New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-07-22
PRICE FOUR CENTS.
RATES TO THE SEABOARD.
DIFFERENTIAL CHARGES UPHELD.

sfON-THE THREE PRINCIPLES UPON WHICH
FREIGHT RATES ARE SAID TO DEFEND
The Advisory Commission appointed by the prcsi.
dents of the NcwYork Central, the New York, Lake
Erie and Western, the Pennsylvania. and the Bati.
more and Ohio Railroad Companies TO consider the
question of diferental freight rates between the
West and the Atlantic seaboard, has finished its re-
port. The report sent to each of the trunk line
Presidents on Thursday. and was made public yes
terday. The members of the commission were Allen
G. Thurman, T.. b. Washburne, and Thomas NJ
Cooley. They have decided in favor of the present
justice of the diflerental rates now existing be-
tween the West and New-York, Philadelphia and
Baltimore and advise that they be not disturbed.
1t is stated that in the lapse of time the dierentai
rates may become nequtabe, bat that
at present they do not operate to
the prejudice of any one of the
Atlantic seaport cities. Without making the
ton positively, the report intimaes that the future
regulation of the question may safely be left to the
managers of the railroads. The report in full would
occupy over seven columns of The TRIBUNE but q
synopsis of It's most important features is given be-
low. The decision Of the commission is not bind
Ing by previous agreement, upon the trunk lines.
but its confirmation by the railroad presidents IS
expected in wel-informed railroad circles.
The Advisory Commissioners begin their report by
rec:ng the circumstances of their appointment, tho
public hearings given by them to the merchants and
mercantile organizations Of numerous seabosrd and
interior cities and the of statistical nfoma
ton to which they had during their nvesti
CATION and deliberations. The freight charges from
Chicago to New-York, the standard upon which
the rates from other principal Western cities adj
justed, are now the same as from Chicago to Bos-
ton, but to Philadelphia they are cents and to
Baltimore cents hundred pounds less. The COM
mlssOners say that they made attempt TO con-
slider the many subjects OF interest more or less
touched upon in their public discussions with mer-
chants outside Of the question of dferential rates
They assumed that while the invitation came from
the trunk lines to consider the subject, 1t was
one in which the people Of the Atlantic ports and
the seaboard cities, and the interior railroads which
feed the trunk lines were interested. The question
was one Of national rather than of local concern.
The report then recites the three diff rent viewsof
the dfierential rates which were urged before tho
commission, namely: the New-York view that tho
differences made in favor of Baltimore and Phila-
delDhia were wholly wrong and should be abro-
gated; the Baltimore view. that the diferential
rates were right in principle, but if anything too
small; and the Philadelphia view, that
they should continue but that they
ought not to discriminate as between
Philadelphia and Baltimore. In the interior, much
difference IN opinion was encountered but no views
sons before the commission are then summarized
THE TRUNK LINES NOT LOCAL
The commissioners reply at length TO the assump-
tion made before them by the merchants that the
railroad the ownership Of which is mainly found in
a particular locality, should labor especially for
the benefit of that particular locality They assert
that the growth OF railroad business has been such
as to take from the trunk lines nearly all of the
purely local character which they formerly
possessed. No one Of them can have Its
interests ildssOluby bound up with the
interests OF any one city so rs to constitute IL
either the depe ndcnt the champion of that city
against the rest of the Union or even as against
any other commercial centre OF the Union The so
called Ne York roads take treights to Baltimore,
Philadelphia and Boston; the Baltimore and Ohio
Railroad solcits business at the seapors north OF
Baltimore and seeking To secure an indeDen-
dent line 10 New-York; and the Pennsylvania
Railroad in 1850 carried 26 per cent OF the New
York wes-bound frelgat moved by all the trunk
Ines and nearly 20 per cent OF the total New-fOrk
east-bOund tralhc. Inc Pennsylvania Railroad car
RED III 1880 23 per cent OF the west-b und and 40
per cent OF the eaSt-OOund tIalhc oi Baltimore Inc
report adds:
Its not likely that this reaching of all the trunk
line roads compete with each other in the several
Atlantic cities was contemplated when the roads we're
originally construcieu out as the several lines have
pushed their connections IN the West IN competition IL
has found desirable Tor each 10 offer to its patrons
the dvantages OF many markets possible aud to
carry them without breaking bulk, whatever lhey
have had fOr carriage In an easi ward OF westward dre
Competition mas thus made roads National Nhicu
were once local. and Is VAN TO expect that so mlor
subject that OF dferenal rates Will be settled
may have authority railroad circles II must there
FORE settled either arbitrarily, by the hat or agree
ment Of rdnspOratOn companies OF II must be de-
ermined by some underl ing prluclpe We agree WIN
what said IN tIc New-Iork DISCUSSIONS ana else.
where, any arbitrary adjustments IN disr gard OF
such principles as would naturally influence prices ot
transportation when untramneued woud hot, could
not aud ought t. be upIeld. There should be-and
as We think there must oe-some principle by which TO
determine question: or perhaps two or more prin
cipes acting upon and qualifying each other
The Commissioners then take up the question Of
what principle or principles should control the ad-
ustmeut OF rates between lhe Vest ana me dlier-
ent seaboard cities lhrce different principles were
suggested 10 them The distance principle, the cost
prnciDle and the ompetitIveprnclple. Those who
advocated the first and che second of these prIn-
ciple- however generally agreed that the tnlrd
should not be discarded, Dut that II had It's eglt-
innate place, and must nave It's legitimate influence
also.
THE DISTANCE PRINCIPLE.
The Commissioners say that the commercial rep
resentatives of Philadelphia and Baltimore urged
that the relative freight charges between the nte-
rior and the seaboard should be determined by the
mileage. The report says:
IL this standard adopted the freight charges be-
tween New-Yor and Chicago would De about ~ per
cent greater than those between Philadelphia and Chi
eago and about Is per cent more than tho.e between
Baltimore and Chicago. Those between New YORK aud
Cincinnati woul1 be about 2s cent more than be-
tween Philadelphia and Cincinnati, anI about 50 per
cent more than between Baltimore and ClEcnnau Ac-
corling to the average rates on gram ana Pi0ys@ohs @
per cent In favor OF Phodoiphla, ara ~ PoLL
cent in favor OF Baltimore; and the distance
principle would therefore on All average Increase them
rrealy 1t urged that II by this principle that
the roads constituting competing Lhe are ac.
clstomed TO appoTtlOn their joint charges and that
these very trunk lines adopt dividing tue charges
upon through ireshts with The roads from whcn they
receive froigh. TO which they deliver t. Tna
York represenatyesOu tue other hand, cOntended
that distance principle could not vita any Justice
control for the that distance does not measure
either he value OF the service. 20 that IL
adopted as the standard charges would be arbi
trary standard the element Of equity IN tne rates
would be disreg gIrded.
The Commissioners say in reply to these argu;;
ments that the supposed distance principle"
ignores the that OF the cies Interested
has several lines OF railroad ana would DC 9onteno
with no less Each city selects ITS shortest llne TO