New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-06-14
WESTERN FREIGHT RATES.
UNJUST DISCRIMINATION CHARGED.
INVESTIGATING THE PRODUCE EXCHANGE CON-
PLANT AGAINST THE TRUNK LINES

PLANT AGAINST THE TRUNK LINES.
The Interstate Commerce Commission presided
over By ex-Judgc Cooley, occupied the bench OF one
of the court-rooms of the Federal Building yester-
day to hear evidence and arguments concerning the
charges made by the New-York Produce Exchange
against the New-YorlS Central, Michigan Central,
pennsylvania. and some dozen other companies
which, it is alleged by the petitioners nave done
those things which they ought not to have done
according to the Interstate Commerce law. There
WAS a brilliant and costly array Of lawyers present
representing the railway companies The New
York Central and Hudson River Railway Company
WAS represented by Frank LOOMS; the Lake Shore
and Michigan Southern by George o. Green the
New-York Lake Erie and Western by James ~
Buchanan, the New-York, Chicago and 81. Louis
.by Samuel T. Williamson the West Shore
by Ashbe Green, and the Delaware, Lackawana and
Western by NJ Taylor Pyne Wayne MacVeagh
looked after the Pennsylvania, Pittsburg, Fort
Wayne and Chicago and Pittsburg, CINCINNATI
and ST. Louis companies.G. L. Aaercher
attended to the interests OF the Philadelphla ana
Reading, and Robert w. DE Forrest watched
matters for the Central Railroad of New-Jersey.
The Michigan Central, the Chicago Grand Trunk,
the Grand Western Of Canada, the Chicago and
Atlantic the Grand Trunk of Canada, the Wabash
and Western and the Baltimore did not consider
IT, worth willie to send any one to represent them.
CHARGES MADE BY THE EXCHANGE
The Produce Exchange charged these companies
with having been guilty OF unjust dlscrmlna-
tions in that they have VIGOROUSLY allowed to
large number of persons special rates, rebates and
drawbacks, either given directly or Indirectly"
etc But the most serious complaint OF the
Produce Exchange is that these companies nave
Disseminated in favor of export freight as COM
pared with domestic freight, so that man shipping
al unh lnx-ar
rates than if he shipped to New-York and in some
instances it is alleged that the freight rates have
been actually lower from Chicago to Liverpool
than from Chicago to NewYork. All this the
members Of the Produce Exchange regard as highly
injurious to the business interests of New-York
William r. Foster and John ID. Herman repre-
sented the Produce Exchange. Some Of the COM
panes put in answers denying various items IN the
complaint. Mr. Foster said: If it were not
for the import duties, it would be cheaper some
times to import Western products from Europe
than to take them direct from the West and pay
the freight Mr.. Herman emphasized
the demand for an investigation, and IN
order the more speedily u rearh an
understanding lie wished the railroad companies
concerned to conccds the correctness OF the state
ment of facts presented by the Produce LAchanse'
To this Mr.. MacVeagh replied:
II the question is merely whether this Commission shall
order that the export shall be charged the same rate
DER ton per mile traffic destined for NeW-fork mat IS
proposition that stipulation OF any knd; IL can
Just as well 1t simply involves question
Of law and necessate the taking OF evidence
Nevertheless the Commission decided to hear
some e,idence Albert Fink, Commissioner OF
the Trunk Line Association was the first witness
He said that the business of the association was
to make satisfactory rates by mutual agreement
From July /, 1871 until the present day, WIN
the exception Of the period from November g.
1887, to February 90, 1888, when rates were
demoralized the recognized rule was that the
through export rates should be made by the
addition of the ocean rate to the inland rate.
Mr. Kernan--So that result should be that upon eX-
port business carried Western points TO the seaooara
the inland would be the same as the domestic RATE
Mr. Fink (smlllng)-That should have been the result
Mr. Fink explained that variations IN the lhland
rate on export business were sometimes caused py
the fact that railroad companies would advertise
through rates to Liverpool and take freight on
that basis. Then the rapacious steamship compa-
MES would put up the ocean rates and the railroad
companies would have to reduce their niahd ratcs
in order to keep faith with the shippers
The rates might be kept fairly steady, Mr.
Fink thought, SO far as concerned the railways
but ocean rates would huctuate according to the
pressure of necessity on steamships 10 secure
freight In freight sent west wa the laKes ile
difficulty about steadyng the rates was less, pc
cause there agreements between the rail-
WAYS and the transportation companies DuJ 10
had not been found practicable to make any such
Arrangement with the steamship lines Here Alr
MacVcagh observed that 1t was not true that MS
road 1.-THE Pennsylvania had made lower rates on
through freight from Chicago to New-YQrk than
on domestic freight.
NOT sANGUINE ABOUT REMEDIES
Mr.. Fink was not sanguine about remedies "
have long since given up the idea,' he said, that
there is anything that cannot be evaded in some
way" lie gave an instance Of how rates were
cut: I" A railroad agent" he said, would adver
tse certain rate, and then would say to dealer
L will bet you $40 you won't ship over my line
The dealer would take the bet ship the freight,
and practically secure q rebate of So"
Jacob III. Herrck, chairman OF the Produce Ex-
change Committee was the next witness. lie was
asked what was the effect of railroad discrmina-
ton in favor of through business, and replied:
1t practically prohibits during months year
any export business direct from the city of NewYork be-
cause a cheaper through rate foreign
port freight to the city OF NewYork, the grain would
be winter direct to these foreign ports
and the grain thus sent forward would go long way
toward fixing the price Of the accumulated stocks in the
city Of NewYork during the period OF open navigation so
that the grain forward through rates would affect
the price every bush Of grain In the city Of New York
George Milmine, another grain commission mer-
chant said that the effect of the discrimination
in favor Of through freights would be to destroy
the export business of New-York. s. s. MARBLES,
exporter Of provisions, said that the through
freight discrimination had acted injurousy on his
business II had tendency to drive away business
from New-Y0rk
The hearing will 60 to-day at IL o'clock.
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