Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-12
Would Grant Commission
Power to Fix Rates.
COST OF RAILW AVS
GREAT EXPENSE OF GETTING
INTO PITTsBURG.
President Ramsay Says Gov. Cummins
Favors Postage Stamp" Sys-
tenn of Freight Rates.

A B. Stckney. president of the Chi
cago Great Western railroad, has filed with
the Senate committee on interstate conn
meree a statement in favor of Civ
| Ing the interstate commerce commission
| power to fix rates. He says that the COM
mission would be the most satisfactory nr
| bitor possible. Speaking of rebates he saws
| that "since the injunctions the traffic dl-
rectors have stopped paying rebates on
| grain shipments. but in lieu thereof have
paid elevator fees which is another way Of
giving rebates" \ government commission
would be untrammeed by competition or A
desire to secure tonnage for any particular
line and could frame an equitable schedule.
President Ramsey Resumes.
President Ramsay of the Wabash rail-
road today again went the stand In
the investigation of the Senate committee
on interstate commerce on the subject of
the railroads.
Mr.. Ramsay read paper prepared by
NJ. e Michael. representative of the Busi-
ness Mems League of St. Louis on the
proposition TO have a government commls-
sion fix railroad rates. Mr.. Michael em-
phatically condemned the Townsend Esch
bill. which he considered a dangerous
measure for the entire country.
Il want to say, as a railroad man who
has been building railroads since 1871, that
there is not a railroad in the country that
has its cost represented in its stock said
Mr.. Ramsay. Their thirteen billions OF
capital do not represent the cost of the
railroads of this country.
In olden times he said, the railroads
were welcomed as benefactors. and they
were accorded liberal concessions.
Expense of Entering Pittsburg.
To-day he continued. the condition is
very different. l have recently had ex-
perience in this respect. l built sixty
miles of railroad into Pittsburg. We had
to pay for that sixty miles 10000 a mile
for the right of way. We simply had to
give them anything they wanted. We paid
whatever the people asked, because We
knew that If we took them before jury
the jury would probably give them more
than they asked.
The railroad terminals cost much
that the average cost per mile of that
sixty miles when completed was the enor-
nous sum of 100000
Gov. Cummins Criticised.
Mr.. Ramsay criticised many of the state
ments of Gov. Cummins, who was on the
stand yesterday
What Gov. Cummins wants" he said.
''is a postage stamp tariff so that We can
send freight from Iowa to New orleans or
to Chicago for the same rate, but in the
case of manufactured goods going into his
section of the country he wants practically
a mileage rate, that his manufacturers
may be protected against others at a dis
tance.
Now, If Congress goes In for this postage
stamp rate, it will have to meet the deficit
as it does the deficit of the Post Office De-
partment And when II comes TO pass its
appropriation bills it will find its railroad
bill bigger than its river and harbor and
several other bills added together
Mr.. Ramsay said the bonds and stock OF
the Wabash road aggregate S13SVtO,ovo the
length of the railroad being 2,50o miles. Not
a dollar of dividend is being paid on the
stock and interest some of the bonds is
not being paid.
Railroads in Politics.
Asked by Senator Newlands whether the
railroads are not charged with being in
politics, he replied:
Yes, the railroads certainly in poll
tics, when 1t is necessary TO their welfare.
Everybody has got to be in politics. l GER
tainly think an interest that represents one
fifth of the population of the country has
a right to be in politics.
Mr.. A. B. Hord, farmer and cattle and
grain dealer of Nebraska, testified 10 the
effect that he had no complaint against the
railroads.
How do you happen to come here?' ask
ed Senator Foraker.
The witness replied that he had been in
vited to come by friends.
The next witness was Mr.. j. w. Cooper,
a manufacturer of food products and q
wholesale grocer of St. Paul, MINI. He
had gone to Minnesota in 1850 on stage
coach, and with J. j. Hill grew up with the
country. He had found that the raiiroaus
and his own interests had co-operated, and
he saw no reason why there should be an
outcry against the railroads. There was
no dissatisfaction, he thought with tho
railroads on the part of the people of his
state In that state there are good roads,
good horses, the farms have increased IN
value from 81 to $40 or $50 an acre, the
farmers are prosperous and their children
are well dressed and go TO fine school
houses.
Testimony Yesterday Afternoon.
Gov A. B. Cummins of Iowa continued
his testimony before the senate committee
OH interstate commerce yesterday after
neon after The Stars report of the pro-
ceedings was closed.
James F. Parker of the New York Pro-
duce Exchange and III. NJ. Hill, a whole
sale hardware manufacturer of Minneap-
oils, Mimi, presented statements protesting
against the proposed rate legislation
Asked if he favored the Esch-Townsend
bill he said if he could not get better
bill, and he was member of Congress, he
would vote for it, But II he could ora"
arcther bill. he would do SO. He would pre-
fer bill giving the interstate commerce
commission power to say what reasonable
rate is and he would make that rate the
legal rate He would not form any other
courts.
Il believe the true, Just principles for
fixing rates is the cost of the service. There
may be such public necessities as would
warrant violating that general principle
But only some great necessity should mako
an exception to such rule.
The law, as far as rebates were concern
ed. he contended, was as effective as II
could be made. He did not think the FL
kins law relating to Determinations was
effective as to localities. The governor
thought ii was not safe to assume govern
ment ownership of railroads, on the ground
that under 1t the railroads would become
vast political machine.
L. aol