The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-09-18
of Comm issioner Fink Be-
fore Mr.. Blair's Committee.
The Pool System Warmly Defended, and
Claimed To BE Necessary to ths Ex-
istence of the Lines,
Government Ownership Denounced
as Wild and Visionary Plan.
Some Surprising Figures Concerning the
Cost of Transporting Family Supplies
for One Year-Other Testimony.

for One Hear-Other Testimony,
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 for
the purpose of establishing and maintaining
uniform tariff The extension of railroad
lines in the United States, and the fierce
competition between them, made organized
action necessary to their existence 1t
would not do for each to operate and fix its
own rates of transportation, without regard
to other roads. In order to improve con-
nections and better accommodate the pub
lie by establishing a uniform system OF
rates, a joint executive committee was
formed. The system of railroad manage
ment had been greatly complicated by an
immense increase in the number of roads
The roads represented in the association OF
which the witness was at the head, were the
five trunk lines-the New York Central
the New York, Lake Erie & West
ern, the Pennsylvania, the Baltimore
& Ohio, and the Grand Trunk
line of Canada, with all their western con-
nections. The latter are roads running
east and west The territory in which these
roads are located is included between the
Ohio and Mississippi rivers and the great
lakes Mr., Fink also stated that there were
two other associations west of the Mississippi
river, one of which included several large
lines running west from Chicago as the
Chicago & Northwestern the Chicago & Alton,
the Chicago d Rock Island and the Chicago,
Burlington IL Quincy. The other associa-
ton was composed of roads west of the Mis-
souri, Both associations were under control
of ]. Michelet.
The first attempt at organization OF any
railroads was in the South, in 1875, when the
witness was manager OF the Louisville e
Nashville. At that time there was fierce
competition between various east and west
roads, and the prosperity OF CONNER
cial interests and of the country was
endangered A system was established on
the same basis that at present prevails in the
North. The plan worked 50 well that it was
adopted by all later associations. As 4 regu-
lator OF railroad tariffs, the water routes by
way of the great lakes and the Mississippi
river, were very effectual. At certain seasons
the canal routes were closed to traffic and it
was popularity supposed that the railroads
then had it all their own way This was not
true, and the idea that the roads could ex-
tort any tariff they pleased by merely COM
bining, was false. There were many other
elements which would combine to pre-
vent such result. In regard to
competition on water routes, the witness
thought this could not be controlled as
in the case of the railroads. 1t was much
easier to put steamboat or a dozen canal
boats on a route than to build a railroad.
The principal object of the association
- 49, -
transportation on the competitive plan. 1t
had nothing to do with local rates. Where
there was competition, at great distributing
points, for q certain class of business ii was
necessary in order to the protection of the
shipper, that roads ompeting for this busi-
ness should have an understanding by which
rates would be known.
Senator Blair inquired whether this was
not opposed TO the idea of natural compe.
tition.
Mr.. Fink replied that these associations
did not at all affect natural and legitimate
competition; they merely prevented ruinous
competition. Competition between railroads
was very different from competition between
private individuals. In the latter case COM
petition would cease when it reached a
disastrous point.
GOVERNMENT OWNERSHIP DENOUNCED.
Mr.. Fink thought legislation might be en-
ployed to assist the railroads to maintain
uniform rates, if such an organization as he
managed could be Incorporated by the gem
eral government, but no direct legislation
would avail 1t would be best to let the
railroads manage their own business until
the people came to understand that the
interests of the public and the railroads
were identical. Any legislation, or attempt
at legislation, at the present time, would be
regarded with suspicion.
The Regan trans portation bill WAS utterly
impracticable. The freight rates of this
country were the cheapest in the world,
and the tendency was still to lower
them. The scheme that the government
should purchase the railroads and own them
itself should be pronounced the widest
folly, and one which no sane man would for
a moment contemplate.
The amount of fluctuations Of rates at dif-
ferent seasons was never more than a few
cents on the hundred. The capitalized yalue
of tie 10000 miles of railroad in the United
States was about 81, 600 600, 600. Last year
the gross receipts OF all these different lines
were $7000 900 900; net receipts for the same
time, $500 00O, 900. Out of this latter sum
$10O O0O, 600 had been paid in dividends or
stock; OF the remainder a large proportion
was expended in interest on bonds. About
so per cent. of the running expenses of all
railroads went to labOrerS employed as brake
men, conductors, liremen and engineers.
Mr.. Fink was asked if shippers and tho
people were satisfied with the transportation
charges fixed by the railroads, and replied
that they never would be satisfied so long as
they had to pay anything at all. The extra
charge to consumer for transportation was
insignificant; the cost of transportation to Il
man for the flour and meal consumed by
himself and family Tor one year was about
$1.1O or the pay OF a day laborer.
The system OF pooling was resorted to as 4