New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-13
GRAND TRUNKS REDUCTION
ACTION FULLY AUTHORIZED.
NO INTERFERENCE WITH THE ADVANCE a
JULY 22-sTATEMENTs FROM MR.. pLAN.
CHARD AND Mr.. HAYDEN.


cHARD AND Mr.. HAYDEN.
Reports were sent from Chicago yesterday thsl
the Grand Trunk of Canada would make a 70
duction on July l6 all grain rates to the
basis OF 20 cents per 100 pounds from Chicago
to New-fork, the regular tariff being 25 cents
series of sensational reports followed the an
nouncement and Wall Street was excited by
the vision of fresh outbreak OF hostilities among
the trunk lines. Inquiry in railway circles here
showed THAI these fears were perfectly groundlens
and the Grand Trunk reduction was officially said
TO be of no significance
The disturbance among stockholders caused
by the news was due to a misapprehension Of the
situation For the first time in years they were
confronted with a reduction in rates following
upon a meeting which had ordered an advance.
Their perpleXty arose from n forgetfulness re-
specting the requirements OF the Interstate Com
merce law. The following explanation OF the
position of affairs was furnished by vice-chair-
man George K Blanchard and Chairman Horace
j. Hayden, OF the Joint Executive Com
mittee of the trunk lines and their
Western connections: The day after
the Baltimore and Ohio Railroad took indie
pendent action in reducing all grain rates live
cents, the Pennsylvania Railroad gave legal notice
of a corresponding reduction. Some of the interior
roads in the Central Traffic Association Issued
similar notices. and Oh Tuesday the Chicago and
Atlantic the Western connection OF the Erie,
followed their example. This left the Grand
Trunk and the Vanderbilt systems as the only
roads which had not issued the three days notice
of lower rates required by the Interstate Com
merce law to meet the reductions of the Baltimore
and Ohio The result OF the trunk line
ferences on Wednesday and Thursday an
agreement to restore tariff rates by all lines
except the rate on corn, which was left at 20
cents from Chicago to New-York. The acting
Commissioner was authorized TO inform the Inter-
state Commerce Commission OF the action OF tho
associated roads, and to secure his approval OF
the notice as legally equivalent to notice from
the individual companies. telegram was re-
ceived from Federal Commissioner Bragg yesterday
saying that notice of the joint action OF the roads
would be accepted as equivalent TO individual
notice from each company Therefore the legal
notice of ten days being given the restored rates
will go into effect July %. In the interim.
however the roads which had previously an
nounced a reduction would possess ah advantages
over those which had not done so, and the Orshd
Trunk was left free with other Lines IN IKE
circumstances to meet the lower rates after
giving legal notice. On account Oh "io
difference in the time required by law for re-
Trunk, by its action yesterday, is enabled TO com
pete for five or six days with the Pennsylvanis
and the other roads which met the baItlmore anu
Ohio reduction more promptly.
In many respects the trunk nne SITUATION - uu-
precedented. Heretofore the cut or one rodd mas
been promptly met by all Others and slasnlng
of rates has gone ON for weeks or months before
general restoration could be ordered. In inc
present instance the restoration or rates is oruered
within "a week, but under the law ~ canhOo
take place without ten days notice, few days
are lett for such reductions as have been ordereh
bv the Canadian company The acceptance Dy
the Interstate Commerce Commission oil the asso-
ciated action Of the roads equivalent TO the
individual action Of each Is new point IN rail-
road history and IL is generally Deheved thao ~
will tend to facilitate the restoration OF rates IN
cases like the present, when IL Is desired W pre-
vent any extension OF cutting. am,
Vice-Chairman Blanchard said yesterday: lhe
Grand Trunks reduction was perfectly duuliS
sible and will in way vitlate the actlon taken
for n restoration of rates on July 22. Inc meet
inc Of the iOint executive committee was entlrey
Iapmonious and there is no ground for the sensa-
tional fears expressed respecting lhe HisVern i"iF
road situation" wit ~.
Vice President Hayden. Of the New-York Cen
tral was emphatic in his testimony as TO the sats-
factory results Of Wednesdays and Thursdays
meetinqs He said that the reduction In corn
was not important, as the ceGeal Is moving onS S
bv water and rail. 1t would not take the rail-
route at 25-cent rate, and il 2O-cent rate
woud bring some business to the roads, IL woud
bp so much clear gain in traffic by the agree
mont TO restore the rates on wheat, however, the
roads had prevented the extension OF cuts on
four and ali kind of wheat products which prefer
rail TRANSFORMATION and prevented the natural
enneal that might follow for corresponding re-
dnctions nn provisions and other kinds Of cast
hound traffic.