The Bon Homme County independent. [volume] (Tabor, S.D.) 1904-1913, 1905-05-04
RATE MAKING AS IT
AFFECTS NORTHWEST
Milwaukee & St. Paul Official
Makes a Statement to the
Senate Committee.
DANGER IN INTERFERENCE
Many Elements, He Declares, Are
Taken Into Consideration in Rate
Making Which Commission
Could Not understand.

Washington. May AIT meeting
today OF the senate committee James
II. Hiiand. third vice president of the
Chicago. Milwaukee and -. Paul
railroad. was called upon. and made
statement rcaEnrding railroad rates
which specifically AFFECT northwestern
traffic.
Mr.. HIland said In part:
Some OF the objections to placing the
rate making power in the hands OF the In
tcrstat" commerce commission are: IL
gives the commission power TO limit the
earning capacity OF the railways by In
vesting u with authority TO make rates
without providing means that Will prevent
nuliincaiion OF the commissions order
by relative reductions or tn. part OF COM
peting railways. thereby maintaining tn.
correlation OF rates originally complained
of. thus compelling reductions In rcvcnu.
without resulting la corresponding benefit
TO the complaInanta
I do not believe that u II possible for
any 70 establish Interstate rates In all
parts OF the United States I'm an equitable
manner without practical experience and
knowledge OF the conditions ~ the local.
ties where relief Is demanded. As a rule
tn. traffic officials consider the CONNER
cial and physical conditions. the density
or traffic and the competition OF one To-
caiity as against another: 30 that th.r.
considerations further emphasis. the
statement that u would curtail and limit
the earning capacity OF the railroads that
have now overcome disabilities as to the
location In both commercial and national
geographic condition. Ir the commission
IL Invested with power to make rates a.
must use mileage basis. A. an illurtra-
ton OF the injustice that may Ice done la
the making OF rates by a commission APP
pointed with such arbitrary power I nigh,
state an Inquiry recently was made of mr
why y was that rate Of - cents per 100
pounds was considered fair and TclFonabic
on lumber from the Pacific coast TO chi
cago, distanc" OF 100 miles, while "A rate
OK y cents per loo pounds was charged on
lumber from Ferguson. South Carolina. "A
distance OF only little over 40 miles
must confess that I was unable to an.
swCr 10 the Satisfaction OF the Inquirer
or myself why there should b. such dis.
parity between the rates. because I did
not have any knowledge OF ;h- conditions
In regard tn the conditions that sur
rounded ihe making OF the rate from the
II may be- ard have no doubt Il /. q
fact that there " "A market Tor the lum-
her manufactured st Ferguson q; nearby
points which Yields relatively a greater
rate which could be paid on Oh" long haul
TO Chicago.
Therefore. n they were Obliged to Tx
the rates from th" Pacific cuart or For
guson To Chicago by comparison with the
scrNic" performed. the railways ncrcsSar-
ily would be compelled To- sacrifice par
i.cIpaticn in the transportation of lum-
Der from either ono point or the other.
and this In my judgement is on" OF the
most convincing arguments that ~" rate
making power without fun knowiedg"
or all tn" conditions IL tho most drstruc-
tive measure that can be drvlfed for elm
mating connection
Another Illustration OF this arbitrary
nnd destructive form OF rate-making u
th" cas-" brought by the chamber oI CON-
mcrcc ~ the city OF Milwaukee against
the various railroads tn ihc northwest.
complaining OF unjust rate charges Oh
wheat and other gran from points OF
shipments in Iowa. Minnesota and South
Dakota TO Milwaukee. ay compared with
rates on lik" grain To Minneapolis. This
cos. WAS really the result 81 an adjust.
mcnt In rates between the Minnca polls
and tho Duluth markets which previous
~ had been made IN lire with the recon.
mendaG9n Of the intcrs,at" commerce
commission by comprOm.s" agreement.
which. as I call n. was acceptable To both
IN" interstate" commerce commission and
III" complainant.
The making OF rates depends entirely
upon conditions that exist Ia the localities
where the freight originates and the dos
iinniion To which the railway company IL
required To carry a.. These conditions vary
according 20 the resources and character
OF commodities shipped to and from varl.
Gus parts Of the United States 30 that the
governing influence in the making OF rates
on particular commodities Ia one part OF
the country would not ncccssarIly govern
In anoIh"r.
The WIN country. particularly. would
Huu"r h"cauS" the greater the distance
"'@A tfA'a fAtFENHNNt's't tNNfH wv Nlhs'
spursrlv settled " the country aud neccE-
sarily the more limited the volume OF tom
mage.
NIn"ty-n.uc per cent. Of ~" complaints
that are made 20 the traffic officials uf the
various railroads are not that the rates
themselves are Unreasonable or unjust
but that discrimination and preference IL
shown, inl that IN what should h" rrgu.
lated and tho Law enforced so gs to pre-
vent the granting In any form. directly or
Indirectly. az preferential rates for COM
munlt!ca ar Individual.