The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-08-12
THE FREIGHT RATE QUESTION.

IAx SlTUATIOK--IS THE WAR NEARING THE
END?wHo ARE THE ARDrERs?
There has been good deal of talk lately about tho
cutting OF freight rates among tho roads west Of
Chicago and the probable effect Of this action tho
movements Of the Eastern trunk lines With view
10 discover how far this HERALD reporter
yesterday visited number Of prominent railway
officials this city connected with the Western roads
and the situation seems to be about tolows:-For
year more there has been a pooling arrangement
between the Toledo. Peoria and Warsaw; Toledo, Wa.
bash and Western. and Chicago Burlington and
Quincy, by which arbitrary rates liked traffic
west OF Chicago. For instance, fregh: billed from
New York TO Dcs Mones or Keokuk would BIO carried
at tho low schedule rates 10 Chicago and then would
have TO submit TO the tarn--oitentimcs cXces
sve--to DO conveyed to other points ut prices
arbitrarily liked by the combination. by this
process the roads west OF Chicago able
TO make money and dictate terms to their
less Fortunate competitors and would make money
whether the Eastern roads did not Owing to the
recent rvaries the Grand Trunk, Erie and New York
Central were found to he playing directly into the
hands Of the roads above mentioned and while the
chcqucrs OF the latter companies being depleted
the cash boxes OF the wo1i being niiod
at their expense. This state OF affairs could be
peccd 70 last long, and accordingly there
plants and circumstances both from shippers aud
cevers on account OF iavortism and discrimination.
As is usual the road in the hands OF receiver which
had provide interest for the stockholders and
only had look out for salaries and the payment Of
running expenses, was tho rst to inaugurate system
OF cheap iroights; and this roadtbe Toledo, Peoria
and Warsaw-was the nrst 10 throw the nrebrand OF
discomfort INTO the camp OF the happy family. They
reduced from ten to twcnty-i per cont with
the effect OF totally upsct,ing the calculations of thc
combining railroads and creating panic in frcigh,s,
which cautious shippers were not slow to avail
themselves oi From sixty cents pcr 100 pounds
August they were reduced to th.rty-sx ccnls-as
will be seen reduction OF about ninety per cent-and
upon tins being unccd to the compe,.
ing roads tho rates wero made uniform all the Inca
Tho Illinois Central road supposed thew could hold
against the combination but cheap rcghts on tho
other lines too much Tor this corporation, and
LIKE CAPTAIN scorrs cooN
they came down. Tho southw western freight on this
road is supposed TO be much affected by this sud
den change in freight rates. but, IN the tho
Eric and central roads II Will soon be discovered that
when system OF undertaking commences 1t affects
all the companies alike, and is never until
bankruptcy stares them in the lace
The officers OF ,hc Chicago and Northwestern Rail-
way Company declared to HERALD reporter yesterday
that their road would not sustain damage from the
recent changes rates. but tn, OF their securl
ties The stock market docs not boar
ass aranccs Mr. Albert Keep, tho President of tho
road is AT present in chicago and his representatives
here seem confident that the war will soon be ended,
but time alone VIII show bow far these sanguEe antci
patiOus warranted.
An agent OF the " ichgan Central Railroad told the
writer thai the war was just commencing, and that
lower would yet be made than recorded
the history Shippers, indeed. could
make at the low rates for balance OF tho
year II was almost impossible 10 gather any news OF
the ST Paul roads, OWING to tho rcccncc OF of
she managers and the absence OF others, but IL i'm
possible CONCEIVE that the 81. Paul Railways should
be damaged Ia any general war in ting Northwest
In Of the difficulties among the Northwest
roads may be well to rccapi uaic of causes
which have led 10 the struggle Threatening en-
tangc railways OF the cutirc country difficulties
OF 80 grave a character The New York Central some
time since openly disrupted the compact OF March >
as the tables Of local frcigts the Chamber Com
Inerce showed steady falling of OF freishis to this
city and unmistakably proved that the movement OF
grain In favor Of Philadelphia and Baltimore in
stead OF this GENRE. Tho figures gwen fol
lows
AT Baltimore, 19a, 0c0 bushels
Al New York, only %, 900 bushels
Therefore almost total loss Of business was
threatened, and the Central sbandoning It's Fabian
that no how low tho Pcnnsy or Baltimore
roads would carry grain tho Central would bring hero
the price, ut whatever prices the roads from
other cities would transport passengers Central
would equal them in cheapDcs-. Then the Erica
bankrupt road and In .he hands OF rcccvcr--wcnt
into the war, and as II was FREQ nght beat both tho
Central, Pennsylvania and Grand Trunk In lis pub
lshed schedule of rates tor the OF pas
scngcrs. II not 10 be supposed that all this
competition in the East tor Chicago trade the Western
roads would remain untouched among tho scheniiug
rivzlros OF the connecting branches and tho recent
emeue proves tins idea To he Tho the
fight, however the nearer the end. Victory must
rest on the banners OF some of the contestants and
arblter upon the 6ed and settle terms OF