The Montgomery advertiser., 1905-04-05
DETRIMENTAL CASE
IMPORTANT SUBJECT BEFORE COMMERCE COMMISSION.
Arguments Are Begun in Matter In- vOlving Inland Freight Rates to and From North Att
 lantic Ports.

Washington, April 4-Arugments were today begun before the inter- state commerce commission in which Is known as the "differential case,'
 one fthe most important matters
 the commission ever has had before it. The case involve the matter of dinerential inland freight rates to and from North Atlantic ports. It Is moro
 than thirty years since an adjustment
 was reached by which the rates in New
 York were made the basis of those to the other ports. Boston being charged the New York rate. Philadel- phia being allowed a rate of two cents
 per hundred pounds lower than New York and Baltimore a rate three cents lower. Norfolk and Newport News
 have been given the same rates as Baltimore. These differentials have been the subject of repeated contro- versies and demands for their modifi- cation or discontinuance have caused legal contests between ports and the railroads serving them, and at times
 have resulted in rate wars between transportation lines. In some form the case has been pending almost con-
 tinuously for years.
 Last year. after a period of quietude, the controversy broke out afresh through the determination of a rail- road connecting the cities of Buffalo and Philadelphia to insist on a diff ferential or four mills per bushel on grain delivered at the former point by lake vessels, and transported to Philadelphia below the rate on grain on similar sorigin transported by rail to New York. The controversy result ed in a rate war which proved disas- trous. Finally as a means of settle |, H.
 York proposed to submit the whole matter of seaboard differentials to ar bitration and suggested the interstate commerce commission as suitable tribunal to determine the proper re- lations of rates to and from the sea board cities.
 The suggestion was $s1uiesced in promptly by the joint committee of maintenance of freight differentials which had been created by the com- mercial exchange, the maritime ex- change. the board of trade and the trades league of Philadelphia; the Mer- chants Association and the Chamber of Commerce of oBston and the Chamber of Commerce of Baltimore. It also was agreed to by the presidents or traffic officials of the principal trunk line rail- roads. The commission consented to act as arbitrator, entering an order for the investigation nearly a year ago. Voluminous testimony has been taken, the commission sitting In several cities to hear the case. Several Western cit ies have introduced testimony on behak of their~interest in the determination of the question.
 Attorneys have filed exhaustive briefs with the commission and today they began their oral arguments. The case practically has resolved itself into a contest between New York and Boston on the one side and Philadelphia and Baltimore on the other, the former cit les protesting against the differentials and the latter supporting them. A score of the most prominent attorneys and two or three times that number of rail- way officials. commercial men and other interested parties were present at to- days hearing.
 MT. A. E. Blackmar, counsel for the Merchants Association of New York, opened the argument for New York and was followed by MT. John B. Daish. counsel for the Baltimore Chamber of Commerce, in support of the differen- tials. The arguments will continue for two days yet. former Secretary of the treasury John G. Carlisle closing for New York.