Los Angeles herald., 1907-01-23
PROUTY HEARS
OENvER'S CASE
INTERSTATE COMMISSIONER
PROBES RAILROADS
Colorado Capital Believes II Should
Get Same Rates as Missouri
River Polnts-Many Lines
Involved
BY Associated Press.

missioner G, A, Prouty today told nttOr-
ncys for George J. Kindel, the local
manufacturer who complains against n
number of railroads, that so fur had
failed to show cOncIusively TINT freight
rates to Denver were unreasonable.
Fearing the case was getting away
from KindeI and his attorneys \. j.
SPENCER, president of the chamber Of
commerce, through his attorney nsked
leave of Commissioner PrOuty to inter
vcnc. This move at first puzzled kindci
and his lawyers because the chamber
of commerce had obtained money to help
along KindePs action, but President
Spcngel later explained that too much
weight had been given to the question
of rate per ton per mile since the hear
ing began yesterday nnd that was not
whnt was wanted by Denver merchants
but instead they wanted Denver to he
given the same rights, terminal and
otherwise, as Missouri river points.
The defense began Offering testimony
Iatc In the day and II representative of
the Union Pacific railway explained the
system of rate making.
BY Associated Press.
DENVER, Colo. Jan. pa formid-
able array Of lawyers was lined up
In the United States court room today
when C. A. Prouty of the interstate
commerce commission resumed his in
vestigation of the complaints against
q score of railroad companies, alleging
discriminating freight rates against
this city and state. Joel f. Vale and
E. Clark represent the Burlington and
Denver & Rio Grande. Clayton Dor
sey appeared for the Southern Pacific
and some of the eastern lines; D. w.
Tears for the Lake Shore e. Michigan
Southern; H. j. Rogers and E. P.
Pierce for the Santa Fe; C. d. Haight
for the Erie and j. A. Lowe for the
Rock Island. J. j. Jeffrey and other
counsel were present and Joined in
the questioning of witnesses.
Three points of vital interest to the
entire west were emphasized by George
]. Kindel, manufacturer and one OF
the complainants. Mr.. Kindel claimed
that Denver manufacturers had been
driven out of business by freight rates
on raw material. He declared rates
are low to the Pacific coast and Den
yer people are paying much more than
those at tideWater. He also stated
that jobbers We're forced to close up
their houses because they are unable
to get into competition with other ter
rltO1leS on an pCudl DdSlS'
Similar cases over the entire west
are hinging on the result of the Den
yer inquiry and the decision here will
govern other like suits.
Commissioner Prouty announced that
the allegations in the complaint are
not specific enough. He suggested to
Attorney VIM. Harrison, representing
Mr.. Kindel, that the complaint be made
more specific in regard to class rates.
70 c,iI l1af n1lppn could
made that the class rates were eX-
cessive, but that it would be difficult
if not impossible. to make an allega-
tion on commodity rates.
Mr.. Kindel declared that the COM
plant was that Denver had to pay a
higher rate per ton per mile than some
other cities.
Rates Are Not Too High
Mr.. Prouty said he did not believe
that the commission would hold that In
general the rates were too high nor
would any court hold that the rates
were too high nor would any court hold
that the rates in general were hlgh
Denver was so situated, he said, that
the rate to San Francisco through Den
yer should be lower than the rate tc
Denver. This would not show that the
rate to Denver was too high.
The only ground on which the case
could be heard was that the rates Wert
unreasonable to Denver.
IF that is what you are trying tC
show" said Mr.. PrOuty, you have very
little evidence. So far you have showr
nothing except that the rates on cottor
piece goods are excessive. The com
mission can make no order on any com
modify not mentioned in the allega
tion"
There was further discussion among
the attorneys as to the allegations II
the complaint.
Mr.. Prouty said he had no authority
to rule on the competency of the com
plaint or to allow an amendment to th'
complaint, but he would allow al
amendment, and the whole commission
would take up the matter
Mr.. Harrison made a motion to ST
amend the complaint that the class
rates may be shown to be excessive anC
unreasonable,
f. w. Weego, local manager fol
Reeves g. Co, manufacturers OF
farming implements at Columbus
TO the rates charged from Col
umbus to Denver and other points
approximately the same distance from
the manufacturing center. His testi
mony showed that rates We're create
to Denver than to other points. HI
said he was unable 10 JOD ms cOnlnOl
tiles from this city on account of th'
excessive rates to the west.
Split Among Plaintiffs
A bombshell was thrown into the
camp of the plaintiffs in the case befor
Commissioner PrOuty this afternoon
Just as adjournment was about to b.
taken Attorney Edwin Costigan ap
peared for the Denver chamber of com
merce and asked permission to intro
duce a petition of intervention befor
the chamber because of the manner u
which the case was being conducted b.
Attorney Harrison and Mr.. Kindel
He said that the members of th
chamber feared it would be detrimental
to the business of Denver if their cas
was pursued along present lines. ThO
a a ASf1 u
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