Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1905-04-20
GENERAL CONSUL FOR SANTA
FE BOARD sTlRs SENATE
COMMITTEE.
DEFENDS VIOLATION

Says Chaos Would Ensue Unless Ralls
roads Followed Plan Now In Vogue
Railway Men Expect Panama Linz
to Affect Rate Observation-Disclosures
Talked Five Hours.
Washington, D. c., April 10. - Vic.
tor Morawetz of New York, general
counsel and chairman of the executive
committee of the board Of directors OF
the Atchison, Topeka &c Santa Fe rail.
road declared to the senate committee
on Interstate commerce yesterday in
the course of the committees hearings
on the rate question that railroads VIE
olated the law every days and that
chaos would ensue if they did not.
Mr.. Morawetz said the railroad rates
were not excessive and declared 1t
would be revolutionary with the rail.
roads If the law should be changed so
that 1t would be impossible to charge
more for short haul than long haul.
He questioned the power of congress-
to confer judicial authority on the In.
terstate commission
Mr.. Morawetz, who was the first
witness called by the committee, talked
five hours, His audience comprised
Senators Ellins, Cullom, Clapp, Kean.
Foraker, Dolliver, NeWlands and Car
mack, all members of the committee;
Senator Wetmore, of Rhode Island,
i former Senator Faulkner, of West Vir-
ginia, other members of congress,
I. prominent railway shippers and news
paper correspondents.
4 Mr.. Morawetz concluded his argu.
ment yesterday, but took the stand
again today for the purpose of an-
swering questions that many senator's
wished to ask him. He will be fol-
tlewed by. Lucius Tuttle, president OF
the Boston and Maine railroad, who
will occupy the remainder of today's
session.
Effect of Panama Line.
While the senate committee on inter-
state commerce is wrestling with the
problem of the character Of the legis-
lation which shall be enacted to meet
the demand of the people for regula-
ton of railroad rates, the executive
branch of the government has con-
vinced itself that this power rests to-
day in the hands of the President SO
far as transcontinental business Is con-
icerned.
1t is the isthmian railroad which Sec
retary Taft has announced he proposes
to double track, and which Is a ma
| tional experiment in the way of gov
: ernment ownership of traffic communi-
| cations which may prove the undoing
, of the transcontinental lines To put
1t in the graphic language of an off,
cial who discussed the development
yesterday afternoon:
at is likely to raise Old Harry with
: them"
Already the agents Of these great
companies are gathering in Washing
ton and applying pressure upon the
, administration to prevent reduction
> of the tariff which prevailed when the
: isthmian railroad was managed pri-
vately, and which, if 1t occurs, surely
will divert trade to the isthmus unless
rates across the continent are lowered.
Trunk Lines Paid Subsidy.
Information given out recently
. shows that for great many years the
transcontinental lines paid a subsidy
amounting to several hundred thous.
ands of dollars annually to the Pana.
O ma railroad company on condition that
it maintained certain schedule OF
rates. James J. Hill of the Great
Northern became tired of this practice
ten years ago and stopped the payment
of the subsidy. The effect of such ac
tion became at once noticeable and
!, compelled the transcontinenta1 lines
: to enter into an arrangement with the
! steamship companies connecting with
!. the isthmian railroad to take certain
!. amount of cargo space on each
steamer at a certain rate, which IL
fixed for all shippers
The steamship linz then entered into
!. contract with the Panama railroad
v company, by which the latter agreed
# to carry it's traffic and nothing else
!, Heavy local freight rates were applied
{. between Colon and Panama upon goods
brought by any other than the line
having an arrangement with the trans
9. continental companies. The Pacific
eI Mail Steamship company, whose con
nection with the Southern Pacific
e well known, had the exclusive privi
e lege of issuing through bills of 1adine
II from San Francisco to New York.
a viii Mean Lower Rates.
It 1t is another story today Secretary
a. Taft recently cancelled the privilege
a. held by the Pacific Mail Steamship
IS company as result of the acquisition
te of the Panama railroad, and has OBJ
k tanned possession for the government
IN of steamers connecting New York ant
Ut Colon, which We're operated in con
junction with the railroad. Hereafte
there will be. acceptance of cargoes fo
transportation across the isthmus a
= the same fixed rate, whatever Ameri
IL can bottom brings them, and this rat
I'D will he lower than ever before he