Arizona republican., 1910-11-30
MORE TESTIMONY ON
 R. R. RATE QUESTION C. O. IVES SAYS TARIFF SHEETS CARRY RATE PREFERENCES. Changes in Classification Needed Be- fore Rate Changes Are Feasible.

Washington. Nov. 29.-Five experts for the shippers testified before the interstate commerce commission to- day with reference to tine proposed rate increase. On adjourning the commission announced that ne argu- ment of the eastern and western in crease cases. consolidated, would be heard on December 9.
 that the proposed increases. which the roads claim will involve a net additional revenue of s27.OOO 900 in the official classification territory, extending from New England to the Mississippi river, north Of the Ohio and Potomac. were unjust and un- fairly distributed. Tine only witness who did not agree to the unfairness of the rates was C. c. Mckay of New York city. chairman of the Trunk Line association. who was called to explain a pamphlet which he pre- pared for the railroads as an argu- ment for the increase.
 Edward S Orr of St. Louis testified that rebates were general to St. Louis in the first three classes of freight in the old days. frequently amounting to s5, or 40 per cent of the standard rates.
 C. O. Ives of Boston. representing the shipping interests of New York, New England. Pennsylvania. New Jersey, Maryland and Virginia, said the rebate had been abolished effectu- ally, but when the practice existed the rebate reached 35 or 40 per cent. He caused laughter when he admitted that from the railroads with which he was connected "all the shippers" certainly did not get the benefit of rebates. Ives maintained that the railroad men are sincerely trying to do away absolutely with preferences, whether by rebates or otherwise.
 'The preferences exist today in the tariffs themselves?" asked Chairman Knapp.
 Absolutely" replied Ives
 And instances of secret departures from published tariffs are infre- quent?"
 More than that: they are acci- dental" replied Mir Ives
 He declared there could be no gen. eral change in class rates until the classification is the only just and feasible method of raising rates. and that three overlapping classifications now in use cause confusion.
 Contending that it is unjust to att tempt blanket advances on rates from the seaboard to western territory. he maintained that 20 per cent ad- vance from Chicago to Illinois and Wisconsin and west of the Mississippi would not equalize a 20 per cent ad- vance from the seaboard to Illinois.
 Ives called attention to lake and rail advances aggregating from 10 to 25 per cent in the last decade, in ad- dition to changes in the classification He claimed the proposed horizontal increase was arbitrary.
 A 20 per cent advance on the first five classes, declared Ives, while an excessive increase. is not the maxi mum contemplated, for. he said. large additional burdens are laid upon the lake transportation which not even have the justification of any extra ordinary increase in wages. Ives con- tended that the proposed horizontal increases would distort existing trade relations. that it is unjust to impose the burden of the whole rate on 9 per cent of the triffice. which can only result in less freight between the east and west. with accompany ing localization. lessening competi- ton and ultimately increasing the cost to the consumer far beyond the initial rate increase.