Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1883-09-18
FINK'S THEORIES.

Commissioner Fink, of the Trunk Line
Pool efOre the Senate Labor Commit
tee.
NEW York, sept. 17.-Albert Fink, COM
missioner of the Trunk lines, was the first
witness before the senate committee on
labor and education. He stated he was at
the head of a bureau composed of about
forty railroad companies, who organized d
for the purpose of establishing and main
tanning uniform tariffs. The extension of
railroad lines in the United States and the
fierce competition between them made or
ganized action necessary to save expense.
1t would not do for each to operate and
fix its own rates of transportation with
out regard to other roads. In order to i'm
prove connections and better accom-
mediation of the public by establishing
Il uniform system OF rates, the joint ex-
ecutive committee of railroad manage
ment which had been greatly complicated
by the immense increase in the mum Der of
roads. The roads represented IN the asso-
citation of which witness was at the head,
were five trunk lines, the New York Cen
tral, New York, Lake Erie d Western,
Pennsy ylvania. Baltimore i Ohio, and the
Grand Trunk line Of Canada, with all
their western annexat,ons. The latter are
roads running east and west. The terri
tory in which these roads are located is
included between the Ohio and Mississippi
rivers and the great lakes. Mr. Fink also
stated that here were two other associa-
tions west of the Mississippi liver, one Of
which included several large
~
Chicago & Northwestern, Chicago & Alton,
Chicago, Rock island & Pacific, and Chi
cago Burlington & Q3incy. Other asso-
Citations com prised the roads west of the
Missouri. Both associations were under
control of j. Michelel. The first attempt
at organization of any roads was in the
South in 1875, when witness was manager
of the Louisville &, Nashville. At that
time there was fierce com petition be-
tween the various east and west roads, and
the prosperity of the commercial interests
of the country was endangered. The sys-
tenn was established on the same basis that
at present prevails in the North. The plan
worked 30 we'll that it was adopted by all
later associations rs regulator of the rail-
road tariffs. The water routes by way of
the great lakes and Mississippi river
were very effeetual. At certain seasons the
canal routes were closed to traffic and it
was supposed that railroads tken had it
all their own way. This was not true and
the idea that the roads could extract any
tariff they pleased by merely combining
was false. There were many other ele-
msnts which would combine TO prevent
such result. In regard to competition on
water routes witness thought this could
not be controlled as in case OF roads. Ii
WAS much easier to put a steambo or H
dozen canal boats on a route than to build
new railroad. The principal object of
the associ a. ion was to arrange uniform rat IS
of tariff for transportation on Il competi-
tive plan. 1t had nothing to do with local
business, but only where there was compe-
-tision, at Some great distributing point.
For certain class of business it was
necessary in order for protection of the
shipper that the roads com peting for the
business should have an understanding.
by which rates should be known. Senator
Blair inquired whether this was not OPP
posed to the idea of natural com petition.
Mr.. Fink replied that these associations
die not affect natural and legitimate COM
petition. They merely prevented rninous
competition. Competition between rail
roads was very different from that between
private individuals. In the latter Case
competition would cease when it reached
a disastrous point.