The New York herald., 1879-12-02
ERIE'S DEFENCE.
Argument Of Eu-Judse ShiInan Before the
Assembly Committee
THE RIGHTS OF RAILROADS
Legislative Interference in Their Affairs
Declared Unjust.

ITS sessions yesterday morning at ten CLOCK. Al
most the entire day spent IN listening to ex-
Judge Shipman's argument in defence OF the Erie
Railway.
.Another deadly blow at the commercial
premacy of the city OF New York." said ex-Judge
Shipman, continuing his address OF Saturday, ''to
which counsel in his opening speech called your at
tention and which, he says. has been struck by the
railroads. is what he describes the tax
they impose the consumption of milk
in this city 1t has been shown that
there has been enormous reduction in
rates which have been made at large loss ofrevenue
to the road The remuneration of the carrier is
tremely small Instead OF yielding revenue of
s11O per per trip, it yields only fraction
$50 per car; and instead of $4,000 per train, as
charged, the gross revenue is only $3.50. The COM
plants which come from the Western part of the
State relate to the following branches:-The milling
interests of Rochester and Buffalo, the grain market
at Buffalo. tho pork packing business there. the
shipping interests of Buffalo, the shipping Of cattle
and produce and the depression of agriculture.
Undoubtedly all these branches of business
in the Western part Of the State have
been depressed for several years past.
The testimony taken in regard the milling busi-
at Rochester and Buffalo shows that the Gene
wheat fields long ago ceased to produce the kind
OF wheat which once made it's celebrated -four The
local millers now resort to the grain markets of
Toledo, Milwaukee or Chicago for their supply of
wheat because they can buy it there seventy-fve
cents per barrel cheaper. The Rochester milleys
have been theorizing and specializing on the as
sumed fact that they could bring grain from the
West. manufacture flour out of it and put it the
market at the same price the western miller
could sell it. and that all they wanted
rate to the east which would be pro rata
with that of their Western rivals. But the seventy
ave difference is created by the railroads.
but by the Western miller-the result Of his near
ness to the source of supply Of the raw material.
The grain trade of Buffalo has undoubtedly declined
there but this is because leading place for the
purchase of cereals it has been supplanted by the
great centres which now accumulate in short time
immense masses of grain drawn from the extensive
wheat fields in the midst of which they situated.
The pork packing business of Buffalo is mostly
conducted west of this State. But the pork
packers express themselves satisfied with the
of their trade the matter may be dismissed from
further consideration. The shipping interests of Buff
falo have not suffered more than other parts of the
country in this respect Her prosperity has steadily
increased. Undoubtedly Buffalo would have been
comparatively more important place if no railroad
had ever been built and the water ways had con-
tinued the main routes. Buffalo had suffered much
more from the mismanagement of the canal than
from any policy OF the railroads.
1.-THE depression of agriculture and the consequent
depreciation of farming lands had been charpeabIe
to improper action of the railaoad This notion is
deusion of the thinnest most vapory character.
1t is undoubtedly true that the introduction of rail-
roads has tended to diminish the difference between
the value of lands in Herkimer county, n. Y, and
the lands OF Hennepin county Ill. But what rail-
roads have done this and how have they done it The
whole railroad system running from the West to the
seaboard has operated in this direction. Ii the New
York roads blotted out OF existence still the
products OF the West would reach the Eastern
kets in competition with those raised by the
OF New York. But one witness complains that his
farm does not produce much formerly. OF
course it does not. That inevitable The price
of wheat formerly 81 81 per bushel; now it is
fifty per less. Potatoes have fallen seyenty-fve
per cent; onions seventy-f per cent. During the
same time labor has fallen but thirtythree ana half
per cent. To this decline i'll the price of
farm products must be added the rise in the rate Of
taxation.
THROUGH FREreHTs VERSUS LOCAL.
"But still the New York farmer complains that he
has to pay higher rate per mile for rail transpor
taSion over the New York roads than is paid on the
vast products of the West which find their way
over the same roads. His remedy. he thinks. is a
pro rata freight systenf The difference between
through and local rates underlies all the arguments
and ideas of the persons located along the lines Of
the roads in the interior. / am considering 1t in
view of the demand for legislation, and in
no other. slight difference in rates not
founded distance its equivalent Will
change the current of traffic. Hence raising
the rate through freight now passing by rail
through this State by statute it it could be done
would send it over roads running through other
States, and the great bulk would touch the
soil or water of New YORK The only other course
would be to reduce the local pro rata with
the through rates. To attempt this would be to ig
more every fundamental principle applicable to the
-. ~ ~ s ~. W. s VI .ile
vas. suiP,"s clpPs Va .ne "es' Aroii tue ereas
centres where they acculnuiate 10 tne seaooaro
ior consumption ana export Is national neces.
sity. That the Now York trunk lines should
paruclpate IN tnat transportation ls necessity OF
the stare ana especially OF New YORK city. 10 pro-
hibit these trunk lines from participating in that
business. except under cast IRON pro rata tariff.
would reduce them TO the alternative or abandoning
the through business or OF GRIPPING their COM
panies by contractng Their traihc and resources
IL Is SAID tnat as between the nome MARKET ana the
producer the ater Always pays the cost OF transpor
tatiof But that can only be where the prices to the
prouucer are remunerauve anu .he surplus aDun-
a%sht. % halse the cost OF transportation from the
West ana you cneck proaucton
lherc mas oeeh much coHipiaint ON inc supJcct
Oh speciai rates on the Erie Many OF tnem nave
pcen SHOWN 70 De open 10 al ana therefore not
speciai; o,nsrs were aue 70 hleet @ coRpe,'ion ana
70, 70 avolo inc TOSS o; business 10 ISew iorK. pro-
niption OF an speclai rates wouiu prevent 'ho ROAD
,rom seconoins any euort ior tne opening Oh new
Dsess on .s lie 80 VII 40 lvin 70