National Republican., 1883-09-18
FIGURES BY FINK.
The Commissioner Of the Consolidated Trunk
Lines on the Witness Stand.
He Explains the Object Of the "PooI-
ing" System,
And Eluoidates Various Mysteries Incident 10 Rail
way Management
A COlored Editor Who Wants National
Aid to Educate the South.

NEW YORK, Sept. 1I-AlDert FINK, Jhe
commissioner of tho trunk lines was the
first witness before the senate committee on
labor and education. He said that he had
been educated in Germany as o civil engi-
neer, but he had been engaged i'll railway con-
struction in this country for the last thirty
four years. The first work in which he en-
gagged was the construction Of the Baltimore
and Ohio line He was afterward chief en-
gineer in the construction of several rail-
way lines and extensions in West Virginia
and Ohio. Finally he built the Louisville
and Nashville road, at the completion of
which he became its general manager, and
afterward its vice president. He continued
in the management of the road for about
twenty years. until he was called to the posi-
tion which he now occupies, about six years
ago. He was now at the head of q bu-
reau composed of about forty railway COM
panies who have organized for the purpose Of
establishing and maintaining uniform
tariff. The extension of the railway lines in
the United States and the fierce competition
between them made organized action a necos-
sity to their existence. 1t would not do for
each to operate and fix its own rates of trans
portation without regard to other roads. In
order to improve connections and better ac-
commodate the public by establishing a uni
form system of rates the joint executive COM
mittee was formed. The system of railway
mansgeme mt has been greatly complicated by
the imme nse increase in the number of the
roads. The roads represented in the assoca-
tion, of which the witness was the head, were
the five trunk lines, New York Central, New
York, Lake Erie and Western, Pennsylvania,
Baltimore and Ohio, and the Grand Trunk
line Of Canada with all their western connec-
tions. The latter are roads running east and
far in xvh oh nj thnsa
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 Chi
cago and Northwestern, Chicago and Alton,
Chicago and Rock Island, and Chicago, Bur-
lington and Quincy. The other association
comprised roads west of the Missouri Both
associations were under the control of Mr.. J.
Michelet. The first attempt at organizing
any railways was in the south in 1876. when
witness was manager of the Louisville and
Nashville At that time there was fierce
competition between the various east and west
routes, and the property of the com
mercal interests of the country was
endangered. The system was established on
the same basis that at present prevails in the
nor tn. The plan worked So well that it was
adopted by all the latter associations. AS II
regulator of railway tariffs the water routes
by way of the great lakes and the Mississippi
river were very effectual. At certain seasons
of the year canal routes were closed to traffic,
and it was popularity supposed that the rail
ways then had it all their own way. This
was not true, and the idea that roads could
extort any tariff they pleased by meHely COM
bining was false. There were many other
elements which would combine to prevent
such a result. In regard to competition on
the water routes, witness thought that this
nt ha trnl1 1al IA in M IL
ways 1t was much easier to put on an extra
steamboat or q dozen canal boats on a route
than to build a new railway.
The principal object of the association was
to arrange uniform rate of tariffs for trans
portation ON the competitive plan. 1t had
nothing to 40 with local business but only
where there was a competition at some great
distributing point for certain class of busi-
ness. This was necessary in order for the pro-
lection of the shipper that the roads compet-
ing for this business should have an under
standing by which the rates would be known.
Senator Blair inquired whether this was not
opposed to the idea of natural competition.
Mr.. Fink replied that these associations did
not at all affect natural and legitimate COM
petition. They merely prevented a ruinous
competition. Competition between railways
was very different from that between private
individuals. In the latter case the competi-
tion would cease when it reached a disastrous
point.
With railways, on the contrary, ruinous
rate of transportation could be carried on for
q long time without the extent of the injury
becoming known until, perhaps, the road was
on the verge Of bankruptcy. This was fre-
quently the case in railroad war. This
kind of strife was not competition. The ef-
feet of the establishment to uniform rate
was to assess the transportation charges equit.
ably on all branches OF the traffic. When the
rates were placed very low on through busi-
m mt tha rntn m
local business. 1t was thus in this
interest of the local business to
adjust uniform and paying rates on
through business. In a railway war also the
shipper was in ignorance Of what the rate
would be from one day to another. This
created an uncertainty in trade which affected
all branches Of business and its influence was
felt on credit throughout the country and
seen in the fluctuations of price. The effect
of the association of the roads in joint COM
mittee was to come to an understanding in re-
gard to the rates and publish them. This was
in the interest of the shippers as much as
for the railways, and the established rates,
as general rule, were satisfactory to
all. The rate was determined always
by competition between the water and rail-
way routes. Agents of the different roads
were scattered about the country and all the
intelligence that could be obtained was gath
cred and reported TO the managers of the
roads, who, with this information before
them, established a schedule OF tariffs. The OBJ
ject was to establish rate that was not 30 high
that business was lost, nor SO low that there
was u pecuniary loss. After several expert
mental rates q permanent one could be
finally established, which would combine all
these conditions. Tho office of which wit
ness was the head was nothing more or less
than great intelligence office whose object
was TO furnish information which could be
used in promoting the general prosperity of
the country. 1t was not a combination for
any unlawful purposes.
In regard to the power of the railways to
extort unreasonable charges, Mr.. Fink
thought this was an impossibility. The COM
petition of the water courses would always
act to prevent this; beside other conditions
would enter in to prevent the maintenance of
an extortionate rate. He admitted that the
east and west rates were higher in winter
than in summer, but he thought this in
crease Just, as the obstruction caused by snow
and leo in the west during the former season
rendered the transportation of freight more
costly. Beside this, the water front had an
indistinct influence in determining the rate
fixed The object was to charge such tariff
that the freight could be moved, and the
charges depended in great measure on the
market price of the commodity in the place
to which it was to be shipped. Tho amount
of the fluctuations of rates at different seasons
was never more than n few cents hundred.
Last year the gross receipts of all these diff
ferent lines were 500, 100000; the net receipts
for the same time were $500, ,O00000 out OF
chic Iatter anm 500 600 600 had been maid in