Daily Kennebec journal., 1905-04-05
THE ARGUMENTS
In the DiferentiaI Case
Begun Ia Washington.
An important Measure Before
Interstate Commission.
Disastrous Results Have Followed Rate
War in New York,

washington. April 4-Arguments 5
We're begun. today, before the inter-
state commerce comission, in what is
popularity known as The Differential
case, one of the most important mat
tiers the commission ever has had be-
tore it. The case involves the matter of
differential inland freight rates to and
from North Atlantic ports.
1t is more than 30 years since an ad
Justment was reached by which the
rates to New York were made the basis
Of those TO the other ports, Boston be-
ing charged the New York rate. Phila-
delphia being allowed a rate two cents
per 100 pounds lower than New York.
and Baltimore rate three cents low
er. Norfolk and Newport News have
been given the same rates as Balti-
more. These differentials have been thu
subject OF repeatd controversies and de-
mands for their modification or discOn-
tinuance have caused legal contests pc.
tween rival ports and the transporta-
tiOn lines serving them and ut times
have resulted I'm rate wars between
transportation lines. In some form thu
case has been pending almost cOntinu-
ously for years.
Last year, after a period of quietude
the controversy brok, out affrasil
through the determination of a railway
connecting the cities of Buffalo and
Philadelphia to insist on differential
of four mills per bushels on grain de-
livered at the former point by lake YES
sells and transported to Philadelphia
below the rate on grain Of similar Orie IN
transported oy rail to New York. The
controversy resulted IN a rate war
which proved disastrous. Finally, as I
means of settlement. the merchants as
sociation Of New York, propose I'd to sub
init the whole matter Of seaboard diff
ferentials to arbitration and suggested
the Interstate Commerce Commission
as suitable tribunal to determine the
proper relations of rates to and from,
the seaboard cities.
The suggestion was acquiesced in
promptly by the joint committee on
maintenance Of freight differentials
which had been created by the Com
mercial Exchange. the maritime ex-
change. The Board of Trade and trades
league of Philadelphia; the Merchants
Association and the Chalrber of Com
merce. OF Boston, and the Chamber of
Commerce Of Baltimore. 1t also was
agreed to by the presidents or traffic
officials of principal trunk line railways.
The commission consented to act as
arbitrator. entering an order for the in
vestiSatiOn nearly year ago. VOlunl-
inOus testimony has been taken. the
commission sitting in several cities to
near the case.
The case practically has resolved it,
self into contest between New York
and Boston Cn the one side. and Phila-
delphia and Baltimore on the other. the
former cities protesting against tn"
differentials and the latter supporting
them.
MIR. Blackmar. counsel for the Mer-
chants Association, of New York, OPEN
ed the argument for Naw York and was
followed by Mr.. Daish. counsel for the
Baltimore chamber Of commerce. in
support of the diffecentials. The argu-
ments will continue for two days more,
Former Secretary Carlisle closing for
New York.