The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-11
RATE CASE MUDDLED
BY CUMMINS ACT
Carriers See Increase Due to
Liability Added by Pro-
posed Amendment.
COMMISSION Is PERPLEXED

wAsHrNGToS. April 1o.--A hearing
given to-day by the Interstate Com
merce Commission on the Cumrhns
amendment to the act TO regulate COM
merce showed clearly that the amend
ment is going to be an embarrassing one
to the commission. and that It IL likely
to cause increases In freight rates. Cntii
is 1t clearly interpreted it also will con-
fuse the freight rate situation In the
United states.
Representatives Of Eastern. Western
and southern roads gave their views TO
the cormis sion on the Cuninins amend
ment to-day. The Eastern carriers ap.
pear to take a conservative view OF the
amendment so far as it affects an i'll
crease in freight rates Western car
riers generally adopt their views, hut
the Southern carriers will make an eff
fort to obtain a substantial increase In
freight rates.
The Cummins amendment prohibits
carriers after June . from limiting their
Liabilities to shippers for loss or dam
age and II is contcndCd that unless
something is done by the carriers or the
commission. this will automatically in
crease freight rates 10 per cent.
r. Il. James. representing shippers.
stated that the carriers have now come
forward and asserted that on June
the higher rate OF 10 per cent. will be-
come Ave and with apparent generos-
lily sta,c that the 10 per cent ought
not to he imposed. hut a somewhat
higher rate than present ones" Nj
James added They say ~ we stand
pat the effect OF the Cummins Law
would he put into effect the 10 per cent
increase.
q. l.. Bu,terned OF the New York
Central Lines, speaking for the railroads
in official classification territory. said IL
was the opinion OF the Eastern lines
that the Cunmins law may be go con-
strucd as to require the elimination from
the bill OF lading of the invoice price"
clause. but AZ permitting the retention
Of the place and time Of shipment"
clause and they have proposed to amend
the uniform bill OF ladinE in accordance
with this view prior to June without
any general increase in freight rates.
with respect to live stock, household
goods. glassware, paintings and a num-
her Of other commodities whose sales
now rest upon some specification OF
value" said Mr.. Buttcrfeld. while il
Is the view OF the carriers that not
withstaning the Cummins law rates
may still he made to rest upon value
the new act does impose the added liza
bilty upon the carriers for which some
increase in the normal rates shonld be
permitted"
Il. B. Scott. representing the Western
classification committee. stated that in
general the position Of the Western lines
is that Of the Eastern lines. as outlined
by Mr. Butterfield. with the exception
that these lines felt that such vital pro-
visions In the uniform hin OF ladlng are
80 nvalldated az TO automatically make
applicable the higher rates based on
common law liability. This, he said,
would result in the application Of rates
10 per cent. higher than the limited la
bility rates which have been imposed
under the hill Of lading in the past
Mr.. Scott said il was not the disposi-
ton of the Western carriers 20 insist m
the full 10 per cent. increase.
Lincoln Green. traffic manager or the
southern Railway, speaking for the rep
resentatives in southern classification
territory generally. stated that these
lines we're preparing to ask permission
for an increase in freight rates based ~
the Cummirs amendment Of about = per
cent and covering about 30 per cent.
OF their traffic