The Cincinnati daily star. [volume] ([Cincinnati, Ohio]) 1875-1880, 1878-03-13
THE SOUTHERN ROAD.
Why 1t Should Not be Leased.

Why 1t Should Not be Leased.
To the Editor of the Star:
| The people of Cincinnati ought to learn
something relative to the futures manage
ment of their Southern Railroad from the
present condition of the City of New York.
For some time past the trade of New York
with the West has been languishing, and
the whole business interests of thescity have
been SO seriously affected by this state of
things that real estate and rents and wages
in the city have fallen to an alarming de-
gree. To ascertain the cause of this unusual
disturbance committee of experienced
merchants has been engaged, and they re-
port that Notwithstanding New York
sends out more than three-fourtAs of all
the Western bound freights shipped from
Atlantic ports, yet Baltimore, Philadelphia
and Boston have better rates with the rail
road companies, and that the Western trade
| is leaving her and going to these points for
no other reason.
The great house of III. G. Clahin & Co., in
letter to this Committee, brings out the
facts that freights from Boston to points
| West distance much greater than from
| New York to the same points are, in actual
charges from twenty to thirty per cent. less
than from the latter city, and that by special
agreement as to the class of freight, or by
reduction of weight or drawbacks this diff
ference rises in many cases to fifty per cent,
which is quite enough to turn the trade
from its natural and hitherto wonted chan
nel terminating eastwardly at New York, to
the city of Boston. Indeed, this difference
| is found to be so great that goods can be
shipped from New York to Boston, and
billed from that place to points of destna-
ton West, coming right back to New York
Ell route, cheaper than they can be to be
| billed directly from New York to such
points, and therefore, orders are taken in
New York and sent to Boston to be filled,
thus making Boston the chief shipping
point, and New York subsidiary to her.
This strange state of things, it seems is
brought about by pooling the freights of
the great East and West railroad lines, un-
der a schedule which determines rates and
classes of freight, but which does not APP
ply to Boston, because the Grand Trunk
Road of Canada, which takes Boston freight
and has Western connections, will not come
into the pool and therefore these other
roads must carry as chcaply as the Grand
Trunk will, or they will not get any of that
| business. Or, in other words, Boston has
| the advantages of railroad competition, and
New York by reason of the pooling proc
! Gss has not.
Mr. W. II. Vanderbilt, President, of the
Hudson River and New York Central
Roads, and Mr.. Jewctt, of the Erie. Road,
say they can not.giVe the city any relief
| from this dilemma. They assert that the
rates charged for transportation from New
/ York are fair, whilst those charged from
| Boston are too low, and that the high rates
from New York must be maintained, or the
roads could not prosper This may all be
true, but in the meantime Boston prospers
and New York lags.
Business leaves New York and goes to
Boston, relations are established there and
| interests created which will take time and
sacrifices to disturb, all of which New York
must pay for. So whilst this may be life to
the roads it is death to the business of the
| great city.
The Committee, therefore, very naturally
ask, "How shall this be remcdied?' When
! the answer comes up at once, Secure com
petition, as Boston has, and as this can not
be obtained by any number of roads, be-
cause they will pool, and thus thwart COM
petition, road must be obtained which
Shall be subordinate to the business inter-
ests of the city. rather than to the profits of
investors in it.' And to this end, among
other things a proposition is before the
merchants Ol NEW 1OIk 10 purchase lIlS
Erie Road when it shall be offered for sale
that purpose, and work it in behalf of the
city, by the city, as protection from such
exactions as are now running her trade and
her people.
Now, this is the point which applies to
our Southern Road. 1t is built by the city
and for the protection of the business of
the city against the extortions of monopoly
and the obstruction to the transit of our
. goods and wares and material en- route to
and from the South Will these objects be
E assured to us if we lease the road when
completed? VIII not the interests of the
l lessees be adverse to those of the city, and
can they be in any ways prevented from
pooling with other roads, and thus abso-
lutely deprivng us of the very competition
we seek? Is it not morally certain that if
the road was finished and under lease to-
day, that it would be in Col Albert Fink S
pool and doing our traffic at combination
: rates? Part of the profits of these pooling
rates paid to the city is the merest bagatelle
, in comparison to the losses we would sus-
= tain in our business And may we not find
ourselves pooled against some time, and a
S rival city enjoying the benefits of competi-
ton such as now exists with New York and
, Boston?
These are very serious considerations in
/. the future management of our Southern
, Road, and ought not to be trifed with OF
passed over lightly. We now have the rem,
edy in our hands. We ought to keep the
/ road-work it for the sole benefit of the
{ city, managing it so that it viii pay as far
. as possible as an investment when this can
be done without manifest injury to the
: commerce of the city; and when it can't,
t then let it be worked so as to serve the
tIn,1 ,,,b, I'll,