The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1889-05-07
The Grand Trunk Investigation.


NEW YORK, May 4-Fhe senate and
committee to investigate the alleged owner
ship by Canadian corporations and capital
Of American roads reassenbled this morn
ing. The first witness was Commissioner
Albert Fink, chairman of the Trunk Line
association, which he explained was an
as, citation TO arrange joint competitive tar
iffs, secure uniformity in charges and class
and maintain established tariffs. Fink de-
scrtbed the Grand trunk railroad and its
branches as far as be knew as a trunk line.
IL ran from Chicago TO Portland, Ne.
Fink said the Canada Southern was leased
by the Michigan Central. He aeknowl-
edged the Grand Trunk had differentiaI
notes for New England business, because
its road was hundred miles longer.
Senator Cullom-Is your organization to-
day practically the same as before the pas
sage of the Interstate commerce law?
Commissioner Fink-In everything ex-
cept that we no longer divide the earnings
or direct the freignts.
CullOm-Have you any suggestions as to
an amendment 10 the interstate commerce
law2
Fink-The difficulty is to cover the mat
ter of management by law. The interstate
commission should have discretion 10 deal
with questions that arise and make excep-
tiOns in certain cases.
The commissioner then gave a short sum
mary of the freight taKen by the Grand
Trunk road at Buffalo and Niagara, which
he said was about 20 per cent, of the bust
ness TO those points. The diffeIential rate is
graded from cents per 100 downward.
To question as to what would be the eff
feet to shippers If differential was allowed
CANADIAN roads also, witness said il would
simply reduce the number of lines at the
shippers command. Many points in the
northwest, too, would be hurt by the
GRIPPING of the great trunk line, but a
great number of shippers would not be
hurt If half dozen or the trunk lines were
wiped out
Alter a recess Senator Blair inquired
where the competitor between roads could
come in when the schedule of rates had
been previously agreed upon. Fink re-
piled that there was no other way to pro-
tect themselves from each other. Some
settled rates must be agreed to.
Senator Hiscock-NOw, Mr.. Fink, after
two years prohibition against pooling,
please give US your views upon its effect
and the reason, II any, why pooling should
be legaliZed.
Pooling" replied Fink, .is entire
ly misunderstood by the public. Ii
is praeticed by the railroads and
governments in all countries. The
law regarding the maintenance of rates
begins al the wrong end. II should first
establish rate and then keep il there. Ii
Is the object of the Interstate law TO make
fixed rate and maintain il by punlshing
thOse VINO Dreak IL. In pooling the same
end was arrived at, but instead OF punish
ing offenders, the pool was so arranged
that each and every road in the pool could
get an equal share in sthe profits aud
freights. Since the law against pooling
has been in force there has not been a sim
gle punishment for violating il. The rea-
son is that there are FIVE commissioners 70
look out for il and 10000 miles of road
10 look out for, and since the passage
of that law there has been more scheminV
juggling and trIckery TO evade the law
than ever before. Under the system Of
pooling rates were fairly maintained and
If IL is ever leRaliZed they will be again"
When Commissioner Fink had ended,
President John A. King, of the Erie, stated
the passage OF the interstate commerce law
the Erie TO about $1,000. 900. Under the
pooling system the Erie received $500, 600 q
year as its share in the profits of the pool.
when the law passed this income
ceased and although the Erie had a differ
entail rate to the west IL can get none for
eastward bound freight King was unable
TO explain why the Canadian Grand Trunk |
road was able to get so much business un-
less u was that they are in the habit of Civ |
ing rebate. Senator Blair said: Now, |
Mr. King, you have seen the workings OF |
missioners any idea how il can be i'm |
proved ?''
To this Mr.. King replied; 'SThe greatest
benefit 70 American railroads would be to
put the Canadian roads that come Tito this |
country on a par with our roads, and if |
they violate any provisions of the law let |
them be pun shed: but make the penalty |
the same for both American and Canadian |
offenders. That Is all we can ask"