Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-04-20
.MoRAwETz MAKES ADMISSIONS
Denies That Rates Have Been Raised,
But DoIIiver Shows by Commission
srs' Reports That Such Has Been the
case-some Interesting Develop.
ments in Rate Hearing.

ed sharply on the question of wheth-
er there has been decrease or in
crease of railroad rates.
Senator Deliver insisted that there
had been an increase, while the rail-
road man insisted that there has been
q decrease In the course Of his tes-
timony before the committee Of the
senate Mr.. Morawetz said that fig
ures would show the reduction. Sen
ator Dolliver took issue with the state
ment, saying that the report of the
interstate commerce commission show
ed that there had been an increase
in rates. Nevertheless, Mr.. Morawetz
insisted that figures would be procur-
ed and filed with the committee SHOW
ing that the commission was mistaken
in this matter.
Give All the Low Rate.
Replying to question by Senator
Dolliver, Mr.. Morawetz said that the
executive committee and boards of di-
rectors never know anything about the
details of traffic management. They
give directions to the president Of the
road and the president directs the 9TH
er officers.
Where traffic managers violate the
law in granting rebates and discrim
nations to one shipper, do you think
it would be right to compel the road
to give all shippers the low rate?"
asked Senator Dolliver.
"In many cases it would be right and
In others unjust" replied Mr.. Mora
wetz. TT would not be right to make
stockholders suffer because some agent
had committed wrong"
Senator Dolliver questioned Mr..
Morawetz about the agreements be-
tween companies as to rates. The lat
ter replied that they were not agree
ments.' The railroads, he said, talked
things over and reached an under
standing as to what rates would be
from competitive points, He said these
rates were fixed on remunerative
basis.
Senator Dolliver asked why interme-
date points were compelled to pay
higher rates than the competitive
points.
Mr.. Morawetz replied that the rail-
roads were compelled to accept low
rates at comp titive points. He main
tanned that the. intermediate points
were really benefited, by such action.
Fix Their Own Rates.
Senator Clapp questioned Mr.. Mora
wetz relative to the right of congress
to delegate authority to fix rates and
also about court of review. y
Mr.. Morawetz said congress could
delegate to a commission power to fix
a maximum reasonable rate. Congress
ought to prescribe rules by which the
commission should determine what
was 9. reasonable rate. It also was
brought out that court of appeal
could determine what was maximum
reasonable rate.
Replying to questions by Senator
Carmack, Mr.. Morawetz said that in
order to prevent discrimination be-
tween ports congress could fix only a
maximum rate. 1t could not fix min
imum rate, because that would force
discrimination against ports, and
would be in violation Of the constitu-
ton. Mr.. Morawetz said that if rail-
roads were compelled to fix their rates
according to distance, three.fourths of
the Industries of the country would
be destroyed There would be revo-
luton, which would settle this whole
question very speedily.
IF congress or commission
should prescribe rate from Chicago
to New York of Is cents and from
Chicago to Baltimore of IL cents,
would that be a violation of the con-
stitution?" said Senator Carmack
eff the shipments were to Liverpool
yes If to the cities, only, no." was the
reply. He said congress could not in
this case make a minimum rate.
Senator Elkins, referring to the
question Of preferential rates asked If
congress preferred power on the COM
mission to fix rates, could the COM
mission fix rates which would give a
differential in favor Of Baltimore over
New York. Mr.. Morawetz said that
the commission could not render such
a preference compulsory; it could not
prohibit a lower rate; that would be
a preference, and would violate the
constitution.
In answer to Senator Newlands, Mr.
Morawetz said that in several states
there were commissions to AK rates. At
times the Atchison road had suffered
from interference, and was saved from
humiliation by the United States
courts, he said. No commission could
have the wisdom to fix rates for the
entire country, in his opinion.
Standard Oil Rebates.
Mr.. Morawetz detailed the Atohison
railroad company's various coal land
deals, and transfers of these lands to
other companies. He denied that the
Atchison had paid to the Standard OH
Company $1,0oo.OOo in rebates in Kan
eas.
1t was in answer to a question by
Senator Dolliver that Mr.. Morawetz
explained the charges regarding the
granting of rebates by the Atchison
to the Colorado Fuel and Iron Com
pany. He said that the alleged rebate
grew out of confusion of the cost of
transportation, and the cost of coal.
The Atchison filed with the Interstate
commerce commission rate of $4.05
from the mine to the point of intersec-
ton with another road. which wns
controlled by Phelps, Dodge & Co., the
coal consignees. AS matte. OF race. |
he said, the rate was $3.50 per ton.
and the difference, s1.13 per ton. was
paid to the Colorado Fuel and Iron
Company for coal.
The road collected the price of the |
coal and the cost of transportation at
the point of delivery. It was alleged |
that the payment of s1.15 to the Colo
Sado company was a rebate, when, as