Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1918-07-17
DISSEMINATION
Charged Against Nc
Adoo in Freight Rates

Former q. G. N. Counsel Says pi.
rector General Is Influenced by
Political and Sectional Pressure
Asserts That Increase on State
Rates is at Behest of Southern
Observation-Disclosures Harri-
man Of Boston Chamber Of Corn
meree Says Director General Elk
ceeds Authority Granted by Con-
sress
Boston. July 16.-Edgar j. Rich, for
meriy general counsel of the Boston q
Maine railroad and now counsel OF the
Associate Industries of Massachusetts,
speaking today at conference be .
tween public service commissioners of
the New England states and shippers,
charged William G. McAdoo, director
of railroads. with discriminati ton against
this section of the country in fixing
freight rates after political and sec
t:onal pressure had been brought to
bear upon him.
1t was also asserted by Henry l. Har-
of Commerce. that Mr.. McAdoo exceed
ed the authority granted him by Con-
gress in fixing freight rates in New
England, Declaring that the last in
crease Of % per cent. was unnecessary,
Mr.. Hartman pointed out that increases
aggregating 80 per cent. have been put
upon shippers of the six northeastern
states in the last I'VE years
The conference was called TO deter
mine the advisa bility Of requesting the
railroad administration to grant lower
rates to shippers in the section but
there were SO many speakers 10 he
heard that the conference adjourned
until tomorrow
The alleged determinations against
New England by Mr. McAdoo were out
lined by Mr.. Rich as follows:
A % per cent increase has been I'M
posed upon state freight rat ties and rot
. upon interstate rates. This was done.
according to Mr. Rich, at the behest Of
manufacturers of the South and South
west.
Increases Of from I0o to 375 per cent
in the rates as compared with those in
, effect before June Of this year have
been imposed, Mr. Rich said
The railroad administration" he con-
, t'nued, will collect s1nn. COO more
than the railroad act allows it to col
! iect. Already it has secured $500. 900 OK
of this"
| Mr.. Rich said that rates should no,
| be higher than would bring sufficient
revenue to pay rentals. operating ex.
/ penses and dividends. The public. how
! ever, will pay far more than this. he
said, If the policy of the administration
| as put inta effect in New England is
carried out
! Frederick ]. Mcleod. chairman :,
the Massachusetts Public Service
Commission. requested MIR. Rich t
keep his language within bounds
We are here. he said, TO co-oret
ate as far as possible with the di.
rector general of railroads. No i'm
putation is to be made regarding hi:
motives in fixing rates in New Eng
i land" Mr.. Rich disclaimed any in
ten.ion OF attacking Mr. McAdoo
The industries of New England are
being threatened he asserted. 81
| represent 500 manufacturers in this
section. Is a mans patriotism gaug.
| ed by the extent to which he sub
mits to regulations which he be-
lieves unjust? An improper and un'
! lawful burden has been placed upor
NeV England. While we are ready
to give our lives and our property
to the nation. we are not ready t.
give our property to our competi.
tors" He urged that memorial bt
sent to Washington by the COVER
nors Of the New England states set.
ting forth the rate situation and ask
/ ing for relief,