New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-05-11
RAMSEY ON RATE MAKING
S4YSROADS VIOLATE Law.
Increase of Commerce Commission s
POzCers Opposed.

washington MAY 1O.-Chairman Elklns OF the
Senate Interstate Commerce Committee to-day
summoned by telegraph, to appear and TESTIFY
on the rate question, the presidents OF the
Tennessee Coal and Iron Company the Colorado
Fuel and Iron Company, the United states 0teel
Corporation the Fairmont Coal Company ana
the Pittsburg Coal Company.
The principal witness at to-day's hearing was
Joseph Ramsey, jr., president of the Wabash
Railroad, who opposed legislation empowering
the Interstate Commerce Commission to fix
rates. He said that to give to g. commission
the rate making power over the traffic of 10
900 miles of railroad, the earnings Of which
amount to S2OOO0OOOOO a year, endangering
vested interests amounting to over $1,000
100000 and the successful operation of prop
critics employing directly over 100000 citizens,
and supporting through payrolls, dividends
fixed charges and railroad supplies some To-
100000 peoplc, and serving well a country OF
at least S0000000 people. is admitted to be an
experiment dangerous alike to the public, TO
the railroads. and more especially to the future
development of the Industrial and commercial
prosperity Of the country at home and abroad.
Any single body of men, he contended, cannot
make rates for the entire country. He said:
No commission can have the nerve or legal
right to make low rates frequently
made by railroads to defend what they consider
their rights in one territory community or
10 enable the large surplus crop to be exported
to build up territory its lines. In
short, the competition between communities and
ports would be entirely under the control of the
commission.
Mr.. Ramsey contended that despite the views
expressed by the President and backed last
night by Secretary Taft. the railroad rates gen.
orally are reasonable and the evils complained
of amenable to existing statutes.
agree on rate which would not mean a loss.
The Trans Missouri case prevents US from
doing that" replied MI Ramsey.
But it has been shown that railroad men do
get together on rates" continued Senator Dol
liver.
Yes" replied Mr.. Ramsey, I'VE are forced to
violate the law We must talk over through
rates with traffic managers of connecting and
competing lines"
Mr.. Ramsey said the Wabash was a stock
holder in the American Refrigerator Transit
Company, but no preference given on the
Gould lines to this company. The rates on prod
ucts were equal. Steamships, both coastwise
and river lines, he believed should be subject
to the interstate commerce laws. The safety
appliance law, in his opinion, tended to make
employees careless Mr.. Ramsey doubted whether
any of the great money interests in New-York
exercised control Of rates, The interest of rail-
roads, he suggested, was not in the trusts, but
IN the smaller concerns. These combinations
sometimes forced low rates of transportation by
threats of transferring their business.
A. c. Smith, of Omaha, a manufacturer, said
he feared the proposed legislation would result
in distance tariff, which would mean destruc-
ton Of the distributing centres. He thought
the Iowa State distance rate had injured the
cities there. He advocated better terminal IA
cilities for railroads.
James G. Leavitt, also of Omaha a beet sugar
manufacturer protested against giving power to
commission to fix rates. He urged that the ir-
rigation interests of the country We're being in
jured by the interference of government Off
GERS who knew nothing Of practical irrigation.
II. G.. Brown, Of Sioux City, Iowa, a coal
dealer and cattle raiser. said he did not want a
commission to originate rates.
George L. Miller. of Omaha, also protested
against any federal interference with railroads