New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-06-17

nooIs and the relations of the company with ship
pcrs and with other lines Great interest was
aroused by the suggestion of new rapid transit lines
in the city. especially by the scheme TO build road
from City Hall to the Grand Central Depot.
NETWORK CENTRAL METHODS.
TESTIMONY OF GENERAL TRAFFIC MANAGER RUT-
TER-THE FAST FREIGHT HNEs-oRIGIN OF
CoAiBINATIoNs-A PLEA OF MERCHANTS.
James II. Rutter general traffic manager OF
the NewYork Central Railroad, gave some interesting
particulars about the recent pools" the fast freight
lines and the special rates before the Assembly Com
mitee in this city yesterday Mr. Rutter testified that
had copies Of fast freight contracts and the through
Western bound tariffs from December, 1871 TO date
He then exhibited printed tariffs Of rates to points as
far West as Colorado. The rule among the great trunk
lines he said that the Easbound rates should he
made by the Western railroad companies, and the West
bound by the Eastern companies The classification
was based on the value the bulk and the quality of the
goods shipped. On the frst-cass freight did
not weigh ~ much as fourth class He had never made
any calculations as 10 the cost of carrying goods.
Mr. Rutter said ne would ascertain for the committee
the proportion of local to through rac and the income
Of the company from these respectively for TWO
years past. The fact freight lines using the railway
were the Red White, the Bue. the Canada Southern
tho Uoossc Tunnel and the Merchants Dispatch All
the through freight Of the company carried 0Y the
fast lines The contract with the Red had expired
The Merchants Dispatch transportation Company had
contract for years from 1874 There ives OILY one
special contract for through traffic. that was with the
Hudsons Bay Fur Company. The Western companies
have the authority TO make contracts on the spot
and Instantly they would not get reights for the
East nor the New-YOrk Central. He did not know the
cost OF transporting goods per ton per me Inc cost
depended upon the volume Of business The cost
was greatly reduced if large quantity OF goods was TO
be moved The business Of the road might be doubled
hl mt
cent The cost OF transportation had greatly decreased
since 1870 The fast freight lines endeayored TO get
freight from the shippers. Having obtained the price
shipper would pay they stated II TO the railway
company aud if acceptable the freight went over the
line There WAS no "cutting" Of rates that he was
aware Of in the West at presents or any deviation from
the scheduled rates. David Dows IL Co. had had a
speci.d contract for the transportation OF 500 car
loads or 900 900 bushels Of grain from Chicago to
New-York The rate was 1912 cents; 70 the general
public It was 15l2 hundred. The rate was taken
the latter part May. Competition ruled the rates
the company and the making the contract took the
risk Of the rates advancing lowering before 1t was
carried OUT He did not think IT paid the company to
haul grain from Chicago 20 New-York at 12i2 cents
a hundred. The road. however, might better carry IL
at 1919 cents hundred than he illt, =. 49,, ,,,,
M sterne-Nhat rate per hundred 90 you thpA
would pay you pronti u., o., o,er,o n N ccntsa
hundred presume il would pay
The witness then said that 20 or so per cent on
the lowest rate was above 40 cents hundred. IL
1876 the average rate below 40 cents hundred
II would not be a fair inference, however, to say that
when the through rate was below 40 cents me company
was losing money There were too many things to be
considered TO make such an assertion with confidence
me bi the coTnilDv WonJ show The comm toe
The system of rebates and drawbacks The rates
w w9ri9 The West-bound freight pool had been
in existence for two years. Each company agreed
70 take GfrSn g R3t OF comP Hs se
ting the part OF business eac1 road was To possess u
was an arbitrary decision The New-l Ok Central ka-
road obtained ohe-lhrd OF the business me Ilau "m
had 30 cent of the whole business clam was maze
per OF the business from NeW-10rk westward An agree
ment was now making for division OF the business
iES 1l hSsS CeTra Ths details Of the pooling
from Philadelphia and Baltimore westward had not yet
accept freight even at 122 cents hundred than not
take II at an because II they declined TO take ieght
re youif yon won't enter into competition with the
Mr. steIne-Whv did you discriminate against New
York; in other words ask more to carry soOls 10 New
Mr. RuUtcr-We couldn't help ourselves. We tried 10
force the Baltimore and Ohio and the Penusylyan
Central to make uniform rates all through the year
1877. We failed, and rather than ruin ourselves We
made the present arrangement ., o,,.- =. ,,,,,
delplia than TO New-NOrk
Mr.. Rutter-ItIs 154 miles nearer Boston Is about
so miles farther away than New-lork. The rates 10
Boston and New-YorE from Chicago are tho same but
Boston merchant, pay large rate Westward All Mag
ara Falls we recently made an arrangement on east
bound freight We have agreed to those rates TIL June
that they 10 De I'VE cents IlEheI
agreement vii then exist iii days nOuce has been
given. We have agreed TO make rates 10 cents Tor
grain and 20 cents for fourth class.
Mr.. Serne-Nl III these rates yield profit or loss
Mr.. RutteT-I don't know.
Harvey Harrington, Wholesale grocer Of this city,
testified that the business OF the city had greatly de-
creased, ana SAID that IL was his opinion that giving
lower rates merchants the interior Of the State mad
deferred country merchants from coming TO this cty 10
trade.
f. L. Gibbon, cashier of b. T. Babbltt Co. soap
makers, testified that the New-York Central Railroad
refused grant special rates to that hr while grant
inc nom gU ~ 10.
csc Grouse q Co. had soap shipped at ol2 cents box
from Nc-YOrk TO Syracuse, while BaDbtt Co. had 10
paw 12l2 cents. 49,
Robert T. AUSTIN wholesale grocer OF this city. tes-
tneI that special rates were granted 10 Legset Co.,
wholesale grOcers and denied to himself, although he
shipped great quantity OF goods over the NewHork
CnnIral.