The Montgomery advertiser., 1908-04-30
MONTGOMERY MERCHANTS SAY THEY CANNOT COMPETE
Messrs. Clements and Clarke Are
 Hearing Case.
Manager H. T. Kealhofer of Montgom- cry Freight Bureau Was Princi- pal witness--w. F. vandiver
 Gave Testimony--Col Ed.
 Baxter Represents
 p, Roads.

The initial session of the hearing by the Interstate Commerce Commission accorded the Montgomery Freight Bu- reau affecting railroad freight rates from the Mississippi and Ohio river crossings to this city was opened promptly yesterday morning at 10 o'clock in the Federal Court room in the Federal building,
 Commissioners Judson. c. Clements and D. E. Caark. were both present fresh from the hearing which they conducted In New Orleans. Other dis tingufshed visitors were to be seen dotting- all parts of the court room These were freight tradlc experts of the main lines which are defendants in the case and their counsel. As wit nesses for the e'complainants appeared many of the leading merchants and 5obbers of Montgomery.
 The room was nearly filled also, by the presence of spectators who will not be called as witnesses but who are interested in the outcome of the inves- tigation.
 Judge Edward Baxter of Nashville Is attending the hearing in behalf of the Louisville. and Nashville Railroad and other lines. He Is doing a great DOT Hon of the cross-examination of wit nesses called by. the Montgomery Freight Bureau, which is the plaintiff tn the hearing. Others present are: c. B. Compton, General Trafic Manager of the Louisville and Nashville; l.. Green, General Freight Agent of the Sou ern Railway. E. K. voorhooes. Freight t Traflc Manager of the Frisco; W. J. Kessler. Counsel for the Mobile. Jack son and Kansas City Railroad; Ciau- diaH B. Northrop, Counsel for the Sodthern Railway; Sydney R. Prince and R. F.. SteinsF of Counsel for the Mobile and Ohio , < The session yesterday mofnanK npen- ed by Commissioner Clements calling on Counsel Horace Stringfeliow of Nontgomery, who IS representing the Montgomery Freight Bureau. for a 6Faef and comprehensive statement of the com plaint filed. MT. Stringfellow told suecinctly the purposes of organ izatton of the Bureau. which was to enable by securing lower freight rates to scompete with Mobile. Pensacola and Birmingham in the trade with sur rounding territory. He said the com plainants expected to prove that by advantageous freight rates on essential sommodities Mobile and Pensacola had been enabled to invade contiguous ter Fitory to Montgomery to the extent that 0tnpetftion is shut off within twenty-five miles of Montgomery in some instances.
 st'f Complaint ia Stated. lACounsel for the Montgomery Freight Bureau stated that he did not take the position nor does the complaint allege that Montgomery should have the same rates as Mobile and Pensacola enjoy. What was to be insisted on is the granting of a reasonable dlfferentiaI by thakirailroads The rates in question are from points on the Mississippi and Ohio river crossings and beyond
 Judge Baxter arose with a few words tnsEhich there was no outline of the defense the roads were to offer in the investigation. He referred to a ruling Of. the, Interstate Commerce Commis- sion which he said was a wise one and he believed might we'll be applied to this nearing This was a rule that when complaints arise from alleged determinations in favor of competi- tive points, those points should be giyen a chance to be heard also.
 Counsel for the railroads declared that this is one of the most important cases that have come under the juris- diction of the Commission since the re- cent amendment to the Congressional Act. He said that the roads have done their best in the last twenty years to make fair adjustment of rates to the South and the Southeast. especially to the leading distributing centers. He
  and that some discrepancies exist was not denied.
 After the statement of Judge Baxter was concluded, Commissioner Clements directed Counsel Stringfeliow to pro- ceed with the testimony. H. S KeaI- hofer. manager of the Montgomery Freight Bureau. was the first witness called.
 Mir. Kealh ofer testified that he had had upwards of twenty years of rate making experience. Among other rail- roads he had been employed by the freight traf7c departments of the Kan sas City, Memphis and Birmingham Railroad. the Central of Georgia and the Southern Railway. The witness stated briefly the purposes for which the Montgomery Freight Bureau was organized. It Is an Incorporated body of men, firms and corporations in Montgomery uniting to maintain through better railroad freight rates a better position for Montgomery as a wholesale and jobbing center. The position aimed at has especial refer enee to competitive points such as Mo bile Pensacola and Birmingham.
 The terminal facilities of railroads entering Montgomery are excellent. ac- cording to MT. Kealhofer. Montgom ery's business future depends on her wholesale, job ping and cotton interests. The following are among the firms and corporations who compose the Freight Bureau: c. w. Barnett Hardware Company, Durr Drug Company, Griel Brothers. Kennedy Company, J. Loeb Grocery Company. Loeb Carriage and Supply Company. c. F. Morltz and Company, Snow-Tul1is Hardware Com pany, Schloss and Kahn, Steiner. Lob man and Company Steiner, Lobman and Frank, Teague and Sons. Vandiver Grocery Company and Winter. Loeb and
 The witness testified that the fol- lowing roads enter Mobile with Wes- tern connections: Mobile and Ohio southern. Louisville and Nashville, Mo bile. Jackson and Kansas City.
 There is no through water route to Mobile from the West he said.
 As to Mobile.
 The rates on all classes with few isolated exceptions, the witness testi' tn Nav Ofleanf