New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-06-19
RELATIONS or THE RAILROADS.

WORK OF THE ASSEMBLY COMMITTEE.
THE STANDARD OIL CoMPANY's CONTRACT WITH
NEw-YoRK ROADS FAST FREIGHT Inns USING
THE FRIE-THE "EvENER" SYSTEM AND lis
PROFITS.
r. C. Villas, general freight agent of the
Erie Railway Informed the Assembly Committee yeste-
day its contracts with certain fast freight hnes lts
contract with the Standard Oil Company ana descrD
the "evener" system in dealing with the cattle traffic
subsequently, James II. Ruter, general traffic manager
of the New-York Central Railroad presented copies OF
its contracts with the Standard OIL Company and the
various fast freight lines.
Mr. Villas said that most OF the through business Of
the Ere was done by the fast freight lines the Erie aud
North shore the Great Western Dispatch, the Erie and
Pacific Dispatch. the Eric and Milwaukee, and the
| Wabash and Erie. All cooperative lines Draw
hacks were Paid them. making rates less than the
schedule rates. The object to keep the true rates
secret from rivals and the companys own local agents
The road did not give special rates through freight
westward A tariff adopted the year before which
brought the schedule rates dovS to near the special
rates The local tariffs being revised, also, with
view of reducing the and lcssenug the number OF
special contracts No principle guided the company III
making local special rates except to obtain as hlgh
prce as possible The cost Of Transporting goods per
ron Der mile was not known. Nevertheless be thought
the present West-bOund through tarif was prcfahle
He did not know whether the through East-bOund taIH
was profitable to the company, and never expected 10
know Where there competition the company had
to get the best II could The carriage OF mix
earned for the company daily 81 200 In May both the
Erie Railway and the New-Hork central rcduced thcr
rates for carrying milk.
The United States Express Company, Mr.. Villas con
tinued did the express business over the road The
Erie and North Shore Dispatch Company was paid
Sl34O7 for drawbacks. rebates ghtcrago and foregn
agents during October 1877 The earnings of the Erie
fraign rlf nv ne
tation company the month amounted to $4,000.
II was undoubtedly profitable 20 the Erie TO have busi
ness relations with the fast freight lines. The cattle
brought Jersey City by the company were cared for
by the stock yard company. The contract was held by
senator Mcpherson, of Nev-Jersey. The company had
stock yards of its own, but they not used The
cattle were principally delivered to Senator hcPhcf-
sons company. The rates sheep and hogs included
yardage but the cattle charged for All the cat
tie were dclivcredt the stock yards and not directly
TO tie cOusignec. The cattle might be In Mr. hcPncr-
sons yards only ten minutes. but he would probably
have right to demand "yardagc" The company paid
Mcpherson monthly for the OF the hogs and sheep
Senator Mcpherson was also paid for removing the
animals from the cars. and Tor cleaning the cars
The standard Oil Company Mr.. Villas said had a
bal understanding with the company watrae should
paw Practically all the oil sent the road
IRON the Standard Oil Company From April, 1877, to
APRIL 1873 The Erie transported about 100000 bar
rcs Of oil Tor the Standard Oil Company Altogether
$4,000 900 barrels Of oil sent 10 the seabOaiG over
Tie various roads in that year.
Mr. sterne-Do you grant the Standard Oil Company
special rate
Nh VlIas-We do. Any one could have the same
specal rate if his business valuable 90 Us as that
Of the standard Oil Company.
Mr.. stcruo-Is there any rebate or drawback granted
the Standard Oh Company
Mr. Vllas-There is not Formerly they lad a rebate,
but now they have not
NJ scrac-Thcy have ruined twenty or thirty rcfncr
les IN Pcnnsy lyauia built up monstrous monopoly
ono so strong that the railroads cannot suhduc tand
they can afford to dispense with rebate now because
the railroads are pledged not 10 take any on at the low
rate granted the Standard Company unless the ship
pers shall send many barrels OF oil as that company
that is. millions ana millions of bauels-which IS OF
Tae witness then continuing his testimony. said that
he was acquainted with the "eyener" system Nelson
Morris OF Chicago was inc cNehcI Oi 'ne Ely ran
yay IN SIS. The other "evencis were = ". AIerton
ana A. C. Eastman The "evenegs " were appointed IN
1S-5u OF the low carriage Of cattle
Tue duty o; cyeuers" had been to see that The New
York Central the Pennsylvania Central ana the Lle
HWy sGt v, , FEbilDo - ,yas also m d"ps,no
mat me cVcucrs should control the Lumber and pro
norton oi cattle sent the roads west Oh Chicago
For these duties they were pdid @Io csI0al ol cattle
III Tie Lie was deficient one week MIR. MOTHS would
i bad IN bny the cattle The rate OF Transporting
hC - 5srsJ o Ami 10 and Mr. Norris vas IN
formed that the company would not pay MIN iurtleI
evening II was no longer profitable TO the rail
road. Tue PennsyIysna Central ksiiroad was th3
% the Cgcucr" combination and
inc Frc Railway soon followed Tho rate AT once went
down 20 $40 Mr. MOTIFS had continued his shipments
however. under 4 promise that lie sAOuld nave low
rgttps There had hor ueTccptlGc difference ia the
number cattle sent over thc road since the cNcncr
system had been abolished Tie regular rate Low WAS
500 car from Chcaso EFcIyeIIpIi VINO .IuuEH,
carload was gwen rebate OF $50 II he would promise
ia as tirt cttd The promise eNactci as to
maintain the pool" The Erie Railway obtained ~
her cent OF the amount paid Tor Transporting the cattle
manufacturers from an points 20 all points No arrange
peuts were made It'll shippers that they should pat
rou!Ze the road exclusively.
Nil sterne-ABout how many cattle cars passed over
y0nr road during the twcnty-seveD months the even-
ing " rs stem was in eIl-ttbccI - -,
Mr. Villas About 10000. That would give the
"cyencrs al $4,000 during the time.
IN-Judsc nuipmau-Mr stctne ~ would be absurd 10
were i.stug money constantly sometimes 10 ne e1-
trut Of 500 TlCy dlGu't mako over % 600 eacn
Mr. Stencil have becn told that NJ MOrTls's snare rs
On cVelcT " was 1863 600.
Mr. Rgtter produced Two contracts OF the Ne"-1O IK
Itral with the standard Oh Company an agreement
with ii. Mex. TWomDy 10 lease elevators at
the foot OF We SiXty-frst-st.. "a contract Win
the American Merchants Union Express and
meus with the officers II the White Line and Blue Line
Fast Freight Companies lie said that the Merchants
Dispatch Transportation Company had 34Jl cars run
nng the Central. Tue yards Of the Union stock
railroad DID not yet have answers To the questions
which mad been asked regarding Tie number o. passen
gers who passed over the road ana tue amount OF
through as compared WITH local trflic. The company
bad every disposition furnish this Information. but
ala not hnd Ii possible 10 comply with the request at
once IL might take month or TWO 10 get the niOrma
tIun. Mr.. Stee expressed his doubts whether the rail-
Iuad would furnish Tie Information before the ASSEM-
bling OF the next Legislature. The committee then
adJu urned.