New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-16
TIE pRncEEnINGs.

THE PROCEEDINGS.
Before Mr.. Worcestel's testimony was taken
Mr. storpe offered rs evidence the court records at the
time the Erie Railway put into the hands OF ro-
ceiyer ExJudge shipman objected 20 their reception
saving that the Legislature intended to confuc the IN
vesgarion 10 The freight and passenger rates. Cnar
man Hepburn said that the investigation was To Do d
wide one II Ia been charged That the hlSu I"'eS o
the railroads were due part TO Their stocks having
been yatered The court records might cast iight on
ths matter, far the Erie Railway was concerned
IxJuG.c shipman said that the question oi the receN
crshp concerned TIE stockholders Of tie company ana
not the Chamber OF Commerce. Mr. Stcrue replied tNa
the circumstances Of the recaycrshlp were that oHJ ~
the $50 shares the directors OF the railroad 81 INC
time possessed only 1000 shares The reelection or d
rectOrs been tidcd Tor two years by the re-
ccycrship and The cx peuses OF tie road had meanwhile
increased Ex-Tudac Shipman indignantly responded
that the election of directors had been regularly he
ana that the present directors were elected by MAJOR
y OF $50 600 900 TIE directors claimed that the run
ming expenses had been decrea ed and that by the
reorcauiz tou enormous obligations had been avoided
Mr. S,crnc said that II" aimed 20 show that by means 81
hankuntccs the railroads had saddlcd themselves with
the malversatou, Of former directors Chairman Hep
burn said that the commute would examine the court
records of suit for the receyefship OF the Erie Rli-
way and determine whether they would admit them as
evidence
Mr.. woRCFsTER's TESTIMONY
f. d. Worcester n, treasurer OF tie New-York Central
Railroad Company for many years and now secretary OF
the company testified that he had charge Of the leases
Of other railroads lie was an officer OF the syracuse.
Geneva and Corning Railroad the syracuse Junction
Railroad and the Buffalo Junction Baroad The dirte-
tors OF The last two named in most respects similar
To those OF the Ncw-York Central The Dunklrk, Ale
ghany and Pttshure Railroad also leased by the
New-Yor Central and had similar directors. The stock
on, 1lV me-
rai INC M en- w N , rri nor did own
the majority the stock Of tnat road The NeWInrk
Central dld not own any stock OF the Union stock lara
Nj Depew-We leased the property TO the company
l; was based on TIC principe Of toe company paying us
vested nv tho Ncw-York Central and TIE taxes.
Nj. Worcester then continuing h> testimony said that
the Nrw-York Central owned 10 stock ia the Sleeping
Car Company; &c wa distinctly forbidden by law. lie
mad prepared annual reports Oi TIE railroad Inc cost
in t6n hook Of the coinnany Terc mi ghr bc some mems
the construction account which did not belong there
ryucuse account. The substitution ~ steel rails Tor
iron. the replacing 81 wooden with iron bridges. the
building Of new track, a went properly into the tX-
railroad had tie power OF estimating the proportion of
cost of cost of carrying freight short or long Distances
1869. He did not know from any computation the d'f
ference oi cost caused by grade IL atuNe competition
the cost Of cart yug ire gut was not considered.
Mr. sternp-But there Is difference IN the staying
Nj Worrcser-Thcre is no difference in staying power.
\ >,
then you Only put 1t in an improved position to light tile
ELEMENTS or COST.
Mr.. Sterre-What 90 You pay for CCall
Mr. worcestcr-we pay from 80 to So 80 a ton. There
are about Oxen places where coal is delivered
road 1t wouldn't pay carry coal from Buffalo Al
bany The distance OF the Central from the
coal fields adds from % to 80 per cent to e cost Of that
element OF transportation The Erie, Pennsylvania Cen
trial. and Baltimore and Ohio have coal fields along heir
lines As a general thing increase OF the volume Of
traffic not increase in the same proportion the cost
of transportation. There are great many things 10 b.
considered IN estimating the cost Of transportation rs
heavy operating expenses 1ut those expenses not
salaries, useless expenditure OF hOney' etc hou can
ascertain the cost OF hauling per ton per mle but
little else For years the rates for transportation nave
Nj sicrnc-Who is 1t that knows whether not your
through traffic has been profitable Tor the past three
Mr. w,rcester-Wll.am II. Vanderbilt think, knows.
should say that at tine rate OF 10 cents hundred
the kinds OF freight carried at that rae neayy freight.
there would not De much profit and yet no loss. Icon
rate OF 10 cents hundred would maze return the
railroad investment and could only be given by the road
own salary has been reduced III way didn't fancy
SOMETIMES when these low rates were prevailing. |
don't think rate of 10 would pay the Ere
has beeu economical as that OF
the Central III pass years aud moreover the told not
coal cheaper aud in localities labor cheaper than
the NewYork Central. The New-lOrk Central has the
Mr. sterne-Don't you have the advantage of the
Pennsylvania IN having large local population and
Mr. worcester-It doesn't lessen the expense Of
through traffic IN The least to have a large local popula
Indeed 1t has come Disadvantages; for You nave
through large cities, and the expense Is thereby
increased. the Pennsylvania and the Central are about
the level IN respect to advantages for through
trans oraton There have got 10 be- certain aluc es
III Order that others may he carried. Thus
may carry coal at DO profit to some place In order TO
stimulate the transportation Of other articles Tue effect
OF that Is 10 Keep low the rates OF oWgde freight aud
high the rates OF gclass freight We move ali grades
of goods at certain prices aud altogether obey bring
profit Il loss business. In other words, put
Oh as hIgh rates as the goods shipped VIII Dear
PASSENGER RATES.
The passenger rate on tho New-York Central is two
cents mile; most roads charge three cents miie II
IS the cheapest fare OF any railroad III the world think
it pays slight profit The character OF passenger traffic
has changed greatly within the past twenty years; the
through traffic and the slcepns-clrs have modified mat
ters In respects 1t is disadvantage 10 the
seepingcar and drawins-room cars. They are
sonaly almost empty from one end Of the line to
the other On the other hand they an advantage In
this respects that they retain on the line certain passen
gers who would seek other rOdsf didn't have them
Mr.. Stenc-MAat income does the New-IOrk Central
obtain from The bridge at Albanyl
Mr. Worceser-l should ike 10 give short history OF
that bridge. Ii was originally begun with a capital
100000. Onr.quartcr Of the money was furnished BY
Tie Boston ana AIDih{, ont-duaIter by the Hudson
River ana onc-Ialf Dy the NcW-GOrk Central IL Was
begun IN 1868 snd opened 1865. At first tolls
were charged, dxed by law aud - ior load OF
cattle In The cOuise of years the cattle toll was abo
and on through ircghts no additional charge
made Tor the transit the bridge. On local trac The
bridge was reckOned az one mile. Everything goes
across tho bragg, II without additional charge
Tue only charge made three for foot
seugers The income from these loot Passengers the
only one from the bridge IL Is a very small one. Alter
the application OF this limited income the hsw.York
Central contributes tntec-IOurths OF TIE expense Of
maintaining the bridge ana the Boston ana Albany one
fourth.
MIR. storne-The fare TO Albany is SO TO- Is the 10
cents paid to the bridge company
Mr.. Worcestershire, sir. No account Is made OF the
bridge III making the charge.
Mr. DepeW-Mr. Chairman, 10 Is a common mistake TO
suppose that the Hudson River Railroad Company can
only charge two cents mile. 10 Is permitted by It's
charter to charge three Gems mile Legally It