, 1881-05-29
THE RAILROADS.


EAsT-BOUSD FREIGnTs.
There was no improvement last week in
the eastbound freight shipments, and in
stead OF an increase, as was anticipated, 4
decrease has to be recorded. The total ship
ments by the six Eastern pool lines for the
week ending May IS we're s., 774S tons, against
T., 5:e,} tons the week previous, a decrease Of
3,775 tons.
The decreased shipments are due mainly
to the fact that there is too wide a difference
between the lake and rail rates By lake and
canal the rate is 10 cents per bushel, or about
II cents per 100 lbs, while by rail the regular
rate is 50 cents per 1D0 lbs. As long lis the
railroads adhere to the 30-cent rate they can
not hope to increase their business. rs the
shippers will not pay such Il rate when they
can have 4 much lower one by the
lake lines. It is already reported that
some Of the roads are cIandestine1y cutting
the rates in ortier to increase their ship
ments. It has already been reported in THE
TRIBUNE: that last Wednesday 4 large ship
ping firm in this city made a CONTRACT for the
shipment Ut half Il million bushels of grain
from Chicago to New York. and that the firm
claims to have secured a rate as low as the
rate by lake and canal, which would be about
Is cents per 100 pounds, Or a cut Of l. cents
from the regular rates: The firm refuses to
u
which the contract was made. The railroads
i'll this city do not deny their knowledge Of
the existence OF such Il contract, but they
claim that it was not made BY i'll ail-rail line,
BY tie railroads with making the contract is
the Union Steamboat Company, which runs
III connection with the Erie from Buffalo.
Even il this is a fact, it does not
prove that the railroads are not cut
ting the rates. It would exonerate the
lines leading east from this city, but not the
lines leading east from Buffalo. The Union
Steamboat Line is run In the interest and III
connection with the Erie, and It could not pos
sioIy have madc such large contract at SO low Il
rats Without the consent nnd knowledge OF the
the cur, rs thc Steamship Inc could not aror,l TO
bear the cut all alone 1t only proves what THE
TRIBUNE has frequently asserted during tho
pool bus no further object except to assist the
New York trunk lines to secure tue business
FROM the lake lines ut better rates thnn they
could IT regular reduction lit all rul rates was
made. While the rouds leading enst from Chi
cnxn have nll along tried conscfentiously to
carry out tue provisions q nf tne pooa Inc Hew i
provisions, and even CAME to this market
and cut tho regular rates. The break in
by lust such acuon as the Erie IS HOW charged
WITH At that time the Erie came into this mnr-
ket and made biz contracts ut cut rates. When
this Was found out by the New York Central It
also came here aud did likewise. The Baltimore
s Ohio tlndins TINT it was being buddy damaged
by these pftEGCulQES OF 1n6 pNIt Vi us TlfA!5
made an open reduction of tive cents. Then
Commissioner Fink seefnt: that nc could no
longer ignore the fact that the rates had gone
to pieces reduced tho rates to - cents Gy all the
llues, The roads then started in and made all
tho contracts they could ut the 1rcent rate, and
when they had secured sufficient business at
those figures tie rrunk-liue Presidents met and
ordered the rates tn be advanced IT, III cents
again without giving single day S notice. Great
dumngo WIS inflicted by those proceedings
upou those shippers who we're not Fortunate
enough to secure contracts 1T the reduced rates.
and wnu had based their calculations on the r.
cont rate when they made their purchases But
tte roads, being all filled up with business, re-
fused to listen to the protests OF the Shippers,
and up to this time have insisted upon the ~
cent rate. They have just now gut through With
tho old contracts. and, nndn0 that they can Sc
cure no new business III the N}-ccnt rate. they
clandestincly cut she rates. finally forcing an
other general reduction, which will only last !
Until ail tho lines have laed themselves up again
with contracts md then the rates Will suddenly
be restored to the Ju-cent figure. 1t has been
charged By some OF the roads that THE TnIBuSE
is Claiming that the rates urc being cut |
again for the purpose OF forcing break |
in rates. THE TR1nCNE could not possibly be /
iustfxate<i by my such motives, for 1t Is
the high a1l-rail rites, bur, On the contrary. Is
greatly benefited hy them. II st. Louis, 1n- !
dtauap polls, Peoria. and other Interior western |
pt,jnts can stand the high rail rates, Chicago, |
With .he lakes back Of 1t, certainly cun- If the
raj, rates are high from this point, they are |
htuh from other points. and |
consequently business IS forced to Chicago, I
where IL can take advantage OF the low lake aud |
canal rates- II the rail rates are low. much OF !