The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-20
RAILWAY N0N0PoLIES.
How They Endanger Public and
Private Interests.
REMEDIES SUGGESTED.
Shall the Government Have Control OF
the Railroads?


bankers and insurance officers like James 81. Brown,
A. ,. Drexel. George Hope and George opdyke, MI
simon Sterne delivered last evening, al Stenway Hail.
lecture .'The Railway n lis Relation 10 Public
And Private Interest,"" Mayor Ely presdet. and both
IN the platform and In the hall werc many conspicu-
Gus representatives of the business interests oi New
York.
Mr. Sterne began with outline OF the astonishing
growth 0. the railway interest OF this country repre-
ssnting now between five and thousand millions,
aud controlled By only lew men, ana then con-
nnusd:-Wna would the people oil this State have said
TO u proposition TO place the Hudson River In tho
hands OF private corporation? Would not the result
have been the establishment OF tyranny over and
the ensiavcmont oil the community by corporation
obtaining and exercising control over tho peoples
great highway OF communication? Now the railways
OF the country although the other channels OF trade
have sli remained tree Open practically moIopo
lize the carrying trade OF the community
RAILWAY POWER IN POLITICS.
The railway exercises political power First, by
reason OF It's being great employer As a matter Of
nprl dc corps tho employees Will follow the uncon-
ssaled inclination OF the employer toward ono or the
other oil The political parties or nominees. Sec
snd, BY tho expenditure OF money in elections. Mr..
Gould stated before legislative committee IN 1874
That ha democrat in democratic districts. rs-
publican in republican districts, IN doubtful dis
lct he doubtful; bat in every district and a, all
times he Erie In the same exam nation
he admitted that he sent money freely into tho nu-
districts OF the State TO influence nations
aud elections :or Senators and members oil the Assem-
bly,. He cyncay observed that no thought those IN
vcslments better than to until tho men got to Al
bany.
That tho railway interest OF State suggests
not unfrequentiy dictates appoint legislative
railway committees has long been an open secret
Do you think that II Is an accident which puts Mr.
Wagner tue drawing room Car naaIlacturer, nj tue
head oil the Senate Railway Committee OF this Statoy
RAILWAY COMBINATIONS
II was quite natural that in this country should
have maac tho same error that made IN England
by supposing that competition would do Tor the rail-
way what does for other businesses; but IT Is amaz
INK that with experiences al the hands OF railway
Interests much more severe inan those oil England
have not long ago discovered that III that respect
We have made u serious mistake. We have Duiit
number oil railways TO competing points where one
might have sunccd, US u IS perfectly well understood
among Railway men that no Railway even when II Is
most actively employed, IS worked 10 anything more
than mere percentage OF lis maximum capacity.
HeLce, when railway companies combine-which they
do qaite as often, not oitcner than conpctewc are
compelled 10 pay Interest expenditure oil tnree
times much capital us 10 necessary to construct
line worked to IT'S maximum capacity.
Mr.. FINK, our leading railway expert, and VINO has
nov Charge OF The pooling arrangements Tor the great
trunk lines, admit his work railway trunsporta-
iion that railway competition means railways AT war;
and that ~ strife las nothing OF the true element OF
solupettion III them that long before such 'compe-
ation" breaks oat there Is cutting OF raies-a
eral Decentralization Of The market which Is likely
Djure more than benefit the shipper that Those
generally end ~ combination, wn.cn. however having
been found Intellectual, have developed into poongs-
another term tor copartnershIp between inc trunk
lines sharing coparlners investing different
OF capital ainercut proportions OF tho general profit
TINS cannot oeisve 10 within legal iimits OF
the corporate powers OF these corporations The last
pooIlag arrang cement placed New YORK csy par
with PnilAdelphia ana Baltimore as TO rates, except
an addilionai charge OF ELK cents mileage TINS ,g
porss SO Tar New York concerned, It's enormous
volume oil traffic compared win olucr cities.
thus destroys tne competitive advantages when
ought TO derive from THIS Increased traiic.
Mr.. Fink ia liable attached 10 ms essay on trans
portaiiou. shows how greet the advantages OF IN.
creased trac are by between tue cost Of
carrying loo pounds mile ON the main Inc oil the
Nasnvii,c ana ouisvillc Rlroad ana on It's Glasgow
branch. On It's main STEM Il cost one ana nIne-tentn
cents per mile ana on It's Glasgow branch nineteen
and seventeen onc-hundrcdth cents per mile You
may well . why 10 not get the benefit Of This
enormous traffic, and why should not Tho state vi
New YORK ip,ist upon making lis great inc o. rail.
concede This advantage TO the city OF New York;
The answer Is that had ito Now York railways re-
NAMED capitalized at their cost aud had the Leg isa
ture done duty to tho ten cent limitation OF
dividends, the state anu city OF New YORK would ny
this ime have resped tho benefit o. TINS increased
tralc, out the ten per cent limitation Was permitted
10 be eyaded by watering Of stock iraudulenty made
~ the Erie and IN The case Of tho New ork Central
paao upon valuation oil its property Ia 1869, the
lime OF the highest prices the country has ever
The effect OF this valuation. though not irauduent IN
character serious indeed 10 the people state
Although prices OIL all Kinds OF properly have receded
from those that ruled 1869, mus the vauo
put upon ths railway shoua now DO expressed In
much smaller sures sucn reduction Of values did
some ~ pass IN tins instance, because during the
winch would have Injured 20 the Lenelt OF Tue COM
muDity At large vent 10 MAKE eight per cent d,vi-
dends upon tho watercd rs well as the original stock.
Had mount.in IN 1909 suddenly been raised upon
the plans - Central New York, which would have
smut us oil from tue West have enforced x
peldi,urs OF s50O QUO Tor the purpose oi tunnel-
ing II. wc would nave been compelled 10 have uornc
thai expense and to stagger under The load VI paying
interest upon that amount as u perpetual lax upon
our transportation eastward aid westward. WHAT
thls natural obstacle would have been artincaly
aud arbitrarily created Tor private advantage w the
Declaration VI stock dividend winch raised tho
amount oil the capital OF tho New YarK Central RAN
road upon winch interest was be demanded and
earned thereafter out ot tue commerce VI New York
city. Wnie profits we're nikn and taxes low tnis
did vi much uion cnt, but with tue great
burden oil our municipal taxes, tue kecnncss oI com
petition with formerly despsea rival-, Tins - mat
Ger OF serious moment. Don't forget that Transport
gaton charges are IA tho nature oil taxes. ana 1t
makes but little difference 70 you whether you arc
called upon 10 pay interest On sJOOOv JUU into the
Me Cay Hail
DETERMINATIONS AGAINST SKw YORK.
ln addition 20 THIS general mischief arising from
allowing our railway corporations 10 10 wtnout proper
State control We now come TO the special grievances
mentioned the very abis report recently made by
the Committee on Railroad Transportation OF the
Chamber OF Commerce. committee composed u
sucn representative merchants rs smnh, schultz,
Sherman, Thurucr, Dodge, Booth AID Arnold la tho
nrst place they show .nat putting New York ON
dong New YORK great injustice, AS u does not take
INTO consideration the value aud bulk OF our ,rafc.
They show that tho schecuc rates from New YORK To
Syracuse whcL range FROM may cents Tor nrst class
ore disregardcJ Ia IavVr Of Wholesale dealers,
Who contracts Tor all classes AZ Twelve cents per
hundred Thus our runway sets up hs tho
docs ms VI Protector
vi special Interests, TO tho destruction vi
others, assuming not only governmental functions,
but iuuctions winch ought net TO DO permitted 10
government Isult. Iney also snow that KJous are
bippea IRON Boston ~ ChlcsgO al nirynvc 10 iorty
tents per hundred whiio curing gr-aor part o tue
The rates maintained al Tor huuurcd from
hcw York TO Chicago, anu IRON Philadelphia Chicago
seventy cents per nundruJ resulting ~ This Strange
sonuitiou OF affairs -rhat goods stored IN New York
we're shipped 10 Boston 70 TO forwarded 10 tue West
through New YORK al "a saving oI something IKE my
pvr cent over uirect shipments from New YORK aud
ono merchant In the city oi New YORK sent nyc car
salt 10 Boston ~ snip them 10 Chicago, with
vsw OF placing himself .qnyii.y with the Boston
shipper.
This rcport further shows that from January until
Der, 1871 through ireights from Liverpool 10
Chicago iourtn class heavy GOODS we're carried AT
ABOUT tho rates as the freight charges from bv-
srpvvI TO Now York. showing that the railways Tor
almost year wiling 10 pro ratio win Abe steam
sup lines for through sulpmcnts from Lvcrpooi 10
Lbearo at rates rangng from nty TO seventy.hvc per
cant snMe cIaAA VI FOODS than Lney Mere