New-York tribune., 1910-11-30
ATTACK RATE INCREASES
Expert Witnesses for Shippers
Call Them Unjust.
PREFERENCES IN TARIFFS
Brandeis Says He Will Show How
Roads Can Save Money
Without Salary.

Washington, Nov 2e-FYve expert wit
nesses for the shippers testified to-day be-
fore the Interstate Commerce Commission
in its investigation of the proposed rate
increases and on adjourning until to-mor-
the commission announced that the
arguments for the Eastern and Western
Increases consolidated would be heard here
on December 9. To-day's testimony was an
attempt to show that the proposed In
creases which the roads say will involve
net additional revenue of 81 100000 in
the official classification territory. extend
ing from New England to the Mississippi
River and north of the Ohio and Potomac
rivers. were unjust and unfairly dis
tributed. Rebates, the high cost of living
and other questions were discussed
The only witness who did not agree that
the proposed rates were unfair was c. c.
Mccain. of New York, chairman of the
Trunk Line Association. who explained a
pamphlet he prepared for the railroads al
an argument for the increase. Other wit
nesses were D. Q. Ives, of Boston. chair
man of the traffic committee of the trade
organizations of the Atlantic seaboard; ].
l. Tittemore, of Omro Wis; Edward S.
Orr, of St Louis. and E. E. Williamson,
of Cincinnati. commissioner for the ship
pers' bureau there
Mr.. Orr said that rebates were general
in ST Louis on the first three classes of
freight in the old days, frequently amount
ing 10 35 or 70 per cent of the standard
rates
Mr. Ives whose organization represents
shipping interests in New England, New
York, Pennsylvania, New Jersey, Mary
land and Virginia. said that rebates had
been abolished effectually. but agreed that
when the practice existed the rebates
reached S5 or 10 per cent, He caused laugh
ter when he said that on the railroads with
which he had been connected AL the ship
pers" did not get the benefit of rebates.
He maintained that the railroads were try
ing to do away with preferences
The preferences that exist to-day are in
the tariffs themselves?" asked Chairman
Knapp
Absolutely" replied the witness.
And the instances of secret departures
from the published tariffs are infrequent?'
More than that-they are accidental,
replied Mr.. Ives He declared that there
should be no general change in class rates
until the classification had been thoroughly
revised.
Mr. Williamson was examined regarding
the figures he had analyzed concerning the
Erie and other roads. He had severely crit
icised the Erie for overcapitalization He
said the Erie was handicapped with a fixed
charge of s45, ,oG0 a mile more than the Bal
timore & Ohio, and the latter had surplus
at the present level of rates.
Mr. Brown. general solicitor Of the New
York Central. said the s27 100000 estimated
increase OF revenue under the proposed ad-
vances included both interstate and intra-
state traffic.
Louis d Brandeis to-day replied TO the
offer of several Western railroads to en-
ploy him at his salary If he could show
them how American roads could save
81 0O0.Gao a day. in a telegram to the rail-
road presidents, which reads In part as fol-
lows:
I am convinced that such saving is posi-
| bic through the introduction of scientific
management. and shall be glad. as public
service, to arrange for conferences with
| these Western presidents al an early date
and point out how scientific management
will accomplish these results. l suggest
that the Eastern presidents be also invited
to attend the conferences.
| must decline to accept any salary or
other compensation from the railroads, for
pensation from the shipping organizations
whom j represent-namely, that the burden
OF increased rates, while primarily affecting
the Eastern manufacturers and merchants,
will ultimately be borne in large part by
the consumer through increasing the cost
added burdens. I desire that any aid / can
render in preventing such added burdens
shall be unpaid service. Kindly suggest
date and place for conferences.