES NOT HELP THE
PATRONS.

beau Oh tne Oreut Northern system
paIlSs to Interstate Commerce
Commission for Three and "a GUAR
ter HOurs-Ench Successive Acaui-
sition Necessity-COmbinat
Appears Almost PhiIanthropic,
According 10 MIR. HiIrs View of
the Matter.
Macon knights Are Coming.
Chicago, Jan. 24-James j. Hill, pres
ident of the Northern Securities Com
pany and president of the Great North
ern Railway, testified for three and
one-quarter hours before the Interstate
Commerce Commission here to-day. In
answer to questions tending to show
the effect of the community of inter
ests plan on rates the veteran rail-
roader said that competition does not
lower rates, but, on the contrary, he be-
lieved that it advanced them. He de-
clared that in the Northwest, where for
twenty years the Northern Pacific and
the Great Northern have been at peace,
where one road has agreed with the
other on rates and maintained the
agreements, rates were lower than in
any other part of the country.
In regard to the purchase of the Bur-
| lington by the Northern Pacific and
the Great Northern, Mr.. Hill said that
the purchase was a matter of neces-
sitY and was not due to "a movement
| in line with the trust idea" He tes-
| titled to the formation of the Northern
| Securities Company, and in doing so
/ Co... -t. l. h.,
has generally been conjectured.
There are Some old men, some very
old men. interested in the management
of the Great Northern" said he. 1.-TWO
| of them are over eighty and several
| over seventy years They wanted to
| form a close corporation into which
! they could confied their interests with
the assurance that the road would be
managed along the lines which have
made ii a success. 1t was to have
taken over one-third of the stock of
the road. The plan seemed a good
one. and then ii was proposed to let
| all the stockholders in, not alone the
few owners of the one-third but all
of them. The plan met with approval
| and then it broadened into the idea
of taking in the Northern Pacific also.
The roads had worked in harmony for
| twenty years, and the change in the
no difference. 1t can make no diff
ference, and will make no difference.
Had 30 Huy Harrington.
In explaining his reason for the pur-
chase of the Burlington, Mr. Hill went
| back to the time when he found it nee
| esSary to offer a low rate to the tim
| bermen of Oregon and Washington. in
order to get loads for cars which had
originally gone West loaded with fner-
chandise. He said:
I'm order to put ourselves in q safe
| position, we had to buy the Burlington
road; it gave us the market for our
Western stuff that we had to bring
back, and it afforded us a connection
| in the East with all the producers, and
| ii complemented the conditions that
were necessary"
Mr.. Day attempted to show by a
long line of questions that the real rea-
son for taking over tn = Burlington was
to form sort of trust whereby North
western rates would be absolutely in
the hands of Mr.. Hill aud his friends.
TO this Mr.. Hill reiterated his previous
statement concerning the purchase of
the Burlington.
Mr.. Day rhen asked the witness IL,
after the agreement to organize the
Northern Securities Company had been
reached, he had exercised any control
over or given any instructions TO the
managing officers of the Northern Ia
cific regarding its operation.
Mr.. Hill replied taat he had issued
no instructions OF any kind TO the Off
Gals of the Northern Pacific.
The witness then entered into
lengthy dissertation on the effects of
competition as he had observed it, Com
missioner Clements repeatedly uues-
toned his assertion that competition
them, but each time tine veteran wave q
his eyeglasses cmphatically and reiter-
ated his statement.
The Railroad "A Thermometer.
"The railroad is sort of mercurlal
indication of the state OF the country
tributary to It," he saIi II the ooUr-
try is poor, TIE railroad will be poor.
A low rate is not the result of compe-
tition; 1t rely shows how low a rae
the railroad can afford to give
MIR. HIS Argument.
do you suppose that a man in obso-
lutte control of a railroad, having no
competition, could raise rates to an UNI
Just degree and prosper? The minute
he did that you would hear of a road
passing it's dividend. 1t Is a principle
that road must give the lowest rate
IL can. Il always do"
Mr.. Hill averred in answer to further
Interrogation i'm regard 10 the effects
of competition that commercial war be-
tween roads really resulted in higher
tariffs.
"Ihey cut each other TO the heart"
said he, land then patch up an agree
ment. whereby everything is higher
than ever. The rebate system is a part
of competitive warfare. and you know
the rates the general shipper gets
thereby. lie pays the freight which
the large shipper had lodged. Roads
are boure TO hustle for business. and
they viii do much TO secure the patron
age % Il large shipper"
Mr.. Hill was then asked II airy agree
ment had been made express or other
wise. .egI Getting the division Of traffic
or earnings, which involves the North
ern Pacific, the Great Northern or the
Burlington.
He replied
mo understanding, directly or ndi-
rectly."
cor with the Union Pacific system"
he was asked.
None whatever" he replied.
Darius Miller. TRAFFIC manager Of the
Burlington, and J. G. Stmbbs. traffic
manager Of the Southern Pacific and
Union Pacific, testified as 10 rates on
their lines.