Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-08-01
SUDDEN CHANGE OF RATES
How the Export Business is Accom-
modated.
CASES OF sEE-sAW IN CHARGES
Presented to the Inter
state Commerce Commission-No
Immediate Decision.

today laborfng upon a problem that goes
directly to the heart Of the entire matter
of railroad Discrimination. and upon its.
decision will depend the amount OF discre-
ton that Is to be given to the railroad
officials Of the country In maintaining equal
rates among shippers Of the country. This
problem Is involved In the plea Of railroad
officials now appearing before the commits
sion that the thirty-day notice for the pub
lication of changes in railroad, rate sched-
ues be suspended for the present.
The railroads are contending that It is
necessary to make a change in the rate.
especially on export business. to go into
effect at once. They have many strong
reasons why they should be given this dis
erection that are acknowledged generally,
and the principal question is whether the
railroads. II given the discretion asked for,
will exercise 1t wisely. and without favor.
For Instance. they declare that the con-
stantly changing ocean rates make 1t nee
essary that they shall change their rates
suddenly.
A Case in Point.
A vessel bound for Liverpool, for instance,
and scheduled to sail tomorrow. discovers
that 1t has practically no cargo 1t may be
that within few days another vessel is
expected to arrive In port to take cargo at
a rate greatly reduced under that charged
by the vessel that Is ready to sail. Rather
than go practically empty the vessel own
erS announce to the railroads that 1t Will
cut its usual rate in half. go even lower.
If that rate is to be effective the railroads
will have to make a corresponding reduc-
ton in their through rates, from interior
points to Liverpool. If the rate Is not re-
duced that day without more than few
| hours notice. the ship will have sailed.
Two days later the conditions will have
changed so that the old rate will have to be
| again established And Ii The
rates from such causes see-saw up and
down, with little chance for anything like
a months notice of the change which must
be given. unless the commission in its judy
ment DEGREES otherwise.
There are a multitude of such rea sons
why the roads. want discretion IN the low
ering of their rates and it is acknowledged
that should they have that discretion and
deliberately undertake to practice discrimi-
nation they could do. so. But this question
is very important one for the commits
sion to decide.
May Postpone Decision.
At a meeting of the commission today
there were present only three members
Commissioner Knapp, chairman, and Com
missioners Clements and Cockrell The fact
that so few members are in the city and
sitting was given as the reason for a
refusal to decide the, question at all at this
time. There is strong inclination on the
part OF the members to defer any action
on this question until the entire new COM
mission Is In session and the views of every
one can be secured The entire commission
will probably be in the city on the 10th of
this month and at least by September 1 it
is expected there will be a full meeting
One of the difficulties that faces the COM
mission In the making of this decision Is
it's influence upon freight rates affecting
shipments entirely within the United States.
When railroad officials were heard before
the Interstate commerce committee Of the
onx.a - ffxr 49, yI.x q
sons which are now advanced for the
prompt changing of rates on shipments af-
fected by ocean rates were advanced in
reference to rates for shipments entirely
within the country. 1t was shown by
President Tuttle of the Boston and Maine
railroad that one case his road had met
was typical of problems that are constant
ly recurring. He cited case In which
during the period when the potato crop of
Maine was being gathered the Boston
market was flooded with potatoes from
Michigan. The price of the potatoes was
run down to such an extent that 1t became
necessary to greatly reduce the rate from
Maine points to Boston in order to move
the potatoes at ALL
The railroads took prompt action. and
although they made practically nothing
on the shipments they prevented the en-
tire crop from rotting in the fields of the
farms OF Maine. II thirty-day notice of
that reduction had been required, he de-
clared. it would have been impossible to
Il
put 1t into the market.
Flooded With Notices
or course the commission, by special ac-
ton. can reduce the rate on any given
article upon a showing of its necessity
but 1t is claimed that If the commission
were to undertake to decide such ques-
tions 1t could never do SO for the want of
time and the decisions could not be made
quickly enough to give the desired relief
There are at present between 400 and 600
changes of schedules filed with the COM
mission daily. That, it is said, Indicates
the amount of business that is done, and
although the number of emergency cases
might not be so great. at the same time
they are very numerous.
Announcement to Officials.
After further conference of two hours
and half today the railroad officials who
have been discussing with the commission
the Interpretation and enforcement of the
new railroad rate law adjourned their meet
ing.
Little of definite nature was accom-
plished at the conference. After discussing
some details today it was decided that a
committee OF six railroad officials. two from
each of the great traffic divisions of the
country. the Northern, Western and South
ern, should be appointed to confer further