St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-05-07
And Also Predicts Govern
ment Control Of the Rail-
roads.
STWENTY-NlNE)
President John King, Of the
Erie, Also Delivers 8
Lecture.
The Reported Combine of
Northwestern Railroads.
Ballast.


tions and capitalists of American roads
reassembled this morning, promptly at
II o'clock, in Parlor DIR of the Fifth
Avenue hotel. Maps of the railroad
lines throughout the country lay before
each of the members of the committee,
and map of the railroads in the do
minion of Canada hung conspicuously
on screen at the side of the room.
The senators present when Chairman
Cullom called the committee to order
were Senators Blair, of New Hamp-
shire; Hiscock, of New York; Harris, of
Tennessee; German, of Maryland. and
Reagan, of Texas. Half dozen interest
ed spectators ana reporters helped to fill
the room. The first witness examined
was Commissioner Albert Fink, the
chairman of the Trunk Line aSsocia
ton, which, he explained, was an asSO-
citation Of railroads to arrange joint and
competitive tariffs to secure uniformity
in charges and classification and to
maintain established tariffs. To re-
quest by Chairman Cullom Mr.. Fink
first described the Grand Trunk rail
road and its branches, as far as he
knew. AS trunk line the witness said
it ran from Chicago to Portland, Me-.
the main line being from Port Huron to
ton about the Canada Southern road,
Mr.. Fink said that the road in question
was leased by the Michigan Cen
trail road. The numerous branch
roads of the Grand Trunk road
he was unprepared to name, the
witness said, and Chairman Cullom read
long list of roads which were believed
to be associated with the Grand Trunk,
in order that they might go upon the
record. Mr.. Fink acknowledged that
the Grand Trunk road had differentiai
rates for its New England BUSINESS,
but said that this was not looked upon
in the light of discrimination for the
reason that its road was at least one
hundred miles longer.
BY Senator Cull0m-IS your OrganiZa-
ton to-day practically the same as it
was before the passage of the interstate
commerce law?
Commissioner Fink-In everything
ings or direct freight. Continuing,
witness said that the Grand Trunk road
was forced to, in measure, substitute
the steamship company running to
Portland, for the reason that but one
line ran there. If their rates were not
, lower to that point, there would he no
freight sent there. The differential
rate of the Grand Trunk road varied
from ten cents ON first class to two
l. cents on the lowest class of freight.
Chairman Cullom-Haye you any sug
gestion as to amendments to the inter-
state commerce law?
Commissioner Fink-The difficulty is
to cover the matter Of management by
law. The Interstate commission should
have discretion to deal with the QueS-
lions that arise and make exceptions in
z certain cases.
The rates from Chicago to seaboard
points, Commissioner Fink SAID, were
the same whether the freight stepped
there or was exported. The commits
sioner then gave a short summary OF
the freight taken by the Grand Trunk
road at Buffalo and Niagara, which. he
said,w was about per cent of thebuSiness
to those points. The differential rates
graded from five cents per 100 pounds
downward. TO question by Senator
Hiscock as to what would be the effect
to shippers if the dlfferential rates to
Canadian roads were abolished, the
witness said it would simply reduce the
number of lines at the shippers COM
mand. Many points in the Northwest,
too, would be hurt by the Gripping OF
the Grand Trunk road, but a great
number of shippers would not be hurt
if half dozen of the trunk lines were
wiped out. At 1870, after an ex-
haustive explanation of differential
rates by Commissioner Fink, for the
benefit of Senator Blair, the committee
took recess until 9 O'Clock.
After recess Senator Blair inquired
where the competition between roads
could come in when schedule of rates
had been previously agreed upon. Mr..
Fink replied that there was no other
way to protect themselves from each
other. Some settled rate must be agreed
to. If some of the most important roads
were allowed to make rates, it
gave all equal shares in the
profits. Mr.. Fink could not ac-
count for the reported steady increase
OF the freight business of the Canadian
roads. No one but the Grand Trunk
management could tell this. Mr.. Fink
could give no reason for the increase,
unless it was that these roads had the
advantage of carrying the freight
brought from the East by subsidized
steamship lines.
By Senator Blair Has the Canadian
trunk line any natural advantages over
the American roads which would war
rant any large increase in its business?
mo, sir, l think not"
Then why do some of the roads need
differential rates?'
.'In most cases because they are not
first-claSS roads,"
'sThen if that is the case, it would
seem to show that the railroad inter-
ests of this country are increasing too
fast and is not the manner in which the
railroad business of this country is con-
Quoted an argument in favor of the cen
solidation of all the various roads into
one central management by the State?''
Eyes, 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
By Senator Hiscock-Now, Mr.. Fink.