The Montgomery advertiser., 1905-04-27
HINES DEFINES ISSUE
TELLS SENATE COMMITTEE OF
 LONG AND SHORT HALLS.
Chairman EIkins Wants to Know Something About Railroad Laws of Great Britain, Germany
 and France.

Washington, April 26.-Chairman Elkins of the Interstate Commerce Committee announced today when the committee assembled that he requested the State Department to procure the railroad laws of Great Britain, Ger many and France and the portions of these laws bearing on the questions before the committee will be printed as part of the hearings. Walker D. Hines, formerly of the Louisville and Nashville Railroad, continued his state- ment before the commission. He in- sisted that competition was the issue of less rates for the long nauls than for short hauls.
 Senator Deliver called attention to the announcement that certain associa- tion had met and determined to lower rates in territory reached by group of railroads in the South. Mir. Hines re- piled that these associations were bu- reaus of information in winch repre- sentatives of railroads met and inter- changed views. Where there was to be a change of rates on all roads, witness said the soad ought to make the change at once. He expressed the opinion that pooling would be of little advantage to railroads. MT. Hines explained differentials, safd the competition between the gulf and Southern railroads and Atlantic ports
  traffic of the Northwest was respon- sible therefor. New Orleans secured a low rate and New York wanted an equal rate. Differentials were the ad- justments of competition between ri- val lines. There could be no govern mental interference in these dineren- tials. A government tribunal could not figure out what proportion of grain traffic should go to New Orleans and how much should go to New York
 Senator Deliver asked if 1t was not an endorsement of the Interstate 1om- merce Commission that there had been unanimously submitted to the Commis- sion the matter of arbitration of differ entials between Baltimore, PhiladeI- phia and New York. MT. Hines re- piled that these communities were willing that the Commission should De the arbitrators and the railroads also were satisfied. But New Orleans with its enterprise and energy and its rail roads might not be satisfied. If the Commission had power to fix rates 1t should be compelled to fix a specific or minimum rates or the differential would be destroyed. If a minimum or specific rate was fixed then competi- tion would be destroyed. The Com mission would not move quick enough to fix rates to meet changing condi- tions If the governm ent should as- sume the power to fix rates 1t also would have to assume the responsibil- itv for the welfare of communities which had an unfavorable natural To- cation. just as the railroads do now.
 Under the constitution the Commits sion. Mir Hines contended. could not give a preferential rate. It probably would be within the power of Con- gress, he added. under its authority to regulate commerce, to acquire the railroads of the country. Then of course Congress would have to fix rates in order to carry on business, but 1t did not follow that without owner ship Congress should fix rates.
 MT. Hines asserted tnat a govern ment tribunal could not fix rates he- cause l. would not have time. In the section east of the Mississippi and South of the Ohio and Potomac rivers. comprising IT per cent of the mileage and 12 per cent of the earnings of the railroads of the United States, there were engaged in freight traffic and rates five vice presidents. twelve traf- fic managers and assistants, forty four general freight agents. five for eign freight agents and twenty-five to thirty chief rate clerks all engaged In making rates. There were in addition from 400 to 500 travelling freight agents who were constantly in touch with their superiors. All these men