The New York herald., 1879-03-27

ing power. which not only will inevitably compel
wholesale reduction in the expenses of govern
ment. but also impair our ability to pay interest
upon our municipal securities. in which, through
the savings banks. the savings OF the people are
largely invested
MAKING THE PUBLIC PAY FOR "wArERxD STOCK"
The late Cornelius Vanderbilt previous to his
death, stated that New York should have rates for
railroad transportation as low as any competing city
and your committee have been loxth to believe that
the present managers OF this great highway dis
posed to pursue policy which is not only unjust
and detrimental to New Yorks interests. but which
cannot fail to njure their The Erie Canal doubt
less concentrates large business ut New York which.
to the but tRe sna rean tSs
great jobbing trade of New York because this is de-
pendent chiefly upon railroads for the distribution
of its merchandise throughout the country with this
once diverted, and with manufactures OF many arti-
ces firmly established in the interior the property
Mr. Vanderbilt and of other citizens will deprecate
together Thus far the depreciation has been all on
one side. but cannot always be so. nor Mr.. VAN
derbilt. even if so disposed continue to maintain
rates which yield eight per cent upon largely in
hatcd capital besides personal revenue scarcely in
ferIor derived from variety Of subsidiary corr
porations designed to deplete the revenues of his
road before they reach the stockholders. No one
have failed to notice the diversion of obbing
trade above alluded to. The changes which have
taken place in the dry goods grocery hardware and
other leading trades are enormous. and it may
safely be said that New York jobbing. houses
generally are at the present time doing business
on unsatisfactory margins. which they are forced
to do in order TO make up for the dis rimination
against them In freghts, and this is perhaps the
least Injurious feature of the situation the loss of
prestige being even more hurtful than the actual
money loss. All New York jobbers know that the
difference in freights Is constantly aud effectively
used as an argument against them. both by the
interior jobbers who are favored with low
crlmination in favor Of other seaboard
cities This is phase Of the transportation question
not generally appreciated Some persons cannot
understand that with export figures satistac-
tory there can be much cause for complaint; but
most of the produce exported merely passes through
it's way to foreign market. yielding but little
profit to New York. while jobbing distributive
trade OF smaller proportions is much more re-
or sse oSna trade Of New so long hsy ea
secure the large export and import trade. and also
charge the present enormous local rates to the peo
New York city, and the lack of prosperity this
city poorer market for the producers of this
more than s prc 20 pa sbars TO
maintain the public schools OF the State; this the
members for the interior OF the State free
from railroad influence and who voted for the in
vestigation. doubtless fully understood.
GIVE GOTHAM CHANCE.
Your committee believe that New York has prior
claim to this trade it first settled and naturally
belongs here. The railroads have right to break
up the jobbng trade of this city and transfer it
to the interior either of other States
do we think they have the right to discriminate
between large and small shippers rs to
prevent the latter choosing In what market
they will mrke their purchases. 1T was for the
purpose of having impartial trial OF the questions
ut issue between the and the public that an
investigation asked for; We believe this il due
alike to the public and the railroads. Similar inves-
legations in England have gradually defined the
rights of the public, and permanent national board
OF commissioners has been established to supervise
the working Of this great power for good or evil.
Upon the thoroushness Of your inSestiga-
ton depends. in great measure. the COM
mercial aud industrial welfare of the entire
community. 1t is hardly possible to imag-
inc subject Of greater Importance.
which affords wider scope foP patient. statesmanlike
investigation We venture to express the hope that
the examination an exhaustive one. and that II any
additional powers required for that purpose
they may he conferred upon your hoNprable commit
tee by the Assembly.
POINTS INVESTIGATION.
For your convenience we recapitulate below some
of the points which seem to to be worthy Of In
vestigation:-
freight citizens othcr States
State OF Now York!
Whether individual citizens of this State arc givcu
charged the public in genernlf
8. Whether the rates for transportation made
cations designed which effect dsploe tho
the roads before reach ncud
ing the effect OF the practice known Watering Of
stock" Of surplus earnings and to what
extent these practices have 0btainodf
4 Whether the rights Of stockholders adequately
s. Whether there lack that publicity and respon-
sbilty to the public which properly belong oreanixa
tons exercising great public function like that Of
oSaasnr q freight and ss
Of the pooling SYSTEM tho dierential rates charged
Now York feght with other sesboard cities
and their eect the effect Of local tarns upon
jobbng Of New York what has been done reu-
tries such other branches Of the subject may ap
Sssuv JXCSsoN s scHUR l0' 'aa''
BENJAMIN y. SHERMAN.