The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-12-04
THE RAILROAD INVESTIGATION.
Conclusion of Mr.. Sterne's Review
Of the Evidence.
POOLS AND FREIGHT DISCRININAT .ONS.
How the Standard Oil Company Crushed
Out Its Rivals

The Assembly committee appointed to investigate
the management of railroads in this State continued
their sessions yesterday morning in the Chamber OF
Commerce building. corner of Cedar and William
streets. The day was occupied in listening to Mr..
sterne's concluding argument in summing up in
support of the charges preferred against the rail
road corporations by the Chamber of Commerce and
the New York Board of Trade and Transportation.
There was large crowd of merchants and business
men present aud the railroads also had their repre-
sentatives watching with interest the progress of ar
gument on the Indictment
The treatment OF the city of New York by the rail-
roads. continued Mr.. Sterne at the opening of bust
ness. is an anomaly utterly inexplicable by any Of
the theories which railway people willing to ad-
vance. New York is treated upon the basis Of what
she will bear A discrimination which would de-
stroy other cities is bearable by New York. 1t holds
the bulk of the business not because of edscrimi
nations but despite them, during eight months
of the year its business is carried without much
reference to the railway and independent of it. Wipe
out the Erie Canal from the map of Now York. and if
the railways persist in continuing the discrimination
OF two and three cents hundred that would wipe
out the commerce of New York effectually as
though q bed Of rock by natures convul-
sions to block up our channels to the
sea. Win the economies introduced Dy the
railways and tho competition between them came .
considerable diversion of the commerce from the
lakes and the canal to the railway and long the
railways actively competed with each other New
York city could still maintain it's natural advantage
other cities But when the railways arbitrarily
combined, for the purpose of avoiding competition.
place New York upon the level with Philadelphia
ana Baltimore. it placed every merchant who had
lease OF Broadway warehouse at disadvantage
with the merchant in Philadelphia or Baltimore
whose rental represented but half one-third inter-
est Oh the value OF equal amount OF land. Mr..
Vanderbilt told that in fixing the rates of two and
three cents hundred they were largely Influenced
by the supposed difference in ocean freights. These
differences longer exist, yet the tariff differences
of the railways continue. The practical of the
pooling arrangement places New York upon . SEEM
ing equality by the handicappiug of New York with
an arbitrary additional railroad freight charge. The
railways ought not to have the latchets of every
mans purse string put into their hands.
THE STANDARD MONOPOLY.
with few spectators. rehrers and dealers in OIL
who combined together to obtain special advan
tages from the railways. and through the instru-
mentality of the South Improvement Company at
tempted in 1872 to obtain monopoly in the sale Of
the product. which amounted to 100000 barrels .
year crude oils and in refined to 100000 barrels
The New York Central. Erie and Pennsylvania
agreed lower raise the gross rates OF transpor-
tation over their railroads to overcome compe-
titon of others with the South Improvement Com
pany, the rebates and drawbacks to the latter
pany to be varied pG1 passM with the gross
part of the railway of its power to use the
railway freight charge instrument of destruc-
ton of the Of vast numbers OF people for
the purpose Of building up and concentrating in the
hands of u particular junta q vast and profitable
business. From the regular rates there agreed
rebates. which run rs tollowss-On the transporta-
ton of refined oil, benziDe and other products of
the manufacture Of petroleum-Pittsburg to New
York. 80 cents Pittsburg to Philadelphia so cents
Pittsburg to Baltimore so cents Cleveland to Bos-
| ton, so cents; Cleveland to New York, 80 cents;
Cleveland to Philadelphia. so cents; Cleveland to
Baltimore. SO cents. Any common point to New
York. 81 81; to Philadelphia, 81 81; to Baltimore,
| 81 81; to Boston. 81 81.
or the Independent pipe lines died of like
| sheep aud all bought up by the Standard OIL
| Company. Under the form Of secret rebates and
| drawbacks it absorbed large proportion OF the
" Oh H5nes nS Mna 10 inv ra
ways large shipments as the Standard was denied
| the Same rates and was compelled to sell out to
Charles Pratt Co.. Of the aliases of the Stand
| ard monopoly. In 1875 danger to the Standard
| doomed up in the shape Of the Empire Transports
Standard drive it out Of the business of refining.
1t carried through the instrumentality of the
wen S the w wS tine sens
| out of Neyhardt, the Standard had monopoly or
shipments to tidewater at New York It had grown
| to be great monopolist. and had, in
| the purchase and dismantfng of many re-
| fneries, become the master and exclusive
retner in the oil regions. There were still few
refners who, by using road to Buffalo and the slow
avenue OF the canal. brought their product to mar
ket. Another of rates commenced against these
outside shipments by canal. and the Standard
more dictated to the companies further reduction.
| which brought down the rate to the Standard to
| sixty cents barrel. Then. in. the shape of the
American Transfer Company and their pipe lines,
further rebate OF twenty cents under the name OF
| pipage. obtained by the Standard. Enterprise
after enterprise was compelled to go under before
this corrupt combination between the railways. the
storer of oil and manufacturer. and no ingenuity no
Improvement in the process or refining oil, i'd
vantages of proximity to market. superior pluck
energy could prevail against the almost entire alb
sorpton Of this vast business in product which had
increased to yield OF IS 2G5 476 barrels i'll 1878 yield
ing about $4,000 900 barrels OF refined OIL constituting
the greatest commercial monopoly in the history OF
the world. This monopoly was. We remember. well
brought about entirely by u combination between
comparatively small capital originally and the
freight rate determining element o: the railway
management. The Standard next obtained control
terminal facilities of the Erie aud New York
Central. so that oil should be shipped to New
York without passing through their hands. Mr..
ostwick him self confessed that they did not care
what tho rates so long as they were not high
enough to prevent foreign consumption. 1t is in
the power of railway magnates to become partners
in every special line of occupation. and 1t Is this
power to destroy and to build up, which no CON-
munty allow to roam and exercise itself I'M
checked which must be restrained, curbed and rem
dered aubservent to the general public veal through
the fundamentally Of wise legislation rigidly
forced.
The usual recess was here taken.
THE POWER TO DESTROY.
After the recess Mr.. Stcrne continued his
address AZ follows:-rhe power to tax is the
power to destroy. and railway charges in the
turc of taxes Tho railway charge permeates and
enters every commodity part OF its price. The
amount of the charges is not important q
siderston the certainty that 1t shall be the
for all and shall be collected without favoritsm.
The railways by charging different individuals diff
fcrent rates necessarily made all commercial transac
tions uncertain. Every evil sooner later finds
its remedy. The railroads suggested that the prob
lem of rates be- lett to work out its remedy.
One might AZ well argue against employing physi-
clan during u pestilence. because the pesti-
were dead. IL certainly Is in the province OF the
Legislature to make proper regulations this sub
jcct and not to walt until the evil has worked
plete destruction. There is statute which provides
that "f two or more persons shall conspire to
nit injurious to trade commerce they shall
be guilty OF a misdemcanor." But the railways de-
lberately combine against competition with each
other by the pooling arrangements. These arrange
ments against public policy, and IL Is high time
to take new departure The policy that lies the
basis of all American institutions equal Justice 70