New-York tribune., 1876-12-18
SArrRnAY. Dec. 1G-P. "


1.-THE railroad war is declared to be ended"
Howl Conflicting statements and pretenses have
heretofore succeeded in rendering this subject more
muddled in the minds of the public than probably
any other of equal importance ever was. For
more perfect understanding of the existing status,
brief review of facts may be of interest. Prior to
the panic of 1873, the railroads running east from
Chicago were content to accept OF the large business
offered in the Winter months at remunorative rates
AZ an offset to the enforced duncss OF the months
during which inland navigation secured all tine
heavy freight and New York prospered as the almost
sole exporter of Western produce. This state OF
things was seldom disturbed by disagreements be-
tween the railroads, and when II was, mutual inter-
est made the conflict of short duration. The light
business of the Spring OF 1874, however, produced
a serious competition, which continued untii about
Seytember of the same year, when the famous
Saratoga Compact" was made establishing rates
which prior to the break of that Spring world have
been considered low, but were high COM
pared with any rates since established. In
November of the same year the Baltimore and Ohio
COMPANY. in advance of the completion of its own
road succeeded in making an independent eonnec-
ton with Chicago via the Illinois Central Railroad,
and early in December issued the following sched-
ule of rates from Chichago on grain and -four VIZ.
To Baltimore and Philadelphia, 30 cents per 100
pounds; New-York, 45 cents, and Boston, Do cents
These rates being to Boston and New-lork over 10
per cent below the schedule of the Saratoga COM
nact carried CONSERVATION into the ranks Of the
monopolist and there ensued "a bitter conflict and
cutting of rates, until the price to heW-i0rk WIS
reduced to about % cents-a point then thought 10
be ruinOus This state of affairs was followed by "a
settlement in the Autumn of 1873 on what Is known
as the mileage basis; that is, New-York being the par
Of rates, Baltimore was conceded l3 per cent dis
couut and philadelphia 10 pcr cent. On this basis
the rates to Now-iork were established on Oct. II,
1875, at 40 cents, and on Dec 20 advanced to 10
cents per 100 pounds for grain and fiour the rates
OH fuurtl-class being five cents higher. AT
about the same time the rates on west bound
freight from Ncw-York were established on the basis
offs 90 pounds irstclass to Ccago(the
rate prior to s7I was fromS1 25 to$l 65-Philade-
phia and Baltimore enjoying the same discount trom
these rates as upon those for east bound. These
rates prevailcd-excepting for about one week when
the Grand Trunk road urged war in favor OF Port.
land and Boston--until into March of the present
yenr. or inst prior to the opening Of the lake AID
canal navigation.
The results of this permitted discrimination
against this city proved to bc Just wat had
been predicted in tEis cOlunin-the loss OF
large portion of the corn and produce export trade
which, by the lower rates, was diverted TO Phadei-
phia and Baltimore. That tho same was not true OF
the exporting of wheat due TO the fact that tho
lake and canal before closing had delivered to this
city surplus OF nearly 100000 bushels and that
the foreign demand was light that il would not
take what we had in store at our prices. Again.
when tho managers of tho Central and Hudson and
Lake Shore railroads, after having enforced the dis
elimination against this city during the entire pc
riod, that every pound of freight moved had 10
come by railroad suddenly awokc to its 'rulnous
nature Just at the moment when the lakes ana ea-
nal were about to relieve the commerce OK ''is Guy
of the past four or five months incubus, ana inau-
curated low rates by rail- took occasion to point
out the probability that the new war was really
aimed At the boatDen rather than Mt the competing
railroads, and that the Southern lines woad' und'r
ali circumstances, maintain their mileage differences
~. I'll ,,d further. that such excessive low rates
roulJ divert trafic from the water routes thus
destroying New-YOrk's natural advantages ln .Iis'
too. We were correct. During the entlro o"ni-