Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-11-23
Where Does ne Come in on
Higher Freight Rates?
This Point Brought Out IN Hear.
ing Before Commission. ,
More Testimony Urging ''selsntif.
ID Principles" for Railroads.

Washington, Nov. 2o-Testimony
instigated by George w. Perkins, of
the J. =. Morgan Co.. the New York
syndicate that is said to finance and
control an immense proportion of the
railroads OF the country, an analytic
excoriation Of crude manual and me-
chanical methods of railroads, and a
drifting discussion Of scientific prin-
cipies of business featured today's
freight rate increase hearing. II was
the second day OF the presentation of
the shippers argument before the In
terstate Commerce Commission on the
suspension Of propc: ed advances in
the tariffs on great quantity of the
traffic moving over the entire official
classification territory.
The railroads would like to put into
operation advances in rates on freight
the country over and in line With this
view it was suggested today that part
OF the policy was to commit the Ship
ping interests to testimony that there
would be no complaint if the advances
We're made uniformly throughout the
United States. The trunk line presi-
dents have claimed that the increases
are vital to their corporations.
A delegation of a dozen officials from
the Grand Rapids furniture manufacture
ing Industries in Michigan appeared at
today's hearings. While voicing opposi-
ton to the present Eastern trunk line
advance plan they testified that they
would have no complaint to make if the
Increases proposed were not confined to
one section or otherwise discriminatiye.
Then, through the prodding of Attorney
Lyon of the commission, it was disclosed
and admitted by two of the men called
by the shippers that the appearance of
themselves and the other Grand Rapids
people, representing many millions of dol
lars of Investments, was at the sugges-
ton of one of the heads of the Morgan
syndicate who thought that as a matter
of fairness the shippers should ex
press their views. The testimony failed
to show any suggestion from Mr. Perkins
that the consumers also should present
their views, though 1t was intmated that
II the railroads and the shippers agreed
as to the sweeping increases in freight OF
several thousand kinds across the CONT
nent, with an aggregate addition of al
most fabulous millions of dollars to the
railroad earnings, the burden would resi-
upon the consumers. I
President Henry NJ. Towne, a manufac.
turer and head of the Merchants Assoc.
alton of New York, contended that the
railroads should first put their own house
in order-as he expressed it; they should
install modern methods OF business
which were just as feasible with them
as with other industries. and that If sci
entific management could not produce
economies to meet the revenue needs,
then he would join with them in their
demand for rate increase. He depicted
in glowing terms the big business strides
under scientific management Henry Van
Ripper Scheek, engaged in the manufac.
tlfre of cotton in PasSaic. n. j., also tes-
titled enthusiastically concerning the
workings of that system, and told Of the
bon,,s scheme at his plant whereby the
weavers. with a minimum bonus alone,
| might attain weekly total wage of $143O
The shippers testimony will be contin-
ued tomorrow.
Attorney Walter L. Fisher represent
ing the National Wholesale Dry Goods
Association. the Western Association OF
Shoe Wholesalers and other industries
announced that he would produce one
witness. a Mr.. Titteman, veteran rail.
road official. Mr. Titteman is intended
to give testimony to combat the conten
lions of Vice President Thayer of the
PENNSYLVANIA Railroad that the increases
were really an adjustment of class rates
| as between themselves and as between
the commodities and class rates, the
class commodity rates having been in
creased heretofore and the class rates no,
having been increased. H..
Ernest l.. Ewing of Grand Rapids
had charge Of the presentation of the
furniture shippers case and told how
the increases would affect the furni-
ture industry
w. H. Gay testified that $4,000. 900
was invested in the As furniture fac
tories at Grand Rapids. whose annual
sales aggregate S12oo0.OoO.
Mr.. Gay admitted that his appear
ance here as a witness was at the sug-
sestion of George W. Perkins of J.
p. Morgan & Co. He testified that
while opposed to the present proposed
increase he would lave no objection
to a general freight increase If APP
piled by the railroads. uniformly
| throughout the United States
Steward Foote of Grand Rapids also
| testified that Mr.. Perkins had sug-
gested his appearance at thes hearing
and that he would not object to
general increase.
Mr.. Foote said that the consumers
and not the shippers would pay the
Increase, as the furniture manufac-
turcrs would put their products into
| the cars f. o. b. at Grand Rapids
Attorney Lyon asked the witness in
detail concerning the interest Of Mr..
Perkins in the matter. Mr.. Foote said
| that Mr.. Perkins had suggested that
the manufacturers and shippers would
be welcome at this hearing but did
not attempt to indicate what position
they should take.
| Mr.. Gay. when recalled, said that
the suggestion from Mr.. Perkins was
made at an accidental meeting with
him in Washington a month ago
| Mr.. Perkins explained that they had
been witnesses for the railroads, that
they had been one-sided and that
he did not like it.. as he was just as
imuch Interested in manufacturing and