The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-27
The RAILROAD RATE PROBLEM
MR.. HINES ATTACKS THE cow
MISSIONS STATISTICS.

he Fayors Present Law ~ TO Long and
short Hauls and says the Dlnerentials
should Net he Abolished impossible
for q Commission 20 FIX Rates.
WASHINGTON, April 56.-walker O. Hines,
formerly yioo-p president Of the Louisville and
Nashville road, to-day continued before the
senate Interstate Commerce Committee his
remarks on the proposed regulation Of ral-
road rates. Taking up the statistics OF the
Interstate Commerce Commission show
ing an apparent increase in average freight
rates throughout the country, MI Hines
offered table giving the figures for 1904,
setting forth the number Of changes In rate
classification during the year. Out OF a
total Of 40 changes, 1903 were reductions
and only II were advances in classification
and therefore in rates.
He also attacked the commissions sta
tstios on the average rate per ton per mile,
which he said was affected TO some eK-
tent by the consolidation Of railroads
which was continually going on. Such
consolidations by exchanging in the totals
two low rates for q higher one covering
the same rates and haul, made an appar-
ent Increase in the general average, whereas
did not raise the actual rate one cent
Replying TO questioms by members OF
the committee, Mr.. Hines said the present
law as TO long and short hauls should stand,
the courts having the power TO correct
any unjust rates made on the ground OF
pretended competition. The only sug-
gested change was in providing some means
for passing more quickly on complaints
Of unfair rates. There could be no iron
clad rule as to long and short hauls, "a CON
ditions differed so greatly, and no one com
mission could acquire sufficient informa-
ton regarding the hundreds OF thousands
of local conditions to enable il TO act with
any fairness whatsoever If the fixing on
those rates were turned over TO II,
Another objection was the Introduction
Of politics into the rate question by SUCH
method II. the commission IN adjusting
the rates should put at disadvantage any
given section which by the present system
enioyed rates that enabled il to compete
with the Others was IL to he supposed thlt
the business interests OF that section wo uld
submit TO their complete annihilation
without bringing every possible form OF
Government commission to restore the
Taxing up the question Of diherentials,
MIR. Hines said the present law was ample
to prevent unjust discrimination: The
courts could correct any rates which were
unfair DiherenHals, he declared, were
not fixed by any man or set Of men. They
were simply the outcome OF intense COM
mercial and railroad competition, a sur
vival Of the fttest After years OF strife
{ he present differentials were the reco gni.
lion by the various railroad and commercial
concerned that they were the best
rates that could be charged.
II under the proposed Government com
mission the differentials should be abolished,
il seemed to him there was only one sub
! tit,ite--a mileage basis. That would simply
destroy composition between ports, as the
trafio would be centralized at the port
with the shortest mileage, and the other
ports would ANGUISH. That would prove
calamitous. On the other hand, II the
had the power 70 fix rates on
any other than a mileage basis IL would be
Svamped.
Another objection to the abolition Of
diheFentiala and the imposition Of rates
on a mileage basis mentioned by Mr., Hines
was the tendency II would have 10 restrict
the markets Of the producers and Of the
consumer as well. The result would be,
he said, an increase Of monopolies within
the different rate zones.
As showing how impossible 1t would
mission to fx rates, Mr. Hines said the
Louisvills and Nashville system alone
had sixty-siX trafic officials TO take care
VI the rates on its lines, and twenty-five
or thirty clerks In addition Taking as an
illustration one Of the Southern classified
ton associations, which he said comprised
only q small fraction Of the territory of the
country, he pointed out that il had 100
men who did nothing else but adjust CLASH
icati0ns. Within the past five yesrs they
had made ~, 45i changes in classi6oations,
OF which o,29O had been reduced.
Imagine, he said, putting upon one com
mission the work Of fixing rates and CLASH
hcations for the entire country, especially
when the commission could not delegate
It's authority. II must also be remembered
that every change, no matter how small,
was vital to some Industry and quick action
was imperative.