The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-08-27

OF six thousand cases OF special contracts
shown before the committee 10 exisI
within a period Of eight montha. Mr.
Vanderbilt answered that he did not know
it. y
EXPLAINING II SPECIAL CONTRACTS.
Mr.. Sterne then drew his attention TO 8
statement contained in his Joint letter ia
this Committee, in which MI. Vanderbilt
and Mr.. Jewett both deny the existence
OF any special rates on the road. This letter
had been sent to the Committee in reply
to charges made by the Chamber Of Com,
merce Committee alleging the granting oil
special rates. Mr.. Sterne then asked Mr.,
Vanderbilt what explanation he had to
offer al to the existence OF these six thou
sand special contracts, which were shown
to exist by the evidence Of Mr.. Goodman
his Assistant Freight Agent, and by the
books Of the company.
Mr.. Vanderbilt asked permission To read
that clause in his letter, and also the state.
ment Of the Chamber OF Commerce max.
ing that charge.
They were both handed to him, and
alter reading them, he said that when the
letter was prepared he took it 10 Mr.. Rut
ter, his General Traffic Manager, and ask.
ed him whether every word was true. Mr..
Rutter replied that 1t was, Mr.. Vanderbilt
said that he signed it.
The witness was then asked whether Il
he were TO rewrite that letter, he would
sign that part Of denying that any special
contract were made on his road. He said
he did not know whether he would OF
not.
The Chairman then asked whether he
knew that his road had several thousand
special contracts in force. MI. Vanderbilt
did not directly reply, but asked whether
that wa the evidence.
The Chairman repeated the question,
and the witness answered no, but that he
knew that there were a good many
special rates given, but not several
thousand.
He was %thereupon questioned in refer
ence to a part OF his Chicago letter, where,
in he says that bankrupt lines tend to drag
other lines down. He was asked to ex.
plain what lie meant. He replied that
there was no object in driving other roads
into bankruptcy; that the road was con.
tinued as before; that twas relieved from
paying interest on bonds and dividends on
stock, and that a bankrupt roadis a more
dangerous rival than the solvent one. AT
the same time admitting, upon being
pressed by questions on that point, that Il
was more to his interest to have the Penn,
sylvania road and the Baltimore road sol
vent than bankrupt.
He wa asked whether it was any inter
est for himto bankruptthe Erie. He sale
did not much care whether 1t was bank
rupt OF not; it was about all the same.
He was asked whether the Grand Trunl
linew a not a formidable rival, because o
its being insolveut, for the carrying o
goods, and he confessed that it was; tina
he never knew it in any other condition
WHAT MR. VANDERBILT DOES NOT KNOW
ABOUT SPECIAL RATES.
Mr.. Sterne then resumed the examiua
ton upon the subject Of special rates ii
New York, and elected from Mr.. Wander
bilt the confession that he paid no atten
ton to the special rates OF New York sincl
the appointment OF Mr.. Rutter in 1872
that he left everything to him, and unde
him to Mr.. Goodman, with the general di
rection to please the customers that he
had had complaints before Mr.. Rutte
took the Office, and had heard very few
since; that when a complaint came, b.
turned it over to Mr.. Rutter and askeC
him to look into it and satisfy them. I
somebody wanted a special rate, he coul(
getit or not as the circumstances woulC
permit, He thought on the whole tina
schedule rates were made according to dis
lance, and at first insisted that specia
rates were also so made; but on beinl
shown by Mr.. Sterne the exhibits in evi
dence showing the special contracts, b.
conceded that distance had very little Il
do with the making Of rates.
Upon being asked what the condition
Of the differences were as to these parties
Mr.. Vanderbilt stated he did not know
probably Mr.. Goodman had some goo
reason for 1t.
Mr.. Sterne then asked him whether b
thought it was just and proper that tn
commerce and trade of New York Stat
should be subjected to q condition Deepen
dent upon the will and caprice OF N,
Goodman or Mr.. Rutter to give or not t
give q special rate.
He stated that he did not know wheth
er It was or not. he thoughtthe bushes
could not be done in any other shape
THAT he had 10 meet competition at eel
tain points, and then he would give Gel
tain rates to meet the competition, an
that people who had business Of import
ance would be careful to see to it thI
they got a special rate. Those that ha
not any business Of importance woul
probably ''dry up and 90 out Of business
When asked whether he gave specil
rates to everybody who did apply, he sal
he thought he did.