The Spokane press. [volume] (Spokane, Wash.) 1902-1939, 1908-12-14
BY gibson GARDNER.

WASHINGTON, d. c., Dec. IA
For every reduction in freight rates
compelled by the interstate COM
merce commission under the Hep
burn rate law. the railroads turn
around and raise rates on enough
other articles to offset the threat
ened reduction in revenue. This
fact is now definitely known; and
the commission is powerless to pre-
: vent it,
For long tine certain members
of the interstate commerce commits
sion have suspected that the great
American public was being film
flammed by the astute railroad
managers.
In spite Of rate legislation. and of
some thousand decisions by the
commission reducing rates the rev.
enues of the railroads have gone on
increasing and the general level of
rates has seemed still to be high.
Every day hundreds. of new tar?
ifs have come In by registered
mail to be filed in the offices of the
commission. In their total these
have amounted to hundreds of
thousands.
Nobody has ever examined them
critically or paid any particular at
tention to their general effect No
body can state now how many of
them represent increases and how
many decreases. But the main fact
is now known.
The cat jumaed out of the bag at
a hearing In San Antonio, Tex,
which was being conducted by In
terstate Commerce Commissioner
Lane. Mr.. Lane had on the stand
C,Haile, general traffic manager of
the Missouri. Kansas & Texas road.
The subject came up of some in
Creases which that road had made
since the court decision upholding
the commission in it's reduction of
rates on live cattle from the south
west. Mr.. Halle explained that the
increases were made to offset the
said decreases
Commissioner Lane began to
open his eyes.
II understand your position to
be" said Mr.. Lane, that 1t was
because interstate reductions were
made that you are imposing upon
a line of traffic which has not been
subjected TO reduction an increase
in rates?"
Mr. Halle replied: I'm meas
ure, that is fact. We have got to
have certain revenues to meet GER
tain expenses, II the commission,
in It's wisdom, decides that on GER
tain commodities we cannot earn
more than certain amount, then,
as take 1t, being entitled under
the law to a return in the handling
of the property, we must make 1t
pay on those articles which they
have not touched"
The above was the gist of
frank admission made by this
traffic manager and which was
amplified in full detail. Under
further questioning Mr.. Halle ad-
mitted that his road had been pay
ing Az per cent on its bonds and
good per cent on Its very generous
capitalization, and that there, was
no pressing stringency which ne
cessitated the launching up of rates.
1t was, as he admitted, done on
general principles. AS fast as the
commission reduced one set of
rates the railroads evened the thing
up by raising another set.
1.-THE admission Is most signifi-
cant" said Commissioner Lane to
your correspondent. 1T is also the
first time that any such astonishing
disclosure has come out In any
hearing by any member Of the COM
mission. II Is fair assumption
X g. 7. railroad has no monopoly
on this method of multiplying the &C.
tivities OF the interstate commerce
commission and there is every rea-
son to believe that the practice has
been and is in progress generally
throughout the country. If such is
the case, then the public has been
flimflammed ON any proposition OF
getting a reduction of rates through
this law"
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The public will recall that no
longer ago than last July the Wall
street managers of the principal
railroads OF the country announced
their intention to make general
10 per cent increase In freight
rates. This purpose was communi-
Gated to Mr.. Fred Upham of the II
linois Manufacturers association, AT