The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-06-14
THE WHEN
RAILWAY DISCRIMINATION.
The Interstate Commission Hears Testimony
on Both Sides Of the Question.

New YORK. June lathe Interstate-com-
meree Commission entered upon its labors To-
day in the federal building, for the purpose Of
investigating complaint made BY the Produce
Exchange against railroads for discriminating
In freight charges. more especially concerning
the export rates grain. The committee pres
snt were Judge T. NJ Cooley, chairman; W. r.
Morrison, A. SHOEMAKER, w. l.. Bragg, and
A. F. Walker Messra Wayne Nc
Vesgh. Frank Loomis, James A. Buchanan.
Taylor Payne and George c. Green, Of Buffalo.
represented the interests OF the different rail-
roads. Commissioner Fink was present in the
capacity of witness. The Chair announced
that the commission was gathered together for
two purposes. One was the application Of the
PsnnsyIvania railroad for modification Of the
order Of the commission Of March 30. and the
other to hear the complaint of the Produce Elk
change. The Produce Exchange claims that the
railroads. since the 4th Of April. 1887, have
allowed to large number of persons special rates
20 Western points, to the disadvantage Of the
merchants OF New York The members OF the
Produce Exchange desire that all rates for
transportation from Chicago to or through New
York city tn foreign points, shall be the same
for transportation to New York; that compli-
ance with the law and with the order of March.
1888, to fling joint tariffs be compiled by the
methods and under the penalties provided, and
that all such tariffs be posted and published by
order to be Issued under the discretion given TO
the commission in that regard, and that in every
bill of lading issued to . foreign port
the railroad rate and the ocean
rate be stated separately. Mr.. Nc
Vssgh claimed that the Jurisdiction
Of the commission ended with the seaboard. and
that they had nothing TO do with the freight
charges Of the steamers
Commissioners Albert Fink. Of the trunk lines
association. testified in regard to the export rate
OF 1881 and the railroad rate which was charged
BY the trunk lines. In November last the.sys-
tenn Of making export rates WAS changed by .
reduction of the steamship rates. The result
was that lower rates were charged TO foreign
ports than to the inland cities from the West.
Commissioner Fink added that IL was hardly
possible to link together railroad and steamship
transportation except under fixed agreement
The rates had always varied, the Commissioner
said, and for no very great time had he been
able to keep them equal
Mr.. Mcveaeh questioned Mr.. Fink in regard
to the chsnges OF the traffic. He said that the
principal amount Of thu New York Centrafs ex-
port business was done from the port Of Boston.
Mr.: Mcvsagh asked Commissioners Fink
whether there should not be variable ex-
port rate. Mr. Fink thought there should be
an elasticity of rate. so that exporters could
meet the changes In the foreign markets. In
order to have through rate from the West TO
the East there must be spe-
There can be steadiness Of ocean rates,
on account of the competition among the steam
ship companies. The associations agree on
through rates, part water and part rail, from
the West Mr.. MacVeagh tried to get tho wit
ness to say that IL the railroads 30 desired there
would be no difficulty in keeping steady rate
between Chicago and Liverpool. Mr.. Fink said
that IL was difficult to get the railroads 20 hon.
estly keep any agreement for thirty days The
witness thought that the ocean competition
ha lofe fro I'm nj
rate should be mantaiEsd. Mr.. MacVeagh
stated that no rates were made over
the Pennsylvania railroad from Chi
eaeo to Liverpool any lower than from
gram from Mr.. Blanchard, of Chicago, showing
that rates to Boston were being cut There
were. Mr. Fink added, ways Of keeping within
the law and ssill cutting rates One way Was TO
20 to = shipper and tell him that so much would.
be paid TO him TO ship by certain line. which
was equivalent to a rebate.
Commissioners Shoemaker asked the witness
what roads were doing this Mr. Fink said he
did not care To state at present, the name of
any road until he had investigated it
Jacob A. Herrick. q member of the Produce
Exchange. was next called. He said that the
effect uDon Western grain Of higher rates to
New YORK than the export rates, was to practi-
caliy prohibit any export business from this city
during six months Of the year. Grain could be
held cheaper in storing in New York than in the
West. The discrimination in rates bad reduced
the -four business in this city during the last six
months nearly 60 per cent, the witness stated.
George Milmine another grain commission
merchants. said that if the rate complained of
were continued 1t would virtually close up New
York as an EXPORT port Tho effect would be
felt in the import business as we'll
5. s. Marples, exporter of provisions, testified
that if these rates continued, the result will
DO 70 drive the business out of New York to the
Wester n packers The rates have already al
most ruined the business IN New York