The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-11-13
RAILROAD FREIGHT RATES.

RUMoRs OF COMBINATION TO RAISE THE
TARIFF HIGH ON THE FARMERs-THE Ex-
PLANTATIONS OF RAILROAD MEN.
A statement was recently published from what ap-
peared a reliable quarter that u combination among
the great railroads foot advance the freight
rates between tue East and West toward the end OF
the present month extraordinarily high figure by
way or indemnifying themselves for the losses they
sustained Tho runous rivalry of couple OF years
ago. 1t asserted that the farmers were seriously
alarmed at tho formidable character OF the movement,
and intended, should 1t prove what II is apprehcnded
to be, TO hold back their crops until the
spring. when water communication will be
open, and make in the meantime appeal
10 Congress for protection. is, Of course, generally
known that the railroads at the opening OF winter and
the closing OF the water ways OF traffic advance their
freight charges IRON ten to twenty per cenL IL Is
natural enough TO expect that when they enjoy
monopoly OF the carrying business they should seek
to profit by 1t more less-in other words, to make
hay while the shines. There Is u general antici-
patton Of a heavy movement OF freight from the West
this winter, owing to the enormous harvcsts
that have garnered; but this anticipation may
prove aIaclous, the farmers must understand that
II they rush large quantities OF produce ON the mar
ket prices will decline, while ny keeping the supply
a level with the demand prices may be sustained
is thought by those who know best, will keep back
very large quantities OF produce TIL late time
possible year, unless some extraordinary demand
comes IRON abroad In this Case the railroads VIII
have httle more business this winter than they mud
last, and il Will not be their interest 10 rritate the
farmers ~ adopting any exorbtant freight schedule,
latter viii DC Afforded an opportunity TO take
their revenge when navigation opens IN The spring
RECEIVER JEwETT's VIEWS.
In reference TO the rumors mentioned Mr. Hugh
j. JeweiI receiver OF the Erie Railroad, said yoster
day--Frelght rates viii certainly be advanced wi.h
he U
OF no combination to overchargs the farmers, ana
have certainly heard Of no legislation .nat was about
''Arc The present freight charges IN your opinion
reasonable2"
low they were. They are not losing rates.
Railroads try, like other branches oil business,
TO live and pay at least their expenses"
'.Docs the arrangement entered INTO last summer
between the lcading liues cover eastern bound
ireisht?"
ain that arrangement the quantity Of business in
western bound freight that each iuo should transact
apporoped, but IN eastern bound freight II Was
the carrying prices and not the quantity TO be carried
that were agreed upon"
.sDo you expect an UNUSUAL business tins wnter?"
alt is possible there may be a European demand
greater than any we have any advfces Of Other
The volume OF business Is not expected TO be un-
usual The crops have certainly been very ABUNDANT
but there VIII be holding back ny the farmers OF all
that they anord TO keep on hand To market all
they hold would be bad poiicy.'
'sYou don't suppose the advanced rates VIII mako
the farmers erunOlcY"
~ should think not 1t Is what they always expect
The advance cannot exceed twenty per CEN, aud as 1t
no new experiment, but what happens ut the same
time regularly every year, there nced be no alarm
about =
Mr. j. 5. Gosler, freight agent Of the Pennsylvania
Central Railroad saudi; ID an unlikely story tbat
the railroads would combine to raise The rates Of
freight 50 as 10 frghten away the from send
ins their produce TO market. A railroad has TO be
conducted ike any otner business, ana when II puts
up lis prices beyond reasonable figure II Will lose
custom the same as dry goods OF auy ohsr KIND oil
store.n
THE PRESENT FREIGHT
slow do you regard the present freight rates2n
II consider them moderate they were nifty and
hundred per cent higher some years ago, and they
were as much lower not long since. Now We deem
them neither ruinously low, nor, by any means, hign
The freight on barrel !. flour from Chicago cighty
cents, and a hunured~eight OF grain forty cents.
Four I'VE years ago the rates were high 81 so
Tor Hour and sixtyhve cents Tor grain Eighty
appears very reasonable price Tor carrying barrel
OF iour nearly thousand miles, when you come to
think It would cost My cents to have u carried from
here over TO Brooklyn"
OF course there Will be some advance In the rates
for the WINTER when water communication Is cosedY
"Ihere always rs but IL Is per ectly Just and egt-
innate advance IL 10 the inherent privilege oil any
business similarly conducted. The canals and the
lakes come INTO competition with the Railroads the
summer, and the railroads are in duty bound to seek
their oil business by offering the attractive
terms they can afford. Grain Will probably be
vanccd from forty 10 forty i've cents, and hour from
eighty cents to 81.
.But Is there not every Inducement Tor the railroads
TO advance their ratesf ~
II don't thnk So The incentive to each Of the great
roads TO struggle tho business OF neghDur was
taken away in pooling arrangement OF last July.
BY that unders tandipg the HUDSON River and New
York Central were allowed thirty three per of
western bound freight, the Ere road thirty three per
cent the Pennsy lvania Central twoptyhve per cent
and The Baltimore ana ONO nine per cent, and any Of
the roads dong business than its allotted snare
the pool has turn II over TO the one that Is dong
less and pay full Rates On eastern bound ireigh
there specie arrangement oil TINS KIND, OUT Is
well understood that when an advance oil rates ~ made
all four lines shall charge alike"
WINTER TRADE PROSPECTS.
"Do you ANTICIPATE an extensive business this win
ter?
at will be considerable, no doubt but not cxtraord
mary. Those farmers lving convenient 10 wa or COM
mum cation Will hold over shipping ti tho sprlng."
''How do tho companies like the pooling arrange
mentYn
at is much more satisfactory on the whole than
the previous way Of doing bnspcss Under the .for-
mer method an old shipper would make the rounds
oil the different companies 70 Tina out how much one
or the other would charge 10 ship load OF goods, and
OF course hc look tue lowest o1er, ana this KIND OF
tning gave rise TO TuDous rivalry and the sharpest
cutting Of prices Now u Is all alke. whatever com.
pany he goes TO- because each charges the same ana
think ~ WORKS well all round"
Nr. A. Z. Rose, agent OF the Baltimore and Ohio
road, yaid-"ln all the twenty-five years have been
at The ircgnng business ali advance the rates was
always made on the coming on OF WINTER ana suppose
there VIII be no exception tins tme. We are now
sending cars out West as last AS spare ihem,
and expect they Will have all the business they can
carry
Mr.. Vanderbilt, OF the New York Central and Hud-
son River ROAD, and the general freight agent were
absent yesterday from the Grand Central depot, but
oi tho subordinate officials did not attach any i'm
porance to the reported combination tine grounds
tnat the railroad companies are yet prepared 10
commit suicide, ana has they have much interest
IN Keeping on good terms with the farmers as The
farmers have 10 securing low rates oil freight