The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-07-19
THE LEGISLATIVE COMMITTEE AND
FREIGHT RATES.
To THE Enron or n,

10 THE EDITOR OF THE HERALD
An article, published in your paper of the 10th
inst. the signature Of Legislator. crticsing
in general manner the proceedings thus far had
before the legislative committee, and defining their
duties if not written by the managers of the Erie
Railway, at their dictation. is evidently in their
interest AS the tenor of the article is calculated
belitte the work of the committee far as it has
progressed well to state but partially the OBJ
ject for which the committee was appointed, ask
the privilege of few words in reply. Legislator
says:-"Under Mr.. Hepburns direction inquiry
is being made into the railroad management
of the State, with the ostensible object Of
eliciting facts with regard to the discrimination
in the rates of freight" Further on he says:-"what
the mercantile community wants to know, and what
the committee created for is simply how far
discrimination the rates of freight operates the
detriment of one class of shippers and the advan-
tage of another 1t is only necessary to refer to the
resolution Of the Assembly appointing the commit
prove that Legislator has fully or fairly
stated the purposes for which the committee was
appointed. The resolution is as follows
That SPECIAL IT Of Ave -four
S Gr Ss n"s s to
alleged TO exist in the management of the railroads
chartered by this State and to inquire into and
committee to take testimony in the city Of New York
and to report to the either at the
the next session by bill or otherwise what if any, egs
and indus triai interests OF the State
II will be by the resolution that it is made the
duty OF the committee to inquire into all matters
connected with the railroads; not only abuses
alleged to exist. such determinations freight
rates. but also inquire into and report oncernng
their powers, contracts and obligation. In order
to proper understanding of the true inwardness
of eglsators' desire to limit the investigation
the charge of discrimination 1t must be borne in
mind that under the law of the State. the public are
entitled to every dollar of the profits in the form OF
reduced charges after the profits the capital actu-
ally expended exceed ten per cent The following is
the section OF the law referred to-
CHATTER l4o, LAWS ls5o-sEcrIoS 3a-The Legislature
time to time alter reduce the rate of freight fare
ont the eonsep of the cornoraon he SO rednd VIII
produce with said proHs.ess than ten per
examination received and expended to be
trcsr they shall ascertain that the net income derived
by the company from AL sources tor the then last
upon the capital of the corporation actually expended
In other words. in consideration of the valuable
franchise given by the State to the railroad corpora
participation in reduced charges after the capital
actually expended had earned profit of ten per
cent This reservation undoubtedly carries with it
the right of enforcing an honest and economical ad-
mnistration of the affairs of the railroad; other
wise the people might be deprived of their interest
by wasteul expenditures extravagant salaries, &c.
The charge of discrimination IN rates made by the
Chamber of Commerce Committee was fatty and un-
qualifiedly denied by William H. Vanderbilt and III.
j. Jewett in Joint letter under date April 49, 1872
addressed to the Hon. A. Is. Hepburn. chairman o
the Legislative Committee, but the correctness of
the charge and the faisity of the denial alike
shown when Mr.. Goodman, the freight agent of the
New York Central Railroad, very nwillingy testified
before the committee at its session in June that the
New York Central Railroad had made over six
thousand special contracts with discriminating
rates since January last. Therefore IL is that
LEGISLATOR would confine the investigation to that
which is irrefutably established, and not in
quire into corrupt aud illegal stock waterings. enor-
nous salaries at S25O0O per annum, with less
than S150.OOO of 1t paid in advance; lobbying
penses, legal charges. and perhaps millions OF steal
ings, which, in the of the New York, Lake Erie
and Western Railroad, are admitted to have been
capitalized, doubtless to the great pecuniary benefit
OF certain interested individuals but direct con-
traventon of the rights OF the public. No. the
line OF investigation being pursued by the commit
tee IL not ut all in consonancc with the ideas of
Legislator" who. seemingly with a view OF
tion at issue railroad abuses) finds fault
with the state for not providing terminal facilities,
gives brief history of the effects OF the Erie Canal.
and even goes back 70 the medieval ages hold up
for our example Venice and Genoa. There is
son, however, to doubt the ability and honesty of
the gentlemen composing the Investigating Commit
tee their intention 70 carry out to the fullest
tent the purpose of the Legislature which. when
complished cannot fail to be OF lasting service to the
people of the state In exposing the corrupt manner
In which many of the railroads have been and are
managed to subserve private ends with little or no
consideration tor the public interest
New York, July ls 1879. COMMERCE..