The Black Hills union and western stock review. [volume] (Rapid City, S.D.) 1904-19??, 1905-05-12
HILL BEFORE COMMISSION.
Great Northern's President Makes a
Arnurent AGAINST Rate Makinq.


iC~lt of the Great Northern railway, SAID
there was only one safe basis on which a
lower rate could be made and that was
the low cost of producing the ransporta-
ton. The value of the service Is deter
mined by the density of traffic and that
makes the rate. Rates vary with condi-
tons. In making rates on his road. ne
said, they had to take into consideration
what the country produces. The railroad
was charged with the prosperity of every
man who lived on the road, If that man
worked
Disc riminations were necessary. declared
Mr. Hill When his road was built he
went 70 Washington state and found that
its 81 catest product was lumber. Ihere
was a rate of 90 cents per hundred on lum-
Der to the eastern market. Lumber deal
ers said they could ship a Go cents. He
knew they could not do it. and he made
rate of SO cents. and was shipping large
quantities of lumber. This was discrim-
ination against lumber from the eastern
end Of the road, but in ten years there
would be no lumber produced In that sec
ton 1t was because the cars going out
with merchandise brought back loads that
these low rates could be made. Besides
| the merchandise for the Pacific coast his
road handled freight for the orient. Large
| quantities of flour were hauled from the
! Twin Cities to the orient, but the inter-
state commerce commission stopped 1t.
Publicity Cost Business.
| This statement produced a fire of ques-
/ tiOnS from members of the committee,
! and in reply Mr.. Hill explained that the
company was compelled to file its true
! IA tie with the commission. This rate being
made public was cut by the rival steam
! ship lines which were not compelled TO
make their rates public. His company
. under the law could not change its rate
! for seven or eight days. and meanwhile
ether lines took the cargOCS.
! If the ships Of the company did not
carry pound of freight it would make no
difference with the dividends.
Speaking of tho great tonnage of the
railroads. Mr.. Hill warned the committee
to be careful and not cripple the business
Of the country, mot for ourselves he
added, for before you get down to us
there would be a great many corpses
about the country" He spoke of the con-
gest.on of freight at eastern ports. and
said business was going to the gulf. al
though shipping rates to Europe from
gulf ports were very much higher. Roads
east Of Chicago would have to raise their
ra ties in order to get means to build more
extensive terminals.
Safety for the Public.
Mr. Hill said that while congress wa
lcgisla ting for the safety appliances fO1
employees it might provide greater safet!
for the public. II attributed 90 per cent
of the accidents TO nonobservance of rules
He told Of shipment of locomotives from
Philadelphia to Yokohama by his compan!
at a rate equal to what another compan!
charged for trans, orting locomotives 5V
miles This is a case he remarked, 10
the interstate commerce commission e
take up and investigate. They would fine
somebody was charging too much.
Commenting on the statement of Mr.
Hill that in twenty years there had beef
a reduction of rates from 9 cents to 1910
of a cent per ton per mile. Chairman El
,, k:ns asked what would happen regarding
rates in the next twenty years.
GIVE the roaGs fair treatment" rcpie
: Mr.. Hi'l land in twenty years | thin
: the rate would come down to Y cent to
n per mile.
Would Block Financial Arrangeme Mt
f Mr.. Hill said the ability of the railroad
. to raise money to increase their equipmer
and for building additional lines would
y destroyed by taking away from them tn
q power to make rates. He criticised tt
e terminal charges forced below the Harlel
: river in New York, saying they wei
e greater than the rate from Buffalo
8 Harlem. He suggested that the int
II state commerce commission might inVc
n tigate these terminal charges.
/ why don't the commissioners take |
that natter" asked Chairman Elltins.
."rhey are to busy" replied Mr.. Hill
trying to get power to fix rates"
Ilefe was QullG an interesting biStu
= sion between Mr.. Hill and Mr.. Elkil
u about the competition of Canadian road
d The latter asked what ought to be dol
y to meet the rates and rebates of Il
- Canadian lines.
I'VE are willing to work that out amo,
! ourselves" replied Mr.. Hill. Before '
- are through with them they will cease Gu
ting rates
He said that some years since the Tran
" continental association paid the Canadi;
Pacific road 100000 year to get out
- certain business OH which the road W
~ cutting rates from New York to S.
~ =, Francisco This arrangement lasted or
A. two years.
pr Exports and the Connm ssion.
IN Replying to Senator Foraker. Mr.. n
TT said that no interest would suffer If e
e. port traffic with noncontiguous countr
rs was exempted from control by the int
I'd state commerce commission regulation
Il This statement was brought out by
rs previous remark of Mr. Hill that his co
BIT pany had to withdraw it's rate on -four
It.! japan because the commission insist
that the rn.c should be published.
hi. Replying to question by Senator Ola
u as to the effect of the Panama canal on
f. railroads, Mr.. Hill said that for Allan
and gulf ports and for $50 miles inland
canal would be of some advantage. Blu
he added, .'for all interior points We '
meet any rate made by the canal rout