The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-10-19
ERIE'S EXPENSES.

OF RAILWAY BUSINESS Dis
cUssED by TRAFFIC MANAGER.
The Assembly Committee appointed to investigate
the management of railroads in this State continued
their session yesterday morning at ten o'clock. in
the rooms of the Chamber of Commerce.
No. 63 William street. Mr.. A. b.. Hep
burn, of st. Lawrence county. in the chair.
George Il. Blanchard. traffic manager of the Erie
Hallway. resumed his testimony at the opening of
the proceedings by reading communications from
station agents. showing that other roads were
formerly carrying at lower rates than tho Ere also
communication from Western firms asking for
duced rates in proportion to the volume OF bust
ness; the latter application was denied. He said
that what reduction should be made in special cases
was influenced by tho idea that merchants
charged for the value of what the railroad did for
them rather than what the railroad could get ont of
them; reductions depended largely upon the guam
tity and regularity Of the business obtained. aud
ranged from five to twenty per cent.
by Mr.. Duguid-Is it not fact that reduction
OF great deal more than twenty even fifty per cent
is sometimes given? A. Not upon our line.
Witness next exemplifed several instances in
was eight cents per bushel. for instance, u dealer
would offer to ship grain by the railway eight and
six cents the dealer would often broak his contract
aud go to the canal. 70 remedy this a rate OF
ten cents would be charged. and then. ut
the completion of the contract. ORA wback
of one and half cents would be allowed.
Witness next read schedule OF the shippers Oh the
Erie road and its branches. showing their increase
from 1886 to 1879 the respective dates ut which the
old and new tariffs went into effect his purpose
being to show that the rates OF the Erie road. in
stead of crushing out business, had Increased it, the
number OF shippers had increased from 1.763 to
5000. ,..
Mr.. Sterne ed that the tonnage shipped over
the Eric in 1867 when they carried no coal. WAS
3iS4. $40 tors and in 1877 6,1S245l. Deducting
the coal carriage OF ITO in the latter year left
the tonnage nearly the same in 1857. although the
number OF shippers might have increased.
POPULATION AND PRODUCTS.
Mr.. Blanchard next took up the argument of in-
creased population, which rose from l.Gu505l in
1865 in tho counties traversed by the Erie halfway
to 1854. SOL IN 1S75an increase OF ass, &c. 2S
per cent his purpose being to show that the rail-
road was not driving people away from its lines by
determinations between shippers and localities;
the increased from 1Oi0.6l9 to 1924 $50 in
the same time. 314 061 acres. 81 per cent The
amount OF increased production next received wit
ness attention.
BY the Chairman-Do you think it fair to at
tribute that increase to the good railroad manage
ment OF this State? May not the natural increase of
the or the State account for 1t? A. take
some OF the credit for 1t to the Erie Railway, as
showing that prior to the dates the policy
OF the road was not sucn ~ to prevent the develop
ment OF the State.
@. Have not the troubles complained of existed
since that time? A. Almost entirely since that time
Inducements were given to parties, witness said,
to to New York from the interior of the State
TO purchase their articles and then 40 back HOME
cheaper passenger excursion rates being allowed for
this purpose; 1t was impossible to state the cost OF
transportation except in general way and that was
likely to be erroneous; the annual average per ton
per mile of cost the only basis for charges pro-
durable; in 1877 this was 7.52 mills in 1878. 674
mills; then the roads endeavored to get much i'll
excess of that stated rate would return fair
value upon the transaction local business costs a
great deal more than through business; for any
to attempt to make calculation of the actual cost
of each actual transaction to any railroad would be
to attempt that which Is impossible for the human
mind
By tho Chairman-You do not even make the
minimum average rate the lowest rate Of freight?
A. We do not.
Q. Do you then carry local freight at loss2 A.
Very often.
1t inevitably occurred. witness said. that the loss
incurred III carrying freight In some instances
would be made up by profit from other individuals
HOW EXPENSES ARE DIsTRlBUrED.
The expenses OF the Erie Railway were divided
these different expenses among the millions of sepa
rate according to the actual cost OF each
for the proportion Of these expenses; on the Erie
they divided according to the mileage traversed
by freight or passenger traffic.
recess was here taken. during which Mr.. harlan
A. Pierce. editor of railway journal handed to the
committee the tables called for when he the
witness stand. showing the through rates Of grain
to the seaboard and to Europe from the West. Aver
age rates from Chicago to Liverpool 100 pounds
wheat by steamer In 1873 by way OF New York was
81 7-12 cents; via Phiadaphis, 40 ITO cents; via
Baltimore 49ss cents; via Boston. 40 l-6 cents.
Mr.. blanchard. in resuming his testimony. said it
was luposblplo ulWaye 10 cukTBe less ruteS on the
lesser distance than on the longer one tho volume
of business must determine the cost OF transporta-
ton: III times of competition with other railroads
determinations against certain localities against
through trafac witness admitted might have
crept in.
BY Mr.. Sterno-It ten mills should offer you
their business on condition OF wiping out mill
at some other place would you not consider 1t your
duty In view OF the increased profit to the road to
accept the offer? A. Clearly not.
The milk business OF the Erie Railway was next
inquired into. Whom witness first became con-
nected with the road the rate milk from all
stations httyhve cents the 10th of last April
II reduced to forty cents; the business in 1878
being l.0l223 cans. the reduction would make an
amount OF $751; 1874 c. III spite of these rcduc-
tions there was not rs much milk business done as
there WAS year ago; for cream ifty-fve cents was
charged. the old rate, because the would
hold what would be equivalent to ten OF milk.
and it only fair that the railroad should get tho
cream of that business the earnings OF round trip
for milk train were $3.50; passenger train would
400; the counecting boats to bring milk from
Jersey City were run at positive loss every night.
The milk trade had increased from $3.50. 052 gallons
in 1854 to H. 100 in 1874 increase OF G57
gallons.
The committee then adjourned until tomorrow
morning, at ten o'clock.