New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-09-14
CLASH At RATE HEARING
Impudent, Says New York Gen.
trail Official to Counsel.
CROSS-ExAMINATiON BEGINS
One of Lawyers for Shippers
Arouses Ire in Vice President
Charles F. Daily.

Counsel for the shippers at the Interstate
Commerce hearing yesterday in the Wal
dorf felt they had enough material for
cross-examination. and the first TO be put
through a gruelling process was Charles F.
Daily, vice president OF the New York Cen
trail Railroad, with resultant clashes and
fnterchanges OF remarks not pertinent TO
the investigation.
One of the first things Mr.. DAILY said was
in answer TO q question by Francis 3.
James. one of the shippers counsel. regard
ing rate agreements. 1t would be suicidal,
Mr. Daily declared, for the railroads to have
individual rates His opinion was that it
would surely cause a commercial upheaval.
Il was when Mr.. James asked about the
sugar rate that the hearing took sharp
turn. He asked. innocently enough, what
the rate on sugar was from New York to
the Mississippi River and beyond
You don't want to ask every question
under the sun do you?'' said the commits
sion's examiner. Mr.. Brown. Sugar is not
under investigation; it is not affected by
the tariff"
Z have the right 10 examine this witness
on any question that will show his credi-
bility." Mr. James said, and the examiner
sighed and told him 10 go ahead The
counsel wanted to show that sugar had not
been among the goods that had raised
rate in the schedule. Mr.. James said he
believed the sugar trust was being favored
and Mr.. DAILY, after a pause. answered:
Rates on sugar are very delicate sub
ject. They must meet conditions of sugar
production in the territories where shipped
as the best sugar industry is in Michigan
think sugar rates ought to be raised, and
they will probably go up. If we trans
ported all our business on the same basis
on which we are compelled 70 carry some,
we would be bankrupt in thirty days"
Minnnizes Effect of Raise
Mr. James did not follow this lead. but
asked about the effect of the higher rates
on the man who sells goods. Mr.. DAILY
said there was very little effect on him
The cost would be so little advanced that
Il would have no effect in individual cases,
he declared
Mr. James then remarked that the men Of
St Louis, for example, who bought shoes
from New England factories had 10 pay
the higher freight; that the money would
be taken out Of their pockets and trans
ferred 10 the Golfers of the New York Cen
trail Mr. DAILY declared that some Of the
money found its way back TO the men who
bought the shoes. but that the road kept
very little Of II, that it went out almost as
fast as il came in
They do not have the luxuries of the
railroad officials. however," asked Mr.
James
y resent that came holly from the W.T.
ness Z did not think 7 was here to be
questioned as to my personal life. I think
II is irnpudent-'
Counsel for the shippers took a different
q n Er7ou rail
road considered the capitalization. 1t had
not said the witness. Asked which road
he believed TO he the best. Mr.. DAILY stuck
up for the New York Central as the first in
the world. This question was put for the
purpose OF making a comparison of divi-
dends Of the several roads in the country
Rates on steamers on the Great Lakes were
next taken up. as being higher than by rail,
and the raise in the ocean traffic also was
analvzed. The railroads control the lake
routes
MI Brandeis took the same witness in
hand and asked whether he thought the
higher rates were right Mr. DAILY said
they were basing his decision on his judg-
uent obtained by experience on railroads,
as Mr. Brandeis had obtained his in the
law.
No Specific Reason 10 Give.
But I had to specialize and study some
specific thing said the counsel, and can
you give US a specific reason other than your
Judgment"
Mr.. DAILY said he could not
Then the witness became warm and de
clared with emphasis that the railroads
should have something TO say about the
management OF their own property.
There must be some rights that we pos
sess. We do not question the right OF a
shoe man TO raise his prices" he said
The New York Central statement was
handed in by one Of the counsel for the
road. He called it a cord Of paper which
might b. termed the summary Of a summary
One of the counsel for the shippers said
that il was not complete. whereat Clyde
Brown Of counsel for the New York Cen
trail said:
We have given what they asked for At
any rate. we give them nothing more"