, 1880-01-28
RAILROAD ABUSES IN NEW TORE

Whatever may be the result OF tho PROPOSE
tion 10 create Railway Commission In Ncw
York, the report of tho Hepburn Committee,
which f,as been engaged for several months
in the Investigation of railway Ntfntrs III TINT
State, will add to tho general Information
about the abuses Of railway management.
Tho report Is n volumfn0us document. attl
comprises b,tD0 pnEes of testimony, covering
sessions III Rochester, Uuffnlo, Ogdcnsbnrg,
Uttca, Albany, and Saratoga, rs well ns New
York City, and Including tho statements and
arguments Of the railroad managers and nj
tor,,eys, az well as those Of tho merchants
and pntrons OF the roads.
OF the 81, ,s41 miles Of railroad within tho
United States, t,ers are 5,650 miles withl,
the limits OF New York. Public pnlIcy In
that State has been most generous to the
corporations. In curly railroad times, care
was taken to throw restraints upon tho
passenger traffic, because It was believed the
business of tho Iron highways would be
confined to that now snbor,lfnnte branch OF
their work. When tho roads which NOW make
up tho New York Central began to carry
freight they were required to pay to the
canal fund nh amount cqunl to the tolls that
would have accrued to the canal from tic
business thus diverted. This and other re-
strIctions were soon removed altogether. In
1856 a Boartl OF Railroad Commissioners wts
created. but the corporations quickly secured
n rcncal Of tho law, and silcncctl opposition
on the part of the Commissioners wlIo were
thrown nut ot Office by paying them their sal-
artus for tho full term for wl'icli they had
been appointed. 1lailroad-butll!nE Inns been
encouraged In overy possible way. The
State Eus donated In all about S. 900 00o md
tile local Governments about s3l goo 600 moro
By Investment In stocks and bonds. In re-
turn for all tho public franc1llses, grants,
subscriptions, md favors, tho corporations
hnye been governed By the most scltsl, anu
gr.sping policy towards tho people.
Parasite companies, enjoying specinl fac1l!-
| ties for the benefit Of railway managers and
stockholders and for the fleeing OF tho p,tf'-
| lie, are exposed iii tho report. The bler-
| chants Dispatch Company Is o. samplc.
| Only a5 per cent Of tho capital was sub
| scrtbcd, but this Company pays t0nor cent
dividends OH tho nominal capital, or m nit
nuat dividend OF 40 per cent upon tho actual
Investment. The sleeping.car companies
also enjoy the benefits Of special contracts
"hlcu "fe t."lcn'"us,s Nv. 1"o .""". '..'a.
laeh'1es u uio ~" to.A ~ So"s, 1I'',"'. e.aa,.
Yarl & Market Company; Sonntor Mc1ter-
! son similarly controls the cattlo business OF
the Erie Road, and the entire cattlo business
Of nil tho railroads TINT reach New York ts
poolctt, Including TINT Of the Pennsylvania
and tho Baltimore s Ohio Roads. Tile
chat9es "ro na'utasts sAscesa's' ,,.,'.aa w..
roaas, e'e'"totS' po.' c""tsss' '.,,. ns".1a.
age tees' anu otle, 'leanS VI .o .A.o's. "a',
III tne iiatas ol stos.a15 eoipo'a.al'' ~. nv
.lho amount OF "atee II. lno s.'sA ~. =. '' ...s
cew lolh 1ehAa4 ~ so.pv".. .sa 80 n ns.a -,
NJ s,oooo, A;a t!'''t NJ. ~ su1 ,.o.,a,a Lilo .,'1 !"
s"'' laool. III one Ely '';" t'..''s"ss" .,.< .A<
huea lntosest'oease H. a"nepas'.ess as u.s., y. ~.
foaa was 'hc1easeo Ssou~ ~ m"s,o n,o W. ius. .,''-
ae' :ally recel'eo o'''s o'@'1'''o'' VI ''''
loah.
In canvasslng the subject OF rates, tao CON
mittce found that, Willie the fate from tht
West to New 1prk IN all cases OF poo'lht
was fixed ut from three to eight cents per lo
pounds higher than to baltimore, anu ffol'
two to six cents higher tha'l to Phllade'pl'la
the New York roads, as matter OF TACT
can curry freight from the West II
Now York City rs chcaply MS TN
other rOals to their respective termlnt
This has lonE been popularly beloved, anu
now that 1t Inns been established by conlpe
tent evidence, 1t shows that blr. Vnnderbl!
llas been lntllcting an injury upon Dot
Western interests and New YORK interest
by his organization Ut pools inc e'ctlcn
OF distance Is sometimes Ignored atogctnet
rs III tho case ot the cnntracts With III
J Stnnuaru OlI company. Al tld las1'o".,
agreed TO carry INC cfl'oe OIL i1onl tno we''
to CIe'eianu anu ft1snuFg anu Luz ie'a.
} oil from these points to Ne" ofk as c"eapl
rs they would carry the crude OIL 1Iont III
, wells to New lork; IN oti'er woraS' tao
mRde ha'li OF 3oo miles for noth'ns III !aV"
: OF the Standard oll company suos'
: quentlya further concession Was maao
the Standard Oll Company ny giving tao.n
rate as low ~ was given 10 other paftle
3 still ignoring uastanec' anu III aaai1on
Special rebate OF ~ per cenI on all tAelf aabtl