The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-20
Mr.. Simon Sterne's Invective Against
the New York Railroads.

the New York Railroads.
An important meeting was held in Stein
way Hall last evening in pursuance OF an
invitation from the heaviest merchants and
shippers Of the city, when an able address
was made by Mr.. Sterne on the bad treat
ment which New York receives from the
railroads of our own State This great bust
ness community is thoroughly awakened to
the Determinations made against it by the
railroads. and is justly indignant at the
diversion of its business to other
Atlantic cities by the cost Of trans
portation to the West. Without in
dorsing all the statements Of Mr. Sterne we
may safely say that they demand attention
and inquiry, and unless they can be refuted
by the officers Of the inculpated roads the
Legislature ought to interpose with vigor
and protect the interests OF the State. We
assume that the facts are substantially as
Mr.. Sterne represents them until errors are
pointed out and proved: and although his
address is pitched in tone of invective the
feeling he manifests is justifable unless the
facts he parades can be truthfully contra
dicted.
It is monstrous, if it be true. that goods
are shipped from Liverpool to Chicago and
ST. Louis through Boston, Philadelphia and
Baltimore at lower rates than are charged
from New York to the Western cities. 1t is
monstrous, if it be true, that New York
merchants, having orders to fill for Chicago,
can make saving by sending them to Bos-
ton by sea and shipping them West by rail
from that port. These are among the aston
ishing statements made by Mr.. Sterne, and
in the presence Of the heads of our great
business houses he would hardly venture to
make assertions which their experience does
not enable them to indorse. II these mon-
strous statements are true the inequality
must be rectifed or New York will lose its
pre-eminence as the great importing mart
of the country. Our merchants are justified
in making an indignant remonstrance
against such o state Of things if it really
exists.
Mr. Sterne attributes it in part to an over
valuation of the capital Of the New York
roads by watering their stock and other
similar devices If they insist on making
dividends on twice the actual cost of the
roads, freight charges will Of course be high.
But there is no justice in exacting dividends
on watered stocks. Mr. Sterne introduces
pertinent illustration by supposing a
mountain to be suddenly elevated across
Western New York, causing an expense Of
fifty millions in tunnelling through it. In
that case the cost Of the tunnelling would
have to be paid ultimately by the
shippers in higher charges for trans
portation. Though hard it would be just.
But when fifty millions are added to the
capital Of the railroads by the inexpensive
process Of Watering their stocks the burden
is equally great, but its justice is not np-
parent. Another ground Of complaint
against the New York roads is their failure
to lower their rates in correspondence
with the amount Of their business.
A large traffic can be profitably
conducted at much lower rates per
ton than small traffic, but the
New York roads do not give our shippers
the benefit Of that principle. We direct
attention to the report of Mr.. Sterne's ad-
dress printed elsewhere in this paper, and
suggest to the roads that they are bound to
meet his accusations. If they are false let
them be refuted if they are exaggerated let
their extravaganza be demonstrated if
false differences are drawn let them be ex-
posed but if Mr.. Sterno's allegations can
not be successfully controverted it is high
time for the Legislature to interpose and
remedy so monstrous On injustice.
mar. Vanderbilt's Defence.