New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-13
CUT RATES OPENLY NET.
BIG WEST-BOUND REDUCTION.
RADICAL ACTION BY THE NETWORK GEN
TRAI.-PROTECTING ITS SHIPPERS FROM
COMPETITIONS.

TRAL.-PROTECTING ITS SHIPPERS FhoM
COMPETITORS.
sweeping reduction I'm the nominal wostoouhu
freight tariff announced by the New-forK Oeh'ral
Railroad yesterday Rates reduced from ~ 10 %
per cent from the official schedule the new tariff tax
ing effect Immediately. The new and the ola tariffs
compare as follows on freight from New-fork to Chi
csgo, the latter being the general basing point and
other points being affected in proportion:
c lss cas- "a CAS- "a Class Ss Class sss class
0l 100 1 pounds Genus pe' rs o5 so 40 80 Is
loo BOUNDS .o so 40 IS 80 25 20
Reduction ......... 25 Is Is 10
Commissioner Fink informed of the new tariff,
and he teegaphed notice TO all the roads In the Trunk
Line Association which Immediately issued tariffs con-
forming TO that established by the Central The New
York Lake Erie and Western the Delaware, Lacka-
wanna and Western and the Lehigh Valley, which
with the West shore, are allowed differentia rate OF
g A. 3, 2, and cent respectively on hrst,
second third fourth, filth and sixth class preserve
these diferentals in their tariffs which would make
their new figures As, SO, 80 28 "a and 10 cents for
100 pounds, Chicago basis, the various classes
from first TO sixth In the order named The Penn
syIvana Railroad will meet the Centrals tariff
The officers of the New-York Central would speak
only briefly on the subject of the heavy nominal re
auctions General Tariff Manager Nathan Uuliioiu
said:
The reduction made simple business measure TO
prevent further loss in arai Westbound business
We are thoroughly satisfied that the old tariff has not Dee
maintained by more than OF competitors various
devices being practsed make rates below the oihca
schedule This resulted in derment to our ushic'
and last resolved openly TO put our rates o"
10 the basis Of the actual ne 'irss " saro
We are convinced competitors nave
been allowing TO shippers 1t is not In the
least of war and we have no desire 10 HaAe
my charges against specific lines we were coiioneu
with continued of business and we had the choice
and
,pen reduction OF the tariff We have chosen the atef
course as the honorable most lawful and the
isirest shippers That is all there Is 10 IT,
Vice President Hayden who had left the announce
ment OF the reduction with his traffic manager con-
6rmed the substance of Mr. Guilforfs statements
NOT WHOLLY UNEXPECTED.
The new tariff was something of a sensation to
Wall street, but in railway circles it did not come en-
tirely Unexpectedly, for the reason that the nominal
tariff has not been accepted representing the ac-
tual basis of rates for some months oiicial pro-
testations have been made that tariff rates were
strictly adhered to, and when specific cases of COM
plant were brought the attention of offenders the
general reply has been given that each irregulariy
was a mistake, and promises TO prevent recurrence
of it have been freely given. The New-fork Central
managers bore with patience tho continual evidence
of cutting which they discovered in the hope that
the approach of the closing of navigation would ehd
TO sihen the actual rates But the situation reached
such an aggravated state that they resolved finally TO
protect their shippers by open reduction 10 actual
figures Precedent has been furnished for their action
ly the policy OF the Pennsylvania Railroad on East
bound rates. That road has made open reductions
within the last few months, specifically on the ground
that IT had detected competitors in Illicit cutting Of
the tariff.
Most Of the methods practised in the evasion OF
West bound rates are in nature devices which form
violations of the Interstate Commerce law. In some
shipments, properly billed, so as to furnish no
proof TO Commissioner Fink OF cutting, have, upon
reaching destination been corrected by telegraph, SO
as to give rates under the tari In other cases, cart
age, which should have been charged against ship
pers has been paid for BY the road carrying the
freight Instances said TO have been found where
eXoibtant all0yances were made for carriage, and
the sum paid by the line securing the shipment. 1t
is charged that clerks in the offices OF shippers
have been placed as agents on the books of the
companies and the salary or commission" paid
over to the merchants The tricks and devices for
evading the tariff have been almost innumerabie, and
are said be unequalled In the history of railroad
rate-cuttng. At times, particular class OF franc
has been raided, while the other classes appeared
be moving at full rates On other occasions, the
cutting has been concentrated shipments TO par
ticuar places and sections of the country The net
result is that the Centrals allra through shipments
TO the West have fallen largely behind the record
Of last year.
NOT THE CHIEF OFFENDER
1t cannot be said thas the Central looks upon the
Pennsylvania as the chief offender against ii.
But although Its officers dissaim officially all inten
ton fix the sponsibiy upon any one particular
road, the so-called weaker, dlIerentia lines,
believed have furnished ground for the open re
duction, including the Erie, Lackawanna Baltimore
and Ohio and Lehlgh Valley. The Pennsylvania it
is understood, has suffered proporonatey less from
the competition of the dferential roads than the
Vanderbilt lines. When Mr.. Fink decided that the
rate against the two strong systems, the foraer
roads received a large influx of traffic The Penn
syivania soon afterward complained against the diff
ferental system, but Mr. Fink replied that the differ
entail rates intended TO secure the roads which
enjoyed them increased business IN order to obtain THEN
cooperation in a stable tariff. The Pennsylvania
ceased its formal complaints but shortly aferward it
began TO excellent share OF the total traffic.
From that time President Roberts has been apparently
Indifferent TO the trunk line situation, and has
jeced various efforts induce him enter into new
agreements the ground that they would be useless
as a means of controlling rates. The result
in the last meeting of trunk line presidents upon
President Depew's retaIn from ETrOpe when as In
the case of the conference of officers lower in rank
no action could be taken of permanent value in
forcing maintenance of the tariffs.
AS to the future railroad at The
New-York Central officers declare that they have
desire to cause general warfare Of rates, and they
refuse TO say what they viii do in case they become
satisfied that their competitors not observing the
new reduced tariff Strong hope is entertained that
with open rates on the actual basis spirit
Of conservatism will be bred which will prevent any
additional reductions. 1t is not beleved, however,
that there is any prospect OF an advance for some
time.
A NEw.JERsEY CENTRAL CONNECTION.
Engineers Of the Baltimore and Ohio ana the New
jersey Central railroad companies VIII meet some