The Salt Lake herald-Republican. [volume] (Salt Lake City, Utah) 1909-1918, 1910-11-30
EXPERTS TESTIFY
FOR THE SHIPPERS
Proposed Rate Increases De-
CIared to Be Unjust and
Arbitrary.

Washington, Nov. 29.-Five experts
Cor the shippers testified today before
the interstate commerce commission
in its investigation of the proposed rate
increase. On adjournment until to-
morrow the commission announced
that the arguments Of the eastern and
western increase cases, consolidated
would be heard December 8.
TOday's testimony tended to show
that the proposed increases, which the
roads claim will involve a net addi-
tiOnal revenue OF $27.OOO,00O in the
official classification territory, EXTEND
ing from New England to the Missis-
sippi river and north OF the Ohio and
Potomac, were unjust and unfairly
distributed.
The only witness who did not agree
10 the unfairness Of the rates was C.
G. McKain of New York City, chair
man OF the Trunk Line association,
who was called to explain a pamphlet
which he had prepared for the rail-
roads as an argument for the in
crease.
Rebates in Days Gone BY.
Edward S. Orr OF St. Louis testified
that rebates We're general in st. Louis
on the first three classes of freight in
the old days. frequently amounting TO
80 or 40 per cent of the standard
rates.
D. 0. Ives Of Boston represented
shipping interests in New York, New
England. Pennsylvania, New Jersey
and Maryland and Virginia, and said
that the rebate had been abolished
efectually. but that when the practice
existed the rebates reached 35 or 40
per cent.
Ha poucad Iougb+o.. r,-1,o-, he D.. 5,..s+
ted that the railroads with which he
was connected "all the shippers GER
tainiy did not get the benefit of the re-
bates. Mr.. Ives maintained the rail-
road men were sincerely trying to do
away absolutely with preferences,
whether rebates or otherwise
TOday's Preferences.
THE preferences that exist today
are in the tariffs themselves" asked
Chairman Knapp.
Absolutely" replied the witness.
And the instances of secret de-
parture from the published tariffs are
infrequent?"
More than that; they are acct
dental" replied Mr.. Ives. He declared
there should be no general change in
class rates, that classification is the
only just and feasible method Of rails
ing rates, and that the overlapping
classifications now in use cause con-
fusion.
Contending that it was unjust TO at
tempt a blanket advance in class rates
from the seabOard TO western terrific
ry, he maintained that a 20 per cent
advance from Chicago TO Illinois and
Wisconsin points ana west of the Mis-
sissippi would not equalize a 20 per
cent advance from seaboard to Illi-
nOis.
An Arbitrary Advance.
Mr.. Ives called attention to lake and
rail advances aggregating from 10 10
20 per cent in classification. He
claimed that the proposed horizontal
Increase is arbitrary.
The 20 per cent advance on the first
I'VE classes, declared Mr. Ives, While
an excessive increase, is not the max
imum contemplated for, he said,
large additional burdens are LAID. upon
the lake transportation which does not
even have the justification of any ex-
traOrdinary increase in wages.
Mr.. Ives cOntended that proposed
horizontal increases distOrt existing
trade relations. that il is unjust to i'm
pose the burden Of the whole rate on
20 per cent of the traffic, which can
only result in less freight between the
east ana west, with its accompanying
locahzation, lessening of competition
and ultimate increase in the cost 10
the consumer far beyond the initial
increase.