The Portland daily press., 1889-05-07
THE CASE OF THE GRAND TRUNK.
Senators Investigating It's Relations
to American Roads.
Commissioners Fink Explains What
Pooling Was Meant to Do.
The Canadian Road Dependent Upon
a DifferentiaI Rate.

NEW YORK, May 6.-The Senate commit
tee to investigate the relation Of Canadian
to American railroads met today at the Fifth
Avenue Hotel, Senator Cullom In the chair.
The other Senators present were Messrs.
Reagan, Harris, Blair, Hiscock and German.
Albert Fink, chairman Of the Trunk Line
Association, was the first witness. He said:
''The pool does not now attempt to direct
freight nor to decide profits. In other ways
the pool is now as it always has been. The
Canadian Grand Trunk is allowed to make a
discount on all freight. The American roads
are willing, and, as they profess to obey the
Injunction of the Interstate Commerce law,
we see no objection. The annual tonnage
to New York city amounts to 1900, 900 tons.
OF this the Grand Trunk carries about II
per cent Coming east, via Toronto and
Montreal, the annual tonnage is about H.
800, 600 tons, and of this s per cent is carried
by the Grand Trunk road. OF the rest Of
the freight coming east. the Grand Trunk
gets about 81 per cent. The annual tonnage
of freight westward from the Interior of
New York State and Pennsylvania is about
equal to that of New York city. and the
Grand Trunk receives a similar percentage.
From Boston the yearly shipments of
freight amounts to about 100000 tons, and
the Grand Trunk receives about 10 per cent
of the New England freight going west
In reply to a question by Mr.. Hiscock, as
to what effect the abolishment of the differ
entail rate allowance would have upon the
Canadian roads, Mr.. Fink replied they would
have to go out of business, and the Ameri-
can roads would get the traffic which now
N M
Senator Callum-"What's the object Of a
differential rate?"
"It gives other roads an opportunity to
carry freight for less money than their COM
petit0rS, and receives share of the profits"
Have you heard any complaints coming
from American roads because of the amount
of traffic which is going to the Canadian
trunk lines?"
"Yes. Some roads object, believe"
Then If there was no pool or any Grand
Trunk road. American roads would be bene-
fitted, is that o?"
sSomeDf them would"
Senator Blair-"Has Canadian trunk line
any natural advantages over American roads
which would warrant large increase in
business?"
"NO SIR"
Then why do some roads need differential
rates?"
''In most cases because they are not first
class roads,"
us not the manner in which the railroad
business in this country is conducted an ar
gument in favor of the consolidation of all
the various roads under one central manage
ment by the State?"
THAT Is what we are coming to but for the
present, believe it better for the roads to
remain under their present management.
Pooling is entirely misunderstood by the
public. 1t is practiced by railroads, and the
governments of all countries. A law should
establish a rate and then keep it. 1t is the
object of the interstate law to make fixed
rate and maintain it by Furnishing those who
break IL. In pooling, the same end is arrived
at. Instead of Furnishing the offenders the pool
was so arranged that each and every road
in the pool could get an equal share in the
profits and freights. Since the law against
pooling has been in force there has not been
a single punishment for violating it. The rea-
son is that there are only five commissioners
to look out for 10000 miles of road. Since
the passage of the law there has been more
scneming. juggling and trickery to evade it
ing. rates were fairly maintained. If it is
ever legalized they will be again"
When Commissioner Fink ended President
John A. King of the Erie took his place. He
stated he was unable to explain why the
Canadian Grand Trunk was able to get so
much business unless it was that they are
in the habit of Iglving rebate. "We don't
ask any advantages over the Canadian roads
that come into this county," said King,
but we do want them to obey the same laws
we do"
Senator Blair-"Do you know any good
the interstate law has done?"
"Yes. it has shown the roads stronger
power than they"