Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1889-05-07
Canada 5 Railways.
The Senate Committee Begins
Their investigation.
ALBERT FINK UNBosoMs HIMSELF.

He Explains the Relations of the Domin-
ion System with That on This Side Of
the Line-Not Friend of the Com
merce Law, He Favors Pooling and
Thinks We Are Coming to State Man.
Observation-Disclosures Kings Views.
NEW YORK, May THE senate commit
tee to investigate the relations of the Cana
dian to the American railroads met yester-
day morning at the Fifth Avenue hotel, Sem
ator Cullom, of Illinois, in the chair. Albert
Fink chairman of the Trunk Line associa-
ton, stated that he was the representative Of
the Trunk lines running from the eastern
seaboard to the Mississippi river. In answer
to questions regarding the Grand Trunk
road, what it controls, and how it ships
freight to New England and New York, Mr.
Fink said:
The Grand Trunk System.
"The Grand Trunk has whole network of
roads too numerous to mention running into
1t both from the north and south. The Chi
cago and Grand Trunk is the principal
American road which the Grand Trunk con-
trolls A great deal of business is done over
roads over which the Grand Trunk system
htis hp Nohhoi III iopiS W iW ehci 4uoo-
tions, Mr.. Fink said the trunk lines in the
United States were the New York Central,
Erie, Ontario and Western, Pennsylvania,
Cen trail railroad of New Jersey, Baltimore
and Ohio, and the Lake Shore. "The west
ern roads have an association of their own,
but when it becomes necessary for the mu
tual benefit of all the roads to arrange
freights, etc, joint commission, of which l
IL.
made"
About Pools and Discounts.
as there any difference in the management
of the pool now and before the passage of the
interstate commerce lawl" There is The
pool does not now attempt to direct freight,
nor does it divide profits In other respects
the pool is now as it always has been"
us there any discrimination in rates made
among the roads in the pooli' 1.-THE Canadian
Grand Trunk is allowed to make discount
in all freight. 1t always has done so, and if
it was not allowed to make a reduced rate it
would have to go out of business, Its road is
longer and its shippers have always had a low
rate, and they expect it"
do you think it fair to the American roads
70 discriminate in favor of a Canadian roads"
1.-THE American roads are al willing, and as
they 1.-THE Grand Trunk profess to obey the
injunctions of the interstate commerce law,
we see no objection to allowing them lower
rateF'
DifferentiaI Rates Defined.
The Grand Trunk is not allowed differ
entail rate, but differential rates were given
some of the American roads, in fact nearly
all of them. The adjustment of differ
entail rate allowance would compel the
Canadian roads to go out of the business,
and the American roads would get the traffic
which now goes to the Grand Trunk. The
object of differential rate, Mr.. Fink said,
was to give road an opportunity to carry
freight for less money than its competitors
and receive fair share of the profits Some
of the American roads complain of the
amount Of traffic which is going to the Cana
dian trunk lines. If there was no pool or
any Grand Trunk railroad some of the
American roads would be benefited
We're Coming to State Management.
In reply to a question why the Canadian
roads have of late been steadily increasing
their freight business, Mr. Fink said he did
not know, unless it was that they had the ad-
vantage of carrying freight brought by sub
sidized English steamship lines.
HAS the Canadian trunk line any natural
advantages over American roads.'
mo, sir"
Then why do some of the roads need diff
ferential ratesT
an most cases, because they are not first
class roads"
"Then is not the manner in which the rail-
road business of this country is conducted an
argument in favor of the consolidation of all
the various roads under one central manage
nient by the statei"
THAT is what we are coming to-" replied
Mr.. Fink; "but for the present believe that
it is better for the roads to remain under the
present management"
Good Word for Pooling.
Senator Hiscock-After two years of pro-
hibition of pooling, please give us your views
upon its effects, and reasons, if any, why
pooling should be legalized.
Funk-It is the object of the inter state
law to make fixed rate and maintain it by
furnishing those who break it. In pooling
the same end was arrived at, but instead of
furnishing offenders the pool was so arranged
that 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 single punishment for
violating it The reason is that there are
only five commissioners and there are $780,
900 miles of road to look out for and since
the passage of that law there has been more
scheming, juggling and trickery 10 evade the
law than ever before. Under the system of
pooling the rates were fairly maintained,
and if it is ever legaIized they will be again
King of the Erie, Gives His Views.
The next witness was President King of
the Erio road. He stated that the passage
of the Interstate commerce law and the
abolition of pooling has cost the Erie road
about 81 5000 Under the pooling system
the Erie road received 500, 900 year as its
share in the profits of the pool When the
interstate commerce law was passed this
income ceased and, although the Erie road
now has differential rate to the west, it can
get none for eastward-bound freight
Mr.. King was unable to explain why the
Canadian Grand Trunk road was able TO get
so much business unless because it was in the
habit of giving a rebate.
Want, the Grand Trunk Included.
Senator Blair-Do you know of any good
that the interstate commerce law has done3
King--Yes; it has shown the roads that
there is stronger power than they are, and
has forced the roads into practical COMPETE
ton with each other.
"Now, Mr.. King, you have seen the work
ings Of the Interstate commerce law. Can
you give the commission any idea of how 1t
can be improvedT
1.-The greatest benefit to American railroads
h.. 30 tla IL.