Omaha daily bee., 1910-11-30
Amounted from Thirty-Five to Forty
Per Cent.
IVES SAYS PRACTICE Is ENDED
Preferences Existing Today Are in the
Tariffs Themselves.
BLANKET ADVANCE IS UNJUST
witness Calls Attention to Lake and
Rail Advances from Ten to Twen-
ty-Five Per Cent in Last
Decade.
Decade.


for the shippers testified today before the
Interstate Commerce commission in inves-
tigadon Of the proposed rate increases. on
adiourning until tomorrow the commission
announced that the arguments of the east
ern and western increase cases, cOsoH-
dated, would be heard December 9.
Today's testimony tended to show that
the proposed increases, which the roads
claim will involve a net additional revenue
Of $27OOO,OOO in the official classification ter
ritory. extending from New England to the
Mississippi river and north OF the Ohio
and Potomac rivers were unjust and un-
fairly distributed. There was discussion
also Of rebates, the high cost Of living and
other questions
witnesses on stand.
The only witness who did not agree to
the unfairness of the rates was c. c. Nc
Caine of New York, chairman of the Trunk
Line association, who was called to ex-
plain a pamphlet which he prepared for
the railroads as an argument for the in
creases. Other witnesses were d. o. Ives
of Boston, chairman of the traffic com
mission Of the trade organizations of the
Atlantic seaboard; ]. L. Tittemore of
Omro Wis; Edward S. Orr Of ST. Louis
]
missioner for the shippers bureau
Mr.. Orr testified that rebates were gen
eral IN St. Louis on the first three classes
Of freight in the old days, frequently
amounting to S5 or 40 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, declared that the rebate
had been abolished effectually, but agreed
that when the practice existed the rebates
reached S5 or 40 per cent. He caused
| laughter when he admitted that in the
case Of the railroad with which he is con-
nected all the shippers certainly did not
get the benefit OF rebates. Mr.. Ives main.
tained that the railroad men were sin
cerely trying to do away absolutely with
preferences, whether rebates or otherwise.
No Rebates Now.
THE preferences that exist today are in
the tariffs themselves?" asked Chairman
Knapp.
Absolutely" replied the witness.
! And the instances Of secret departures
! from the published tariffs are infrequent?r
More than that, they are accidental, p"
replied Mr.. Ives.
COntending that 1t was unjust to at
tempt blanket advance in class rates
from the seaboard to western territory, he
maintained that a 20 per cent advance
from Chicago to Illinois and Wisconsin
and west Of the Mississippi would not
| eQualize a 20 per cent advance from the
seaboard to Illinois under present condi-
tions. Mr., Ives called attention to lake
| and rail advances aggregatiug from 10 TO
20 per cent in the last decade in addition
In
claimed that the proposed horizontal rate
increase is arbitrary and made without
considering its results to the Industries af-
fected He criticized the trunk line traffic
executives for refusal to consider each ar
ucle on its merits. The 20 per cent ad-
vance on the first five classes, declared
Mr.. Ives, while an excessive increase is
not the maximum increase CONTEMPLATED
for he said large additional burdens are
laid on the lake transportation which does
not even have the justification Of any
extraordinary increase in wages.
Mr.. Ives cOntended that proposed hori-
| zontal increases would distort existing
trade relations that It is unjust TO impose
the burden OF the whole rate on 25 per cent
Of the traffic. which can only result in less
freight between the east and the west
with its accompanying localIzation, lessen
ing of competition and ultimate increase in
the cost Of living to the consumer far be-
yond the initial increase in rates.
increases Have Been General.
J. L. Tittlemore Of Omro. Wis, testified
that rate classification investigations he
had made between 1900 and 1910 showed that
during the decade sustained increases in
rates had been made on more than Cox
articles and sustained decreases on 26l
through changes in classification.
He contended that class rate bore NOR,
heavily on the necessaries OF life than dit
the commodity rates and that the lattel
were open system OF rebatng.
Mr., Tittlemore said he had been unabl,
TO find that any classified ratings bat
been changed to commodity ratings. II,
said that the railroads proposed to put tn,
burden Of S27,OOO,OOO increase estimated 70
the official classification territory on i
per cent Of all tonnage, Increases, he de