New-York tribune., 1907-01-24
DENVER HEARING ENDS
Commissioner Proaty Outlines Plan
TO Loscer Freight Rates.

Denver. Jan. 2S.-The hearing before Charlse A.
Proutg, Interstate COmmeros Commissioner on
,he complaints CT che Merchants Traffic AssOcia-
Won and George J. Kindel manufacturer alleging
illegal discrimination against Denver by the trunk
Hne railroads in freight tariffs was endsd thi.
afternoon
The most important development to-day was the
suggestion by Mr.. Prouty that the local rates be-
tween Missouri River points ana Denver and Dem
and Utah points be reduced. instead OF estab-
fishing a new basic division point at Denver as
asked for by the petitioners. II this were done
without a corresponding reduction in through
rates. he thought. It would give a measure OF re-
Ilef Denver, without great harm to other points
The amended complaint OF the attorneys for the
Denver Merchants Traffic Association and George
X. Kindel and the brief OF the Denver Chamber
~ Commerce against the railroads were filed at
the opening or the session. Mr.. PrOuty refused to
rule on tie objections made to filing those papers.
saving the regularity OF the proceedings was a mat
for the entire commission 20 decide upon
J. A Munroe. OF the Union Pacific Railway. re-
sumed the witness stand to-day. He announced
that rhe Union Pacific now had a new tariff IN tn.
hands OF the printers, making n material reduction
IN the rates 20 Denver He thought this new tariff
would 30 into effect about March l.
M Prouty instructed Mr. Munro. 20 file with
fhe commission an approximate statement Of what
loss would occur TO the Union Pacific, together
with the changes in rates and what places would
he affected by these changes. ~ a reduction in
freight on first class matter from the Missouri
River TO Denver IS made 70 81
Mr. Munroe was also instructed 70 file number
of other statements Of results il a reduction in the
rste 10 Denver be made.
George H. Crosby. freight traffic MANAGER or The
Chicago, Burlington & Quincy, said he considered
Denver a prosperous city, but Acknowledged that
the tonnage OF freight shipped into Colorado and
Denver has not increased in the same proportion
as the tonnage increase OF the of the country
IL A. Cover. tEafio manager OF the Chicago.
Rock Island & Pacific Railroad. said that the same
complaints Denver made were made by cities
ell over the United States. He fled a series Of
tables tending to show that the earnings OF the
Rock Island road were too low even with the pres
tariff sheet.
AR. Cover and Mr.. Crosby required 20 III.
with the commission similar statements 10 those
required OF Mr. Munroe.
Mr.. Prouty announced he would make sim
ilar request Of all the railroads entering Denver
fr' the East.
Fred Wild jr general freight agent OF the Den
yer & Rio Grande Railroad, filed tables show
that there had been a general reduction of freight
rates on the Rio Grande railroad within the last
year between Colorado common points and Utah
common points.
Mr.. Wild said that the Denver & Rio Grands
made its commodities shipped from Denver s2l5
per cent OF the rates charged for goods from Mis-
sorTf River common points 20 Utah common points
This Is the same percentage allowed the Rio
S5Tsnde i on goods shipped through Denver over its
mon points he also said .bst the rate an Class
goods was not figured on this basis as IL would
reduce the revenues OF the railroad too much.
AIR. Vale showed that the earnings Of the Denver
q Rio Grande through business on a ton mile
basis, were much less than the Union IA
cihc Railroad earned its through business from
Omaha 10 Ogden. A table also filed showing
that the cost Of operating has increased in the
last year from 10 Il per cent.
II was brought out that the rate from Denver 20
Ogden was 50 Ter cent Of the through rate on all
classes and commodities and the rate on the same
goods from Omaha TO Denver was GO per OF
The through rate: Therefore: where goods were
broken in bulk at Denver and transhipped 10 Og-
rate.
A. J. Spengel. president Of the Chamber OF Com
TneTee. explained that the Chamber Of Commerce
had interviewed 20 procure for Denver the same
rights. terminal and otherwise Missouri River
points had.
Commissioner Prouty announced that there would
be vigorous protest on the part OF the Salt Lake
if basic line should be established at Denver. as
Il would allow Denver almost 10 reach the gates OF
Salt Lake as competition from the Pacific Coast
now reaches a the West. He asked Mr..
Spengel IL IL would relieve the situation IL rates
were reduced Is he had suggested 10 Mr.. Wild
Mr.. Spengel answered that he thought II would
and the Commissioner said he thought something
Of the kind ought TO prevail I'm the of Denver
Mr.. Prouty added that the case OF Denver depend
81 10 great extent the disposition OF the case
of Spokane, which would be heard further at Port
land on April 15 If il desirable to hear
further evidence in Denver IL would be heard on
April % Arguments in the case would be finally
heard at Washington on June 3.