New-York tribune., 1882-03-10
RATES TO THE SEABOARD.
NOPE POINTS AGAINST DIFFERENCES.

The third public meeting of the Railway Advisory
| Commission was held yesterday at the rooms Oh the
| Chamber of Commerce. The argument of the Cham
ber against dnerential rates was presented; whlle
il was comparativoly brief there WAS, alter its SUD-
mission. an extended discussion OF the various
| phases of the question before the Commission, III
| which several prominent merchants participated
Can You tell us where the Chamber OF COM
mcrce isip asked Commissioner Thurman as, In
| eompany with Mr.. Waslburne. ho entered Its rooms
| a little before II a. M.
| ayes. sir this IL the place." replied Secretary
Wilson. OF the Chamber. The Commissioners
| seemed TO be somewhat surprised at the modest
| quarters of the Chamber, but they were soon at
| home. Charles s. Smith walked around the room
| with Mr. Washburnc, pointing out to him the por-
| traits of former presidents of the Chamber, ana
| of leading statesmen, which hang on tho walls.
stopping in front of portrait of John Bright taken
twenty years ago, Mr.. Washburne said;
"Ah. yes that is John Bright. heard him make
the greatest speech of his life, the one on tho
Crimean war;"
Mr. Thurman busted himself with looking over
copy Of Puck when he was not greeting the mcr-
chants who were introduced to him. After a time
Judge Cooley, the third Commissioner, came in and
the formal proceedings OF the day were begun.
Charles S. Smith read the argument of the special
committee of the Chamber of Commerce. III quoted
from a recent letter Ofex-Govcrnor Seymour stating
that the public was alarmed lat the appearance OF
new power self-cOnStItutcd body, which assumes
one of the highest prcrOgatives of State-that OF
regulating commerce." its object being " to prevent
competition and to form combinations" The eX-
tract had been submitted to the Commission at
each one of its two previous meetings. Mr. smith
said that dierential rates were supported upon the
fact that Philadelphia is ninety miles nearer to
~. thot Ra1t tnnn 10 cnV-
enty-four miles nearer, and that distance should
decide the question Of freight tariff, principle,
he said which the railroads universally gnored
in adjusting through and local tariffs The speaker
quoted at length from recent report of Trunk
Line Commissioner Fink on the subject OF the adj
justment of seabOard rates. lie SAID that II
the greater distance from the West was counter
balanced by other elements favorable to New
York City, which enter into the cost and conditions
of the service justice required that the discrilnl-
nations heretofore and now existing against New
York shoud cease. The geographical and natural
advantages of New-YoTk should not be bampered
by arbitrary and unjust restrictions on the part OF
its railroads. New-York was equltably enttled 70
as low rates as any other seaboard city if moi to
lOwerl because of its excessive volume OF business
which every railroad expert knew determined The
cost and value of railroad transportation on long,
continuous trip far more than distance. he rela-
| tive cost and profits of east-bound traffic wer"
| largely determined by tho question as TO
iEW ibSt imense i"g "tI Traffic to the seab9ard
must return empty or partially so. Il appeared by
Commissioner Fink's statistics that the ctles-New-
| York So and Boston Q7)-furnishing % per cent
| of the west-bOund freight were charged with dis
crninatng rates, as against other SeaD0ard cues
| Philadelphia and BaltlmOre-which furnished only
27 per cent. The New-York roads bad better
grades than the Southern trunk lines and while the
latter had had some advantage in the cost of coal
| that advantage had recently been largely neu-
! tralized by new connections made by the
New York Central. The actual cost Of NOV,
ing freight, Mr.. Smith said, was secret
| by all railroads. The rate per ton per mile
sometimes given to the public was of little value for
| comparison, because the methods of making up such
costs varied with all corporations. The ocean rate
differences in favor OF New-York were largely offset
| by its increased charges for terminal facilities such
as dock dues aud ligherage in the harbor, and by
| larger burden of MUM. ipal and State taxes.
In conclusion Dir smith SAID that dierenriai E rates rates
York railroads had no right to say to the W estern
shipper: You shall ship your goods to Philadelphia
or Baltimore, for II you ship them 70 Newlqrk you
| shall pay an extra price for It," Ihey had no
| right TO say to Ncw-York merchants: You
must go to the expense of establishing houses in
Philadelphia and Baltimore 4 you want TO Keep
your business" The speaker thought that dliferen
tial rates tended wholly to build up Baltimore and
| Baltimore only.
is it the opinion of the Chamber of Commerce."
| asked Mr.. Thurman, that there ought to be no
agreement between the railroad companies to con-
| troll Rates ~
| mo, sir. replied Mr. Smith. But if an agree
ment is made there should he no discrimination
against Aew-lOrk." .
| In response to questions by Mr.. Thurman, Mr.
| Smith said that the Chamber of Commerce did net
| believe In pools and combinations. MIR. Blanchard
| had testified two years ago that the pooling
agreement would prevent all railroad wars. Yet II
| seemed rs if there had been one since that time.
| Mr.. Thnrman-DId not that result from the break
| Mr. Smith-Yes, sir. But don't believe you can
| make any railroad agreement which will be kept
until there is some recognized law on the subject.
| Being further questioned Alr. Smith said that he
| q a
was lair one as respected all Seaboard cities IL
| would prevent special rates and determinations
| against individual shippers.
| Mr. Thurman-Ought not the railroads To carry
freight for the cost OF carriage and far profit 10
| the stockholders
Mr. Smith-1cs, SIR .
| AlI. Thurman--How about the roads which don't
pay dividends like the Erie
Mr. Smith-Tney hope soon TO do so. All the
| roads should fix reasonable rates on traffic. aud
| that is all. If the Erie has been plundeIed by
forner mana geIncuts, and has immense obligations
representing nothing, 1t must, nevertheless, base IFS
| tariff on what the other railroads do.
MIR Thuman-Ony your principle, could the Erle
! compete with the NewlOTk Central
Mr. Smith--lt could not and pay dividends. But
| | have some older friends here interested in this
| subject draw them into the discussion. . :,
Mr. Ihurnan--N hat profit do the Newly ork
merchants make out OF the grain exported
Dir. smith-Where grain Is not shipped through
| 10 Europe it is stored here In elevators.
Mr. Thurman-But do not the railroads own most
| of the eIeyatOrsY
Mr. Smith-Yes, sir; the principal ones.
The merchants derive "a small commission from
the export grain they handle here" john I. Terry
remarked. 4" But the charges are exceedingly
small 1 think about L to cent a busheL Our
merchants are interested IN the grain export trade
because II builds up the general commerce of the
| city"
Mr. Smith-One strong incidental advantage is
| that il brings foreign steamers to this pori. In
purchasing supplies coal, etc, the steamers spend
at this port probably from Sl2,OOQ,OOO to
| $l3, 900 900 every year. Money is also loaned on
the gram stored here and buildings are required to
| he erected Tor the storage of grain.
Judge COoley-ls there not more difficulty i'll
making shipments abroad through New York than
through Baltimore or Philadelpnla? Dealers Ill
Chicago cannot. on account of the varying ocean