The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-11-29
DEFENDING THE RAILROADS.

MR. cHAUScEY NJ. DEPEw's ARGUMENT ON BE-
HALF OF THE NEW YORK CENTRAL BEFORE
THE LEGISLATIVE coMMITTEE--MoTIvEs OF
THE OPPOSITION AND SPECIAL RATES
REPREsESTED AS MOST BENEFICIAL TO COM
MERGE.
Tho Assembly Committee appointed to investigate
the management OF railroads in this State met
yesterday morning In the Chamber of Commerce to
hear tho concluding arguments on both sides. Tho
whole time. from ten o'clock In tho morning until
near Ave In the afternoon. with the exception OF a
short half hour for lunch. was occupied by Mr.
ChauDoey M. Depow in summing up for the defence
on the part Of tho New York Central Railroad He
did not finish his remarks. but expects to do so
to-day. this committee meeting at tho same time and
place.
In opening Mr.. Depew congratulated the men,
bers on the fact tnat the investigation draw
ing to close This. he said. was the most complete
examination OF the kind that had ever taken place.
He rchesrsed tho attacks made on the railroad
porztons which, he said. began about six years ago.
but these had but little strength. The gentle.
year after year had appealed to tho Legislature
from the hosribie oppression Of the rail-
roads. They organized tho Cheap Transport
tztion Association. but that body failed to
secure tho ear Of the commercial public and
appealed 10 the Chamber of Commerce for aid. and
he understood that only atty members of the latter
body we're present when the indictment pre-
scented Whore are the people. said the speaker, who
are demanding relief from the expressions OF the
railroads. Mr. sierne expected that whom this in
v-stisation began the newspapers would take the
matter mp. but when they did not he charged that
they were subsidized-bought up. and were afraid
that they would lose their advertisements. deny
that the has been by advertisements;
the railroads did not advertise heavily enough to
subsidze the newspapers.
when tho committee came to consider. con.
tinusd the speaker. the question Of through and
through rates either destroyed Industries or ruined
individuals A few milers at Rochester and few
the only persons ont OF i've millions in this state
who had any grievance to oder about the railroad
spoke OF tho nomination of Harris Lewis az green
back candidate for Governor. The latter had the
support OF the Farmers Alliance and tracts and
pamphlets issued by Mr.. sterne snd Mr.. Thurber.
But what was the resulty why. said Mr.. Depew.
''10o0 idiots voted for Lewis and 100000 sensible
people said that they had enough OF this racket
and defeated him." Counsel then passed on to re-
and Bunalo before the committee and said that tho
general deduction TO bc drawn from their testimony
was that the railroads should assist them = little
The usual recess OF the committee was here taken.
and at it, conclusion Mr.. Dcpew continued his aIeu-
mcnt aud said that ali the OF the State
requested To appear before the committee. but that
only two OF four nj the most. made an appearance,
and these were not farmers large scale. One
OF the facts brought out by this Investigation
that the through business enormously reduced the
cost OF the local business. Mr.. Stsrnes arguments
IN the opening speech then reviewed. He
had started off with the idea that the state
owned the canals. but his argument proved too
much. Tho ciassiheations against which counsel
lad been complaining were first brought into
adopted these classhcatons. The system OF classi-
ncaiions had been arrived after nifty years of
Increased sss population Of the State and added Ito to
the business OF the road. There was not single
that any received a rate personal favor
or for any other reason. except that 1t was good
business. IL was charged also that rates were kept
dividends watefed stock.
THnoUoH AND LOCAL RAlEs.
Chairman Hepburn here interrupted tho speaker.
saying :--''Mr. Dopew. AZ understand the iustra-
tion which you you claim that u Is necessity
OF your railroad management TO give rate 10 manu-
faciursr. Ina this state located ON the line OF the
road-for instance. at hoches;er-whieh will enable
goods on the Wisconsin or Minnesota marketsYJ
Mr.. Depsw-Ccrtainy.
The chairman--rhon why will you not give to .
miller nj Rochester corresponding rate in getting
his material from the Westf
Mr.. Depew-Bccause We have control II.
We make the rate freight starting and going
West. but the rates from the West here made by
other railroad comp anics.
you n control over the rate made from
here West. but mono that from the West hercf
pose that the railways OF this state want to any
Interest in this State die out
Continuing his argument. Mr.. Depew said that tho
men who made the rates had no idea at the time
whether there would be proht loss out of
each transaction; they did not oven know how
much interest bonds and how much the divi-
dends would DO the stock; special rates had moth
merely rates made TO carry the product and to
stimulate business; IL was only when the total
the year that Il became known whether there was
enough prot to pay interest on bonds and to divide
among stockhold.rs. IL was not question OF
which made the dividend. To prove this Mr.. Depcw
showed how the rates Of tho Now York Central Rail-
road had steadily down since the stock had been
Increased In 1869 % cost one cent and cghty-cght
nuna n.,n to move ton a mile; IN isss
ton per mile. or reduction OF onc-haf n
expenses. In is7as there were moved a.ioc.ooD
period siG.o0o.ooo. the latter .ooo;
80 that since the crae OF stock the tonnag. OF the
ia
The testimony showed that me cost of sransporsa-
trafic could not he accurately separated from
the freight traic; and the effect OF accidents could
The question Of pools was next taken up. These.
the c9ambor OF Commcrce heid. were creatsd for
the commerce of Now York. The testimony shovel
that the pool the best invention ~ recent years.
preventing railroad wars. which disturbed ali tho
relations OF every business The tonnage poo which
had been In existence ior the past Two r. proved
Acknowledging ind uencss flowing from rsilrssl war.
In which Ignorance and accident we're no likely %
succeed az ability aud capital. u s.i.oi,shsa
and bcneht TO shippers. The testimony con
;lusively showed that pools ga not WORK 70 ~.
been organized this city had aggregated SIXTY nine
per cent OF all the mportations q the country and
had acquired more OF the east bound traffic than all
other cities put together.
The ''inside companies had. said Mr. Depew.
been Illuminated against by Mr. Sterne A. companies
where the corrupt officer. by his stock holding ntor-
est. could line his pocket snd rob the rtocAhudcr
The nrst OF these the press psniss. wrh
had been shown TO be public conyenlenes and ths
best source OF revenue that the railway hsd. Nest
was the fast freight line. by witch . tran ~ tie
State became train Tor the nation. The dlnercns
companies contributing their quota OF cars. avocng
railways got out OF thom the same progprtlsn ~
freight that they WOULD have had without this con-
which had been dscrlcd. VAS pnrehassa hy an Nse
York Central because they sa~ the advantage OF
curing ITS agencies all the rnited states aud
Europe The Spuytcn Dnyvii aud FORT Norris
branch road had boon called q direct steal pnt n