New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-22
PRIVATE CAR RATES.
r4rmour and Southern RatITcay Co1tf'-
sci Declare Them Far.

washington Oct 21-IAncoln Green, OF the
Southern Railway. resumed the stand to-day al
the private car line hearing before the inter-
state Commerce Commission He TESTIFIED that
his contract with the Armour car lines Tor re-
frigeration prescribes that the charges must be
reasonable and no higher than charges for ike
service on other lines.
IN my opinion he said, 1.-The present rates
are lower than could be made by the carriers
themselves We have had no complaints from
shippers
II was brought out that the Armour car lines
are able to handle the business economically
for the reason that they have it all and are able
TO prepare for It Commissioner Clements asked
Mr.. Green If he did not think the shipper should
receive some OF the benefits from this economl-
cal service. Attorney Northrup. for the South
Railway, objected to the witness answering
on the ground that the question was not one OF
railroad operation" but purely legal. While
discussing this from legal point of view At
torney Reichnan said the selfishness of the
Armour car line would induce it to maintain
q reasonable rate Mr.. Northrup added that
the Southern Railway insists also upon reason
sble rates Commissioner Prouty interrupted TO
say: Then It is the selfishness of the Armour
line and the grace Of the Southern Railway on
which the shipper depends?'
Attorney Reichrnan, In an extended argument
fe the commission said it is TO be presumed
that a concern like the Armour lines is
doing business for the purpose of making a
profit and has horse sense enough to make
rates that would foster this business. He said
that the private car lines and the railroads are
distinct corporations and are not associated
together for the spoliauon Of the shipper. Re-
viewing the manner of making exclusive con-
tracts" Mr.. Reichman said the railroad first
oonsults It's own experience as 10 what COM
sprises efficient service, then obtains rates for
such service from competing car lines; consults
with the shipper as to the choice Of car lines
Snd finally, when the contract is made, in
ststs that the charges shall be as low as was
developed by its inquiry of competing lines.
Now" said Mr.. Reichman, Il want to say
that we come before this tribunal as q private
enterprise. We deny that have made
reasonable charges. but outside OF all that we
again say that we are private business insti-
tuition. We went into that country s pioneers.
Invested our money and, as it paid profit, put
It back to develop the business We took all
the risks and hazards, and, now that the enter
prise IS more or less successful we are en-
Titled to be treated fairly"
Commissioner PTouty called attention to the
reduction IN refrigerator charges in Michigan
Following the Michigan fruit case. in which the
Michigan Central established & system lower
1nS the charges to from $50 to $25 a car and
rhe Armour charges to $40 car.
"Eow long do you think ii would have taken
70 bring about the decrease in rates If our in
Quiry had not been had?' asked the commits
sioner.
Mr. Reichman replied that It is not fair to
take the Michigan Central rate into considers
zion, &c admitted on the stand that it's
system is still in an experimental stage. AS 70
the Armour charges, he said. the tariff had
been in existence only one year and at the time
the inquiry was begun the commission knew a
new schedule had been prepared.
On redirect examination Mr.. Green said that
the freight rate ice. If used for the refrigera-
xsoa Of fruits, was reduced In 1904 from 81 % to
so cents a ton. and he admitted to Attorney
Barry for the commission. that under the
elusive contract the Armour car line was the
only concern that could get the benefit Of this
rate.
The hearing In the case Of the National Whole
sale Liquor Dealers Association against the
Atchison Topeka and Santa Fe Railway and
others was to-day postponed by the Interstate
Commerce Commission until January 10.