New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-05-07
EXAMINED BY SENATORS.
MEssRs. FINK AND KING GIVE EVIDENCE
EXPLAINING THE NECESSITY FOR pIFFEREN.
TAI. RATES. nEEENcE OF pnnIING

senate was read, 20 the efcct that the object Of
the investigation 10 aSce tain whether any rail-
ROAD lines in the United States were owned or opcr
ated In b interest Of any Canadian lines and whether
commerce nom the United States was diverted nom
American to Canadian lines or discriminating toll
charged against American vessels In the WcIland and
ST. Lawrence canals Albert Fink, chairman Of the
Trunk Line Association, was ehen called to the wit
ness chair. He said that he at tho head OF the
Trunk Line Association, whose object was 70 arrange
oint and competitive tariffs, to secure uniformity m
charges and classAcauons and to maintain estab-
lished tariffs. lie explained that organization as
consisting chiefly of The New.York Central, the
Michigan Central Erie Canada Southern, Ontario and
Western New-Jersey Central, Pennsylvania, Baltimore
and Ohio and Lake Shore roads, with their Eamiaca-
lions and connec tons.
when IL became necessary, he said, for the mutual
oehent OF all the roads TO solve quest concerning
them, Joint commission Of which he was chair
man, met for that purpose. The only differences
between the management OF the association at present
and before the Interstate Commerce law had been
passed were that attempt was made TO divide
profits or divert freight The association was carry
Ing out tho principles OF the Interstate law, and It
was therefore practically the same as In 1885, The
Grand Trunk Railway of Canada, however, had been
allowed to charge lower rate on freight varying be-
tween 10 cents and cents which Mr.. Fink did not
regard as discrimination against the American roads
because that line was longer than tho Others and
unless tho shippers got reduced rates II would not
be patronILed He was unable answer the question
whether the Grand Trunk limo adhered to fits adver
Used rates or granted rebates. lie thought, however
that the provisions OF the Interstate Commerce Act
we're adhered to, although there were many ways of
evadins It. NJ. Fink stated that tho tonnage nom
New-York amounted 20 about J, 900 tons yearly
and II per cent OF this carried By tho Grand
Trunk 20 which per cent from other points in tho
Interior to be added 1t vas gathered principally
u T7,a ~,
Montreal and Toronto, was I1,JO0 600 TONS OF which
per cent was carried by the Grand Trunk. 1t re-
ocivod also about u per cent Of the 100000 tons
shipped from Boston Dfercntsl rars were not
allowed to the American roads, however with the
ccption OF the New-York Central, Pennsylvania and
Baltimore and Ohio.
DTFFERENTTAL RATES NECESSARY.
In reply to Senator Hiscocks question to what
effect tho aboliJhment OF diGercntlal rates
on Canadian roads would have, az. Fink said tina,
the roads would be forced withdraw from
petition, thus reducing tho number OF loss ct ship
pors command without however very serious results.
lie then explained the object ~ dfercntal tariffs 10
be tho securing 10 different roads a fair show for
traffic and a just percentage OF PROFITS. In answer
to Senator Blair he said that there discrimns
hon in ratrS between Boston, Philadelphia baltimore
and NCw-York and Southern ports, nut that the IN
land rates changed daily with tho rates, making
tho hIIhiment OF the Interstate Commerce Act clause
requiring ten days notice utterly impossible. The
rates, however, published each day. Tho
inequalities 81 land rates could not exist under full
operation Of the Interstate Commerce law. &c
planned to Senator Rlsr that dherenal rates meant
difference in rates on competing lines between the sam,
points.
The committee adjourned for luncheon, meeting
again at o'clock and Mr. Fink continued ais tost-
mony. AN attempt made TO discover whether
therc not large quantity Of freiga: being shipped
by Canadian lines destined for tho Asat!o market
but Mr.. Fink unable 10 saswer tho question,
although no believed that theEe great amount
sent IN this way Ho then, Ia answer 20 anothor
question, said that competition the chief factor
In regulating railroad rates cost practically having
little TO do With It. When requested by Senator His
cock say why, II be thought So pooling should DO
IcgaIed, nf Fink said that tho word pooling
entirely misunderstood; that It was found In all
countries ami that without pooling the tariff laws
could not DO maintained that It did not
Affect tho public directly in any way. He
said further thai It would be better for tho Interstate
routes to establish tho tarR and enforce Il rather
than allow the roads TO make tho tsriH.
"The only difference no said, between the
Interstate law and pooling Is that the Interstate
Law to punish violations and thus enforce It's
rules while pooling adopts . wi er course by taking
away all motive for violation In giving each road a
fair share OF tls business. Fighting IS avoided IN
this way The law has not stopped the violations,
II do Tho I've commissioners over.
worked They cannot possibly overlook the thousands
Of miles OF railway In this country. II establishes
tribunal for complaints. Eyasions OF its provisions,
hbweyer, have been numerous. The prohibition of
pooling Is unnecessary. That is tho best means Of
regulating things the railroads ever had. The Inter.
state Law helps maintain rates. 1t Is true. but that
aid Is nulllhed by It's prohibition OF pooling" Mr. Fink
thought ao tEa; the public would be benefited BY the
repeal OF the NTH SECTION Of the law permitting the
sociAtIons form they were, although be did not
advocate Il. In that case tho law would Be hno-
retcaly perfect
FRIES PRESIDENT TEsTIFIES.
Ansr answering a number Of other questions by
senator Reagan In which Mr. Fink stated that he aid
not think II possible for the Government TO fix rates,
but that wa the proper province Of tbs roEds them
selves, as they kept from making exorbitant
tanhs by outside laws no loft tho chair and was
followed by John King. president Of tho New York,
Lsle Eho and Western Railroad TIL termini OF h. Ere
Road were, ho said, Buffalo. jersey city and sala-
manca connecting at thu latter point with tho New.
York, Pennsylvnn's and Ohio, which WAS leased for
30 per cent Of the earnings. After describing the
connections OF the Erie with tho Grand Trunk Line, /
which he said were close. he added that tho Inter.
state law and the abolition Of pooling had cost tho
Erie about one million dollars. Under tho old sys
TEN the Erie Road received 100000 a year
rs its share in the profits Of tho pool The Erie did
not get iaW snare OF inc phFondk' Uib lilc p'oi
know that II did certain amount OF other business he
sad. and onorc therefore 10 give the road F5oOOO0
when tho Intcrs tate COmmerc3 law was passed, this
income, hn said, IN! ceased. Although the Erie
road had dhe:cnal rats to the West Il COULD get
none for freight bound East He thought that the
Interstate law hoI rladc the strong lines stronger
and the weak lines weaker
UNABLE TO GIVE AN EXPLANATION.
Mr.. King was unable TO explain why the Canadian
Grand Trunk road able 70 geI 50 much business,
unless Il was by giving rebates as drawbants' lie
clUd az an instance The fact that two wesks ago
Il had taken 80 per cent OF ths business coming cast
from Chicaeo "wo do not ask any advantage over
the Canadian roads wh.cn into this country
Mr. King added. but we do wish
them 10 obey the Same laws that We
arc obliged 10 obey. That change Is necessary and
should be advocatnh' In answer tO Senator DaIr's
question as ~ what good the Interstate Commerce
law had done he said that u had showed the railroads
that there was power stronger than themselves thnt