The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-06-13
NEW YORK FREIGHT RATES.
Are the Great Railroads DivertinE this City's
Trade to Oiher CIIIcaI

ihD AftklolubuIt . Olttldl committee on
Railroads met yesterday to inquire into tho
complaints made by New York merchants
against tho railroads in this State. Mr.. Simon
Stern. in opening the proceedings. said that
competition had been abandoned between the
great railway corporations OF this country. The
provision OF law that roads running on parallel
lines shall not be consolidated nor leased by one
another had been nullined. and condition OF
competition no longer exists between parallel
lines. and close alliance has been formed be-
tween the trunk lines running through differ
ent States to prevent com petition between them.
Another important discovery has been made
by the railway corporations in regard to tho
limits to which war may safely be carried on
as against each other. and that limit Ia that 1t
must stop short OF driving a rival line into in
solvency. New York Central enters into COM
bnation with the Baltimore and Ohio and
Pennsylvania roads to sustain those lines
against its own natural advantages and those OF
New York Harbor. 30 as TO prevent its rivals
from unloading themselves by insolvency from
the responsibility Of paying dividends and
paying interest on bonds because the moment
they become insolvent they run wild !" and
| thereupon these insolvent roads by reason OF
| such insolvency, become more formidable COM
! pctitors than they were heretofore. and crush
the solvent road.
Mr. Stern in,roduced statistics showing the
growth Of New York city and Of her commerce.
| and then wont on to say:
II firmly believe that before We shall have
| concluded the evidence we shall show to you
that the diversion OF trade from New York. the
growth OF rival cities is mainly due to the pocu-
! harities Of management Of our railway lines.
| which IN many instances give through rates
| from and to Liverpool from western centres at
! rates almost us low az the ocean ireights alone
! would b. from New York to Liverpool or Liver
| pool 10 New York.
We charge and shall prove to you that our
| railway companies have shamelessly evaded
| the provisions A. 10 ten per cent dividends in
the watering OF their stock and In the issuing Of
thnir bonds so that the declaring OF dividends
gives us now no clue rs To- what Is actually
earned upon the actual cost OF the roads.
| We shnll show that tho reports to the State
| Railway Engineer AMI Surveyor. required to be-
made by law. are utterly inadequate for any
] purpose. and 50 meagro In details as to be I'M
We shah show that the system OF accounts
! the railways maintain is dclusive in the ex-
treme, and ia system by which both the public
and the stockholders are grossly and eyre
| giousy msled.
We shall show that grossfnequaitics arise
from this condition Of affairs. and that udivid-
nals and communities are put Mt tho mercy OF
these great corporations who have II in their
power to make one man rich and keep others
poor. and that thoy do exercise that power in an
arbitrary manner"
Mr.. Samuel Goodman. Assistant General
Freight Agent OF the \, Y. Central Railroad.
special rates were made for freights from time
To- time. Ms circumstances seemed TO require
them. Local rates were generally fixed by him.
u
MIR. j. II, Rutter. There are no fixed rates to
points where there is no competition. He had
not himself made any special rates below the
published tarin within year : never paid either
q drawback or rebate in his life. and had no
book contgrning any record OF any such trans
actions. The witness produced the schedules
Of freight rates in force on the y. Y. Central and
Hudson River Railroad. also those anterior To
rates on eastward bound freight. those on
wrstern-bound not being printed. The winter
local tariff IL changed from year to year The
rnlurtlOu or the IN rnnSp OF rates depends unOn
the general business OF the country. II poatoes
are dollar barrel. we can charge fifty cents
for bringing barrel from Buffalo to New York.
II they are not more than so cents a barrel We
cannot charge more than 10 cents. perhaps. 1t
also depends on the through rates from Chi
cago. IL the through rate from Chicago is $50.
we can charge IS cents from Buffalo. Thnt Is
the way on -four. produce. &c. The tariff on
-four and grain changes eight or twelve times a
year. Local rates are not always changed when
through rates, change. Special rates from the
West are mnde by agents out there Special
rate arrangements on freight from New York TO
the West are made by tho general freight agent;
The rates on flour and grain have changed
within three weeks. and the new rate does not
appear on the printed schedule, Some articles
DO not appear on the printed tarin such ms
-four. grain. potatoes. and other cereals. because
I'M rgM9s ~ Ii, them change so ire9uentlyas
on -four and Is cents on potatoes
Wnness-Flour il worth IS and potatoes only
So To some extent fr-ights depend upon tho
value OF the commodities carried. II the rate
70 pay IS cents from Buffalo. PotStoes are.
is no competition from the West. We charge
less Tor Hour sometimes than we do for pota-
toes. We don't charge less on potatoes than on
flour-not NJ any iime-that U.s. not rs n rule.
We sometimes reduce the freight on -four %
Roahester and Buao Nnd Itte fos When r I'm
Western rates are lowered. make two-thirds
o. the tarlf on freights On the Rome and Wa
tertown kailroad the qherthird being fixed BY
the freight manager Of that road.
Mr., Hepburn-Are there any places TO which
you DO not make special rates
W tuess-NO. sir II.uuEntprI Enacinl rates
vary from schedule rates ten or fifteen cents
per cwt and may vary more than that some
| times. We make special arrangements with
shippers by which al classes 20 MS one class. |
have arrangements with several persons In
at ten cents per cwt. Last year. when public
rates were much higher than now. the special
Twelve cents per cwt. AT present the special
rate 70 those favored shi ppers is eight cents per
cw' less on all classes than the published rate
miles nearer New YORK but tho special rate
Syracuse have also other special rates. less
favorable for other Syracuse shippers. de-
pendent upon amount and quality q goods
on first and second class and Is cents on
third and fourth, ms against 81 cents, 20 cents.
20 cents and Is cents to the general public.
Perhaps ninety per cent OF all the business Of
Syracuse is carried at special rates. The same
have rae of Ten cents I per sS NJ have
great many varied special rates for both Utica
anu syracuse. lnert are special ThuS mace
for llion for one large establishment there.
The agreements for special rates can all be-
cancelled nj the option OF the company. The
agreements arc made for definite periods. but
are merely verbal
Mr.. Chauncey VI. Depew argued at length
! against the COmmittee's requiring the produc-
til. OF the companys books. for tho reasons
that they would exhibit the private business OF
individuals with whom the State hnd nothing TO
do. and that IL would inJure the railroad com
pauy by exposing its business to its rivals.
The Joint Executive Committee Of the Trunk
and Western Railroads was in session most Of
| Yesterday In Pool Commissioner Fink's Office.
The action OF the Niagara Falls meeting OF last
week was cnnNHssei and finally ratified in the
main. That action WIS substantially that rates
on freight from the West must be maintained.
that pools should be formed among the several
roads tributary 10 the trunk lines for the ham
ding OF business from competitive points.
Several Of the details OF the latter stipulation
were submitted 10 arbitration. The Niagara
Falls conference fixed the rates upon the bas :
OF ] . cents per hundred on fourth class freight
from Chicago 10 New Yark. The Executive
Committee yesterday amended that action by
nssing the following resolution: That on the
2@d inst. the rntcs from ChcngOto New York on
fourth class freight. -four. and live hogs be adj
Anced cents per 100 pounds. and from all
other points in proportion"