The New York herald., 1875-12-31
ACTION OF NEW YORK MERCHANTS.

special meeting of the New York Cheap Transports
ton Association held yesterday at No ITO Pearl
street 10 consider the report OF committee relative To
the recent reduction in freight rates. Mr. John +.
Henry, Vice President occupied the chair and Mr. F.
b Thurber, acted secretary Mr. John H. Kemp,
chairman of the committee, read report, giving th0
following points,
Your committee not in favor OF rates so low that
they VIII not pay fair and even, liberal return
capital actually invested III railways they
favor of rates high that eight per dividends
be paid upon capital oil twice the amount ever paid
in by stock and bond holders, as the with the
New York Central road. In the it is unjust
to those who have actually invested their capital
and Injuries tho prosperity OF tho carrying
development of and is unjust "a
that interest Your committee also dissent from
the views expressed by the President of the New
York Central road that the special contracts with large
shippers properly protected New York interests. Hs
stated that up TO the present special contracts had
been ruling at twenty-five cents and large shippers
had suffered by the change which had really been nada
by the companies to tho floating business. and
which they knew would with the general
trading interest on November 2 after much delibera-
ton " bad been decided by the managers of the New
YORK roads TO nut the rates at seventy five cents be-
leving that the merchants would be affected under
their contracts, which did not expire until January l.
at which time il was supposed that uniformity m all
Western rates would be securcd.o Your committee
believe that only does this practice of giving spe-
cal contracts not protect New York commerce, but is
direct premium to other distributing points to divert
the commerce which naturally would come this
market We believe that there can be good reason
dred and another seventy live cents tor the goods,
in reasonable quantities. going to the same destination
In the train and that the arbitrary exercise OF
this great power has already driven much Of
to other points, has much to do with tho de-
pressed of business and real estate interests and
furnishes another good why these great semi
public institutions should be under such supervision
aud control would protect alike the interest Of the
stockholders and the public. In regard to the
ruling it is probable they will be long main
tanned, the basis of 3oc 25c, zoe. and l5c. per
hundred to Chicago for FIRST second third, fourth and
special classes respectively too low fair basic
at this time would be Soc, 40c, 35c, 30c and 25c
both East and West bound freight, at which rates
road honestly capitalized and managed could pay
liberal interest the investment. This estimate
is the result of careful study during term
OF years aided by several of the most eminent railroad
engineers Uniform rates like these would soon build
up n large and steady traffic. which would fill many of
the that hauled back to the West empty,
and thus the end pay both carrier and merchant bet
than the policy pursued in the past of making
nal rates basis of say sereEtyhve cents or 81 for
first class freight Chicago and then cutting under by
making special contracts with favorlte shippers per-
haps onethrd TO one-fourth those rates
The report was adopted report from the Commit
tee Canal Transportation, recommending the Legis-
lature to test proposed system of lengthenng the
locks the canals adopted Messrs. +. B. Thur
bcr G. A. Alerwin and W. f. Kidder appointed to
nominate Board of Managers for the ensuing year,
and to report at the next meeting to be held January
Is 1876