The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-02-24
METHODS OF THE RAILWAYS
A letter Which Is of Interest to Ship
pers and Consumers Everywhere.
How Freight Rates Are Adjusted to Favor
One Glass Of Business and Depress Others
Mr.. Armour to Mr.. Fink.

plying to certain statements made by Mr.. FINK
regarding the recent advance in dressed-oeef
rates to the East, the firm says:
''Mr. Fink is the commissioner of the Trunk
line Pool, an association OF railways owning and
controlling all the lines OF railway transporta-
ton from the West to the East, and its purpose
is to prevent competition and to enforce to the
fullest extent the odious theory Of the railways
that they are entitled, as right TO all they can
get Mr.. Fink is selected by the representatives
of the trunk lines to administer the affairs OF
the pool because of his distinguished ability as
an expert to accomplish its purposes As such
commissioner he has the power to fix rates. and
as arbitrator his decision is final as to rates He
is vested with power to enforce his mandates
He is the dictator of common carriers, and the
traffic of the Nation is subject to him."
The letter then quotes from reply to an edi.
torial in the New York Times, in which Mr.
Fink says:
1.-THE principle upon which the relative rates
have now been determined is that the cost of
transportation on pound of beef from Chicago
to New York shall be the same, whether the
cattle are slaughtered in Chicago or slaughtered
In New York"
Mr.. Armour then says:
sThis is complete change Of base from the
Commissioners former position On April IL
IL. 1885, Mr.. Fink called the livestock shippers
and dressed beef shippers together in conference
purpose of fixing permanent relative rates on live
cattle and dressed beef. At that meeting he an
nounced thes principle on which the lrates were
to be fixed as follows: We are to consider how to
place dressed beef and live-sto shippers upon
equal footing, so that man who buys in the
Eastern market dressed beef that is shipped
from Chicago as SUCH and dressed beef that is
derived from live stock which is shipped from
the West and slaughtered in New York, will
have to pay the same money per pound and the
Commissioner claims: The railroad companies
are now acting upon the correct principle of
neutrality between both interests, and can read
lily sustain their position before legislative or iu-
dicial inquiry This is confession by the Com
missioner that his position in 1883 was illegal
and he would now have the public
understand that the railways have abandoned
that position, SO that hereafter they would occu-
by position of neutrality. This declaration of
neutrality sounds well, but examination shows
that. while compelled to nominay abandon the
position taken by him in 1883. he has fixed rate
for dressed beef which discrmnates more
against that industry than any relative rates es
tablished since 1883. when the railroads first
adopted the principle which the Commissioner
has so lately abandoned as untenable. The rates
for dressed beef since 1878 have been, first 80,
then CO. and then 70 per cent. more than live
stock, and now by this new plan, the Commits
sioner has fixed them at 85 How does this &C
cord with the Commissioners protestation OF
neutrality and his statement that the cost of
transporting the beef shall be the same,
whether cattle are slaughtered in Chicago
or in New York; Let the pub
lie understand that the change of principle
has not caused Mr.. Fink to abandon his purpose
to discriminate against the dressed beef industry
and to swell the dividends of the stock-yards and
abbatoir companies. Mr.. Fink would have the
public believe that under his new principle
when the cattle-shpper pays 80 cents on his live
cattle gross weight, he really pays cents a
hundred on the net product of these cattle in the
form of beef at New York. Let us see if this
10000 pounds Of live CATTLE at IS cents, equals
$40. Live cattle yield an average of 81 per
%. 800; $40 freight on 90 800 pounds, net pro
duce, gives a rate of Ola cents per hundred
from Chicago to New York. but the hides,
tallow, hoofs heads and offal also were brought
through with the net beef for $40 The live
cattle man has landed them in New York free.
The dressed beef shipper slaughters at Chicago,
and forwards his net products. % 800 pounds, to
New York, at 65 cents per hundred. equal to
&148 20, and still has the horns. hides. tallow,
heads, hoofs and offal, which also 60 as dressed
beef for which he must pay the full tariff of 30 to
S5 cents per hundred. This, then, is the way Mr..
Fink's new principle works. He proposes to
carry whole steer for the livestock man for
the same money he charges the dressed beef
shipper for half steer. and further invites the
dressed beef shipper to forward the remaining
half of his steer at tariff rates.
MIR Finks assertion that the railroad COM
panies have no right to aid one party in destroy
Ing the business OF Tue OLQ6r cannot DC accepted
as an honest statement in the face. of the rates
proposed to be exacted. What is the record of
the roads the proposition that they have no
right to aid one party IN destroying the business
Of the other2 Will he deny that the 'evencrs,
who gorged themselves on the railroads and
butchers life blood are not now the stock yards
aud abbattoir owners. and the live stock agents
Of, and the heavy share holders in, the trunk
lines2 Will he deny that it is the mighty infu-
once of these stock yards and abbattoirs which
oO nd ha trunk II
that the able commissioner is obliged to explain
why the common carrier rate on dressed beef
cannot be fixed on that carriers proper recon-
pense for service rendered, but on the contrary
there must be an extra tax or unearned rate for
the sole purpose of making the dressed beef
business imposslbleg"
MIR Fink makes feeble attempt to defend
his course as method of defeating monopoes.
There are no patents on any of the appliances
connected with the dressed beef business. The
dressed beef shipper does not control the con
samer. He cannot limit the production of cat
tie. From the nature of the business he can
create no monopoly The only monopoly con-
.nected with the business is the carrying of
dressed beef to the eastern cities, which is done
by the railroads which Mr.. Fink represents. The
Ingenious scheme to force dressed beef from the
market has been, and is, to make secret cuts or
rebates to cattle shippers while pretending
points to the rates on dressed beef
IS having been at one time 81 per hundred then
90, so, 70, TO- and March to BE 65 cents This
sounds extremely we'll to the general public, and
leaves the commissioner in the graceful pose of
public benefactor Will he go further and tell
what the secret rates on live cattle were during
the same period2 Mr.. Fink attempts to show
that the increased rate makes little difference in
the price paid the Eastern consumer If the
dressed beef industry is crippled by the actions
of the railways the price of beef in New York
will advance to the extortionate price demanded
and obtained when the consumer was at the
mercy of the stock yard and abbattoir rings.
How does it strike the general public to see a
legitimate industry so betrayed because the
bringing of dressed beef into New York city
makes them sell meat at reasonable price in
stead OF the extortionate figures demanded
and obtained before Western dressed beef came
npcn that marketa With the past record of the
pool management are We to believe in Mr.. Fink's
neutrality In the face of repeated violations of
cornnacts rates. Agreements and awards are we