The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-09-13
CHEAP TRANSPORTATION.
Second Session of the Senate Trans.
portatiOn Committee.
Tho State Committss's Invitation Aoceptsd-ns
Canal District To BE visited-What the
Representative Of the New York Can
trA Railroad Says About Cheap
transportation and tho
Profits and Power
Of Railroads.

teresting and important as expected, IN cOnse-
quence of the State Committee on transportation
combining themselves to an invitation to the Senate
committee to travel next week through portion
OF the State particulars Of which are given below
and also to the delegation from the New York
Cheap Transit Association. deferring their address
to the committee until to-day. The day was ex-
hausted nearly by q very dlffusive statement BY
Mr.. Worcester on behalf OF the New York Central
road.
THE NIAGARA SHIP CANAL.
Mr.. Horace Day read long paper relative to tho
Niagara Ship Canal and his plan OF passing ships
around the Falls. During the reading OF this paper
the Committee Of the State Legislature, consisting
OF Senators Lewis, Wood and winslow, and Assem-
blymen Prince Cornell, Fort, Weed and Hustled,
entered the room. Senator Murphy and Assembly
men Boucher and Pierson, the other members az
the committee, were not present. At tho conclu-
sion of Mr.. Days paper the Chairman of the Com
gressional Committee stated the object OF the visit
OF the Legislative Committee to be to consult as to
the time which the committee could spare to visit
objects OF interest connected with the subject Of
their inquiry In New York, and also the route pro.
posed for their inspection.
THE STATE COMMITTEES INVITATION.
Senator Lewis, the chairman Of the Legislative
Committee, addressed the Congressional Commit
tee and said :-"Mr Chairman and Gentlemen AZ
the Committee-We are here on behalf OF the State,
committee appointed by the Senate and Assem-
bly, to consult with you on your line Of action in
this State. We would like to know how much time
you could devote to travelling through the State.
Our desire is that you should start from the city Of
Albany and 60 up the ChamDlain Lake to Montreal.
nom there to Ogdensburg, thence to OswegO,
nmsd us S1o m 'n W. tS%s
rom Albany 70 Montreal in one night and
trip. to Ogdensburg, and win probably take
another Day and 60 to oswego ana you can stay
couple OF days there to look at the Weand Oanals
SO that it will take in all for the whole trip Hx
The Congressional Committee held consdlta-
ton as to the route, and afterwards decided to
meet the Legislative Committee at Albany on Mon-
followed. The State Committee then retired and
the business OF the committee was resumed.
Mr.. Israel 7. Hatch, Of Buf1alo read paper with
regard to the necessity Of an enlargement OF tho
THE NEW YORK GENITAL ROAD.
Mr.. Worcester, Of the New York Central roadv
SAID he would give Information as to the Central
Southern. He would refer to two general diviS
ions-nrst, facility; second, rates.
west Rates nave never the slightest reference to
has to bear in reference to. It's capital Therefore
the rates is delusion; The fact is that the great
question with railroad men is as TO what the COM
Nsw YORK OF srouga to Chicago
cover the rate to Buffalo, and include the
expenses Of handling freight there From Ba,.
more to haul freight to short distances than long
ones sometimes. This would be Illustrated by the
unloading and loading OF cattle at Buffalo, where
there were advantages to unload cattle there,
because there were always empty cattle cars
standing and the cattle trade was always very
steady there. Discriminating rates are very great
advantage to the community, and the objection to
Senator SHKRMAN-Allow me to draw attention
to case that have personal knowledge OF
There is point on railroad that am acquainted
with where there is a competition in tho sale Of
lumber; a railroad company said to one Of the
firms that II they would undertake to send 5000, 900
feet per year they would charge them lower rates.
Would not that be giving an undue advantage to
Mr. Worcester-That is done every day, SIR ana
no regulation In the world will prevent 1t; the
man who Is doing the largest business will always
command the greatest advantages.
BY the Chairman-Is not the basis OF these dis
examinations competitions
Mr.. worcestershire whole Of this competition
out e mans n
sending freight stays by the road that has given
him the first advantages; the fault Is on the road
sefdefence; in reference to 'watering" stock the
New York Central is supposed to know as much
about that as any roads, well, that cry Is like the
ssmad dog'' cry; there was general notion that
railroads should yield no more than ten per cent;
now it was notorious fact that the railroads IN
will show you Dy and by that there has not been,
during the last twenty years. In the State OF New
York, law passed in favor Of any one railroad.
The Committee took a recess Of fifteen minutes
at two O'Clock.
Mr. J. G. Churchill, Chairman of the Commit
tee OF the Oswego Board OF Trade, appeared before
the committee after the recess TO invite the COM
mittee to visit OswegO IN order that the advan-
tages OF the Oswego Canal might be put before
them, but finding that the committee would be in
the o ODD would then be arorded. 'A''
The Chairman said that they hoped to have the
pleasure Of seeing the delegation some day next
week, OF which they would be notified.
Mr. Worcester resumed his testimony and said -
In relation to the cost Of railroad he might illus
could not be replaced to-day at the same amount
that is represented by its present published
capital.
could not be reproduced at the cost OF some hum
dred millions of dollars.
Mr.. Worcestershire is so. The minimum rates
OF transportation would be fixed upon the more
expensive rate to operate The difference between
one road and another as to Its capabillty to carry
skill Of the management. il t were NOT iOr the
economy that is practised on the New York Cen
cent, and that would be done without perpetratang
extravaganza. The New York Central has aver.
aged from 1853 to 1882 the payment Of Dividend
cent cent Wv would ui not pay the Interest On ar.
dividend has always reference. TO capital stock.
The capital stock in 1872 was $780, 900; that Is,
the outstanding stock on which eight per cent iS
paid. There was at the time of the consolidation
Of the road an estimated value OF the combined
stock OF about $685. COO 1t was afterwards fixed
on general agreement to about 500, 900.
BY Senator Conkling-Ihe dlnerence between
the sos 600 900 and the $50 100000 was made up Of
what the market value Of the road was and what
the road would, in all probability, with prudent
management earn, and be thus able to pay the
interest on. The increment OF value consisted, OF
course, to q large extent In the negotiation Mr..
Worcester here gave detailed particulars OF the
road that was now being built from New York to
Buffalo for freight only, and OF which $50 miles
would be opened this fall, and which would COST
about $40, 900.
BY senator Conkling-The capacity OF road
OF that kind would be to move 10,000,0O0 OF
tons year, running trains on each track at fif-
teen minutes interval In twcnty-f0ur hours that
would be 5000 cars each way. In referring to the
power OF railroads, Mr.. Worcester said, "If there
Is anything on the face OF the earth that Is
italy weak IL Is railroad corporation. He Illus
trated this by stating the difficulties OF obtaining
legislation for railroads-there being always
ready.made kind OF opposition to railroad enter
prise by legislators.