The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-23
The RATE MAKING PROBLEM.
PRESIDENT TUTTLE AGAIN ne
FORE SENATE COMMITTEE.
Tie Arkues That No Industries Are injured
bS Giving Lower Hates 70 Competing
pOints-PrOteAt From Railroad Em'
pIOYeea Animal Federal rate Making.

] TIC AFNueh THAT NO lnuuAtftea ATN luluFNu
by Giving Lower Hates 70 COmpetinE
pOints-Protest From Railroad I'm.
pIoyees Against Federal rate Making
| WASHINGTON, April 27-PreSident Lucius
/ Tuttle Of the Boston and Maine Railroad
! was again before the Senate Committee
/ on Interstate Commerce, which Is investi-
| eating the question Of railway rate regu-
lAtion. He was questioned at length by
Senator CarmGck in regard TO rate making
and the apparent discrimination between
localities In higher or lower rates.
There we're undoubtedly some instances,
Mr., Tuttle said, where a proportionAtely
lower rate for the competing point operated
against the intermediate points. He men
toned one instance, the rates on cotton 20
Lowell from the middle South being
! lower than TO North Carolina This was
necessary, he commended because the unit
cost Of production was higher at Lowell,
and without the equalization In freight
rates the mills would be closed. the rail-
road companies there suffering loss a. we'll
a. everything else In the town.
| II tho intermediate rated were CORE
} spondlngly reduced, he Oaid II would not
help the industries along the line, while
as for the railroads, they would be like
the Texas clothing dealer who declared that
he vas doing business At loas, but was
doing so much Of Il that he was getting rich.
| II was not the policy Of the roads 70 throttle
the intermediate industries but, quite TO
the contrary, to develop them everywhere.
The roads had no preferences and there
was no philanthropy In the railroad bust
ness. In making business for themselves
they we're obliged to make business for their
| customers,
Tahug for example the hauling Of corn
! from the corn belt 10 the Seaboard at an
actual loss, Mr. Tuttle pointed out that II
that was not done the farmers IN the middle
West would be burning their corn and they
could not buy the manufactures Of New
! England StaRnAtion would result 10 the
West which would DO felt all over the
country. In order 70 prevent any such
conditions the railroads were compelled
| 20 equalize rates and practically eliminate
distance 90 that the flow OF money should
not be stopped.
To show ttat the effect Of this system
was beneficial and that no industries were
| throttled Mr.. Tuttle pointed 10 the oontin-
ued prosperity Of the country. In bis opin-
! ion any attempt on the pant Of Congress TO
establish rules for the movement Of traffic
which would prevent the railroads from Civ
ing this elasticity 10 rates would prove dis
astrous and would hurt the commerce Of the
country more than the railroads. There
could be no general rule for rate making
The scientific and perhaps the only oonstitu-
tionAl basis would DO on mileage. That
however, would establish zones and would
make transportation out OF those zones
prohibitive.
In res ponse TO members Of the committee
Mr.. futile again gave his views on the plan
he outlined on Thursday for referring TO
the courts questions as to the unreasona-
bleness Of rates. In his belief the railroads
recognized the fact that there must be
somewhere a restraining power against
unfair and unjust rates and II undoubtedly
rested b. GOugFOSs. Without any- addi-
tiond legislation, perhaps, II was also
vested in the courts under common Law,
The oourts 10 his mind, did have the power
10 Stop the imposition Of unfair rates.
Might they not also have the power to say
what was a fair rate7 II that power did
not exist, II could be supplied by Congress,
and Il was his firm belief that, II the courts
should lay down what did constitute a
lawful rate. the railroads would obey II
without question.
Chairman Ekns laid before the COM
mittee a protest from the Pacific Division
Of the Brotherhood Of Locomotive EnH-
neers. protesting against the passage Of
the Esch-Townsend bill or any similar
measure looking to the fixing Of rates by
the Government. This was the first eI-
preston Of opinion by railroad employees
on rate legislation received by the oom-
/ in -
While we believe some change In the
| pre- sent ra 10 and conditions may DO needed,
we do not think changes should be made
| by political appointees, fully believing
would bring about complete revolution
in business circles in the West, and es-
| pecially TO it's great detriment.
The CONNIE rcial expe rienoe Of the Pacific
Coast manufacturer, jobbeB, producers
and me rohants has shown that interstate
rates. 80 far as they have borne on the in
terests OF the Coast, have been fIed by the
| railroads with kno Wedge and appreciation
Of the conditions that could not be expected
In the case Of the Federal commission,
whose members are lefty, II not wholly,
appointed from parts Of the country re-
! moved from the Pacific Coast
! we deem II most important 10 the com
mercial interests Of the Pa cifc Coast that the
system Of rate making should not be done
/ on a mileage basis from the East 10 the
| conditions, and under the lowest law as il
| now reads, rates have been made and de-
| tsrnined by the railroads, by which the
| Pacific Coast manufacturers and othen
| have been able TO find a ma rket for their
! goods and naturally tributary 10 them.
| Nothing could be more disastrous 10 the
| business interests on this coast than any
| substantial disturbance In the manner Of
| making these interstate rates. As a body
! OF your constituents we would ask that
! very careful consideration be given this
measure before ending II your support.
The committee adj burned TO meet on
! Monday, when Walker d. Hines, general
| counsel Of the Louisville end Nashville
| road will be heard. Mr.. Hines will be
! followed by a long line Of witnesses on the
part Of the different railway systems nearly
| forty Of their Representatives having already
mado applications for hearings, or having
! been summoned by the committee. The
committee win also hear John Mitchell
and other labor leaders, including the
chief officers Of the brotherhoods Of loco
motive engineers and firemen and OF build
ing trades unions, and Il will likewise SUM
mon che secretary Of the New York Board
Of Trade, and then the presidents Of the
United States Steel Corporation, the Ten
nessee Coal and Iron Company and other
great industrial concerns Interested IN rail
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