The New York herald., 1879-02-14
FREIGHT DISCRIMINATION.

THE NINTH SECTION OF THE REAGAN BILL ON
INTERSTATE COMMERCE. opposED-vIEws OF
VICE PRESIDENT BLANCHARD, OF THE ERIE
RAILWAY COMPANY.
Ameeting of the Committee on Trade of the Produce
Exchange was held yesterday afternoon in the
Of the Board of Managers, No. 33 Pearl street. The
object to receive complaints of merchants in
relation to discrimination in railway freight
rates through shipments from the West
to Europe. Mr.. Asa Stevens occupied the chair
The committee. he said, desired to hear facts only
which be substantiated, so that the committee
could embody them in appeal to the Legislature
for relief. Mr.. Franklin Edson p, esident Of the Ex
change read several clauses from the Reagan bill
interstate commerce, which is now before the Com
mitee of Commerce Of the Senate having passed the
House of Representatives, by large majority. He
expressed opposition to section 9, which, he claimed
discriminated against merchants on the
seaboard and in favor OF foreign traffic
He then read some of the views of George X. Blan
chard vice president of the Erie Railroad and Of
the committee who went to Washington with pool
Commissioner Fink to oppose the Reagan bill He
said that he had just received 4 communication
from Mr.. Blanchard which he thought explained
the matter fully. Mr.. Blanchard objects to the bill be-
e claims il legllizes foreign traffic and ut the
time discrnlnates against the seaboard cities.
The companies possessing the requisite facilities
will enlarge and stimulate their foreign traffic by
more through rate and more bills OF ladng between
this and foreign countries in both directions and by
a wilder internal railway competition than before.
Greater inducements than ever before will be offered
to large forwarders of merchandise from and to
foreign ports. Direct railway rebates and drawbacks
may and will be offered and paid without limit, or
railways may pool or divide their earnings on that
traffic, the rates upon that traffic may be changed
every hour. and all these hings. he claims.
thoriZed by this act Mr.. Blanchard says--iAssumb
rate OF freight from Chicago to New YORK consign
cents per 100 pounds ana that it is then held thore
by this law The competition tor forc..fn treghts
may reduce the proportion accruiug bAtwecn Chicago
and New York of through rate fronrGlIicayo
Liverpool to twenty-five cents, making q difference
of ten cents per 100 pounds. $25 per load less
between the same points on the same date for the
articles, via the railways and in the
trains, and that difference. and discrimination are
legalizci by this bill"
NOTHING BUT INJURY
Mr. Blanchard says that this will not benefit any
American interest hut iMjure business at every
board of the Union. Merchants who have hereto
fore received large consgnments by railway from
the West, which have been sold To agents OF English
houses there resident cannot hereafter compete i'll
those respects tor the following roasons:--First.
there will be average difference in both railway
and steamship rates against them; second. the
lower foreign through rates may then be changed
at moments notice between any Western city and
any foreign port the cable adyices. which daily
detormine large transactions. while he domestic
railway rates cannot be changed except upon hve
days OF printed notice, which is practically seven or
eight days: third, this will injure chants.
bankers and other tributary interests at the seaboard
and the foreign house will do its business with the
!
total cost.
THE PETROLEUM MONOPOLY.
Mr. Bush, who represented outside petroleum re-
hncries, sad that the Reagan bill may be defective.
but unless passes the Senate every railroad will be
bankrupt in twenty years. he was informed that
railroad officials in Pennsylvania in favor OF 1t.
Referring to the carriage OF PETROLEUM he said that
was preyed upon more than any other interest. The
railroads, for instance. would charge s4s for q
load of grain to certain point and $40
for oil half the distance. With reference
to discrm ations il was not only done py railroad
M nj npr .lapf War fnlI Va tlle
managers intention to do Mr.. Cassatt, oi the
Pennsylvania Railroad, the speaker said, had con-
ference with several rciincrs in tins city some time
ago and informed them that after the expiration OF
the contracts with the empire line. tue rcfucrs
would not have as low a rate a. the Standard Oil
Company. MIR. Cassatt gave as reason tor this that
the refncrs could not satisfy the railroads: To the
question whether, IL the rcfnors should ship AZ
much the Standard Oil Company, they would
bo allowed the Same rates, Mr. Csssatt answered.
No: tina. there must be discrimination IN fayor OF
the Standard Oil Company. Mr.. BUSH said To prove
that discrimination EXISTS one had only To examine
the evidence given at 1itustown. Pa III the Gaze OF
the Commonwealth OF PcnEs. lvania against the
Iennsyyrnia Railroad and others Mr. Bush said
that after the interview with Mr.. Csssatts the
rciuers secured an audience with Thomas ii. Scott,
aud that gentleman iniorinea them hatly that they
could not havu tue same rates even ii they shipped
much AZ the STANDARD Oil Company To New York.
MIR. Bush cited as another proof ot discrimination,
the fact that the rcncrs seeking at the present
time to compel tho Erie liaroaa to carry uil for
liners, which they lad refused to- do AZ any price.
Mc Yilus. the ,sncra freight agent Of taat road. had
told the rhicrs. Mr. Bush sa" that they had con-
tract with another shipper Charles Pratt Cob re-
quiriug all their cars Mr.. Bush claimed that, an
Consequence OF this discrimination, out OF nfty-one
redncrs at Piitsburg nearly all had becu absorbed,
crushed out bought Gus by the standard monopoly
and II New York there remained ouly hvo refncrs
IL II considered that the committee will advocate
the passage OF the Reagan bill with the ninth section
stricken