Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-07-30
WILL COMMISSION
MODIFY RULE So?
Action of TransoontinentaI Rail-
roads in Regard to Oriental
Trade Arouses Interest.
TEENS WITH DIFFICULTIES.
Hill Gives an Observation-Disclosures
Association of Commerce VIII In
vestigate the Subject

Washington, July $0.--The report
that the transcontinental railroads
controlled by j. j. Hill Edward II.
Hartman, the Berwynd syndicate and
the Canadian government have deter
mined to surrender their export trade
to China, Japan, New Zealand, and
Australia on Nov. l. has created a
great deal of interest at the Offices of
the interstate commerce commission
in this city IL this action is taken. it
viii merely fulfil the prediction that
has been made by the railroad officials
who have resisted the enforcement of
the rule of the commission by which
they are obliged to publish the portion
of their export rate which goes to the
railroads for hauling shipments to
seaports and to give notice of any in
crease or decrease in these rates. The
purpose of the transcontinental roads
to take this action has not been
brought to the attention of the com
mission which has full power to mod
ify its rulings in order to meet the
objections of the carriers should they
care to do so. But as this matter has
been very fully considered by the
commission, it is not regarded as like
ly that their rulings in this respect
will be changed.
CLAIMS OF RAILROADS.
The railroads have claimed ever
since this rule became effective that
they could not comply with 1t and
conduct their export trade James ].
Hill gave an example of the difficulty
that confronted him in q matter of
this kind, when before the commits
sion, saying he had an opportunity to
bid on the delivery of 10000 barrels
OF flour to the orient, but as he could
not quote rate without formally Civ
Ing notice, he was unable to make
bid for the business. and the delay
caused the order to be placed in Aus
tralia. Constantly changing ocean
rates and the demands of trade which
the carriers have represented, makes
II necessary that they should be free
10 quote rate on export business
without moments delay. They have
frequently declared. that the commits
sion's rule would put them out of the
export trade with the result of caus-
ing an immense loss TO the foreign
trade of the nation.
DISCUSSED BEFORE.
This subject was discussed when
the case OF the Cosmopolitan Shipping
company versus the Hamburg Ameri-
can Packet company was before the
commission for hearing. 1t was the
consideration of this case that gave
rise to the rule which the transcontin-
entail roads now declare is making 1t
lnnnSGlhIR han to Tim, to, ~,
export trade. In this case complaint
was made against the operation of
what was termed the Baltic pool.
which it was alleged. control land and
water rates from inland points in the
United States to the destination of
shipments. The commission asserted
inability to control water rates, but in
sisted on separation of the inland
rate to the place of export from the
through rate and applied to that por-
ton of the rate the provisions of the
law making mandatory both publica-
ton and notice OF changes of the rate.
As the question was passed upon af
ter the most complete hearing and as
predictions were then made that it
would put the railroads out OF the ex-
port trade. it is not considered likely
that the commission viii readily re-
verse its rulings.
WILL INVESTIGATE SUBJECT.
Chicago, July 3O-The Record Her
aid today says:
The decision of the transcontinental
railroads to abandon the export or
iental trade and a large proportion of
the import trade has aroused the Chi
cago association of commerce to make
an investigation of the subject.
The management of the association
has secured all of the papers on file
before the interstate commerce com
mission, and Is making careful ex-
animation of the arguments advanced
by the railroads In support of their ac-
ton. 1t IL possible that the investi-
CATION Of the association may result in
an appeal TO the commission for a
hearing in the case, or an appeal for
aid in preventing the railroads from
going out of that business. II the as
ISOLATION officers decide that the rail
roads We're justified, 1t Is possible that
the commission will be asked to change
its ruling In the case. on all sides yes
terday inquiry poured into the asso-
citation with respect TO the matter and
great surprise was expressed that the
railroads should have taken such radi-
cal action. Some of the inquiries came
from the Pacific coast cities. where
the shippers viii undoubtedly appeal To
the commission against the unreason-
ableness of The new export and Inn
port rates which VIII be IN effect Nov
!. Such action, II Is stated, would not
be altogether Objectionable 10 the rail
roads because II might result In the
commissions ruling that the carriers
were Justified In char~'"r between 40
and 90 per cent less on exnorts than
on the same articles for domestic con-
sumption at the coast cities, II this
should be the result the carriers would
be only too glad to continue In the
business as their revenues on domestic
business would not then be threatened