The New York herald., 1879-03-27
RAILROAD ABUSES
Important Statements by the New York
Chamber of Commerce.
EVILS OF DISCRIMINATION"
Making the Public Pay Vast Sums
on "Watered" Stock.
RAILWAYS CONTROLLING LEGISLATORS
What the Board of Trade and Trans
potaton Recommends
ALBANY, March &c. 1879.

ALBANY, March &c. 1879.
The special Assembly committee appointed on
petition of the Chamber of Commerce and other
bodies to investigate the organization, and manage
ment Of the railroads of the State met this after
noon at half past three o'clock and organized Mr..
Hepburn of St. Lawrence county. in the chair.
and the other membcrs-Messrs Baker Wadsworth.
Hustled Grady. Noyes. Terry. Dugard and
Law-were all present The Chamber OF Com
merce was represented by Messrs Jackson s..
Schultz, P. Van vakenburg. F. B. Thurber and Jacob
Wender. Messrs A. b. Miller. II. X Miller John f.
Henry, Darwin r. James. Simon Sterne and B. p.
Baker represented tho Board of Trade and Trans
portation. and Mr. George W. Lane. president OF the
Importers and Grocers Board of Trade appeared tor
that organization. When the committee ready
for business Jackson s. Schultz introduced Mr.. Thur
ber. who read the following address,
MIR. TuURpRR's ADDRESS
We respectfully call your attention to the fact that
the principle OF 1.-THE kings highway from the ear
lest period has been Of absolute equalitSfor all
classes citizens and in the early English per-
tanning to the organization Of society this principle
is q prominent feature. With the introduction of the
improved highways known as railroads. however.
the ownership passed from the community at
large into the hands OF capitalists. who. to
remunerate themselves for the Investment. per
mited to charge certain tolls rates for Transports
ton. so eager the public to avail themselves
Of the enormous advantages of steam that they
granted almost every privilege which the
OF individuals who proposed to construct these i'm
proved highways asked for. and the result has been
that the great blessing has been accompanied with
attendant evils which are now crying loudly
for remedy. While the improved highways were
in their infancy these evils were hardly appa-
rent but by the combination and consoiida-
ton of the small and weak companies they
have grown into enormous organizations controlling
absolutely the production and commerce OF whole
sections OF country, debating values to producers
manufacturers merchants and consumers The
value OF article is what II will bring ut the point
certain price New York the producer realizes that
amount less the charge for transportation and this
as is well known. In many instances is by far the
The railroads. therefore, have the power absolutely
to Ax the reward which every man shall receive for
his labor and it is probable that your investigation
will show that this power is arbitrarily exercised
that the rights OF entire communities disre-
garded the commerce % Of ono city Or % town artih. Il
principle Of "the public highway entirely disre-
garded by favoritism to individuals. which pract
1t may be found upon investigation that some Of
these charges in whole or in part for
the principal sources of information have been in
the possession Of the railroads and carefully kept
from the knowledge OF the public. We shall be only
too glad II this should prove to be the case but the
vigorous opposition OF railroad managers to
all investigation and supervision tends TO con-
firm fair-ninded men in the opinion Of its
persons in the interest OF the railroads
had spoken OF our efforts as q communists
movement against capital invested in railroads. We
believe that such an absurd charge Will react upon
those who give It currency. for the record Of the
Chamber OF Commerce is such that 1t can never be
accused Of making unjust war upon any in
terest but your committee believe that hotime Is
rSuse to 90 Justice to the puS hs
aud real estate owners OF New York city must join
hands with the producing manufacturing and NOR
camille interests throughout the State in an effort to
compel them to do so.
With your permission viii now present seri-
adm the complaints before alluded TO- and ask that
ba investigated by reUuiriuQ the officers and
agents Of the New York Central and Hudson River
Railroad. the Now York. Lake Erie and Western Rail-
road, and Of such other roads may seem neces-
sary, appear before you and testify In regard to
the matters concerned. Also that such other pcr-
sons be summoned as may be necessary to thor
oughly elucidate the subject under consideration.
cHEAP YREIGHTs PoR FOREIGNERS
/. Regarding the charge "that said railroads are IN
the habit of carrying freight for tho citizens OF other
States and also for citizens OF foreign countries at
lower rates than for citizens of the State Of New
York"
This charge involves the question of through and
local rates both East and West bound freight and
also the relative reasonsbleness of East and West
bound rates While it is manfestly unjust to expect
railroad to carry freight at the same rate per ton
per mile short haul that It does for long haul
we believe that there exists too great difference
between through and local rates East and West
bound traffic. The Railroad Gazette. in article
after discussng the probabilities Of the public sane
tioning Legislation which would enable railroads to
enforce combination agreements on each other,
says
rates which Inevitable Of the
~ with aosd and they
cause Of much actual injury groat many persons
As an illustration of this, the rate for grain from
Chicago 70 New York is now eighteen cents per hun
dred pounds with instances. we believe. OF special
shipments ut less figures. while the producers living
along the line Of railroads In New York State arc
charged much more than this rate for one-third to
one-quarter the distance say ve or six times as
same injustice is done to manufacturers
In this state who are obliged to pay such
disproportonatey high rates that It is to
their interest TO locate in States further
West. II this is good principle why should IL not
apply to passenger well freight busnessg West
bound reghts carried cheaper for citizens OF for
egn countries than citizens of this State For in
stance English merchant il given rate from Liv-
crpooi TO Chicago less than the combinei rate
New York should tolerate this discrimination against
its citizens il liz difficult to see. for the two kinds OF
carrier ceases when the other begins. There Is
no good reason why railroad should haul car
load received from ship any cheaper than one re-
ceivcd from the drays OF o merchant in New York.
At times freight has actually been carried from Liver
pool to pons In the United states 900 miles inland
cheaper than the same lines would deliver It on the
wharf In Now York. the railroads taking their pro
rata share Of the through rate Another anomaly Is
the enormous difference in the ratios charged by the
railroads on through east and west bound freight.
with full traffic cast bound rates from Chicago
TO New York fourth class goods arc now
eighteen cents per hundred pounds, whiio with
two-thirds of the returning empty. rates from
Now York to Chicago for the same class are forty
heavy and bulky goods ofow value. East bound rates
arc than West bound owing to the lack OF unity
OF action by the Western connections OF the trunk
lines In ether words, the natural law of compe-
tition Is In the ost free to work, while In
tho other 1t is abrogatcd. the New York roads In
each receiving their pro rdfa portion Of the
| through rate according to mileage
DETERMINATIONS BETWEEN INDIVIDUALS.
q Regarding the second allegation, that ndivid-
ual citizens In this state given special privileges
and rates out OF proportion to those charged the pub
lie n general For instance. the schedule rate from
New York to Syracuse on the New York Central Rail.
road is 50 cents per 100 pounds for first Glass; AZ
cents for second class "a cents for third class and
Is centslor fourth class. These rates the great mass
| OF the people have to pay, but few favored
shippers at Syracuse arc given rates. We are
informed. as low as 10 or IL cents per 1U0 pounds
! on all classes. compared with. 80. 4O, N
and 70. which most people have 70 pay. Now
while II is quite right that the shipper Of
| q small quantity should pay more than tho shipper
Of large quantity respectfully submit that the
difference should be the actual additional cost OF
transporting the smaller quantity. In short, thai
the principal of equality public high
| ways should here apply, and that evorJ
| ctizen should have equal rights under the same