The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1905-05-20
GIVES VIEWS
OF RAILROADS
Representative of Southern
Line Addresses Senate
Investigating Committee
MAKES LONG ARGUMENT
Says Great Confusion Would
Follow a Radical Change
in Rate Making System
spc>lal Dispatch to the Call

WASHINGTON, May 19.-As gauge
Of the sentiment of the railroads in the
South in the matter of the regulation OF
railroad rates by the Government, ROBERT
Gates, representing the department OF
industry and immigration of the LOUIS
vile and Nashville Railroad, spoke In
favor Of the existing conditions of rail-
road legislation and said to-day before
the Senate Committee on Interstate COM
merce that in his opinion the railroads
could not survive any radical change
from the present ratemaking system De
cause the railroads depend for existence
upon the Industries as much as the in
dustries upon the railroads. Gates argu-
ment is of particular import in the con-
troversy. in that it brings to focus the
arguments of all of the lines that are
interested in handling railroad business
in the South, Southwest and West.
Gates said that it seemed to be the
policy of some of the State Railroad Com
missions to manipulate Interstate railroad
rates so as to give the wholesale mer-
chants and certain kinds of manufactur-
ers in their respective States monopoly
of the business of the State, thus placing
at a disadvantage the merchants and
manufacturers of another State.
SAYS EVILS WOULD ACCRUE.
Gates pointed to the evils that would
accrue from the confusion of laws and
the natural conflict with the Federal
Government in the event of a commission
at Washington attempting to adjust rates
to apply to sections that are widely diff
ferent. The railroads, said the speaker,
have done much toward building up the
communities for the farmer and have
practically worked hand in glove with
him by advertising his section by widely
distributed literature and an appeal for
business.
Interstate Commerce Commissioner
Judson Clements detailed the difficulties
that confronted the commission in its
work and repudiated the attacks made
on that body. particularly answering
number of criticisms by James ]. Hill.
CLEMENTS IS SARCASTIC.
Clements spoke sarcastically Of the
claim that only traffic men had the
knowledge necessary to make rates. and
declared that in the hearings an effort
had been made to turn the investigation
into criticism of the commission, Glenn
ents saying that it was not intended in
the proposed legislation to confer general
rate-making power on the commission.
In answering question of Senator Dol
liver, Clements declared that the deci-
sion in the maximum rate case, which
held that the power allowed to be exer-
cised would give authority to fix all
rates, went too far. The commission, he
said. would deal with complaints as they
were made. 600 4g RS seea
Clements, in referring to, statements of
Professor Meyer of the Chicago Univer-
sity whom he called a .'doctrinaire, -
suggested that there was an aristocracy
of wealth which could hire men to adj
vocate the theory of vested rights
against the rights of individuals, and
asserted that the patron saint Of the in
stitution to which Professor Meyer be-
longs" had colossal fortune built up by
rebates, enabling him to obtain the prop
erty of competitors. He said that in the
press and colleges were found the advo-
Gates of the superiority Of vested rights.