The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1905-05-05
Milwaukee & St. Paul Official
Makes a Statement to the
Senate Committee.
DANGER IN INTERFERENCE
Many Elements. He Declares, Are
Taken Into Consideration in Rate
Making Which Commission
Could Not Understand.

Washington. May 2.-At 4 meeting
today of The senate committee James
II. Hiland, third vice president of the
Chicago, Milwaukee and ST. Paul
railroad Was called upon, and made
statement Regarding railroad rates
which specifically affect northwestern
traffic.
Mr.. Hiand said iii part.
Some OF the objections to placing the
rate making power III the hands of the in
terstate commerce. commission are: 1t
gives the comu1ission powe; TO limit the
earning capacity OF tho railways by in-
without providing means that will prevent
nullitication of the commissions order
by relative reductions on the part of COM
correlation of rates originally complained
of, thus compelling reductions in revenue
without resulting in corresponding benefit
to the complanants.
do not believe that ii is possible for
any to establish interstate rates in all
parts of the United States in an equitable
manner without practical experience and
knowledge of the conditions in the locali
ties where relief is demanded. AS a rule
the traffic Officials consider The commer-
cial and physical conditions. the density
OF traffic and the competition of one To-
cality, as AGAINST another; so that these
considerations further emphasize the
statement that it would curtail and limit
the earning capacity of the railroads that
have now overcome disabilities as to the
location IN both commercial and national
geographic condition If the commission
is invested with power to make rates it
must use mileage basis As an illustra-
tlon OF the injustice that may he done in
the making of rates by a commission APP
pointed with such arbitralN power ] might
state an Inquiry recently was made ot-al..
why II was that rate of 30 cents per 100
pounds was considered fair and reasonable
on lumber from the Pacific coast TO Chi
caSo. a distance of 2,2i0 miles. while a rate
oS y cents per ltl pounds charged ~
lumber from Ferguson. South Carolina a
distance of only little over 1oo miles.
must confess that | WAS unable to an
sweI to the satisfaction of the inquirer
or myself why there should be such IA dis
parity between the rates, because | did
not have any Knowledge OF the conditions
in regard to the conditions tha,1 ''''g,r9 'Jr.
rounded the making OF the rate frof. the
south 10 Chicago.
facl that there is a market for the INN
Der manufactured at Ferguson at nearby
points which Yields relatively IA greater
revenue TO the railway company than amy
to Chicago.
Therefore, if they were obliged to fix
the rates from the Pac6c coast or Fer
guson to Chicago by comparison with the
service performed. tho railways ncccSsar-
lily would be compelled to sacriice par
itelp4 Ion IN the transportation of lunl-
b"r from either ono point or the other
and this in my judgement is one OF the
mos convincing arguments that the rate
making power without a full knowledge
OF M inc CONDITIONS IS the most destl'uc-
l.!afilg COn3Drtit on
Another Illustration of This arbitrary
and destructive form Of making is
the case brought by tho chamber OF com
mcrce IF tha city of Milwaukee AGAINST
the various railroads in jhc northwest
combating OF unjust rate charges on
Whe2t and Other era n from points cf
shipments IN Iowa. Minnesota and South
Dakota to AlilwIl'hee as compared with
rates on like graiu to Minneapolis This
case was really the result of an ADJUST
ment in rates between the Minneapolis
and the Duluth mark kets, which previuus-
lN had been made in lii.c with the recon-
mendat!on of the iatcrstatc commerce
commission BY compromise aereoln MT
which. as | call II. WAS acceptable 10 both
lhe interstate commerce commission and
the complainant
The making of rates depends entirely
upon cond .tiols that exist in nc ,oc,tiitjCs
where the freight orignat"s and the d@s
tinatton TO which the railway company is
required to carry ii. 'i'Ecse conditions vary
according 10 thc rrsoIrcos and character
of commodities shipped 10 and from vari-
Gus parts OF the unite,i States so that the
governing influence i'm the making of rates
on particular commodities in ono part of
the country would Not necessarily govern
III mother.
The western country. particularly, would
suffer because the greater the distance
west from III" Mississippi river the more
SparSelN Settlcl is the country and ncces-
sariiN the more limited the volume of tom
mage.
Ninety n,ne ner cont OF the complaints
that are madc to the traffic officials of the
various railroads not that the rates
themselves are unreasonable or unjust.
but that discrimination and preference is
shown. and that is what should be resu-
lated and thc law enforced so as to pre-
vent the granting in any form directly or
Indirectly, of preferential rates for com
muliites or ndivduals