The Montgomery advertiser., 1905-01-14
ARE OPPOSED
 TO REBATES Spencer Says Roads Are Against Them. CONTINUES HIS ARGUMENT President of the Southern Before Committee. Thinks That a Uniform Classification of Freight Rates Throughout the Country should Not Come
 Suddenly.
CONTINUES HIS ARGUMENT

Washington. I3.-opposition to gov- ernment rate making for the railroads was continued today before the House Committee on Interstate and Foreign Commerce.
 President Samuel Spencer of the Sasonthern Railroad resumed his argu- { Sment of yesterday against the Quarles- Cooper bill. The committee refused by a vote of four to three to go into executive session to consider a mo- tton by Representative Davey of Louisiana to close the hearings on the question January 24.
 MT. Spencer taking up the increase in the receipts of railroads in 1903 of s155,o00.000 over the year 1899, em- phasfzed again that the year 1899 was the lowest rate period in the history of raifroading. He said that if the char acter Of the tonnage had been precisely the same during the years 1899 and 1903 there would not have been the Q $155.060,000 difference in rates.
 There are. however, fluctuations go- ing on in classification all the time, but these re-olassihcations have not re- suited in increasing rates.
 Answering a question as to whether there would be any objection to a uni form classification of freight through out the country. MT. Spencer said there might not be- although 1t would with out doubt throw the rates of certain railroads out of line. If it was done violently ard suddenly, 1t would result in a commercial upheavaI. The put ting of freight into classes to avoid a rate on every commodity, he said had been 8 matter of evolution. Certain groups of roads had worked out their own classifioations and to disturb it would mean a general readajustment of rates.
 Difference in Rates.
 Asked if freight rates were the same both ways on given. road. MF / Spencer said there was often a great difference in rates on the same com nodity each way on the road
 Answering Representative Richard son of Alabama, Mr. Spencer said: , Speaking unofncially for. I might say, f5 per cent. of the railroads of the country, | assert that you cannot make q law forbidding rebates too drastic to suit us."
 No well managed road now gives re- bates, he continued. and any method to absolutely prohibit the practice would be welcomed by the railorads.
 Reverting again to the result of re- classification of freight which Is con- stantly going on, Mir. Spencer said the result was uniformly a reduction and not an increase in rates.
 Asked as to what power the Inter- state Commerce Commission had ere garding rates, MT. Spencer said:
 Tt has power to state what is an unreasonable rate. and we have the right to test that assertion in the courts.
 The conferring of the power to de- clare what Is a reasonable rate, he maintained would be prejudicial to the commercial Interests of the coun- try.
 Confessing that he had not read the pending bill with the idea that it granted authority to the commission to raise rates. in naming "a reasonable rate" Mir. Spencer said that in his mind such authority would be carried in the measure But he doubted if the authority would be ever exercised. Ha indicated that the readjustment would uniformly be a reduction in rates.
 Do Not Expect Help.
 Carriers. he said. did not expect an arm of the government to help them to raise or maintain rates. but they ought to be left free to cooperate with each other in the way of making req snnable agreements" among them selves. These agreements should he made public if necessary. It was in- dispensable that carriers should know what each other were doing on a rate on one particular commodity.
 eff legislation is to take place in any form" he continued, "and we hope 1t will not be in this form, 1t should include something that will insure sta bility of rates and these rates should be high enough to remunerate the car Tier for service performed. In this connection there are three. four or five statements in reports of the Inter- state Commerce Commission that there are many instances in this country where rates are entirely too low"
 '|rhe man does not live" asserted MT. Spencer. "who can draft law that will grant authority to any body of men that can be exercised effective ly to abolish discrimination between localities. It Is impossible to do away with the complaint of discrimination on the part of the localities"
 The present bill. he said. would h. hict an irreparable injury on a rail- road which has fixed rate, after a careful consideration by having that rate set aside and another named by the Commission, and the whole matter tied up in the courts.
 The bill. he said, would be confer ring anomalous powers upon one body. The commission was created to instl- tute proceedings against carriers If was proposed to invest the body with a judicial function-the power to con- dernn a rate as unreasonable. Then the next step contemplated was to give them authority to name a new rate for the future-a function under the law and decisions of the court. 9 legislative function. This would make the Commission. first. a prosecuting body, next, a judicial body, and lastly. a legislative body. MT. Spencer ask ed the Committee If 1t was not worth while to stop and consider most care- fully the effect of the pending bill in view of the unprecedented powers 1t granted. Speaking for the railroads he said:
 Asks Careful Study.
 "All we have the right to ask Is that the subject shall be given a very thorough and careful consideration be- fore action is taken"
 The granting of the power proposed, he maintained. meant that eventually, f, if not speedily. the commission would be forced to make every railroad rate fl fin the country. Concluding. he suE- S Eestad that in his opinion the only leg