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Show HILL SAID RATES WERE EXORBITANT Great Northern Magnate So Declared, When Securing Secur-ing Concessions in Spo-Kane, Spo-Kane, It Is Asserted. SPOKANE, Wash., Jan. 15. Such rapid progress Is being made in taking the testimony in the suit of the city of 8pokane to compel the railways to lower low-er their freight rates from Eastern points, that it is believed the hearing before the Interstate Commerce Commissioners Com-missioners will be concluded by tomorrow tomor-row night. Commissioner C. A. Prouty, who presides, is promptly cutting out useless repetitions and technicalities. From present indications the railroads rail-roads will base their defense mainl on the theory of water competition compelling com-pelling lower rates at coast points. Thev may also set forth that average profits of operation for a term of years are not exorbitant, and point to the prosperity and growth of Spokane as evidenee'that the city is not suffering from existing freight rates. The most interesting point brought out in fthe first day's hearing was the evidence that James J. Hill, wnen securing secur-ing concessions for the Great Northern in 1892, declared existing rates to Spokane Spo-kane were exorbitant: promised to give this city rates to enable it to compete with coast centers; asserted that he thought the system which would cause Eastern goods" to be hauled'to the coast over the mountains and then back again was illegal; declared he was not afraid of water carriers, and said: "The people have an exaggerated idea about the cheapness of water carriage. car-riage. Why, you might build a canal ten feet deep right alongside the Great Northern, clear from one end to the other, and we would still do the business. busi-ness. A. W. Doland, manager of the Spokane Spo-kane Drug company, a wholesale firm, was a leading witness for the city in the freight rate hearing this morning He testified that in 192 General Agent St. John of the Great Northern gave out a memorandum of a new freight schedule prepared by that road, showing show-ing reductions of lo to 35 per cent in class rates from the East to Spokane. Instead of putting this schedule in force, another was Issued in February, 1903, leaving out all the big reductions, the greatest cut made being 15 per cent. La Rue Perrine, superintendent of the Spokane Drv Goods company, wholesale, testified that reductions of freight rates on drv goods wne followed fol-lowed by reductions in the prices charged to consumers. |