Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-05-07
RAILROAD SECRETS EXPOSED.
Relations Of American 70 Canadian Lines
Investigated by the Senate Committee.

The Senate committee that is inquiring into
the detection Of American commerce from
American railroads to those of Canada began
its session yesterday at Fifth Avenue hotel. New
York city. Chairman Cullom and Senators
Hiscock. Blair, Reagan and Harris were pres
ent Senators Barbour and Plat are ex-
pected later. Senator Wilson, OF Iowa, viii not
be present at this session.
COMMISSIONER PINK THE FIRST WITNESS
The only witness examined at the morning
session was Railroad Commissioner Albert Fink.
He Is the head of the Trunk Line association,
which is usually called the trunk line pool Mr..
FINK said that the object OF the association
winch he represents Is the establishment of
UNIFORM tarlh rates. and the business of MAIN
tanning them. All the trunk lines belong 20
.ne association He explained at length the
connections Of the Grand Trunk and the other
lines and gave the western connections of the
other trunk lines. and said that with the encep-
ton OF the Pennsylvania and the baltimore
ana ohie they all gave Canadian and western
business to the Grand Trunk
GRAND TRCSKs DIFFERrSrrAI.
He said the Canadian Grand Trunk line Is al
lowed to make discount on all freight. and IL
it were not allowed TO make a reduced rate IL
would have TO go out Of the business. The
Grand Trunk is not allowed any differentisI
rate on the freight, but on the other hand dis
feroniial rates are allowed to the American
roads, with the exception of the New York Gen.
tral, Pennsylvania and Baltimore and Ohio
Mr.. Fink said the effect ON the Canadian roads
of abollshing differential rate would be 10
drive them out of business. and the American
roads would get the traffic which now Goes TO
the Grand Trunk. He said some American
roads object to the amount Of traffic which ia
going TO the Canadian trunk lines and some OF
the American roads would be benefited; the
Canadian Trunk line has no natural advantages
over the American roads to warrant anv large
increase IN its business; but some of our roads
need dlfierentlal rates because thew are not
nrst-class roads. He admitted We are coming
to point when it would be better to consoli-
date all the various roads under one central
management by the state.
POOLING DEFENDED.
Pooling" said Mr.. Fink, lis entirely mis-
understood by the public. 1t is practiced by
railroads and governments in all countries
The law regarding the maintenance OF
rates begins at the wrong end. liz should
hrst establish a rate and then keep il there IL
Is the object of the interstate law TO make A
hxed rate and maintain il by Furnishing those
who break IT. In pooling the same end was
aimed at, but instead of Furnishing Offenders
the pool was SO arranged that each and
every road in the pool could get an equal
| share in the profits aud freights Since the
law against pooling has been in force there has
not been single punishment for violating it,
The reason Is that there are only five conimis-
sloners TO look out for il. and l5O. 900 miles of
road to look out for, and since the passage Of
that law there has been more schemine lug
giing and trickery TO evade the law than ever
before. Under the system OF pooling the
rates were fairly maintained, and if il is ever
legalized they will be again.
HOW ERIE LOST A MILLION.
President John King, of the Erie road. stated
that the passage of the interstate commerce
law and the abolition of pooling had cost the
Erie road about one million dollars. Under the
pooling system the Erie received $500 900 a
year as ITS share in the profits of the pool
When the interstate commerce law was passed
this income ceased, and although the Erie now
had differential rate to the west. il can get
none for eastward-bound freight. Mr.. King was
unable TO explain why the Canadian Grand
Trunk road was able TO get 50 much business,
unless Ii Was that they are in the habit OF
giving archaic. As an instance he cited a mat
ter that happened two weeks ago in Chicago,
when the Chicago and Atlantic road took SO per
cent of all the east-bound freight from the
Erie, Pennsylvania and New York Central
roads. 1--WE don't ask any advantage over the
Canadian roads that come into tins country"
said Mr.. King, but we do want them TO o6ev
the same laws that we do" THE greatest
beneft to the American railroads would be to
put the Canadian roads that come into this
country on par with our roads, and If thew
violate any provisions of the law let them be
punished, but make the penalty the same for
both American and Canadian offenders. That
is all We ask. The passage OF the Interstate
law caused the Erie road to cut down its ex-
penses about S600000 But it is now making
about as much money as before the passage a
| the law"