Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-21
THINGS OF THE PAST
MIR. FUTILE SAYS REBATES ARE
NOT GIVEN NOW.
Resumes His Testimony Before Senate
Interstate Commerce Committee
Regarding Railroad Rates.

committee on interstate commerce reas-
sembled at 2 o'clock yesterday afternoon
and Mr.. futile. president of the Boston
| and Maine railroad. again went on the
stand. He proceeded to explain the man
ner or keeping accounts of railroads with
respect to the showing of net income
The net earnings usually what is
left from the gross earnings after the ope-
rating expenses have been taken out" he
said.
The fixed charges are taken out of net
earnings as are all other expenses and
what is left is the surplus
Mr.. futile then explained the methods in
New England of regulating railroads which
ooes not include a fixing of rates. He also
showed that the increase of gross earnings
IRON l902 TO 1893 on the Boston and Maine
mas soooo'oVo, but the added wages and
otner increased expenses resulted in leaving
ohIy So2,o0o in that year as the additional
earning of the road. The increase of wages
alone was over S1,5oo.0Oo more in 1903 than
Take the situation as whole " he da-
clafed, the rate of transportation has
NOT increased In relation 10 the prices of
osIter commodities, you can buy more
transportation for a dollar TODAY than
you could seven or eight years ago These
Iacts mold good, l feel sure to the entire
country. Railroad men know these things,
put somehow they can't tell about them
sometimes think they ought To he sent
to school in order to learn how 70 tell
what they know"
:, we haven't noticed any such difference
IN the railroad men who have been here
remarked Senator Dolliver. amid laugh
ter. - Ne
Mr.. futile continued to explain dff-
cuItles of railroads in securing large re-
Turns from their investments.
Government Lines in Europe.
MI futile combatted the idea that the
government railroads of Europe were Civ
ing better service than the roads of this
country. lie declared that the best rail
ways in Europe were in England. where
there was private ownership. In Germany
and France, where there was government
ownership. the roads were nor as GOOD
! Rates on those roads were higher than in
the United States.
Replying to Senator Elkins Mr.. futile
Sald that If the government fixed rates he
low point of actual cost the roads wound
| AVOID doing the business. or would give an
INFERIOR service. He said that differentials
originated In export traffic, because of a
adherence in the cost of passing freight
through the ports Differentials are nref-
e1ences The government could not regu-
late rates to Liverpool. If the government
hXed rates 1t could not make differentials
without some agreements. Mr.. futile said
that the Canadian parliament had given
the railroad commission autocratfc power
but he warned the committee against pre-
uiSoIIiiS any Wow on the Canadian Ia
because no action, ever had been taken
under it,
Rebates Things Of the Past.
In reply to Senator Cullom Mr.. futile
SAID that rebates and unjust discrimina-
tons were things of the past. He could
see no need for changes in the present law
save to make the interstate commerce COM
mission an Investigating and prosecuting
body
The agitation that has been going on by
the people was due to the constant reitera-
ton of the interstate commerce commits
sion that 1t should be clothed with power
to fix rates. 1t also was due to the belief
mat rebates still were granted, which he
did not believe.
"A railroad president" remarked Senator
DolliVer, STATED in this city not long AGO
that the railway business of the country
was honeycombed with rebates and dis
ordinations"
The man who made that statement"
said Mr.. futile, might have had personal
knowledge of these things. His statement
might have been in the nature of a comics
sion"
Further. answering Senator Cullom. Mr.
futile said that competing shippers could
find out If rebates were being granted. He
thought that if railroads were giving re-
bates they could manipulate their books so
that they could not be detected He did
not think the interstate commerce commits
sion had made any strong effort to enforce
the Elkins law against rebates. He beliav-
ed that private car lines We're subject to
interstate commerce laws.
Ownership Of Refrigerator Cars.
Replying to Senator Clapp he expressed
a doubt whether it would be practical for
railroads to own the refrigerator cars. He
said that these cars were needed in diff
ferent sections of the country at different
times of the year. Some roads handle a
great many of these cars, yet they do not
handle them where the freight originates
he said. The private lines, he thought
had been a great blessing. Such lines
should be made common carriers which
would meet all objections made to them
Mr.. futile maintained that the courts
could meet all questions that would come
up.
What do you think court could de-
termine?" asked Senator ClapD.
Il think it could determine what was a
reasonable rate" replied Mr. futile, and
he added: 'Of course, l am guessing on
what the fifth man the Supreme Court
is going to decide" Replying to Senator
Dolliver, Mr. futile said he believed the
case of the alleged combination of the
Marquette railroad and the Armour lines
for control of the Michigan fruit trade
could be reached under the present law
Mr.. futile had not finished when the COM
mittee adjourned
Senator Elkins informed the committee
that all information regarding the subject
carrying materials to construct irrigation
works would be furnished to the committee
The committee adjourned until IL o'clock
Saturday.
The sch-Townsend Bill.
A letter was received from the Interstate
commerce commission replying to one from
Chairman Elkins asking whether the Escb
Townsend bill would prevent differential
rates under the provision of the Consti-
tuition, which declares that no preference
shall be given to one port of the United
States over another port. The commission
says that the assumption is absurd, and
adds:
Neither the Esch-Townsend bill nor any
other measure of similar character can be
seriously regarded conflicting in any de-
gree with the provision of the Constitution
which prohibits preference of the ports of
one state over those of another
Chairman Elkins said that evidently a
misunderstanding had arisen over the re-
quest OF senators to appear before the !
interstate commerce committee. They had |
not been summoned, but Senators Spooner
Knox and Morgan had been invited in their |
own way to assist the committee with ad- |
vice and suggestions concerning the work |
the committee had to perform. There was |
intention. he said. of Summarizing CEN