Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-30
THE FIXING OF RATES
James Fl. Hiland Presents
His Views.
REAL POINT AT ISSUE
REGARDS DISCRIMINATION AS
THE CHIEF GRIEVANCE.
Opposed to Comforting on the Interstate
Commerce Commission the Power
Proposed to Be Given It.
REAL POINT AT ISSUE

At the meeting yesterday of the Senate
Committee on interstate commerce. engaged
In considering government control of rail-
way rates. James II. HiIand the third vice
president OF the Chicago Milwaukee and St
Paul Railroad Company. gave his views re-
garding railroad rates which specially af-
feet northwestern traffic
Inc committee was in session only two
hours, adjourning at 1 O'Clock as a mark
OF respect to Senator Deliver. who is a
member Of the committee and whose father
has just died. Mr. HiIand completed his
formal statement and will go before the
committee again tomorrow. when he will
he Intercepted along the lines followed
heretofore:
Mr.. Hiland's Statement.
Mr.. Iiiland said. in part:
Some of the objections IN nIaci,, tho
rate-making power in the hands of the in
terstate commerce commission arc.
1t gives the commission power to limit
the earning capacity of the RAILWAYS hv,
investing it with authority to make rates
Wlthout providing means that will prevent
nuiIitcatlon of the commissions order by
reIdtlNe reductions on the mart of com
petlng railways, thereby naintairino tho
correlation of rates originally Complained
OF mus compelling reductions in revenue
fit 10 the complainants
II VIII change the railway geography
anu ueStFoy much OF the wealth created
by the energy and business activity of in
dIViduals. firms and communities that have
punt up trade and industrial centers bv
destroying the correlation of rates estab-
hShed by long years of experience and de-
velopment
Il do not believe that 1t is possible for
any commission to establish Interstate
rates IN al parts of the United States in
an equitable manner without practical ex-
perience and knowledge of the conditions
In the localities where relief is demanded
AS a rule the traffic officers consider the
commercial and physical conditions, the
density or traffic and the competition of
one locality as against another: so that
these considerations further emphasize the
statement that it would eurtail and limit
the earning capacity of the railroads that
nave now overcome its disabilities as to
location In both commercial and natural
geographical conditions
Dependent on Conditions.
The making of rates depends entirely
upon conditions that exist in the locali-
ties where the freight originates and the
destination to which the railway COMPANY
Is required to carry it. These conditions
vary according to the resources and char
acter Of commodities shipped to and from
various parts of the United States so that
the governing influence in the making of
rates on particular commodities in one
part or the country would not necessarily
govern IN another
The western country. particularly would
suffer because the greater the distance west
from the Mississippi the more sparseIy set
tied Is the country, and necessarily the
more limited the volume of tonnage.
Discrimination the Grievance.
'Ninety-nine per cent of the complaints
that are made to the traffic officers of the
various railroads are not that the rates
In themselves are unreasonable or unjust,
but that discrimination and preference is
shown, and that is what should be regu-
lated and the law enforced so as to prevent
the granting in any form, directly or in
directly. OF preferential rates for commu-
mites or individuals.
II the present law is enforced and trans
portation companies compelled to exact
and retain the published tariffs there would
not be any grounds for a general reduction
in rates, placing the power of making arbi-
trary rates for transportation companies
In commission. Competition under
natural laws of trade and commerce and
transportation will regulate and govern as
conditions and development require and
Justify.
The difficulty heretofore in maintaining
a parity and equitable correlation of rates
was the fact that. while maximum rates
nave been made, either by court decisions
or natural laws of competition, no remedy
has yet been adopted and applied for es-
tablishing minimum rates that will prevent
the MUMMY VI SuCD court decisions,
any adjustment that may be agreed to as
between the complainants and the railroads
desiring to make proper adjustment of in
CAPABILITIES or Determinations"
Asked Numerous Questions.
After Mr.. Inland had finished his state
ment he was asked a number of questions
Replying to Senator Elkins. ne said that the
effect of removing all differentials would
be to concentrate the export business at the
port that had the best facilities for ham
ding freight and could make the best
steamship rates. Naturally this port would
ba New York, and in his judgment New
York would be built up at the expense of
gulf and other Atlantic ports.
Mr.. Hiland stated there were no com
paints regarding the use of private car
lines on his road The road made the rate
on commodities carried in these cars
Shippers were more economically served by
private car lines than they would be with
out them. When Mr.. Hland had finished
the committee adjourned until tomorrow