The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-27
SHOWS FALLACY IN
RATE.MAKINC POWER
Hines Gives Telling Information
Before Interstate Conn
merCe Committee

WASHINGTON, April 26.-Chairman
Elkins of the interstate commerce COM
mittee announced today when the COM
mittee assembled that he had requested
the state department to procure the rail-
road laws of Great Britain. Germany and
France. He also requested that the por-
tions of these laws bearing on the ques-
lions before the committee will be printed
as part of the hearings.
Walker ID. Hines. formerly of the Louis
Vile & Nashville railroad, continued his
statement before the committee. He in
sisted that competition was the cause
of less rates for long hauls than for short
hauls
Senator Dolliver called attention to the
announcement that certain association
had met and determined to lower rates in
territory reached by a group of railroads
in the south. MIR. Hines replied that these
associations were bureaus of information
in which representatives of railroads met
and interchanged views. Where there
was to be change of rates all roads, the
witness said, ought TO make the change at
once. He expressed the opinion that pool
ing would be of little advantage to rail-
roads.
Mr. Hines. explaining differentials, said
the competition between the gulf ports
and southern railroads and Atlantic ports
and eastern railroads for the grain traffic
OF the northwest was responsible therefor.
New Orleans secured a low rate and New
York wanted an equal rate. Differentials
were the adjustments of competition bet
Ween rival lines. There could be no gov
ernmental interference in these differen-
tials. government tribunal could not
ngure out what proportion OF grain traf-
fic should go to New Orleans and how
much should go to New York.
Senator Dolliver asked if it was not an
Endorsement of the committee that there
had been unanimously submitted to the
committee the matter of arbitration of
dinerentials between Baltimore, Philadel-
phia and New York Mr.. Hines replied
the commission should be the arbitrator
and the railroads also We're satisfied. But
New Orleans, with its enterprise and en-
ergy. and its railroads might not be sat
iShed. If the commission had power to
fix rates it would be compelled to fix a
specific or minimum rate or the differential
would be destroyed. II minimum spe-
cific rate was fixed then competition
would be destroyed. The commission
could not move quick enough to fix rates
TO meet changing conditions If the gov
eminent should assume the power to fix
rates it also would have to assume the re-
sponsibility for the welfare of the comniu-
mites which had an unfavorable natural
location. just as the railroads do now.
Under the constitution the commission,
Mr.. Hines contended. could not give a
preferential rate. 1t probably would be
under its authority to regulate commerce.
to acquire the railroads of the country.
men, OF course. congress would nave TO
fix rates i'm order TO carry on business.
but IL did not follow that without owner
ship congress should fix rates.
Mr.. Hines asserted that a government
tribunal could not fix rates because il
would not have time. In the section east
OF the Mississippi and south of the Ohio
and Potomac rivers, comprising II per
cent of the mileage and y per cent of the
earnings of the railroads of the United
States. there were engaged in freight
traffic and rates 5 vice. presidents. II
traffic managers and assistants, "A gem
eral freight agents, 5 foreign freight
agents and % to 80 chief rate clerks.
There We're in addition from 400 to 500
travelling freight agents who were con-
stantly in touch with their superiors. All
these men were working all the time in
the adjustment OF rates. Answering Sen
ator Elkins, witness said a government