The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-04-30
RAILROAD MAN
TELLS HIS SIDE
Hearing of Senate Committee on
Interstate Commerce.
RATE MAKING Is NOT EASY
VIEWS OF PRESIDENT HILANO
OF THE MILWAUKEE.
RATE MAKING is NOT EASY

Washington April 29-At the meet
ing Of the senate committee on inter
state commerce today James II. Hi
land, third vice president of the Chi
cago, Milwaukee & St. Paul Railroad
company, was called upon and made
a statement regarding railroad rates
which specially affected the western
traffic He said in part:
Some of the objections to placing
the rate making power in the hands
of the interstate commerce commits
sion:
1T gives the commission power to
limit the earning capacity of the rail-
ways by investing II with authOrItgy to
make rates without providing means
that viii prevent notification of the
commissions orders by relative reduC-
tons on the part of the competing
railways. thereby maintaining the CO
relation of rates originally complained
Of thus compelling reductions in reve-
nue. without resulting in corresponding
benefit 10 the complainants-
Experience Needed.
Il do not believe that it is possible
for any commission to establish inter
state rates in all parts of the United
States in an equitable manner without
practical experience and knowledge OF
the conditions in the localities where re
lief is demanded As rule the tarltL
Officers consider the commercial and ply
steal condition. the destiny Of traffic and
the competition Of one locality as against
another. so that these considerations fur
Their emphasize the statement that 1t
would CuTtdil and limit the earning capac-
ity of the railroads that have now over
come disabilities as TO location in both
commercial and natural geographical con
ditiOnS-
Mileage Basis.
IF the commission is invested with
power to make rates ii must use mile
age basis As an illustration of the in
justice that may be done in the making
of rates by commission appointed with
such arbitrary power, ! might state that
an inquiry recently was made of me why
it was that a rate of so cents per 100
pounds was considered fair and reason
able on lumber from the Pacific coast 10
Chicago, a distance of $40 miles, while
charged on lumber from Ferguson, ;. G,
a distance of only mile over 200 miles.
L must confess l was unable to answer
to the satisfaction OF the inquirer or my
self why there should be such a dis
parity in the rates, because 1 did not
have any knowledge in regard to the con-
ditions that surrounded the conditions of
the rate from the south to Chicago.
Strong Argument.
1T may be. and have no doubt it is a
fact, that there is market for the Ium-
Der manufactured at Ferguson at nearby
points which yields relatively a much
greater revenue to the railway company
than any rate which could be paid on the
long haul TO Chicago. Therefore if they
cliff coast or Ferguson to Chicago by
comparison with the service performed,
the railways necessarily would be COM
PEELED TO sacrifice participation in the
transportation of lumber from one point
or the other. which is in my judgment
one of the most CONVINCING arguments
that the rate making paWer without a
fun knowledge of all conditions is the
most destructive measure that can be
devised for eliminating competition.
Another illustration Of this arbitrary
and destructive form of rate-making is
the case brought by the chamber of COM
merce of the city of Milwaukee against
the various railroads in the northwest
complaining Of unjust rates charged ON
wheat and other grains from points of
shipment in Iowa. Minnesota and South
Dakota TO Milwaukee compared with the
rates on like grain TO MinneapO This
case was really the result of an adjust
ment IN rates between the MINNEAPOLIS
and the Duluth markets which previously
had been made in line with the recon-
mendation of the decision of the inter
state commerce commission. by a COM
promise agreement. which as I recall it,
was acceptable to both the Interstate
commission and the cOmDlainants.
Depends Upon Conditions.
The making Of rates depends entirely
upon the conditions that exist in the 10