The Birmingham age-herald., 1915-07-07
This Is Testimony of Cyrus Garnsey at I. c. C. Hear
 ing Yesterday
LOCAL OPERATORS
 SEEK DETRIMENTAL
Think They Should Be Able to Com pete With Ohio and Illinois Opera tors for Lower Mississippi
 Valley Trade

Evidence alleging discrimination against Alabama coal operators in freight rates to lower Mississippi valley points was brought out by the first two witnesses yesterday in the interstate commerce eom- mission hearing now in progress here un- Ger Examiner Louis q, Dlssell,
 Cyrus Garnsey of Memphis, general manager of the Galloway Coal company. and s. l.. Yerkes of the local firm of r. A. Grlder, coal sales agents, were the two witnesses heard. MT. Yer<es not hav- ing finished his testimony when the hear ing adjourned for the day.
 Prominent coal operators and railway traffic officials from all parts of the country are present and the case Is to be hotly contested, as the operators and carriers from the western Kentucky Illi- nois, Ohlo and Pennsylvania fields stren- uously oppose the larger differential in rates asked for by the local operators between the coal shipments from the two sections.
 Specific Instance Cited
 MT. Garnsey's testimony yesterday
 was to the effect that although the
 Carbon Hill coal fields in Alabama were 100 miles nearer Memphis than the competing fields In western Ken
 lucky and southern Illinois, the Car
 bon Hill product could not compete in Memphis with the coal from the other fields on account of the unfair freight rates as compared with the Illinois and Kentucky freight rate 10 the same point. He stated in fact, that but
 about per cent of the annual coal
 business of Memphis in 1911 was done by Alabama mines, and attributed
 this as the reason. He stated that all Alabama operators asked was freight
 rate with sufficient different;al over Ithe freight rate of the Illinois and Kentucky operators as to make fair
 competition between them at Memphis
 and points south of Memphis in the Mississippi valley.
 MT. Garnsey quoted figures and data, and presented l.aps In corroboration of his testimony He stated that on account of their geographical location, being much closer to the competitive market the Ala bama operators asked for a larger differential in freight rates with their | more distant competitors merely as a. matter of justice. MT. Garnsey formerly was connected with the Frisco railroad and he stated that formerly the proper differential in the rates in question was maintained by rebate system of the railroads, He reviewed the rate war be- tween the Frisco and the Louisville and Nashville in 1901 in this respect and went 1 Into many details of the matter l The hearing was adjourned at noon and recessed in the afternoon at the Tutwiies I hotel, the morning session having been held at the federal building in the United States courtroom. Mir. Garnsey was cross examined by opposing counsel and Ar. l Yerkes took the stand. MT Yerkes testi- mony was practically along the same i lines He introduced into the record va rious maps and data to show the d ieged I discrimination. His testimony will be eom- l peted and he will be cross-examned when l the hearing convenes this morning q a:3o
 o'clock at the Tutwiler private dining | room
 Complaints Close Today I It is believed that the local operators | who are the eomplainants In the case will | complete their case today and the defend- I ants will begin their testimony tomorrow, | The hearing is expected to last three CT 1 four days
 l William A. Glasgow, Jr., of Philadelphia, one of the prominent attorneys of the coun- try. is representing the local operators IS counsel. He Is opposed by. Rush C. Rut- l Ter and Carl D. Zoos of Chicago. counsel l for the Southern Illinois Coal Opera prs association; R. w. Ropriquet and w. A.. l WyclSlffe of Belleville. H., representing | the ono valley coal operators dSsotta- ton, committee of operators from Ken lucky and Illinois consisting of F. H.. 1 Harwood, w S,s SchmiclS and C, M Mo- derwel and representatives of the rail- roads Among the latter are the follow | ing
 l A. P Hnmburg, commercial counsel, I and r. J. Rowe. traffic man for the Hi
 nois Central William A. Northcutt of Louisville, and D. N. Goodwin. general i fraight agent for the Huntsville and 1 Nashville: c. P. Rausch of St. Louis. ssen- eral freight agent for the Mssouri-Paci1a and Iron Mountain system; Claudian B. l Northrop and Alexander M. Bull of Wash ington for the Alabama Great Southern, | and the Southern railway: Thomas Bond | of St. Louis, commerce counsel and Ei,- l gene McAuliffe, coal agent for the Frisco, I and c. T Prince and w. K. Nandiver for | the Mobile and Ohio.
 The Frisco railroad representatives favor tho differential asked for; the Ms j-souri- Pacific, the Louisville and Nash | vile and the Illinois Central, it Is said oppose it. The Southern, Alabama Grsai Southern, Mobile and Ohio, 1t is said, arc more neutral, but are inclined to tavol the differentia1 asked for.
 The case Is of great importance. ac- l cording to the local coal operators and I carrier representatives. because if ths I alleged fair competition Is secured il vii | result in greatly increased business here because of the opening up of new rar- l kets for Alabama coal