Evening star. [volume] (Washington, D.C.) 1854-1972, 1912-03-12
TRUST ROAD PROFITS
Division of Rates Probed by
Stanley Committee.
GUY NJ. FREER EXAMINED
Large Earnings by Steel Corporation
Subsidiaries.
CHARGES BY A BELT LINE
Gets IS Per Cent of Rate on Rails
Shipped From Chicago to
Kansas City.
CHARGES BY A BELT LINE

Inquiry into freight rates charged by
United States Steel Corporation subsid-
iaries was resumed today before the
Stanley investigating committee, with
Guy NJ. FTeer. expert traffic manager,
again on the stand. Discussion of the
recent conference before the interstate
commerce commission regarding distri-
button of dock charges at Conneaut Har-
Dor, Ohio, led to the conclusion that the
question of the reasonablenes Of the
rates was not under investigation, but
merely. the legality of distribution OF
those rates to various corporations.
"Is there anything before the inter-
state commerce commission" Chairman
Stanley asked, Involving the reasonable
ness of the present Sixty-cent ore rate
from the Minnesota range to Lake Su-
perior?'
There is not Mr.. Freer replied. The
Information was sought because objec-
ton was made to inquiry into rates under
| consideration by the commerce commits
sion.
>Mr. Freer outlined the division of the
through rate on freight to various points,
shipped over the Bessemer and Lake
Erie railroad. the steel corporation sub
sidiary, showing that this railroad, act
ing as feeder for trunk lines, gets from
Is to 50 per cent of the through rates.
The Bessemer and Lake Erie and Union
railroads combined get 81 per cent of
the through rate to Buffalo; to Chicago
these roads get 33 per cent of the rate;
to East st. Louis 24.2 per cent; to New
York, 24.1 per cent.
Charges by Belt Line.
The proportion of rates allowed the
Elgin, Joliet and Eastern railroad, an
other steel corporation subsidiary. was
also submitted. This is belt line around
Chicago. OF the through rate on steel
rails from Chicago to Kansas City. 81. 10
ton. Mr. F'reer said the Elgin, Joliet
and Eastern got % per cent; to East st.
Louis, 20 per cent.
| whenever a railroad consigns ship
ments to a flag station. designated for
| another point. isn't 1t to obscure a di-
vision of rates?" asked Chairman STAN
ley.
''Well. it may be SO. but it is also to
secure division and reduce the cost to
themselves" said Mr.. Freer.
! In other words, it's device to secure
an unfair advantage" Mr.. Stanley de-
| clared.
Big Profits on Carrying Ore.
| Mr.. Freer submitted to the committee
yesterday afternoon figures intended to
! show that subsidiary railroad compa-
| nies allied with the United States Steel
| Corporation by high freight rates earn
| large dividends. which go to stockholders
| Of the steel corporation. and that such
railroads are an advantage to the steel
trust over competing concerns which
| own none.
| An effort to shut out opinions of the
] witness as to reasonableness Of certain
rates was made by republican members
| of the committee. but 1t failed when the
| committee supported the decision Of
Chairman Stanley by strict party VOTE
| Statistics presented by Mr.. Freer show
ed high freight rates on ore lines and
large earnings.
The Duluth, Minnesota and Northern
railroad. he showed, in 1910 made q re-