New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-17
EAST-BOUND RATES TO RISE
IN ADVANCE SEEMS IMMINENT.
IMPROVEMENT IN THE TRUNK LINE SITUATION
"A CHAT WITH PRESIDENT DEPEw

IMPROVEMENT IN THE TRUNK LINE slrUAiioN
"A CHAT WITH PRESIDENT DEPEw
There was decided improvement in the trunk line
situation yesterday, although no change IN raes was
announced. 1t may be stated with confidence that an
advance In eastbound freight rates is impending and
assurances have been given that none OF the roads VIII
attempt any further reduction in westbound freight
rates 1t not apparent that an advance In the tari
on the latter kind Of traffic Will be ordered early Out
the prospects are that 1t will be brought ABOUT sooner
than was expected on Thursday There Is reason 10
believe that the way has been opened for more har
monious operation of the trunk line systems and IL
the effort which will be made to obtain from Congress
a modification of the Interstate Commerce law is sue
ces sful conservative railway hope that a new
foundation be laid TO secure stable rates by agree
mept among the roads between here and Chicago
There were rumors yesterday that some OF the diff
ferentia rate lines were soliciting business at con-
ccsslons from existing tariffs, but the rumors are
denied and are credited to shippers who always seek
to aggravate decentralization for their personal benefit
1t is believed that tariffs are being strictly held and
that the movement will be toward an advance
The Pennsyl vauia Railroad has made no attempt to
meet the difcrential rates the Ncw-York CentraPs
westbound tariff established by the Erie, the Lack
awanna and the Lehgh Valley roads and this in Itself
has given better tone to railway circles. No formal
conferences have been held the subject but the
situation has received the attention of the Leading
banking houses whose representation OF foreign s'ocA
holders entities them to influence OF Importance
upon the roads that have been at loggerheads. ms
influence has been exerted in manner which mas
brought more conciliatory and conservative spirit
into the management OF the principal conendng COM
ranics The first practical result of this interVen
ton in the interest of peace VIII be an ad
vance OF castbound freight rates ana IL
is then expected that an advance IN
westbound tariffs will be made
The Interstate Commerce Commission has addressed
Al. PAT
regarding the Illegal cutting of rates which has been
alleged against Its competitors. Chairman cooley Is
DESTROYS OF proving the facts, with view 10 ascer
tanning II there IS sufficient ground for proceedings by
the Federal Commission 1t Is understood that the
Central has replied that 1t furnish specific evil
dence from the nature of the case, but has been
satisfied from the course of its traffic. that the tariff
was not being lived mp to by It's rivals. Much OF the
Information which influenced the decided stand taken
by the Central II In confidential way, and
could be used except to confirm the conviction that
rates were not being maintained which had been bred
by the falling of In the ordinary percentage Oh business
OF the company.
There is some expectation that the present contro
versy will result finally in the extinction of the South
Pennsylvania enterprise factor Of irritation TO the
Pennsylvania Railroad The attitude OF the Wander
bits toward DR.. Hostetters schemes has been well
understood in railroad circles. With the West Shore
settlement three years ago the for the sup
port to the South Pennsylvania road by the Wander
bits disappeared, but the decision of the Supreme
Court OF Pennsylvania Interrupted the transfer OF that
company TO TIE Pennsylvania Railroad In the sub
sequen efforts which made by Dr. Hostetter and
Andrew Carnegie TO revive the project the Vanderblts
were pledged TO render their proportonac financial
assistance to the other subscribers TO the original
scheme. Their obligation to the capitalists who were
induced to Join them at the start required them to
do as the other shareholders were willing TO
do.
1t is believed that they now ready to further
the transfer of the South Pennsylvania 10 some CON-
pany sympathetic to the Pennsylvania Railroad pro
vided financial settlement be reached that Will
be lust to all investors The Vanderblts, as we'll
as the other subscribers, certainly do object to a
render of franchises Of the company to the Penn
sylvanlas friends without equitable recompense
President Dcpew, of the Central, said last evening
TO a Tribune reporter that he thought the rate sit
uation looked brighter. He declared emphatcally
that the idea that the New York
Central and the Pennsylvania were at war" in any
sense; that there natural differences and f1ctons
such as wouG arise out Of the competition Of any
great railway systems, but they involved no Impair
ment of the friendly personal relations of the two
roads, and threatened bitter controversy, he
declared adding:
attempting make any charges against par
ticuar lines managers OF the Central made their
bound rail because they salts
ned from the course OF the trac
lower than the Official tariff. Under the old west
bound pool the received ~ and the Penn
sylyana % per Of the total business. When the
Interstate Commerce law into effect and rates
equal by all lines the Central increased its share to 30
the Pennsylvania increased its share 81 cent
These differences told heavily against the other lines
that preserve them reasonable proportion Of the
usrc the dnerenta rates allowed. decline to
20 per the Pennsylvania and % per for
the Central satisfied that than the allowed differ
entail being taken by Of the other roads. What
Irregularities have existed were corrected upon
remonstrances and the percentages rose to % for the
Pennsylvania and to 25 for the Central But since
time Pennsy increased its percentage to 81
while the percentage Of the Central fell il. 1t
Qulred knowledge OF mathematics indicate that the
Cenals tariff certainly higher than the actual pre-
valing
1t S true that the westbound traffic is only small
part Of the total tonnage Of the NewYork Central, but
while this decline in westbound percentage went
the Pennsylvania made repeated reductions easbound
rates the made by lines that is to say,
the lowest figures made by the roads which, by
OF longer deficient facilities could
mand little traffic at equal There is
ton bound reductions caused the loss Of
millions dollars the OF the trunk
lines And 1t will be admitted by those conversant with
the facts that the reductions made without notice,
while notice OF the Centrals reduction westbound
rates transmitted Commissioner Fink 70 be sent
TO accordance with the provisions OF
the trunk line agreements.
What about the South Pennsylvania
1 nothing particular about that property its
pearihG Oh oAceP' 10
purchased considerably cheaper than the West Shore was
The New-York Central paid 100000 for the West
Shore, and while IT, Of course, received direct benefit
the purchase, Its assumption Of the burden
advantage every other trunk line and al of the
connecting roads 1t clarified the atmosphere permitted
o restoration Of profitable everywhere and besides
bringing the Lake Shore and Michigan Central into the
dividend payers, enabled the Erie to meet the
Interest bonds and brought the Penn
sylvania's dividend up 10 per cent
Commerce law aimed to do three things
First by long and short haul 1t sought 10
destroy discrimination intermediate points
ond 1t prohibited discrimination between individual ship
pers and lastly 1t forbade pooling The two last pro-
visions nulned each other For while the law prevented
any road giving lower rates TO shipper than
10 another IL did not prevent one