The Indianapolis journal., 1890-01-11
DISCRIMINATION IN RATES
Answer of the Pennsylvania Railroad
Company in Regard to Certain Charges.
Compelled to Accept Low Rates on Export
Business in Order to Meet the Competi-
ton of Roads with Canadian Outlets.

WASHINGTON, Jan. 10.-Answer was filed
to-day before the Interstate-commerce
Commission by the Pennsylvania Railroad
Company, the Pittsburg, Fort Wayne &
Chicago railroad. and the Pittsburg, Gin
cinnati & st. Louis Railroad Company, de-
PENDANTS in complaint filed against them
by the New York Board of Trade and Trans
portation. The complaint charges, among
other things. that since April 4, 1887, the de-
PENDANTS have been guilty of unjust dis
elimination. in that they have been In the
habit of charging their regular tariff rates
upon property when delivered to them at
New York and Philadelphia for transporta-
tion to Chicago and other Western points.
while charging other persons rates much
lower. and even as low as 50per cent. there
of. for like and contemporaneous service.
when the property is delivered to them at
New York and Philadelphia by vessels and
steamship p lines under the through bills of
lading. from foreign ports aud foreign in
terror points. etc.
Defendants, in their answer, deny that
they are guilty of unjust discrimination,
and that either of them is interested IN the
management and operation of steamship
lines running from New York and Phila-
delphia to foreign countries. The Penn
sylvania Railroad Company, the defend
ants say. is. however the owner of capital
stock and bonded indebtedness of the In
ternational Navigation Company to the ex-
tent of less than One-sixth of the entire ag-
gregate of such capital stock and indebted
ness. The said international Navigation
Company Is interested In several lines OF
steamships between Philadelphia and New
York and foreign ports, but the Pennsyl-
vania Railroad Company takes no part in.
nor does 1T assume any control or super
vision OF, nor does 1t claim or exercise any
exceptional facilities with reference to said
steamships by reason of said stock and
bond ownership.
The answer admits that under an ar
rangement expiring Oct. ], 1889. the de-
fendant companies formed with certain
ocean steamship lines through rOutes and,
by means thereof. were engaged, in con-
nection with said steamshl p lines, as COM
mon carriers in the transportation of prop
erty under a common arrangement for a
continuous carriage between points III
Europe and the city of Chicago and other
Western points via New York and Phila-
delphia; and defendants say that by the
universal practice of carriers constituting
through route under common control,
etc, for continuous carriage, the initial
carrier fixed the rate and subsequent
carriers under that practice did
not file tariffs of rates for the
through shipments. Defendants also
admit that they did receive as their portion
of the through rate, less amount than
their full inland rate. but say that if a
statement contained in the complaint la
table showing rates charged per 100 pounds,
In cases whore imports were carried by the
American line to PHILADELPHIA is correct,
In the special instances there set forth, so
tar as the through rate is concerned (which
Is not ADMITTEDLY, yet the divisions therein
shown credit defendants with less sum
than was actually received. But defend
ants aver that said rates. so far as correctly
stated. represent exceptional instances of
extremely low rates, the current and prev
alent rates approxmating more closely the
sum of the inland and ocean rates.
The defendants say they are advised that
the acceptance or proportion for the in
land carriage less than the local inland
rates was necessary, and they give their
reasons why they think such rates are JUS
tihable. Their chief reason is that such
rates have been rendered necessary in order
to obtain traffic via New York and Phfla-
delphia as against the competition of the
route via Montreal, for by this latter route
five hundred of the eight hundred miles
OF railroad carriage is upon Canadian
railroads, not subject to the jurisdiction of
the commission, and only three hundred
miles upon lines of railroads within the
limits of the United States Defendants
say that the agents in Europe of the
route to Chicago via Montreal competing
with the agents of the defendants through
hne TO the same points, rendered to the
shippers the option of movement from Mont
real. either by the railroad via Detroit or
by the water route via the Merchants line
of propellers. and constantly bid for said
traffic at a through rate lower than that
fixed contemporaneOusly by the defendants'
through line. Defendants therefore aver
that the said through rate and the division
of the rate thereon were. for these reasons.
Justified under the law. and In this behalf
invite the judgment of the commission.
lnasmuch. however, they say in con-
clusion. as any order which might be made
restrictive in the future of the practices by
the defendants as herein amitted, would
work great and unjust prejudices to them
unless all the competitive lines from the
seaboard inland were also in like manner
restrained and restricted, it is suggested to
the commissioners that. under their ample
powers in this behalf warranted, they
cause the said carriers by competitive
routes 10 be made parties TO this industry.
The defendants pray. therefore, that the
complaint In this case be dismissed.
Personal. Local and General Notes.
Thomas Noonan. who represents the Big
Four road at Chicago, Is In the city.
The net earnings of the Lake Erie &
Western road for 1889 were 81, ,24O,O50.
II Is expected that the Louisville, New
Albany g. Chicago will to-day close @ con-
tract for 500 new box cars.
Geo. Cochrane, who is the Western traffic
manager of the Erie road. was In the city,
yesterday, on official business.
The Chicago 81 Alton and the Union Pa
cifc have agreed to put on through trains
between Chicago and Denver on March 1.
L. M. Connors, of the Big Four offices. has
taken the position of traIn-dispatcher of
the Cincinnati, Hamilton d Indianapolis
road.
Arthur Wells, the new superintendent of
the Ohio, Indiana & Western road, reached
the city last night He will take hold on
Monday.
Durbon, o.. is the point where the Ohio,
Indiana ~ Western turns its east bound
business over to the Eric under the new
arrangement
w. K. Black, superintendent of the JEFF
fersonville, Madison & Indianapolis road,
who has been seriously i'll for three weeks,
Is about again.
The Baltimore & Ohio road gives notice
that the grain blockade at Baltimore is
raised. and shipments of grain will now be
handled promptly.
G.. w. Stevens, purchasing agent of the
Ohio * Mississippi road, is in the city to
make contract with the Indianapolis car
works for lot of wheels.
The Cleveland 81 Canton Railroad Com
pany has decided to build branch from
Solon. o.. to Chagrin Falls. Work will be
commenced in the early spring.
Z. L. Leonard, president and general
manager of the Toledo. Peoria IL Western