The daily Argus., 1876-01-29

The board OF trade committee on Irelgnt |
determinations held final session on yes
terday forenoon, and expect to submit to
the board during the present week a con
densed report of its proceedings, Mr.. II. |
NJ. Cox, general freight agent of the Rock
ford, Rock Island and ST. Louis railroad,
and Mr., j. g. McMullin, general superin-
tendent of the Chicago and Alton railroad,
were present by invitation.
The representative OF the
ROCKFORD AND ROCK ISLAND
road made statement to the committee,
with a view to placing the road in a proper
light before Chicago shippers, and to ex-
plain why it was making but few ship
ments to this city at the present time.
The gentleman explained that the road had
recently been sold to Mr., Osterbers who
was now running it in the interest of the
German bondholders. The road connects
with the Chicago and Northwestern at
Sterling, is crossed five times by the Chi
cago, Burlington and Quincy, once by the
Chicago, Rock Island and Pacific, and
twice by the Chicago and Alton road. Pre-
vious to Sept. /, 1875, all of the business
of the road to the east was brought to Chi
cago by way Of the three former roads.
Since that time, however, these roads have
refused to prorate with it,and compelled it
to pay a local rate on all business to this
city, and the through rates from the origi-
nal points of shipment would not permit it
to pay this rate, and therefore it virtually
closed all shipments to Chicago. The Chi
oago, Burlington and Quincy railroad COM
pany has given notice within the
past few days that from it's connection
with the road at Alpha it will not accept
the cars of the Rockford road, but that
all freight must be transported in cars
owned by the Burlington road, and trans
ported at tariff rates. The Chicago, Rock
Island and Pacific road also demands tariff
rates from ColOna. Mr.. Cox explained
that the road having been purchased un-
der a foreclosure sale it's debts had been
wiped out, and it was therefore at the
present time a perfectly legitimate line
1t was not one of the so-called bankrupt
roads,
In answer to an inquiry on the part of
the chairman of the committee why such
state of affairs should exist and what had
caused the three great roads to Chicago to
adopt the policy they had toward his road,
Mr.. Cox replied that it was owing to a
powerful combination between the three
roads, with the end in view of so gripping
the finances of the Rockford, Rock Island
and St Louis road as to make its sale
necessary and enable the combination to
purchase 1t at small price. In order to
illustrate how this policy was damaging
the trade of Chicago, he submitted the
following figures, showing the amount ol
freight shipped to and from this city during
the months of September and October,
lS74-75:
1874 1875.
Pounds. Pounds
September. 2,132,OOC
october. $4,000 $4,000
The gentleman stated that the business
of the road was now seeking an outlet to
the east by way Of Beardstown and Peoria,
but the bulk of the business went to st.
Louis. This was entirely owing to the ac-
tion of the Chicago roads. Concerning the
business going east via PeardstowD, the
rate to Baltimore was from so to 55 cents
per 100 pounds on grain from almost any
point on this road.
The Chicago and Northwestern road
previous to Sept. /, 1875, accepted freight
from the Rockford road at $l5 per car &c
Chicago. The rate varied at the present
time according to the nature of the prop
erty, but tie road would not haul any
freight for less than $32 per car The
rates demanded by the other roads were
also increased accordingly. Mr. Cox alsC
stated that the rate on bulk meats from
Kansas City to New York was the same as
that charged frcm this city, and concluded
by remarking that as long as the present
condition of affairs continued to exist, il
would be impossible for the Rockford road
to work in the interest of Chicago.
MIR. j. C. M'MULLIN
was asked to explain how the existing
granger laws worked against the trade in
terests of this city. The gentleman re-
piled that so far as the law applied to the
Chicago and Alton road, it compels it tC
take grain to Joliet at four cents less pei
100 pounds than to this city, although the
former city has the same facilities for car,
rying freight to the east as Chicago. His
road had previously Disseminated against
all other cities in favor of Chicago
but owing to the competition OF
the part of the bankrupt east and wes1
lines, the APPLICATION of the granger laws
and the arbitrary rates demanded by the
eastern roads from this city, it was unable
TO do SO now. Mr.. McMullin submitted
statement showing how he was discrim
mating against points IN Indiana, in favor
of Chicago, in defiance of the granger laws
The arbitrary rates demanded by the
eastern lines has almost entirely stopped
the grain trade to Chicago. The road
from indianapolis are Offering to take graf.
from points on the Alton road to the east a
10 cents less per 100 pounds than grain cal
be shipped for from this city. The same
roads that control the rates from this city
control the rates from Indianapolis, and arr
parties to the low rates from that point
He felt that the Chicago board of trad,
had the power to demand that the eastern
roads should not allow the roads fron
indianapolis to discriminate against thi,
city. Ii they would take care of the road
from indianapolis, the western road
would take care of the bankrupt concerns
In the interior of this state. It was 1dl,
for the pool managers to argue tha
they were fighting bankrupt roads, for i
the lines out of indianapolis to the cas-
are bankrupt, then the Pennsylvania com
pany is bankrupt.
THE CHAIRMAN
submitted statement showing that |
independent fast freight lines are operatin,
over the Michigan Central railroad, whicl
employ l6 solicitors on the board of trade
and he desired to inquire whether tn
shippers would not be better served and tn
revenue of the road increased provide,
these lines were abolished
A