Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1873-01-31

As regards therefore the specific points
referred to in chapter IS of the Resolves OF
1872. concerning which the board wa,
directed to report; it would APPEAR
1st.-" Whether cars Oi0ned By any persons
or corporations, other than railroad corpora
HOl are used IN the transportation Of D,er-
cha iSe orer the railroads IN this Common
| weaih?"
The organization known as the colored
through freight lines. which have, to a very
great degree absorbed the business OF
through freights, are composed almost ex-
! clusively of railroad corporations which
| contribute each its quota of cars to the line.
| These organizations are wholly unObjec-
tionable, and perform most useful duty in
the work of transportation, equally advan-
tageOus to the railroad corporations and the
community. Two exceptions only are known
to exist to the rule that the ears belonging
to these lines are the property OF the roads
composing them In one case despatch
| line, known as the Merchants Despatch,
has been permitted by the combined roads to
| place quota of cars in the line on the same
/ iooting'as railroad its cars being used and
| paid for in the same manner as the cars Of the
several roads. In certain other cases.
where weak or impoverished roads have
! been entitled to contribute quota of cars
| to do, certain private persons have been au-
/ thorized to contribute such quota in the
name of the company. Such proceeding
is open to a certain amount of criticism, rs
are all operations in which n corporation
might have been prottably concerned, but
/ which in reality have been turned over to
its officials IN their private capacity. At
the same time it should also be borne in
mind, that, though it would be better for
the corporation to furnish its quota Of ears
to the line itself, yet, failing 50 to do, 1t Is
better, for the public at least, and not I'M
probably for itself, that the corporation
should furnish them indirectly, rather than
not belong to the line at all.
Besides these exceptional cases of ears Of
the colored lines owned by parties other
than railroad corporation, it would appear
that TWO distinct companies, known as the
National Car Co. and the Vermont Iron 4
Car Co., having no necessary connection
with the railroad corporations over whose
lines their ears We're intended to run, have
also owned cars used in the transportation
of merchandise over the roads Of this State.
These were both companies organized under
the laws Of Vermont. though in ls6San Act
was passed by the legislature of Massachu
sets (chap. 2Oj) under which the first was
intended 10 be organized.
2d.-"By lchom are such cars. not bang
Meproperfyof ofralirOad corporations, 0trHed2'
In the case of the colored lines. the cars
not belonging 20 railroad corporations are
owned by the Merchants Despatch Com
pany. corporation of the State Of New
York, and by private parties authorized To
contribute them in the name Of certain rail
road corporations. which had the privilege
of doing 50. but did not care To avail them
selves of it, The commissioners have not
been able 10 ascertain that officials Of any
Massachusetts roads were included in the
number OF those furnishing cars in the
name Of their companies.
The National Car Co, and the Vermont
Iron a Car Co. were composed largely of
officials of the several roads composing the
Northern route between Boston and the
West, number Of whom were in the EN-
ploy Of the corporations Of this State.
ID" Yp0a ;rlat terms are such c1rs, NOT
The property Of r1.iroad companies, trans
porfed2'
The ears owned By the private companies
or individuals interested in the colOred lines
are transported at the same rate,-l.j cents
per mile,-as those owned by the corpora
tions properly composing the line. This
rate j. found remunerativc. owing 90 the
fact that on a majority of the railroads OF
the nitei States there Is a deficiency of
rolling stock there are more corporations
that hire cars than there are that let them
and freight rolling stock j, thus made
commodity. a. it were. Of debtor and cred
itor corporations. Those roads, therefore
in the col0red lines, which furnish their
full quota OF more of ears. earn certain
amount of money for the lse of those cars
from other roads which furnish less than
their quota. As most of this business j.
for long di-tauces.-kceping wheels con
~tantly in motion the rate 4 d cents is
found profitable for short distances it
would be otherwise The distinction Is i'm
portant as touching the Use Of thes. cars in
local business. - called. where they are
kept standing for the delivery Of freight or
lying on -idings after q short haul. Rail
road freight agents assert that they are
glad. for through business. or long hauls.
10 let cars at one cent per mile while for
local business, OF short Aauls, they are
equally glad to hire them for two cents per
mile. In other words, the through freight
ing business Is more than twice as profitable
for rolling stock As the local business. 1t
Is owing 20 this fact that the cars Of the
coiorei lines have proved source of profit,
while running at the low rate of l.5 cents
per mile.
lth.-" Whether aHy UNJUST or unequal
discrimination or QdrcHtqge IS g1rcu, eithcr ~
rates Of. frelghf or pr0mptneSS II cGrrlaye. or
an any other manner. 10 The orucrs Of su-h
cars BY The railroad companies chartered 90
this Commonwealth ,"
The colored lines We're organized to ac
commodate through traffic. and whatever
advantage as regards discrimination in rates
OF freight, &c, Is given 10 them. must ap-
parently accrue TO the corporations, and in
no wise affect the outside public. As re-
CARDS the National Car Company and the
Vermont Iron a Car Company, it has been
alleged that, both within and without the
Commonwealth, the result has followed
which was naturally to be expected from
the fact that the officers of roads had di
rect pecuniary interest in the earnings of
the cars of these companies. 1t has been
asserted, and the commissioners are salts
fed not without grounds, that the cars Of
these companies. running at fixed rates per
mile whether full, partially full or empty,
have been kept in motion at rates for the
carriage of goods, which, at times, have
caused the railroad to pay more for car ser
vice than the entire amounts they have re
ceved as ireights This has in certain
cases been done almost habitually. In
| yet other cases, preference has been
l given to the cars of these private com
panieS over the cars of the corpora
| tions, - the last being kept standing ON
| sidings, while all merchandise was received
for the first. In none of these cases. how
! ever, can the Commissioners see how the
outside community was made to suffer.
Stockholders and railroad corporations were
the victims, and We're reduced, it may be,
| to bankruptcy; but the merchandise of the
U Na.s ,r.l. -.
rates on that account. but at rates unduly
| depressed, as the mere fact of getting goods
to move at any cost made the car companies
earn mileage, though the corporations
might earn no lreightS. The matter, there
fore, concerned very closely the corpora
tions, and especially, as the results have
shown, those of Vermont but not the
community at large.
The remedy is in the hands of the holders
of railroad securities. who can at any time
tkey see fit prohibit their EMPLOYERS from
being Interested in these independent com
panies, or prohibit the running of the ears
of such companies over their roads. If
they do not see fit to do 50, there would
seem to be no good reason why the COM
munity at large should interfere in their
behalf, thus cutting off, in a considerable
| degree, its own freighting facilities.
5th.-" Whether The officers Of any such
railroad corporation derire any peclrniGry ad-
rdnfdge from the running Of such cars orer
railroads Of irhich they hare the manage
meRt?''
1t would seem, from what has been said.
that portion of the officers of the corpo-
rations connecting with the Vermont Cen
tral road, do derive pecuniary advantage
from the running of such cars over the
roads of which they have the management;
and, undoubtedly, if the ownership of the
stock of the car companies could be traced.
it would be found that the employees Of
other corporations also were in greater or
less degree interested in them. The same
may be said Of the express companies and
of the despatch lines, nor, indeed, does the
practice stop here, or find its worst ex-
emplifcation in this class of enterprises.
On the contrary, it is here more on the sur