The New York herald., 1879-09-11
RAILROAD METHODS.

4
CONTINUATION OF THE INQUIRY BIZ THE LE0Is-
LATIvE sUB-coMMrTrEE-wHY SPECIAL RATES
ARE MADE-rHE MANAGEMENT OF THE DBL
AWARE AND HUDSON CANAL COMPANY.
ALBANY. Sept. 10. 1879. Z.
The second session of the subcommittee on the
railroad investigation held this morning. All
members Of the committee except Mr.. Hustled were
present.
Mr.. H. S. Msrcy's examination was continued by
Counsel Sterne. Mr.. Marcy gave the COMMITTEES ab-
stracts of special rates from 1877 to the present
date complete They contain variations from the
tariff on shipments of every conceivable commodity.
both at local and through points. ranging from ten
to seventy per cent discount from tariff rates. In
addition to these special rates the witness admitted
that large payments were made by way Of agreed
rebates. and that under those circumstances the
goods would be billed at tariff rates and rebatsd
voucher made representing those drawbacks.
SPECIAL RATES.
Q. What induces you either to grant or withhold
special rate2 A. The necessity Of the shipper in
most is the element; that is what Is discussed
when the rate Is applied for; try to make It
form TO the rates that charged other people for
carrying the same commodity on the road; that
would be the idea, shipper does not ask for II
he does not get It, he ia charged the schedule rate;
do not always make special rate application.
Q.oWhat is your limit Of valuation between your
schedule rate and special rate2 A. There Is no rela
ton between them; special rates are made entirely
without regard to the schedule rate and without re-
gard to classification.
Q. When you give special rate is 1t with under
standing OF secrecy? A. 1t is common; never
publish our special rates. nor do we put them in
such form that any stranger can see them at our
office; the records kept in ofoe but they
not accessible to the public.
oNE-sIDED BxNRvoLxNCR.
g. What determinss you to make = special rate on
all OF these specals-that the printed rate Is too
much.
man can afford to pay or more than some other line
will charge for the same service; between points
where We have . monopoly We give special rates;
the elements come into consideration that de-
termine all the others.
Q. Between what points do you make special rates.
the north end Of the road. near Canada, where
horses purchased to be sent to market from there
to Albany; also from Ticonderoga Putnam Pat
erson or Lake Champlain to Albany for shipments
to New York. We always consider It personal to the
man who gets It, and no more ersnsferable than
pass. would consider 1t a breach Of faith II the
man should allow others to ship At his special rate
because want to determine In each instance the
Q. Do you carry for longer distances according to
tariff rate at less rates than you do for shorter Dis
o. Then your tariff is based ON distancea A.
Somewhat; the rates are more according to dis-
tance
Q. Take the whole length OF your road, from Bing-
hamton to Rouse's Point. what per ton per mile
would you consider to be out Of reach to
A. Anything below q cent per ton par mile would Be
questionable whether 1t would yield prodt: we
have arrangements by which We pro rate with otas.
Bradford region Cleveland. Titusvllle and Oil City;
negotiations for oil by our lines are made by the
which we abide by their fixing Of rates over
our line; we do not carry crude oil; ;
works in the country. but not more than that, we
carry only refined; we have no contrsots with the
u not ppsy. bn s 1
cents barrel from Albany to Cleveland; do not
know how much was rebates do not know whether
there is any or not We got twenty mine per cent
from Cleveland to Albany; we carry . barrel Of oil
1850 pounds) from Bnghsmton to Albany at twenty
nine cent of nifty cents 1t pays US but very little
if anything at all.
@. If there is q rebate of twenty thirty cents on
that it would result in q lossf A. The profit would
be very small to the company; we do exactly alike
with all the east bound business; the Western roads
make the rate, and accept proportion OF such
that to u.s. when the rate 81 80 the rebate
was fortyfve cents; own some OF the trucks, but
for u the the round trip for cars; MI. dickson. the
president. fxes the coal rates. can't ssy why;
at Ballston and Saratoga It is So and at the Branch
only s. 50; suppose it is on account OF the COM
petition with canals; If we had competition to-
morrow At those places we would come down with
rates; never had any instructions in regard to
special rates. have learned that it would be impos-
sible to do business without them; II ali busi
ness was special we would not make anything; we
have had four thousand of special rates within
two years; to Schenectady all sorts Of goods have
special rates, because In competition with the New
York Central cannot make . tariff based on
special rates; We have pooling point at Rutland
the arrangement existing between that place and
Troy with the Troy and Boston road; We agree with
each other and make special rates below the tariff
rates; we have milk traffic over our road; we run
one half full distance Of seventyseven miles,
from Whitehall to Albany; we charge twenty cents
can on what goes to New York and twenty cents
to Troy. Albany and Cohoes; can weighs LOO
pounds when full.
Q. Can you tell what proportion of your trafno
is through and what proportion local? A. should
say through business did not exceed twenty per
cent of the whole.
The committee then adjourned to meet tomorrow
morning. when Mr.. Marcy's examination viii be
finished 1t is expected that Mr.. w. Il. Bush. OF the
Troy Car Works. and superintendent Voorhees, will