The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-16
FREIGHT DISCRIMINATION.


vEsrIGATIoNs IN THIS cIry-THE COST or
TRANSPORTATION QUESTION STILL UN-
ANswERED-MR. EDWIN D. woRcEsTERs
TESTIMONY.
The Assembly Railroad Investigating Committee
resumed its inquiry yesterday. Arguments were
heard in regard to the authority of the committee
to investigate the accounts and the financial MANAGE
ment of the railway corporations Mr. Stern pro-
posed to submit evidence that in 1873 the Erie Rail
way Company failed to make report to the Secre-
tary of Internal Affairs of Pennsylvania. Messrs.
Shpman and Depew objected on the ground that 1t
ncompetens for the Legislature of this State to
pass upon the omissions neglect Of the company
in its relations another State Auditor Little set
tied the difficulty by admitting the neglect. Mr..
offered the records of the court in the suit of
the people. in which the receiver of the Erie Rail-
way Company was defendant This was objected to
by Mr. Shipman who commended that the records did
not any matters that within the scope of
this investigation Mr.. Stern maintained that 1t was
entirely relevant. and the Chairman said he was of
opinion that the watering of stock by the railway
companies of this State was one which came within
the scope of the resolution authorizing the inquiry
1.-The suits" said Mr.. Stern. drought by
this great State of New York seemed to have
opera bouYe character attached to them the moment
they directed against the great railway corpo-
rations and it is important for the Legislature to
informed Of the fact that power has grown up
among the community which is more powerful than
the community itself. do not desire to draw any
differences against the gentlemen who are ut the
head of the Erie company. This course was, per-
haps, necessity Of their situation" He also pro-
posed to submit in evidence the stockhoding inter
est represented by the directors at the time the
ceiver appointed. OF the $4,000 shares Of the
A
of directors. OF this number two members of the
Board owned $500 shares. The committee decided
that the reports and papers were admissible.
EDWIN WORCESTER ON STAND
Mr.. Edwin D. Worcester. Secretary of the New York
Central and Hudson River Railroad Company. testi-
fed Have been connected with tho road since
the consolidation of 1853; I have charge of
numerous contracts made by the company well
of all leases made of other lines by the New York
Central: was never director in the New York Gen.
trial. but president director and secretary of
various other railroad companies at the present
time; the lease Of the Spuyten Duyvil and Port
Morris Railroad is in the Office of the New York Cen
trail at Albany; the stock of the Dunkirk. Allegheny
and Pttsburg Railroad is owned by the men who
we're its original incorporators; the stock of the
Buffalo Junction Railway is owned by the New York
Central, excepting such amounts necessary to
be held by directors to qualify them the stock of
the Syracuse Junction Railroad is held by the SUBJ
scrbers under the articles Of association the cost
of the Buffalo Junction road largely in
excess of its capital stock. and all tho money
that has been expended in It in excess
has H been y paid by the New YORK , Cen f ,h
stock of the New York Sleeping Car Company. and is
forbidden by law from owning any of it; the New
since 1853, including one dividend payable yester-
day; have prepared some OF the company's annual
reports to the State Engineer. and in some OF them
l may have put some items Of "sxpense'' into tho
construction accounts the cost of construction
Of iron rails with steel. of wooden bridges with
iron and the laying OF new tracks, all went into the
expense" account
Q. have asked Mr.. Rutter what is the cost of
transportation your road and he replied that he
could not tell; now ask you whether you can tell
me? A. cannot it is hardly possible to compute 1t.
Q. Is there any person connected with the New
YORK Central who can give snss a n;c A.
involve great difficulty; these matters were of course
estimated. but it was on general principles and was
approximately correct staff OF railroad employees
Is large, but it would be much larger IL these fine
distinctions to be insisted our traffic il OF
receipts is considered joint earnings the cost
only be estimated Jointly, as we carry both
classes one train; could not undertake to single
out freight from several passenger and say
with anything approaching accuracy how much Of
the cost of hauling the entire train should be set
After recess Mr. Worcester resumed:-It is Just
possible that ten per cent rate on grain or -four
from Chicago might pay the expenses OF the haul
and leave trifng profit under the exercise of q
more than ordinarily rigid economy. As u rule,
higher than where a road is tRickly populated;
freghts have to be carried at lower rates than
others. Coal, for instance will not stand rate of
81 or So ton on account OF Its comparatively small
THE pEApHEAp SYSTEM.
Q. Suppose O lawyer should receive q fec Of 81 900
to argue case in the Court OF Appeals. would you
charge him $500 fare because you supposed he
fellow perhaps only sas A. The item Of half fare
tickets OF passes issued in charitable cases to per-
sons who cannot afford to pay anything is very
large; on the principle low fares given to
Sunday schools, excursions. fremen military conn.,
panies and to persons attending State political
In answer to Mr.. Blanchard the witness stated that
the fast freight lines the New York Central had
cheapened the cost Of transportation very largely
when the lines were originally formed for the pur.
pose OF saving the cost of transfer of freight from
one road to another; but in course OF time this
saving had gone chiefly to the public. The witness
then read the following statement. showing the
average rate per ton per mile on the New York Cen
amount of freight garfield
lSGs9........ .02 39-100 1s734.......- .O1 46-100
ls69-70. .01 $500 1s74-5......... .01 2T-100
1s7o-1....-... .0l 65l00 ls75-6........ .01 5-loo
1S71-2........ .01 59100 1S76-7........ .01 LOO
1sT2-3......... ol s7-loo lsI5-s...;;. 90 9i.loo
Central Company gets ten cents tor each passenger
the Albany bridge tolls the witness replied
in the negative
CONCESSIONS TO PASSENGERS.
Mr. Depew rectcd the case of johnson against
the Hudson River Railroad Company. suit for
overcharges, in is72 in which the Court Of Appeals
decided that the company had the right to charge
two cents mile. He then showed by the witness
that the fare to Albany is 80 10. whereas the
pany is authorized by law to charge 81 81 Mr.. De-
pew further stated that the fare from London to
Paris, distance of 800 miles. is than twice
large the fare from New York to Chicago. dis
lance of 1000 miles.
As tho examination of Mr.. Worcester was
concluded the Chairman (Mr. Hepburnb announced
that inasmuch several witnesses who had been
subp9naed were unable to attend owing to o pres
sure of mpor tanr business. and as members of the
committee have also some business matters to attend
to- the investigation in this city would be closed
with the current session. The committee will next
meet at Saratoga at the end OF four weeks aud
while subcommittee will proceed to examine the
condition of the Lake Champlain Railroad.
DUTIES OF THE CoMMrTTEE.
To THE EprroR OF THE HERALD:--
special committee Of the Legislature has been
in session in this city for several weeks. This CON-