New-York tribune., 1919-01-31

;ryins 20 serve the government and
MammoN"
lie Ind a portion Of the blame for
congestion OF railroad traffic in 1917
and 19lS ON the failure Of Congress in
1915 to adopt President Wilson'S plan
er government merchant marine.
y herwise. he said, It would not have
AeeN necessary to wipe out the water
oorn coastNIse traffic and dump it on
me railroads last year IN order TO pro-
vide transport tonnage
In common with representatives Of
shippers who have appeared before the
committee. Mr E.mqNist complained
bitterly Of the arbitrary manner in
which MIR. McAdoo. when Director Cen
oral, had raised freight rates without
consulting those most affected. He
SAID.
"Under section 10 of the Federal Con-
troll Act, permitting the President TO
initiate rates, the Director General in.
itiated domurrage, freight and passenger
rates and charges representing an csti-
matted increase Of nearly $l,0O00o0 per
amman, without giving the shippers or
passengers hearing upon the question
q tine luStncsS or reasonablcness, and
without consulting state officers as to
the effect which said action would have
upon the laws. practices, rate structure
on interests OF the states, or upon the
business Of the patrons of the railroads
within those states'
The only legal redress for shippers
under thc system of rate making
adopted by the Railroad Administered
ton. SAID the witness, was to complain
to the Interstate Commerce Commits
sion after the rates have become et.cc-
tive.
The director general he said "now
has under consideration the establish
ment of standard class scale rates,
standard refrigeration and iccing
charges, readjustment of lumber rates
from the Pacific Coast states and per
hapS other adjustments which may
vitality affect the shipping interests of
the public.
rate matters is essential to the sue
cessful operation of the railroads for
war purposes or in times of peace"
Mr. ElmQuist said the state commits
sloners desired to build their plans on
the plan suggested by the Interstate
Commerce Commission for authorized
cooperation between the state and Fed
eral authorities. Three times. he
pointed out The Federal body has asked
Congress to authorize such cooperation.
Time and again, in its decisions the
commission has pointed out the neces-
slty for such cooperation and twice
Commissioner Meyer has addressed the
National Association on the subject.
lie said there is no conflict between
the state and Federal commissions.
tlmqulst took the Railroad Ad-
mlnstration and the railroads 10
task Tor suggesting that deplorable
confusion would ensuo i'm the rate
phase Of the subject if The railroads
were returned, the former if they
were returned at all and the latter
II they were returned without legs
lation.
IF there is any difficulty ii viii
be due wholly to the lack Of fore
sight OF the Director General. TO
continuing lack of foresight on his
part, may say said the witness.
IN that he did not file tariffs with
the operatives as 4 war measure He
filed them with the Interstate Com
nlerce Commission. That body ar
ranged its files so that, as pointed
out by Mr.. Clark, when the railroads
are returned to their owners there
can be no question as to what rates
will be in effect. The Railroad Ad-
ministrative Pres dent-madc rates
will be the only lawful ones. He
ignored the state commissions. They
we're neither asked nor afforded an
opportunity to arrange their records
50 as to show the fling of the war
rates Had the state commissions
been asked cooperate they would
have done so as fully as the Federal
commission did, without any material
affect on the revenues of the car
riers, but we would nave protected
local interests, which have had 10 be
cared for in subsequent moves by the
Railroad Administrations