, 1875-04-19
His Criticism Of the Pennsylvania Road
and It's President.
Stormy Meeting Of the l'ondholders Of
tho Danyille e. yincenncs.


tho action OF tic Baltimore Ohio
and crticatug that Of Ills opponents. III l.is
Opening remarks President Garrett courratu.
lntcd h,s colielgnos Ia connection with tue
declaration Of tho usual dividend upou tho
"Hpleull.d aud singulsrly satisfactory re1u!ts Of
the hostitIos vaged BY tho rcuns5lrauia ltai!-
road Company agaiust thin Company" and
ehowad that tho increase Of the earnnss Of tho
mouth OF MarciI, 1875, over that Of tin satno
month in 1874, amounted to sl03.7T392, Tie
rosulta showed IN fucrease Of revenue upou the
man atom, notwithstanding tho largely d,miu-
fahed charge for passengers. OF a5 per cent
fiom thia source. The earnings Of tta Chicago
Division for March last we're also shown 10 ba
more than 20 per cent creator Than for tue aatno
month Of the previous year.
preti ideus Garrett proceeded to htato tho reA-
sons wI.ica Induced tnt Baltimore l. Ohlo Com
pany not to entsr lnto
THE SARATOGA AGREEMENT
on tho occasion OF tho visit Of Presidents yau-
derbllt Jowctt, and Scott to Baltimore, III
November last, aud which 10 stated 10 thosa
gentlemen III ansuor 10 their arguments ID lsvur
Vt llis i.in,ug tho combination. In bt4ot. there
vcro TINT. wlllo tho combination would ten.
po.arily from tha Increased rates, swell tic
cAsuipgs Of tho companies in cembluatou, set
suclt lusti actou generally ou tho pa,t Of tho
bublo would he induced AZ would moro than
couuterbAtaltco the temporary advantage, point
In which the President OF tho Ne" York Central
IsoRd acknowledged there lay uu:h lorce. Nliuo
declining 10 become a mutnbcr o. tho combina-
t,on, ha urged Aupun tha other Presidents the
v.clouHuesa Ut tast.f1aiGht Inca, lupses4ipg his
conviction that thoy welo vampires ubou Tho
railway system which would iutelfeto With tho
R,aintepanoe Of Reasonable nction with regard 10
freight rates. Ho also agreed to tLe aboIitlun
of commissions on fresE1ts mud tasaengers, aud
to dsplaclng niddlsman geno,allv.
For bbOlt ti4lb aub1equeut 10 that CONFER
enco, tho general viowR thus agreed upon wero
carried our but IT soon becams appa,out that
the faht.f!eght llnea ware violating theif agree.
mont, aud tl4t tbs bua' noea Of tue Ealtnore i
Qblo Ilond Was consequently suffering. cspecial-
ly In the Enstesn cities, aud 1t was finally
CoApEILEp TO PROJECT tThILF,
wh ch 1t did by eatRtlsa,us tho lste from CHI
caso 10 Daumoro at S5 conts per 1CO pounds,
wllch proved . subject OF crest diszatisfaetion
to tho Northern hnss, And subsequently led 10 i
dec.ea4o Of thu rateB bet tween Ch(cago aud East
cru os1ea much below thoao which had been 1e-
quired oy tue tLtce Nulthc.n lines during pre-
otdlnR winters. Com 1ainls woro msde by OIL
GERS Of the pennsylyanla noad regarding tho
baltimore j. Oh!o'a reduced rates, and the latter
Company demonstrated that the fast froight-
lInea Of the ponnsYivan;a Road we're In f.ct she
'A As u ILLUSTRATION Of tho viows OF tho PENN
sylsaniA Road regarding the !" b1eahing tie
ngraomeut," preaidant Gatlett submitted GORGE
spondence botween tho Third v,ec-Irosidcut
OF t00 EeEDbFlFAuih 1lQ1G AlQ tHE tIcE-I4t61-
dont Of the Baltimore d Ohio. in Which lha
former alluded to tho rates charged by tho DaIi-
muta j. Ohio Nond OF petroleum as p+ing cut
Of 48 ccntB 3 barrel below tue phllade1pbia's net
ruto, and d violation Of ths agreement, 10 thta
Hi Ruawor wh8 sent. showing that wien the nd
vauce on coul.oii rascs ~as made from the oil
reelons and plttahurg TO New York, Phfadei-
| ph.a, and Baltimore, they nesa uot consulted.
mud Aad they been they would baye expressed
tho viers nov held. that there IL nolhinE
in "a nf nj r.
Of transportation. TLoy Ind not changed
thcir rates: and, when thcre had bean
nolhtns agreed to BY The baltimore L Ohio Com
| agreement on its patt.
| Tho effect upun tho traffic Of the road of the
I maintenance Of tho moderate ratoy was cited by
President dasEott, who produced statlstica show
moro from Jan. to :furch ~, 1879. vera 6,025.-
b05 g1llons 40 compat Ell With 340, 722 GALLONS OK
| ported In the same tin1o tue year provlorH. Af-
ter allidfug blloy to tho ynsners 1T the 'ncreasc
the moderate aud judlc,ous action Of tho Daitf-
moro d. Ohio Company, President Gnrrctt pro-
| Coded "a folluws:
Aud this cass illustrates largely tho tons md char
actsr and Fessonablenes, Of the criticism aud hosts
Ohio Company, With its admirable equpin*nt It, ~.
Tres Of trade In tbs Southwest and Tie West and tbs
Northwest, In commanding simply that to which II
snd @ ors ~ oojast ot jesious o.is; on tic .Et of
ia competitors rapaoly ley resolved tba It must
consrolled .nd the h!aery Of t1o care shows TIT
reduce to suGm|ssion Tho D,ltinore l. ohio Com
fiemoisE The baltimore ONO Company lIls Absu.
1s
Central and tho New Yo.k Eric to gi7o him Ill tic
power aud scups la ulkea .nd. gsntlvnen, Wh1t ha4
tj,e chief point ia Tho policy Of tho baltimore 4 ohio
Comp,ny las boon 10 build Up shs trade ot u.!t.ota1
gwen 10 tAs Baltimors QUO Road ny ha cous1s tho
most speMlI success IN al It. history In enah!ing i
ha ~ gnu nst no ia H. shs n
liz reduced thu 14tct from Daltimors to tho Mcst
to one-half-sni in soms ea.es to much less
snd I Nsw York and boston 10 lhs aamc citirs :;
aud shus ho made tho pennsylyan.A Railroad
rSa rSiaadsil.. H. ta iii d1ee.is the nai,ors X oA'o
ComEany U accomplish W leading object q Il:
IT, H. asn 70 "a M oena
tls Cbcsso extension Of the Baltimore Ohio lsoad
M advertisement, significant consp!crou.ursa, aud
1rae'o.i usefulne.. which ysars Of it, own oaorts
could not hays effected Ito has pi4ce btforo tte
i!ncs 70 commanding ia thelr iutiusnte tnat ths
Pennsylvania 1soad controlling stated In tho report
q I. inys,'es'iax osn,st:ss q q, ns: It s.sy
compelled to subordinate iself sud thEow its whufe
power tnto building up Tue Cty Of nalt.nose q the
expense ot !t4 own City Of l'hIlaarlIl4 and other
KastcFu cftaf
President Garrett then proceeded to
DRAW C0HTnA6F
bctween tho financial condition Of tue baltimore
Il Ohio aud tho pennsylysu!a Company. show
ing that while tho former Company has only
e!5, 0oo.o .oD OF common aud 81 .u0o,9 of pre-
scyrol stock. tho latter shows Of stock
alone s69.71s.400. After alfutsing, to
| sYtyaniA Road in refusing accommodations
upon the Camden L AmLoy line for tho freight
and passenger business OF The baltimore 4 Ohio
ltosd, lresldent Garrett ~ an iltuatsation ct
tho ability Of that linz to eompete with lss op-
panent drew comparison between tive similar
branches OF both nuss-the baltimore y Potomac
load, md the Washington bsanch Of tue baltl-
mora Ohio Company, showing that tho toIIneEi
single track not ot the best character L. stated
10 represent = debt Of moro than se,00o'ooo.
willis tho latter, which IL strictly tlIst-olAss
douhle,traek road IL represented By capital Of
9t ,650, 900. A!IudihB to
ID