New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-06
The RATE MAKING POWER
Further Testimony Heard by the
Senate Committee.

Washington, May 5.-Professor Meyer, of the
University of Chicago, continued his statement
before the Senate Committee on interstate
Commerce to-day He criticised the Interstate
Commerce Commission, saying all its important
decisions were in the direction of restricting
trade and commerce. If it possessed the power
10 nix rates it would be compelled to adopt
mileage system
replying to Senator Newlands, Professor
meyer said that stock watering had been ben
ehcent in many cases. It enabled the building
OF roads. and many of the great interests of the
country had been started and built up by
watered stock
Chairman Elkins asked a number of questions
regarding German roads and Professor Meyer
replied that Germany could not make preferen-
tial rates, and the thing would happen if
this government fixed rates. Then nearer
points would have all the advantages and be-
cause of high grain rates he thought the farms
OF the Northwest would be destroyed. In
france. where there are private ownership to
large extent and government control Of rates,
the government paid the roads large sums Of
money.
Senator Cullom asked Professor Meyer regard
ing criticisms of the Interstate Commerce Com
mission, and the latter said he thought the COM
mission was a useful body and had done good
work 1t ought not. however he said, to have
the power Of fixing rates, but within its present
limits it could accomplish all that is necessary.
Answering Senator Foraker. Professor Meyer
said that in all foreign countries, whether the
government owned the roads or fixed the rates.
there were more complaints than in the United
States
George S. Gardner, OF Laurel Miss, a lum-
Der manufacturer. complained about the adj
vance in lumber rates east OF the Mississippi
River. He asserted that the advance was due
to a combination OF roads. The commission
had made order that the advanced rate was
unreasonable, and directed its discontnuance
The roads refused to comply with the order. He
wanted the commission authorized to fix rates
so that its orders might be effective. The case
was brought before the commission in Febru-
airy. 1904. but decision was not rendered until
a year later. the delay being due to the large
amount of work before the commission. He
serted that the roads west Of the Mississippi
gave tap line" allowance. which amounted
to rebate.
Frank H. Blodgett, of GAINESVILLE, Wis,
gagged in milling, protested against giving the
Interstate Commerce Commission power to fix
rates. He said the country mills, under present
conditions. did not have equal privileges with
the city mills. by reason Of the milling in transit
regulations. which privileges, he feared, would
be abolished If the commission had control of
rates.
John F. Harris, of Chicago, interested in ele-
vators and the movement of grain for export,
said that no permanent differentials could be
established, as conditions are constantly chang
ing He was opposed to giving power to the
commission to fix rates. because rates some
times must be changed quickly business
would stagnate.
w. B. Biddle third vice-president and traf-
ho manager of the Chicago, Rock Island and
Pacific Railroad, replied to complaints made to
the Interstate Commerce Commission by cattle
raisers against the rates of the Santa Fe Rail-
road, Of which he was formerly traffic man
ager. It was charged that the rates on cattle
had been advanced since 1893 by conspiracy
OF the carriers. as a result Of which compet-
ton had been eliminated and unjust rates pre-
vailed. The witness said the carriers never had
been fairly compensated for carrying cattle and
that this sort of traffic had not borne its fair
share Of the cost of transportation. He assert
ed that cattle rates are not TOO high, and most
of them are below the actual cost of service.
The railroads. he SAID never had had chance
to get fair rates for carrying cattle, If for no
other reason than because they had to contend
with the drive" which was their sharpest
competitor. Cattle always able to walk,
and when grass and water are plenty the rail-
road cannot compete with this method of trans
portation He called attention to the fact that
stock requires the fastest time OF any class or
traffic and that even perishable freight trains
and passenger trains have to be sidetracked
to expedite the stock service
Mr. Biddle said that cattle rates are reason
able In themselves and by comparison with
other rates; that there IS no combination or
conspiracy on the part Of \the roads in conflict
with the law in the adjustment of these rates;
that competition is still a controlling force and
that a reasonable service is now being given by
the roads for this business. 1t was necessary
for managers TO confer regarding rates but
such conferences did not mean combination or
The committee adjourned until tomorrow.