New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-09
RTINOTS UNCERT4INTY.

Among the railway kings there is evidently
one who is something of a wag. The latest
agreement, formally signed by Messrs. Van
dcrbilt, JeWctt, Scott, and Garrett, gravcly
announces that it ais intended to be perma-
"ncnt.n Is it to be inferred that other agree
ments have not been intended to be pei1na-
nent2 Whether the language justiiics that
conclusion or not, the facts certainly do, for
the nature Of other solemn compacts has been
such that, unless the railway managers were
wholly devoid Of sense, they could not have
expected the compacts TO last. This one, how
ever, is "intended to be permanent" Let us
be joyful! Also, it can be changed only by
unanimous agreement after three months
notice. How delightful! At last, we are as
sured, we have a compact which Is not ike
pie-crust, made only to he broken
We should be very glad to believe that this
new arrangement could endure, at least long
enough to test its workings. Railway wars
damage the railways, dcpress the price OF all
railway securities, hinder the restoration Of
confidence and impart most disastrous un-
certainty to all trade. No Western merchant
likes to purchase large stock from New
York, with the chance that his rival may get
the same goods a month later at such saving
in transportation as to enable him To deprive
the first buyer of all profit. Nor does any
Eastern purchaser like to move from the West
q stock of grain larger than he can certainly
sell Immediately upon arrival, II there Is a
chance that lower rail rates may put down the
price of grain here before he can get rid Of
his stock. The consequences of this uncertain
ty as to rates, which has now continued for
wears, are two: the prevalence of a hand-to-
mouth policy, alike in Eastern purchases of
Western products for consumption or ship
mcnt, and in Western purchases OF East
EN- products or imported goods, and
second, rapid growth of the trade
of Western at the expense of Eastern
cities Western dealers, in a thousand minor
towns, find it more advantageous to buy small
quantities at time from the nearest Western
distributing points than to take all the risk OF
change in the cost OF transportation from
Eastern cities. Eastern mills and local dealers,
instead of purchasing large quantities in New
York, find it more advantageous to buy as
they require, through agents or local dealers in
Western towns. Thus the Western cities get Il
larger trade than they would with steady rates
for transportation the Eastern consumer buys
more directly from the Western point of pro-
duction or shipment; the Eastern cities lose trade
and OH all hands the tendency to buy only for
present wants is unnaturally developed. As Il
necessary consequence of the hand-tO-mOutn
policy, the markets are liable to greater
fluctuations in price, and neither the Western
producer nor the Eastern manufacturer can
count upon the steady market which IL desir-
able as basis for investment or industry.
But it is certain that the investors in rail-
way stocks and securities have not yet mani
tested, by their bids in the market, any strong
faith that the new arrangement will endure
Each railway has its private contracts. Each
has its personal friends and favOrites, and its
interested parties whose voice is potent. The
rates may be rcligiOusly observed; but who can
guess how large q check for rebate either of
the roads may make at the end of a month to
large shippers? In time it will be found that
one or the other of the rival cities is losing a
share of its traffic. Then it will be very hard
to hold all the roads to the performance of
their agreement, and harder still to convince
those which are losing trs1lic that freights are
not diverted by private arrangements Neither
of the parties gives any guarantee of faith;
in the nature of the case neither can under
take at all times to satisfy the other roads as
TO its fidelity. The very language OF the
compact implies that the railway kings them
selves when they made their contract, were
not entirely convinced that they could rely
uDon each other. They "intend this ar
rangcment "tO be permanent" whether IL
will be- none of them can tell.