Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-10-21
CAR INQUIRY
Lincoln Green Tells About
the Southern Railway.
HEARS NO COMPLAINTS
REGARDS THE RATES CHARGED
AS REASONABLE.
Attorney Northrup Declares That the
Company is Proud Of Its Record
Case of Michigan Central.

Lincoln Green of the Southern railway
resumed the stand today at the private
car line hearing before the interstate COM
merce commission. He testified that his con-
tract with the Armour car lines for refrig-
GRAFTON prescribes that the charges must be
reasonable, and no higher than charges for
like service for other lines. In my opin-
ion,' he said, 1.-The present rates are lower
than could be made by the carriers them
selves. We have had no complaints from
shippers
1t was brought out that the Armour car
lines are able to handle the business eco
nomically, for the reason they have it all
and able to prepare for it.
Commissioner Clements asked Mr. Green
if he did not think the shipper should re-
ceive some of the benefits from this eco
nomical service. Attorney Northrup. for
the Southern railway, objected to the wit
ness answering, on the ,ground that the
question as not one of railroad opera
tfon, bUs- purely legal.
While discussing this from legal point
of view Attorney Reichman said the selfish
ness of the Armour car line would induce
it to maintain a reasonable rate. Mr..
Northrup added that the Southern railway
insists also upon reasonable rates.
Commissioner Prouty interrupted to say:
Then it is the selfshness of the Armour
line by grace of the Southern railway on
which the shipper depends"
Proud of Its Record.
Protesting that the commissioner had
stated the matter in an ungraeious man.
ner and unfairly, Mr.. Northrup declared
that intelligence and business interests
had built up the refrigeration business; that
it was not a matter grace" He said
the Southern railway is proud of its record
In building up traffic of every territory and
with the satisfaction given its shippers
Attorney Reichman, in extended argu-
ment to the commission, said it is to be
presumed that a concern like the Armour
car lines is doing business for the purpose
of making profit and has horse sense"
enough to make rates that would foster this
business. He said that the private car line
and the railroad distinct corporations
and are not associated together for the
spoliation of the shipper. Reviewing the
manner of making "excluSive contracts"
Mr.. Reichman said the railroad first con-
suits its own experience as to what COM
prises efficient service, then obtains rates
Tor such service from competing car lines,
conSultS the shipper to the choice of car
line, and, finally, when the contract is
made, insists that the charges shall be as
low as was developed by its inquiry of com
peting lines.
Now said Mr.. Reichman II want to
say that We come before this tribunal as
private enterprise. We deny that we have
made unreasonable charges but outside of
al tnat we again say that We are private
business institution. We went into that
country as pioneers, invested our money
and as it paid a profit, put it back to e
velop the business. We took all the risks
and hazards, and now that the enterprise is
more or less successful we are entitled to
be treated fairly
Case of the Michigan Central.
Commissioner Prouty called attention to
the reduction in refrigerator charges in
Michigan, following the Michigan fruit
case, in which the Michigan Central es-
tablished a system lowering the charges
to SO a car and the Armour charges to
$40 car.
How long do you think it would have
taken to have brought about the decrease
in rates If our inquiry had not been had?"
asked the commissioner.
Mr.. Reichman replied that it is not fair
to take the Michigan Central rate into con-
sderattion, for the reason il was admitted
on the stand that its system is still In an
experimental stage AS to the Armour
charges, he said, the tariff had been in ex-
iStence only one year and at the time the
inquiry was begun the commission knew
new schedule had been prepared
On redirect examination Mr.. Green said
that the freight rate on ice, If used for
the refrigeration of fruits, was reduced In
admitted to Attorney Barry. for the COM
mission, that under the exclusive contract
the Armour car line was the only concern
that could get the benefit of this rate.
F. w. HaZlehurst of Macon, Ga secre-
tary of the Georgia Peach Growers AS
sociation, testified in regard to the cost of
producing peaches