The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-09
Interstate Commerce Cammis-
sionto Render Decision
QUESTION IS VERY IMPORTANT
Many Railroad Men and Shippers Are
Interested and VIII Attend the
Hearine-Many compIiea-
tlons May Arise.

Washington September S.-(Special)
BY far the most important matter that
has yet come before the Interstate
commerce commission under the new
rate law will be the problem of export
cotton rates to be considered next
Thursday The commissions decision
in this matter Will set precedent on
the results of which may very largely
decide what the new law shall be-a
success or failure.
That the great Importance of the
hearing Is recognized by railroad men
and shippers is evident from the fact
that so many of them have indicated
their intention of being present and
have asked opportunity to be heard.
The commission has been Hooded with
letters and long kilograms on the sub
ject. This problem of export rates on.
cotton has been a difficult one even un
der the old law. The existence of the
problem is due to the uncertainties
of ocean transportation and to the
fact that a tremendous tonnage of cot
ton is offered for European shipment
at certain seasons of the year It Is
the custom of railroads in the south
to quote a rate direct to Liverpool or
Manchester. making 1t In connection
with he ocean shipping companies. All
cotton prices are made on the basis
of these English markets. and trans
portaion is. therefore, an essential eie-
ment In handling the business and
making prices. The new law requires
that thirty days notice shall be given
q mi.
panies say 1t is impossible to comply
with this because OF uncertainty about
the supply of shipping bottoms IL there
Is plenty of bottom capacity at the cot
ton ports at the shipside for the bus
mess and ocean rates go down. whi III
of course, correspondingly reduces the
joint rate quoted by the railroads, but
If there are few ships in port in pro-
portion to the amount of cotton await
ing shipment, ocean rates are likely to
soar and with them the joint rates must
likewise go up. To give thirty days
notice when such fast huctuating con-
ditions govern it, it is declared by rail-
roads to be utterly impossible. There
fore they ask the commission to ex-
ercise the discretion given 1T by the
new law and grant an executive to
this rule of thirty days notice in the
case of cotton rates. Shippers of cot
ton are almost unanimously on the
side of the roads in the request.
Exceptional Phrases.
But there are some other phrases which
make the commissions action doubtful.
1t is known for instance that If the SOUTH
ern roads are permitted to make expert
cotton rates on five days notice the north
ern lines will soon be asking the same
privilege as to grain rates. In some ways
there is even more eliments of uncertain
ty about grain shipping than about cot
ton.
The competition of lake navigation
during part of the year, the violent
changes of conditions when the lakes
closes in the fall or open in the spring
to competition of the Pacific roads with
the Atlantic ships, the trouble making
capacity of competing roads which being
in Canada are not easily subjected to
American regulation. These and many
other elements make 1t quite as difficult
to adjust expert grain rates to the new
thirty days notice requirement so the
northern roads will soon be asking for
the same exception that cotton roads re-
ceive.
And If the cotton roads and the grain
roads get together there will be demands
from all kinds of exporters for like con-
sideration with the present result that the
benefits of the thirty day notice before
will be minimized or confined to some
classes of business and thus constitute
in a fashion a discrimination. 1t is fear
ed that if the commission once establish
ed such precedent II will never get to the
end of the troubles. In the matter or
cotton rates the influence of Wall street
snec,,Iation on the ocean rate Is just now
receiving some attention It has been
broadly intimated that the spectators
are able at times to manipulate ocean
rates to the advantage of big interests in
the market and that in fact the privilege
of making changes without notice would
at times be a most powerful one In mar
ket manipulation. All these phrases are
likely to be Investigated before the COM
mission acts.