Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1889-05-07
OUR RAILROADS.
Their Managers Questioned by
the Senatorial Committee.
Competition With Canadian Roads Dis.
cuSSed.
Advantages and Disadvantages OF the
Interstate Law-Pooling and How II
Was and l. Carried on

] he Senate committee 10 investigate the
relations of Canadian to American roais me,
again today at Fifth Avenue hotel Senator
| Cullom in the chair. The other Senators
were Reagan, Harris, Blair, Hiseock and
/ German.
| Albert Fink chairman of the Trunk Line
Association was the nrst witness examined
He said The pool does now attempt to di-
rect freight nor divide profits. In other re-
spects the pool is now as it always has been.
| The Canadian Grand Trunk is allowed 10
make discount on all freights. American
roads are willing, and as they profess TO
obey the Injunction of the interstate com
merce Law. We see no objection 10 allowing
them a lower rate. The annual tonnage
| from New York city amounts 70 800 600
tons. Of his the Grand Trunk carries
about II per cent, coming east via Toronto
and Montreal the annual tonnage is about
| / 800, 900 tons, OF this per cent. is car
red by the Grand Trunk road. OF the rest
of the freight coming east the Grand Trunk
gets about IL per cent. The annual ton
mage OF the freight westward from the in
terror of New York State and Pennsylvania
is about equal TO that of New York city, and
the Grand Trunk receives similar percent
age. From Boston the yearly shipments of
freight amounts to about 300 900 tons and
of the New England freight going west
In reply to the question By Hiscock as to
what effect the adjustment of the differen
tal rate allowance would have upon Canadian
roads Fink replied that he would have to go
out of the business and American roads |
would get the traffic which now goes to the |
Grand Trunk.
Senator Co lum-What is the object of the |
diftrebtal rates
1t gives other roads an opportunity TO |
carry freight for less money than competitors |
and receive fair share of the profits.
Have YOU heard any complaints comias |
from American roads because of the amount |
of traffic which is going TO the Canadian
trunk lines?
Yes some roads object believe.
Then, if there was no pool or any Grand |
Trunk road the American roads would be /
benefited Is that so?
Some of them would.
Senator Blair--ls there any discrimination |
in rates between Boston, Philadelphia, Balt- |
more and New York aud Southern ports:
No, there is no discrimination la land |
rate charges with the ocean rates for freight
to Liverpool, the roads cannot do as the !
inter state commerce law demand' in regard
to two days notice, when charges are made,
but rates are published each day.
Senator lIscock k-DOes this take business
from Charleston, which is much nearer the
cotton ft Ids and should be big export city:
| think not. Changes in the freight rates
are made because of the difference between
Liverpool and northern and southern states, |
Senator Blair-Ilas the Canadian Trunk |
Line any natural advantages over the Ameri-
can roads which would warrant a large in
crease in business:
No sir.
Then Why do some roads need difierential
rates2
In most cases because they are not first
class roads.
Is not the manner in which the railroad
business in this country is conducted argn- |
ment in favor Of consolidation of all the
various roads under one central management |
b, the State:
That Is what We are coming to, but for the |
pre- sent believe it to be better for the roals
to roads to remain under the present man
agement. Pooling is entirely Misunderstood |
by the public 1t is practised by railroads /
and governments in all countries. The law |
should establish the rate AMI then keep it /
Ii is the object of the interstate law to make
a liked rate and then maintain it by punish
ing those who break it In pooling the |
same end is arrived at. Instead of punish !
ing the offenders, the pool is 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 a single punish
menr tor violating it. The reason is that
there are only five commissioners to look out
for 100 ,Oee miles of road Since the pas |
sage of the law there has been more schem- |
ing, jugglery and trickery to evade the law |
than ever before under the system of pool |
ing. Rates were fairly maintained. If it |
is ever legalized, they will be again.
When the commission of Fink ended pres- |
dent John King of the Erie took his place.
He stated that the passage in the insterstate |
commerce law for the abolition of pooling, !
cost the Erie road about $1,000 900, and
under the pooling system the Erie received
$500 600 a year as its share in the profits of
the pool Although the Erie road has
differential rates to the west it can get none |
for eastward bound freight. President King |
was unable to explain why the Canadian
Grand Trunk road was able to get so much |
business unless it was that they are in the |
habit of giving rebate. 1--WE don't ask any |
advantage over the Canadian roads that come |.
into this country" said Mr.. King, but we
do want them to obey the same laws that we
do"
Senator Blair-Do YOU know of any good
that the interstate law has done!
Yes, it has shown the roads that there is a
stronger power than they. 1t has forced the
roads into practical competition with each
other. The greatest benefit to American
railroads would be to put the Canadian roads
that come into this country oil par with our
roads and if they violate any provisions OF
the law let them be punished, but make the
penalty the same for American and Canadian
offenders. The passage of the interstate
law caused the Erie road to cut down e1-
penses about $500. 900. 1t is now making
about as much money as before the passage
of the law.
Senator Hiscock- would he the re-
suit if Congress should pass law forbid
ding competitive rates for freight?
think it would greatly reduce the rates
for the roads aud in no way benefit the pub
lie.
At five o'clock the committee adjourned
until ten o'clock tomorrow.