The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-09-14
Interstate Commerce Commits
sion Still on Rate Question
SENSATIONAL LETTER READ
Railroad President Writes That Conn
mission May Wink at Practices of
Exporters, Railroads Adopt
midnight" Tariffs.

Washington, September 13.-Unusual IN
terest attached to the hearing of the IN
terstate commerce commission today on
the question of the requirement of the
new railway rate law of thirty days notice
of Intended charges in freight rates.
Aside from the fact that the testimony
and discussions brought out charges and
counter charges of endeavoring to re-
strict competition upon the part of lines
east of the Mississippi and those west
of the river there was injected into the
proceedings something of sensation
when Chairman Knapp read letter from
a party whom he said was well-known
president of a western railroad, insinu-
ating in connection with the question of
waiver of the thirty days notice, that nhe
commission might twink at certain prae-
tices of the cotton exporters while GER
tain railroads might scoop their compeu-
tors by inaugurating instantaneous mid
night tariffs"
Judge Edward Baxter of Nashville.
Tenn. counsel for number of railroads,
bitterly assailed the writer of the letter,
and charged that it was an insult to the
commission, and those who were seeking
the waiver of the thirty day provision of
the law.
Moss Discusses Question.
]. D. Moss of Athens, Ca, an exporter
of cotton, in favoring return of the
old system of making through rates good
for twenty-four hours, said that 1t does
away with the feeling of unrest among
shippers who feared that a larger conf
pettor might get some advantage over
them The witness was unable to state,
however, in reply to questions by Chair
man Knapp, upon what this fear was
based since the system referred to had
been in vogue many years, and it was
supposed that the equalization of rates
prevented just such a condition. Not
withstanding this he urged the commits
sion TO exercise the discretion given
them and waive the requirement of the
thirty day notice "and thus prevent seri-
Gus decentralization to the cotton interest.
In the course of discussion, which fol-
lowed, participated in among Others by
Mr. Moss Commissioners Lane and Cock
reIl and Judge Edward Baxter of Nash
ville chief counsel for several roads
traversing the south, the latter declared
the ability of the roads he represents to
give notice of rates for thirty, sixty and
ninety days for almost any time, but
he wanted 1t understood that in doing so
they necessarily would be high because
of the uncertainty involved in the trans
action on account of the steamship rates
He made the latter statement, he said, TO
show what is to be expected were they
called upon to make rates far in advance.
The question OF the 1exibiity of steam
ship rates furnished the commission
hvey coloquy among several of those
present representing different interests,
the fact being brought out that steam
~1,f- I1 oil fr1Aa nj
meet the marine insurance conditions,
the insurance differing as between Geor-
gia ports and New Orleans, through
which the raise are made and eqalized
by the railroads.
One of those who took part in the
discussion was Samuel Brown OF Alba
n.y. Ca. a farmer and banker, who yes
terday urged the waving of the thirty
day provision. He asked If New
York people skinned the farmer, to
which he replied: They skin everybody
they can. Any man who is fool enough
TO put his money in the New York cot
ton exchange ought to be skinned"
Can Give Daily Rates.
A F. Churchill of Savannah of the
Churchill line of steamers, announced that
he was prepared to give rates on cotton
in advance for every day in the year.
Just before the usual recess for lunch
con was taken Chairman Knapp an
received
from a well known president of west
ern railroad protesting against any waiver
of the thirty day rule without exception
on export anw import traffic, Chairman
Knapp promised the reading of the letter
with the statement that it was for the
information of those present and his ac-
tion should not be construed as lend
ing approval to the sentiments therein
expressed. The name of the author of the
letter was not announced but it appealed
10 the commission to do its full duty and
not permit itself to be winked at in or
der that secret midnight rates might
not be given to some favored shipper
Judge Baxter upon conclusion of the
reading of the letter, declared that he
believed he knew the name of it's author
Il think" said he, that that belongs to
a class of railroads that nominally pro-
fess obedience to the law and make what
profit they do make by secret midnight
rebates. We are not here before this COM
mission to ask it to wink at anything
Special Contracts.
II can conceive no reason which would
apply to cotton which would not with
equal force apply to export grain. flour,
live stock and packing house products.
If you will examine the schedules on
file in your office, you will find thousands
of so-called export schedules which bear
on their face that they are in reference
to a special contract made between the
railroad company issuing 1t and some
particular shipper, who is thereby under
color of law, given preference over all
of his competitors which is the very thing
the law was intended to prevent.
THE thirty days notice makes 1t only
little more difficult to manipulate the
export rate for the benefit of the larger
shippers. I'll was by means of such sched-
ules that the export rate on packing house
products from Kansas City was manipula-
ted Ine court held the schedule and the
practice unlawful. assessed the maximum
fne and regretted that the law did not
permit imprisonment. The present law
permits imprisonment
IF you wink at the practice of export
ing cotton under such schedules as re-
quired, you will later have TO wink thu
other eye at the same practice in regard
10 the export of wheat, -four and packing
house products, and shall then be com
pelied to go out of the export trade or to
compete against such practices by adopt
ing the same methods.