The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-28
MILEAGE RATE STOPS
MAKING Of GOODS
Witness Tells Committee of
Effect of InfIexibIe Tariff
System

WASHINGTON. April %. = Walker
ID. Hines continued his statement be-
fore the senate committee on inter-
state commerce today. Criucising the
Esch-Townsend bill he said that meas
ure imposed upon the interstate CON-
merce commission task which it could
not possibly perform because il would
not have time to do all the work
II mad been referred TO as the anti
rebate bill, yet ii had no provision to
prevent rebates. In fact ii would in
terfere with the anti-rebate opera
tons of the Elkins act because eyery-
thing was left to the commission. Re-
Dstes could now be prevented by in
functions, but the Esch-ToWnsend bill
provided that the commission should
begin proceedings which would take
much time
1t would take so long to change rates
AFTER they were once fixed by the COM
mission that secret changes and re-
bates were almost sure to follow. The
Eseh-Townsend bill made no provision
1or regulating private car lines, one
OF the subjects referred to in the presi-
dents message.
Rebates, continued Mr.. Hines,
were stopped TO a large extent after
the publication of the interstate COM
Ion and rebates became common The
Elkins act had resulted in checking
rebates, but unless the law was rigidly
enforced rebates would again be
given"
Prosecutions Very Lax
Mr.. Hines claimed that the inter-
state commerce commission had not
been sufficiently vigorous in prosecu-
lions of roads which granted rebates.
He asserted that the commission
seemed TO misconceive its duty and
read from annual reports to show that
II believed its duty was TO Law down
general rules for the regulations Of
carriers and not to engage in prosecu-
tons of those carriers which granted
rebates and Determinations
Mr.. Hines expressed the opinion that
the interstate commerce commission
should have authority to send an ex-
pert to examine books. papers and ac-
counts of carriers and shippers and
also that district attorneys should be-
gin action for violation of the law on
complaint of the commission or other
parties, with or without direction of
the attorney general.
Mr.. Hines stated that it was neces-
sary to create a rate making body in
order to avoid government ownership.
To create such a body he maintained
government ownership. In states
where the commission had the most
drastic power and exercised IL in fix
ing rates there was the most dissatis-
faction and the greatest demand for
government ownership.
Rate Power One Sided
Answering Chairman Elkins, Mr..
Hines said that giving a commission
authority to fix rates would mean re-
auctions as rates would never be in
creased. This would mean a reduction
in expenses either in train service i'm
provements or wages of employees.
Congress could authorize committee
to fix maximum rate, the witness
said, in answer to a question by Sena-
tor Clapp. A court could fix what was
maximum reasonable rate and con-
gress by legislation could provide that
such rate fixed by the court should be
operative in the future.
When Mr.. Hines had concluded, p. v.
Yates, a machinery manufacturer of
Blot, Wis, objected to a commission
fixing rates, because the fixing of an
unjust rate would be too long.
A. c. Lincoln, general freight agent
of the Missouri Pacific railway. said fix
ing of rates by any other method than
by natural methods by railways would
destroy competition. 1t was Impossible
TO fix rates by any set rule. Rates
were made by conditions. by COMPETE
ton between carriers, competition be-
tween markets, the necessity of finding
markets for surplus products and sup
plying deficiencies in products that oc-
cur from time to time. In the terri
tory served by the Missouri Pacific
there were many differences between
Chicago and st. Louis points beyond
the Missouri river. The differentials
grew out of struggle between differ
ent lines of business.
Should Be Elastic
The rate making power must be
elastic. The numerous changes in
rates filed each day with the interstate
commerce commission showed that
there were many varying commercial
conditions. No company could fix
these conditions. Changes in rates in
most cases did not effect the con-
sumner. Different commodities cannot
be treated the same in all localities.
There could be no satisfactory uniform
Mr.. Lincoln spoke of the condition in
Arkansas, where the state commission
fixes a mileage rate for the whole state
and where on traffic wholly within this
all railroads. There were complaints
of manufacturers who claimed that
they were unable to compete with
manufacturers outside the state and
who said they suffered because there
was no fiexibility in rates.
Iowa was another state that had the
rate and he attributed the lack
of manufacturing in that state to this
fact, adding that Kansas had more
than Iowa.
FleXibility in export rates on prod
ucts, Mr.. Lincoln said, made state fix
ing of rates impossible. Products
must be moved to the seaboard regard
less of rates.
He referred TO the statement made
before the committee that there were
overcharges on live stock. Live stock,
according to Mr.. Lincoln, was more
frequently carried at a loss than any
other traffic on account of the shrink
age on these shipments and require
ments for handling this traffic. Special
cars were necessary, live stock trains
have right of way over all trains except
passengers, stock cannot be kept in
cars more than twenty-eight hours and
sometimes on account of unforeseen
conditions stock has to be unloaded
and fed, and qHaraRtined regulations
make it necessary to cleanse the cars
The roads earned more on grain than
on live stock. His company did not
solicit live stock traffic
Mr.. Lincoln had not concluded his
he ol