The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-06
CUTTING FREIGHT RATES.


WHAT THE AGENTS AND MANAGERS sAY-IxTER-
VIEW WITH VICE PRESIDENT vASDTRBrIT
Any person visiting the various Offices OF the great
trunk railroad lines In this city yesterday would havu
been sufficiently convinced OF the gravity Of the con.
test between the rivals for Eastern bound rcights.
Never before has the dispute between the
so acrimonious as present In the Erie Railway
offices at the foot OF Duane street. there gathered
in the halls and anterooms knots of interested
persons-freght agents and others-who discussed in
quiet the situation the often recurring words
OF rebate" .open rates" especial contracts" &c,
giving q key to their socitous arguments.
The New York merchants have a vital interest
in these especial" rates, as tho differences
between them and the regular tariff makes miscel-
laneous Western buyers give their orders to merchants
In the large inland cities thereby cutting the New
York jobbers almost wholly out Of valuable share Of
their business. IfquantIes or merchandise Of differ
cnt classes shipped tho West under s'spcciar'
freight arrangements the jobbers here nearly always
sustain loss This shown concusively In the
HERALD Yesterday
railroad man told the writer that already during
the last week contract made for about 500
OF grain at Chicago for direct European shipment nj
ducon Of from about orty-lve to fy cents tho usual
tariff 10 twony cents pcr 100 pounds, which will
bring to this port about 500 bushels OF grain al
By contrast. for the week ending April IL
but about 40 900 bushels of corn arrived, and for
the week ending April 22-ancr the break in tho COM
binaton OF railway managers-about 225, 900 bushels
II will thus at BIO what impetus tho way
OF shipments New York will experience from the rup-
turc.
At the Erie Offices II assorted that cutting on
West bound freight had yet been adopted by that
pany but tho opinion advanced that ere long this
would have 70 DO done In order to compete with tho
great rival companies. No authentic in formation
the cutting down OF passenger rates could be obtancd
but Mr. Abbott tho passenger agent declared the Eric
company had yet reduced passenger fares from the
West or from tho East TO Chicago
Al the Baltimore and Ohio company's ONCE In
Broadway, the agents had no news from the home
Office which should change their tariff for reights
passengers but orders for reductions might come at
any moment If some amicabe arrangement not
concluded.
THE GRAND TRUNK RAILROAD.
through its general manager Mr. Hickson puts forth
the statement that after the meeting at the 81 Nicho
las Hotel, on March 2 general understanding was
had with tho Now York Central, Lake Shore and Can
ada Southern roads, but at that very time the latter
road had orders from the Central managers To cut
cattle rates TO New England which almost crippled tho
Grand Trunk In It's ircighng business. A truce, how
ever, followed the March meeting, until Mr.. Ruttcr
General Freight Agent OF the Central April sent
the atter's agents in tho West the following remark
able ordor:-
To run AGENTS or THE Ngw YoRx CENTRAL RAILROAD
against the rand Trunk line going 70 Boston and all New
deemed best interfere with tho
New York. Philadelphia Baltimore.
This opened up the whole question again and led 10 the
letter oil Mcssrs Scott Jewett and King TO the
gers Of the Central road, already published in thu
HERALD.
vIcE PRESIDENT VANDERBILT SPEAKS.
Yesterday very full explanation was gwen by Mr.:
William H. Vanderbilt Vice President OF the Central
Dntl In usritn In IN vorin
matters connected with tho present contest He said,
IN cnect-"The merchants OF New York complained
10 Philadelphia and Baltimore; the rebate allowed -
the attcr city, In addition TO low reghts, was thred
cents per 100 pounds, and this discrimination made
difference against our own city OF from ten 10 fifteen
cents per 100 pounds while At the same time Boston
receiving, the Grand Trunk Railway, largo
quantities OF grain At reduced rates. Some OF our
merchants evcD according TO publication in the
HERALD yesterday, were organizing branch houses 10
Baltimore Under this condition OF affairs the managers
OF this road determined 10 give notice TO their con.
nections Of desire TO accept whatever rates they
chose to make. But a little explanation IS here ~
order You must understand that tho roads In the
West tho rates for East bound frcghts and tbs
trunk lines-Baltmore and ohio, Pennsylvania, Eric
and New York Central-thc ratios Tor West bound
freights. Az the pool in Chicago continued TO keep
up the rates fixed by thcm, tho Southwestern roads
took advantage Of their opportunities and diverted
plants from the latter city and the
conference OF March called. At that time told
the gentlemen representing tho roads that We would
hold them full proportion OF rates made by the
spool" West II they under we would still insist
upon division to US Of full rates. from that time out
we never deviatcd and held great quantities Of
freight at Western terminus and would not bring
forward until the rates charged were scticd while thu
opposition cutting and their freight being f0r
warded over rival roads We had constant protesu
and complaints and were rapidly losing our business,
so this company gave notice OF withdrawal rom
the compact and a future meeting arranged.
Al this agreed try TO make some satisfactory ar
rangement with the Grand Trunk Railway, and We
did succeed the Pennsylvania Baltimore and Ohio
aud Eric roads would waive the ten days notice OF abso
lutte withdrawal by on April We asked that tho
roads would consider absolved from any obligation
to make terms with the Grand Trunk and was agreed
that should make such rates as pleased US on our
New England business ~ the same time we brought
10 their notice the large OF grain going 70 Balt
more and Philadelphia as against New YORK.
This II promised should cease, and rate!
should not be cut Tho Lake Shore road In the West
had already given notice that their connection With
the pool had ended, and the President OF the hichf
gan Central M tho hS ana ar a1s0asn the
Nicholas Hotel In this city, there had been sucn ev.
dcnces previously Of bad faith that the compact Q!
March 2 in reality completely abrogated, and
nothing done.
"There is one thing to DO understood; Il might be
supposed from the letter Of Colonel Thomas A. Scott
OF the Pennsylvania company, and also signed by Mr.
Jcwett that the rivalry OF the Grand Trunk was the
cause OF tho present rupture. Not al AL Ihat was
18th the differences grain arrivals at phiadephis
and Baltimore continued, and the agreement OF March
notice OF withdrawal a matter OF sciErcspccI
There necessity for tho ScottJeweu ettcr;
evasion Of the real issue ana nothing esc
Scott is one Of tho best railroad mon In the coun-
try and II he argues that should allow rebate 70
the Grand Trunk because II 10 100 miles longer tnan
our road then no would seem 10 Imply that the Penn
sylvania and Baltimore and Ohio roads should chary
higher rates than the Central which - longer roat
than either. In conclusion would say We are salts
hcd: and am sure now that New York will get q Ian
share OF the business Of which she has for time oeoi
deprived; that is II tho Central can bring u about
Mr. Rutter, tho general freight agent OF the road
said he yet abc TO give special rates a. whc1
frcichs would be carried but shippers could get gooe
terms
The eastern bound freight rates were ranging rom
fifteen 10 twenty cents yeste day. MS compared with
cents ten DAYS ago Six hundred car loads OF
freight arrived by the New York Central yesterday ~
an average twenty cents, who they despatched On
Thursday 260 car loads.
NfTrNvCIpAT, NOTES