The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1905-04-27
GOVERNMENT COULD
NOT MAKE RATES
Walker D. Hines Explains Rail
road Differe1tials
WOULD BE TOO BIG A TASK
Government Would Have to Assume
Responsibility for Welfare of Com
munities Which Had unfavor-
able Natural Location.
WOULD BE TOO BIG A TASK

Washington. April 2e-chairman Elkins
of the interstate commerce committee an
nounced today when the committee as
sembled that he had requested the stare
department to procure the railroad laws
of Great Britain, Germany and France
and the portions of these laws bearing on
the questions before the committee will
be printed as part of the hearings. Walker
d. Hines, formerly of the Louisville and
Nashville railroad, continued his state
ment before the committee. He said COM
petition was the cause of less rates for
long hauls than for short hauls.
Senator Dolliver called attention to the
announcement that a certain association
had met and determined to lower rates
in territory reached by a group of rail-
roads in the south Mr.. Hines replied that
these associations were bureaus of infor-
nation in which reports of railroads met
and interchanged views. Where there
was to be a change of rates on all roads
witness said the roads ought to make the
change at once. He expressed the opin-
ion that pooling would be of little advan-
tage to a railroad.
Explains Differentials.
Mr.. Hines explained 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 there
for. New Orleans secured low rate and
New York wanted an equal rate. Differ
entails were the adjustments of competi-
ton between rival lines. There could be
no governmental interference in these
differentials. A government tribunal could
not figure out what proportion of grain
traffic should go to New Orleans and
how much should go to New York.
Senator Dolliver asked If it was not an
endorsement of the interstate commerce
commission that there had been unani-
mously submitted to the commission the
mater of arbitration, of differentials be-
tween Baltimore, Philadelphia and New
York. Mr.. Hines replied that these COM
munities were willing that the commits
sion should be the arbitrators, and the
railroads also were satisfied But New
Orleans, with its enterprise and energy
and its railroads, might not be satisfied.
If the commission had power to fix rates
1t should be compelled to fix specific
or minimum rate, or the differential would
rate was fixed then competition would be
destroyed
The commission would not move quick
enough to fix freight rates to meet chang
ing conditions. If the government should
assume the power to fix rates, 1t would
also have4to assume the responsibility for
the welfare of communities 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 prob
ably would be within the power of Con-
gress, he added, under its authority to
regulate commerce to acquire the rail-
roads of the country. Then. of course,
Congress would have to fix rates in order
to carry on business, but 1t did not follow
that without ownership Congress should
fix rates.
Would Not Have Time.
Mr. Hines asserted that a government
tribunal could not fix rates because 1t
would not have time In the section east
of the Mississippi and south of the Ohio
and Potomac rivers, comprising IL per
cent of the mileage and IL per cent of the
railroads of the United States. there were
engaged in freight traffic and rates five
vice presidents, twelve traffic managers
and assistants, forty-four freight agents.
Ave foreign freight agents and Is to 30
chief rate clerks all engaged In making
rates There We're in addition from 400 to
500 travelling freight agents. who were
constantly in touch with their superiors.
All these men were working all the time
in the adjustment of rates. Answering
Senator Ellxins. witness said a government
commission would have to employ about
the same number Of agents to obtain ac-
curate knowledge of the conditions gov
erning rates in that territory. In four
years the traffic men in the region mem
toned had made 1900 changes of rates,
of which 5000 were increases,
Mr. Hines inclined that 1t would be un-
fair IL not unconstitutional to confer rate
making on a body which is the inquisitor
the attorney for the shippers and the pros
ecutor of the railroads..
Discussing the Esch-Townsend bill, Mr.
Hines said that he was acquainted with
all the legislation of states where I'M
friendly legislatures had enacted the most
drastic laws, but none of them had been
so drastic as the bill passed by the House
in the last Congress.
Before MIR. Hines completed his state
ment. the committee adjourned until to-
morrow at II o'clock.