The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-05-05
CUTTING" ON FRAIGHTS.
REVIEW OF THE STRUGGLE BY MERCHANTS,

REVIEW OF THE STRUGGLE BY MERCHANTS,
bankers AND RAILWAY OFFICIALS.
The railway war now being wagcd between the trunk
lines reaching to Chicago, Cincinnati, ST. Louis and
other Western commercial centres will, doubt
prove to be OF the determined and disastrous
record The joint letter of President Scott OF the
Pennsylvania; Receiver Jewctt, OF the Erie, and Vice.
President King, OF the Baltimore and Ohio companies
to President Vanderbilt, Of the New York Central
published IN the HERALD yesterday and the reply of
the latter, although courteous In language, sufficiently
attest the acrmony OF the quarrel About one year
ago a similar struggle occurred between the Wander
bits and the Baltimore and Ohio Grand Trunk
and Pennsylvania companies, who charged
with cutting rates down below the freight
schedule adopted at Saratoga Inquiries ut
that time made by HERALD reporter disclosed
the fact the Pennsylvania road making con-
to bring grain and fourth class freight from
Chicago thirty nine per 100 pounds. litga-
tion sprung up the Baltimore Ohio and the
monster Pennsylvania corporations, which was ended
the Legislature OF Now Jersey by the Baltimore and
Ohio line getting bill passed enabling it to extend
line to tidowatcr Jersey City, and directly
pete for New York freghts with tho homo companies
Stocks OF the corporations were declining in price at
the various exchanges, stockholders clamorous
for peace and conference arranged in phladcl-
phia about March %, between Messrs. Sidney Dillon
and Jay Gould, Colonel Thomas Scott, Mr.. King Vice
President of the Baltimore and Ohio; Mr. Rutter OF
the Central and Mr. Jewett OF the Eric The meeting
not Immediately successful. and only when a
total loss OF dividends threatened some roads and
bankruptcy others that peace patched up but
proved, dclusivc and unstable one.
Under the schedule OF rates made by the contracting
companies on March 2 1876, the Grand Trunk re-
cevcd n difference OF ten per on east bound
freight, but last month the Central Road announced
tho determination OF its officers terminate con-
nection with the combination. Foresecng that this
meant war, Messrs Scott, Jewctt and King prepared
this proposition TO the Central oficcrs-viz that the
following scale OF differences bound freight to
competitive points in Now England should be
adopted
.On I've stock seven cents; on cut meats and per-
shnblc property, cents first and second class Of
which there is but very limited quantity, Jour
cents
..The Grand Trunk TO carry third and fourth clnss
which embraces ninety per cent OF the whole traic
ut equal rates, as fixed from time to time The matter
OF west bound rates from New England to remain as
adjusted between your line and the hines Of the Grand
Trunk route
This was promptly rejected The Grand Trunk
having enlarged It's number oil stock cars then went
actively to work TO In the West for trade as
against the New York Central, and became for fcw
days almost the sole transporter stock The Central
then instructed Mr. J. X. Rutter, general freight
agent, TO either make lower open rates allow re-
bate to New England points Meanwhile the Grand
Trunk was undertaking Central in the hog transporta
ton OF New England
OPINIONS or COMMERCIAL MEN,
views OF gentlemen well acquainted with railway
transportation HERALD reporter yesterday waited
several, with the following RESULT
Colonel h. r. Baker. President OF the Cheap Trans
portation Association, said:-''Ths is a lamentable
situation, the great trunk lines deliberately sacrificing
the interests Of their owners IL Is not cheap ireghs
the merchants want much II Is Just
and uniform rates without possibility of
such frequent changes Commercial men can now make
calculations in regard their business For instance
when discovered that could bring grain 10 Balti-
more on better terms than to New York established
nj mt hn.tp
railroad war | eau do just as well IN New York. ihe
business of cutting rates has been ndugcd for long
timc from the West the Baltimore Ohio and Pcnu-
sylvia railroads allowed drawbacks Of five and ten
cents per one hundred POUNDS long while before the
roads under the Vanderbilt control discovered the fact;
their agents have been very cunning about the
tfacts and on every prctence have violated the
pacts made by the compares IN conference to
form rates Tho only way the New YORK Central
ayers discovered the underwriting was by looking
the receipts OF corn IN Baltimore and Philadelphia As
soon as they increased TO large extent in those cities
q sure indication was furnished that the roads
terminating at those points taking advantage
OF the others in tho combination These extreme low
rates, besides inurng the companies and Their stock
holders are OF doubtful benefit the merchants them
selves and some OF The latter now making con-
tracts Tor delivery OF corn based prospect OF
continuance OF the railroad war thai would them
serious loss " the difficulties should be suddcniy
promised. Both Mr. Jcwctt, OF the Ere, AMI Mr.
Ruter, oil the Central have expressed themselves
within a day or two as being determined 10 bring tho
business to New York any Now let us discuss
briefly The remedy these constant freight disturb
anccs | would suggest, n possible that the whole
subject should be referred TO United States
son. who should have the power regulate the rates
and impose penalties OF course, with
the objection at once that such
sion would DO controlled by the corpora
lions managed political machine Ihi
admit in measure TO be true but stu think there
TO be found enough honorable gentlemen accept
places In such commission who would be above sus
rcion. Germany adopting the plan OF buying up tho
railroads as the surcst way 10 adjust rcghts aud
must finally have some power to protect Mr. Wander
bI and reputable companies against the cncroach-
mcnts OF bankrupt railroads. who under them
IN freight charges and who pay interest to their
stockholders aondholdcrs only caring to get enough
out OF the corporations TO pay lat Official salaries and
positive injury 10 small merchants, and permit the
large dealers enrich themselves at their expense. To
illustrate, large operator goes TO the railroad COM
pany aud ssys.-'I want 1000 800 from
Peoria or Chicago What special rate will you make ~
The bargain Is struck great reduction
ana all the small dealers arc thrown out they cannot
get their ten, twenty or any Thus business IL
made football OF spectators The same Is true OF the
dry goods trade; u throws buyers the Western
cities and The Jobbng profits are lost TO New York
while Chicago Toledo, Peoria and 80. Louis gaia. The
Railroad Commission IN Massachusetts has done
good IL was originated BY Charles Francis Adams and
hope 10 sec a similar body In every State in the
Vn"n, so that such dsgraccfrl raroad wars as peri
odicaly occur woad be Impossible =
prominent, banker IN Wall street. and member OF
the Governing Committee OF tho stock Exchange was
freight troubles on bc securities Of the various COM
pancs involved lie said The result on values
Is not AZ all doubtful Look Mt New YORK
Central and Lake shore stocks TO DAY. They
have iaIcn considerably 10 price, and NO doubt viii