The New York herald., 1878-03-01
FREIGHT TROUBLES
Report of the Chamber of Com
merce Committee.
UNJUST DETERMINATIONS.
An Interesting Letter from Mr..
William H. Vanderbilt.


tee on Railroad TRANSPORTATION Mr.. james ". Brown
presiding. Several prominent merchants were pres
ent Mr. Charles S. Smith read the report, the SUD-
stance OF which will DO found below MI smith
said:-
The Committee on Railroad Transportation Of the
Chamber OF Commerce OF the State OF New ork peg
leave respectuly report that the investigation oil
the subject 10 which they have gwen much patient
consideration, Enormous taxstlon.
mlscrably paved streets, insuflcent anu eA-
pcnsive terminal fsolIes, ana more recently op .
pressve railroad determinations" all combined, nave
made New York The most expensive CITY IN the woro
iu winch TO do business AS result we are are com. ,a
pelled face the TACT that points Win iar
less natural and acquired advantages, arc gradually
securing the business which na'urany ano righ1u"y
belongs 10 New York
THE JoBBING TRADE INJURED
The Jobbing trade Tor years past IN this CITY mas
been less remuneratve than al other points; II mas
already left TINS city alarming exten is yearly
decreasing, and tho large trade III heavy and bulky
articles such metals, salt, chemicals. cordage and
the like is suffering a runous competition because
Of discriminating freights TO the West against New
York the articles enumer rated beng sold with so
small a margip OF profit that small percentage IN
freight iavor OF one market or another controls
the sale.
The combination known as ''the poor lines wnicn
include the New York Central and Erie railroads,
hsvs. common consent, established a schedule OF
rates Western bound freight, which uniformly dis-
eliminates againG New York aud in favor OF Phiadel-
phiu and Baltimore extent of seven TO ten per
cent ON the different ciassi6caons OF freight while
10 Boston is conceded The same rates 10 the
New York Central lines. 1t Is also true mat our
trunk lines havo conceived IT 10 De Tor hcir lntercs
Al times TO allow determinations against our COM
merce. Tor longer or shorter periods as enormous
MS htty sixty per cent, thus deprVing our ner-
rnants OF valued and established business connec-
lions, and dvertng the same 10 other ana competing
points Our trade has also at Iimes grevous.y sui
lered IN this city most oppressive discrimination oy
means OF a combination between the foreign lines OF
tteanshps arriving at this port and our trunk lines
Of railroads. Heavy articles OF freight such as
metals ana the Ike have been forwarded TO points
LOCO miles more west ac actually lower rates
than freight could be brought by the SANE
steamer and landed in "a warehouse N New York
similar discr minaton against New York has existed
IN the matter oil shipments from the other seaDoard
uYpHRwgIGHrs AND CLASSIFICATION.
Tho committee are also in possession oi facts re.
zardlnp discriminat by means OF ''underwee hts
most dishonest method of competition practsed by
railroad lines Tor the purpose OF cutting the
schedule rates. The commerce OF our city has also
greatly suffered by reason OF gross determinations In
tue matter oi classification. Your committee nave
abundant testimony that 'he railroads centring IN
competing cities have greatly iav0rcu the merchants
o. their own cities by evading the classification, and
justiyipg such action by the argument "that they
must care and protect ther own local interests 81
u consideration which own railroads nave not
thought proper 10 meet and consider in oena OF our
own commerce
An important DISCRIMINATORY also, against the job
bng trade, particularly OF this city, is in the form
known as the special contract system, by which
wholesale houses the Interior are gwen rates IRON
fifty TO seventy-hve per cent cheaper thn inc general
public. 1t will be noticed that although our mer-
chants have not been without cause OF complaint IN
the matter OF Eastern bound freights 10 Now YORK
your committee nave purposely omitted particular
reference this SUBJECT because the rates from the
West to the East largely controlled iron The
Western points OF Shipment ana are probably at
present beyond the sphere OF any immediate in
tuence which this committee could command.
The discrim natIous complained OF are proba-
bly, sometimes made without The specific knowl-
edge the eading officers oil The rail
roads, aud sometimes by the dishonesty OF
shippers. They are generally designed TO be secret
nnd confidential, ana II Is dnicult TO bring them 10
light, Your committee however, have at hand salts
o..
lhey believe enough has been done 10 sho" the need
OF n radical reform. To find an adequate remedy is
serious problem
THE coMMrrEE's DUTY.
Your committee feel called upon to discuss
thess questions under their instructions from the
Chamber ouly lsr they collateral 10 our sys-
tens methods o railroad transportation. They
regard The questions oi the administration OF the
powers granted 10 the railroads Dy our State and the
corresponding obligations the part OF such roads TO
the commerce of our city ana State us the most
in iaut factor in deciding what shall be the
future OF the commerce o. TINS metropolis They en-.
Iertan doubt tnat these powers and obligations
Can be regulated and defined by wise ahd appropriate
legislation both by State Legislature and by tho
Congress oi The United States. La pursuance OF their
duty your committee have had prolonged interviews
with Mr. Albert Fink, manager oi the 'pooi lines, -
and assisted by committees from the Importers aud
Grocers' Board oil Trade and the Board oi Trade ana
transportation, and many OF our prominent mer-
chants; they have had long conference with Mr..
Vanderbilt, President OF the New York Central, ana
Mr. Jewett, Receiver OF the Erie Railroad. to VIII om
they presented the following propositions as equa-
ble:-
above named roads shall We. ut ali times. either by
or r"tss ts Ii,n
which has established an opposite that the
considerably longer than from New York and in the
Sseoni-Tnal the foreign freight arriving port
shall not forwarded to tue West over the New York
than the same class eau be shipped from
TLird-th hat the ciassdca;ions by the New York
Cenra Erie s,oai shall be in All respects AS ayor
abe M New YORK shippers Tor any other city
Or ior throuah foreign freight 49,
tent In the 10th OF The railroads and OF
sna that geo% epnsses r nDnd .ny oe tn
loads being the maximum quantity required 10 secure
ihe lowest rates
They pr. sseJ The above upon The railroad managers
with ali ability which the merchants present ut the
conference could command
THE kQUITIEs OF THE CASE
1t is just to the OF 'tne pool ines TO say,
that they their refusal place New York upon
the isct that the distance New York city longer
from given point In the West Than to Philadelphia
Or BalLimofe, and to cobccde the point asked would
bring on IA railroad war" and that The same "dis
lance argument" did apply To Boston, because OF
the competition oi the Grapa Trunk Railwuy, which
road re To Join the pool" AS matter OF aD-
ract ght your committee are fully convinced that
New Yok merohants are enttlcd not oniy 70 as low,
but even lower rates on western bound freight Than
IRON any other scaboard city, the "distance argu-
ment' being iur outwcghed by the immense prepon-
uerance business furnished by cily and by other
consIderatons well TO railroad experts, sucn
grades and the capacity to draw more cars
with locomotive the part vi our trunk lines As
compared witn their npetitors In 'hc pool" IL Is
aumltled among railroad men thai IT costs the
New York Central Railroad distance Notwithstanding,
Considerably take goods from The scaboatd 10 he
West does etner The Baltimore and ONO or tho
Pcnnsy vauia Central Railroad, and the is true
pf the Eric. only lesser Degree because OF her
broad gauge aud consequent higher cost vi working.
Iu the oi terminal iaciitles Tor this cy your
committee ready admit that The Railroads cen-
tTeng city have not received from our CITY au-
lhoriies rom merchants generally, that as
siance which they justly entitled aud which a
regard Tor commerce imperously demands (;
We have been lar behind our sister ctes 10 TINS M
portanl regard ana we cannot 100 strongly impress
upon the Chamber the duty OF urging this mutter
upon the Mayor and other authorities OF our city.
Your co ommiitee arc OF dccidcd opinion that the
railroads centreng III our city and the steamship
lines running regularly TO THIS port should De most
geusruusly treated the matter OF dock facilities /;
snd unless tis policy is adopted cauuot retain our
present mercantile supremacy Your committee are
also ,quay OF me opinion tnat the Board oil Aldermen
vi New York city should grant the application made TO
that body on the 17th july 1871, by Dody oi mer.