Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-05-23
ITS CLOSING SESSION
Winding Up the Railway
Rate Investigation.
TODAY LAST HEARING
DECISION OF SENATE INTER
STATE COMMERCE COMMITTEE.
All Witnesses Who Have Asked to Be
Heard Have Appeared, as Well
as Many Others

The Senate committee on interstate COM
merce held a private session this morning
and after a discussion OF the scope of the
Inquiry it has carried on up to this time in
relation to railroad rates decided to close
its hearings today. The committee has
heard every witness who has asked to be
heard, as well as a large number of proml-
nent railroad men and others whom IL de-
sired to hear
Mr.. II. 7. Newcomb. a railway economist
and lawyer of this city, appeared before
the committee and gave his ideas as to the
inadvisability of having a commission OF
government officials fix railroad rates. Ho
believed that such power would be intiu-
enced by political considerations.
He quoted a speech of Senator Lodge be-
fore a Massachusetts club. which related
to differentials on the railways in favor OF
southern ports, to show that in, the fixing
of these differentials sectional and political
influence is likely to be used on the gov
eminent officials whose duty it will be to
fix these differontials.
Senator Cullom declared that there was
no politics in the Interstate commerce COM
mission.
The witness did not charge that the pres
ent commission is influenced by politics.
but that the rate-making power would
make it possible for such influence to be
felt.
No Politics in the Commission.
"Oh we'll" said Senator Cullom, there
is no hole so small that politics cannot get
in it. But this commission is appointed
just as judges are appointed, and practi-
cally there is TO politics In it."
Mr.. Newcomb said he believed that when
the amount of railway earnings that have
been put into betterments and improve
ments of railroads is considered. all the
water that may have been in railway stocks
has been wiped out
He did not believe the total stock of the
railroads of this country represents the real
value of the railroads. In his opinion the
amount of stock that a railroad has issued
has no influence on the freights that are
charged. /.
The railway managers naturally attempt
to get all out of the business they can Sc
cure and distribute, and the amount of
stock does not help nor hinder them In that
purpose.
Educational Institutions. insurance COM
panies and savings banks, he said. own
one and one-half billions of dollars worth
of railway securities. The railways pay
out 611z per cent of their receipts for OPP
Grating expenses
During seventeen years before 1887. when
the interstate commerce act was passed.
the percentage of railroad rates declined
more rapidly than in the seventeen years
following 1887 He knew of no reason lor
that difference, except the influence OF the
law.
Commissions Figures Rejected.
Mr.. Neweomb referred to statements Oh
the interstate commerce commission in
1900 to the effect that rates had been ad-
vanced % per cent He analysed the method
by which this advance had been arrived al
and declared that it was erroneous and that
the average increase was only 2-s9 per cent
"An increase" he said, ''of - per cent
of railroad rates would bankrupt the COM
munities that had TO pay 1t. ana cohse-
uuentlv the railroads running through such
communities"
He said he didn't attach much conse-
uuence to the commission ngures.
1T only shows that you can Juggle hs.
ures and get almost any result you want
he declared The fact is. he said the ran
roads do not now earn as much on thelr
expenditures as they did before 1899 under
the lower rates. Prices of commodities; ne
maintained. had increased more imam hdu
railroad rates ..,
rnnv said he did not appear before the
committee as the representative OF any
railroad but that he was present at the
request of some railroad men VINO wele
familiar with his work. He believed that
iegisIation should be effective to prevent
any discrimination between shippers
No Rate Unreasonable in Itself.
He didn't believe there was any rate
axorbitant of itself, and a rate is excessive
only in comparison with another rate he
didn't believe there ever would be an I'M
reasonable rate of itself. because 1t wouid
never pay a railroad to put such a rate IN
force An increase Of rates would decrease
the volume of business.
Competition has reduced rates. and the
reduced rates have built up new business
he said Amy increase of rates would de-
stroy that business which has been oulit
IN. Competition has not reduced the rates
generally 1t has reduced some rates at
the expense of others. Consolidation OF
railroads tends to steady rates and 20
equalize them"
The rates have increased per cent he
said and the cost to the railroads TO DO
that business has increased % per cent.
That was in fact, a reduction of rates.