The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-03-25


Corn, bushels. -.............. e,4o5,s5s 5olSl
Wheat, co. ......... ....... 1864
During the three months of October, November and
December, there shipped by railroads at Buffalo,
15o, 600 barrels o. -four.
Included in the property sent from Dunkrk, on the
New York and Erie Railroad last fall, the following
items -
Flour. :31 1877 bills
Bacon beef pork and dsh. &C, 600 900 lbs
Cheese. .......................... sOO0,o0O
And there arrived al Dunkk &c. 900 tons Of up mer-
chsndss.
From the preceding facts, your committee are of
opinion that the conclusion is inevitable that railroad
competition and diversion mas in very great degree
which have operated ale continuing to operate with in
creased and Increasing force. 1t is well ascertanei
that combnaticns have been made, and arrangements
have been entered into by different railroad companies
with lines Of propsers the lakes, and steam and tow
boats on the HUDSON forming connected lines from the
seaboard to Detroit Cleveland Sandusky, Toledo and
other Western ports to divert all the freight possible
from the canals tier roads-one of such roads, at
the Western States aud by authority contracting to
carry fr.Ighl at prices equivalent to carrying on the
propeller for nothiog for the cake Of getting AMI &C.
curt the freight OF it upon the road.
Notwithstanding, appears by the State Engineers
report upon railroads experience has proved that the
lowest rates at which ordinary freight be carried to
pay interest and expenses will average about two cents
ton per mile for heavy agricultural products three
cents for eroSerie aud tour cents for dy gooos the
carry -four from Buffalo to Albany for sixty cents bar
rel and less, and to New York by the New York
ate indeed ut the rate sixty cents only
from Detroit to the city OF New York" Notwthstand-
ing the lowest paying rate specified by the State En-
anetr cents per mile for heavy agricultural
products would amount IS cents per barrel from
oeny to Buffalo and about 20 cents from Buffalo or
Dunkrk to New York. by the New York and Erie Rail
road and its tributaries The same principle has been
carried out by these roads upon all other freghts which
experience has shown to lave been diverted from the
ca DaIs
Why these roads should thus at prices far below the
munsrative standard, aud at a CONSEQUENT loss TO
-hprn sock thuat In init nmp
the canals only be attributed to desre their
part to accomplish what must plainly appear to be its
inevitable result dstrust in the people Of the value
and et iercy of their public works. abandonment
The enlargement direct taxation for the Of the
aeht and monopoly OF the carrying trade s1rass over
for enjoying they DO the ability to make up their
losses upon other eahts aud fare for passengers aud
the game left entirely in their hands without
stctiop il not astonishing that they enter upon it.
Such being the necessities OF the State, and the pro-
mrent which have led thereto the next inquiry
arises, what is the appropriate and most efectual
remedy. Your committee have heard three modes
suggested-oue, Direct taxation upon the people
upon cir capital for State purposes exempthg them
from AL town, county and local taxes. Third, I'm
posing tolls upon railroad tonnage.
The necessities of the State having been to a very
great extent ocessoued by the action Of private
ratobs and enurec TO their benefit it is not right That
the burt should be thus imposed upon the people
more equitable proposition Is TO let those who have
created the burthen be charged with its removal Your
mittee car not for single entertain the pro-
position Of recommending direct taxation upon the
people for such purposes, particularly at this time when
imperative necessity exists for the imposition Of
mill tax upon the people for the benefit of the general
fund and the support OF the government. As 10 the
second proposition proposing the taxation Of certain
centase upon the capital stock of corporations for
State purposes nd mptnR them from ali town,
~ and loea taxes tins Is virtually taxation of the
people only sdoptirg indirect mode TO accomplish it,
bear rateabe proportion 10 the amount of town,
~ and local axes from which they are relieved, and
which left to be discharged by the peops or there
WI ne IN upu IA he
the other.
With such IN uality Il will conflict with one Of the
fundamental principles of our government equality OK
taxation well rights. If the inequality against
the people is unjust TO them, creating upon them
of corporations II the inequality is against the
poratitps It is unjust towards them class they
are with the single exception Of Of the railroad
corporations, in no way connected With the matters
rendering additional taxation necessary
The last mode, imposing canal tolls on railroad ton
reys appears in the opinion of your committee to be
the only true just and equitable mode As to the right
Of The state impose such toll there be question
The railroad companies deriving their corporate exis
ence from state legisat and being subject BY the
constitution to such changes and amendments IN their
acts OF ncorposation the Legislature may deem pro-
per- the Legislature has the power to mould them ia
such form and subject them to such charges and
trictons they deem the interest Of the state to
require They have the power to prohibit them aloge
Their from the carriage Of freight and consequence
dictate the terms and conditions upon which it shall
be carried.
the Justice and proprety of IN exsxcie The
snc Statistics in the previous portion OF this report 10
the opinion Of your committee show conclusively that
the canal revenues seriously affected by the carry
ing trade OF rao ads in this State and that their
nues have been thereby very largely impaired and that
such effect extent at least attributable TO
departure BY those corporations from their legitimate
functions and to an effort by Of runous prices
to divert the trade and business from the canals Such
facts alone call upon the Legislature, the guardians
o. thu public interest 10 make such provisions Of law
may he necessary TO remedy the evil as well provii,
for the deficiency IL right and just that the burden
OF supplying the deficiency should be thrown upon tbs
Parties producing H. II Is ths remedy best adapted to
the diversion Of trade from the canals increases or d.
nnishes so the tolls railroad tonnage will huctuate
in the same proportion, and accommodate itself 10
the necessities OF the case. A uniform tax upoa
property could not thus be adjusted to meet the ext
gency There s danger of diversion trsde through
ether States or markets to be spprehended thereron
The low prices 81 which the railroads present carry
their freight "a not founded upon ompeton with rival
routes through other States and to other markets. but
Il has for its foundation and lis cause competitions with
the canals this State The result OF the would
be rot the dive rslon Of trade from this state bat
would restore Il to the cheaper although the less expe.
ditous Transport Of the canal
The correct view of this Is presented By the
Auditor in his late report upon the tolls trade and ton
asge OF the canals and the committee refer 70 the fol-
lowing passage from such repor-'It Is sometimes
ted that by the mros OF tolls upon railroad
Tonnage thers viii be consequent increased cost OF
Transportation through the State resulting in diver.
snn OF trade 70 other and rival routes through neigh
Dor nr states Such cannot By any possibility. be the
result OF proper ana sdiclous olscr Enaten Of the
TONNAGE 70 he charged with tolls The expenss OF trsns
pars,oa upon The canals w csAry not be Affected BY
e, that the charges upes canal freshS cannot BE-
~ h. fn<r~ n~f