, 1881-04-10
THE RAILROADS.
Clandestine Cutting on East.
Bound Freight Rates.
Another Fiye-Cent Drop in the Interest
Of the Shipper.
Slight Decline in the Volume Of Bu siness
During the Week.
lr. Gowan at Last oustcd from the Control Of
the Reading Railroad Company.


Tho secret why the rutes to the East were go
suddenly reduced April /, contrary to general
expectations and month before tho opening
Of navigation, hns been well guarded Tho
people were given TO understand unr IN making
this reduction the railroads were simply ani-
mated by desire to benefit tho shippers Aud to
tEtltlcc tho shipment Of as much freight us
possible before the opening Ut navigation. THE
TnlnuSE took very little stock i'll these pro-
fcssiOn6. and stated ut the time the reduction
was announced TINT internal dissensions among
tho railroads were the cause Of tho decline, and
that III spite of Mr. Fluk's announcement thlt
the now rates were to be maintained all sum-
u1er, it was more than probable that still further
reductions would be made before long, md thnt
unless harmony between tho various roads was
secured tho prospects of unusually low cast
bound freight rntes.werc quite iatter1ng. MOI
until yesterday. however, did tho actual cause Of
tie Eastern railroads great liberallty towards
tho shippers come 10 light. The sumOeri1lg EN-
bers uf wrath TINT burned within thy BREASTS of
sDi,ic Of the railroad managers for some time
resulted in i general cutting Of east- t-boun1
r:ltes The Baltimore Il Ohio agent went on
Change and openly announced that his road
would take grain to Baltimore ut FIVE cents less
than the regular rates. This Of course cMuseu n
great llut,er atnon= tho othor railroud incu, who
5 5r M tue e 6ao sec scon ao S1
tho Baltimore. s Ohio rose to explain.
and informed the GROWERS that 1t
l.
new rates went into effect, the New York Cen
trail had hec1l making rates with some fuvoro1
shippers still further reduction OF tive cents.
The Baltimore j. Ohio officials cutal thar they
informed Commissioner Fink some days agt, Of
tho actual state OF afir5. but Instead OF setting
encrseticaliy IL the matter nnd Stepping tho
did nothing except to uuyisc patience and cool
ness. But patience and coolness would not
filesrIorc it decided to 20 into tue market .s,a
openly tnlSe traffic ut the rates ut which It's
rivals were taking business clandestincty. Tho
Baltimore & OHIO people refer to their record lis
having always been the most steadrMst main
tainers Ut regular rates ,lndernll circumstances,
and state that they would not have cut the rates
sire II disruption OF the rates now. but
are determined to keep up tho war uuril tho
competing limos come to terms and will honestly
maintain the tariff rites.
This trouble, however. was not originated by
the New iork Central, but dates back several
mouths. It is claimed that about two months
ago the Eric Railway ciundestney commenced
making contracts with leading Western shippers
for grain at 80 cents per. 100 pounds from Chi
the regular rates then Ia force. When this
thing WIS found out great howl was raised by
competing lines. End Commissioner Fink lnld his
hands full III trying to prevent Hi open Wiir and
general break in e:,st-b0un! rates. AS tho
Eric could not renOuuce its contracts, it WIS
found thut the the only way out Of the difficulty
making the open rate tho sumo as
the rate Mt which the Eric made its contracts.
denly moved by IL spirit OF nberalty. and re-
duceI the rates to 81 cents grain uId s. cents
provisions month ahead of the time when
such reduction WIS anticipated or would have
been made under orttin lry circumstances.
It has not trAnSpircd whether the Erie
stopped cutting the rates after the reduction
was made on April Or not Anyway that much
seems to he certain thnt the New York CeutrAls
wrath caused by the Erjc's DETECTION WIS not
appensed by the general reduction made ut that
time, aud insttsuted BY Il spirit OF revenge, 1t Is
claimed, made contracts with some uf the leMd-
tue rates that went intu effect April l. nnd
this tinally ctuscd the Baltimore Ohio to cut |
the rates live cents, MS stated above.
AS far Hs can be learned. tho cutting has NIL |
been done BY tho New York trunk lines and l- |
rectly by the agents In New York. None of the |
far can be nscertained, from tho regular |
rates until yesterday. unless the ru.nors thut |
the Grund Trunk commenced to cut fhc rates. /
about week aso. II the Grand Trunk |
did do so. 1t wAs no doubt 1nstigated to |
such notion BY the cuts nude BY the New York |
circumstances.
Whit tho outcome Of this fight will be is hard |
to tell. Unless Commissioner Fink succeeds in |
patching up Il TRUCE very soon, there will be a
scramble for business before another month |
has passed, and rates will 20 tiovn to unprotit- |
able tiEures 1t 1t turns out that MANY con-
tracts have been made on the basis OF Is cents
fur grain to New York 1t will become necessary |
in order to avoid II general war, to reduce tho |
regular tariff to that figure.
EAST-BOUSD SHIPMENTS.
Tho cast-bound freight shipments have slight
ly fallen off during the past week, aad this in
spite of the reported cutting OF rites By some Of |
the roads, which should hnve had tho effect to