The daily morning journal and courier., 1895-11-30
YIEWS OF DR. DEPEW.
He Gives His Opinion the New Traffic
 Association.


 He Gives His Opinion on the New Traffic
 Association.
 New York, Nov. 29.-President Depew of the New York Central road, in the course of an interview to-day on the various opinions that have been made public since the scheme for the new traffic association between the sea- board and Chicago was promulgated, said:
 The interstate commerce act in pro- hibiting pooling, which is a word that scared the legislators because they thought 1t meant an increase of rates, promoted just that kind of competition which while furnishing unremunerative rates to the railroads gave the oppor- tunity also for the worst discrimina- tions ever known in the business. The bankruptcy of railroad, which cuts off the income of thousands of people, deranges and exchanges and dsturbs every kind of business, cannot be re- garded as a public blessing. To the extent to which it goes it is a public calamity The critic says if railroads do business for less than cost it is their own fault. But railroad in the hands of receiver will do business for the cost of operating and compel it's com petttors to do business so near the same line that they cannot earn anything or very little upon the cost of the prop erty, so that investors who have put their money into the railroads are in danger of being deprived of all return upon it. The interstate commerce act, | it Is claimed, prohibits discriminations and rate cuttings and anything done in l that way is violation of law. The in tersate commerce act applies to rate cuttings only by one man and says that no line shall give better rates to | a shipper than 1t gives to all shippers 1 by that line.
 l But it will take an illustration, not l thit it is a fact but simply to illus I trate. A Chicago dry goods firm re- cetves from New York only first-class | goods, the rate on which is 75 cents l hundred. The Ehie road is in the hands of a receiver The receiver must have money. He says to the Chicago con 1 cern: "The open rate on all lines is 75 contract with you for year at 35 cents per hundred and make that the open rate tby the Erie line"
 l Now the other lines must either make | the open rates 35 cents or they must maintain the established tariff. If the | open rate is 35 cents all other classes are made to conform to it, and the bus mess is then done at a loss. So the other railroads say there is limit to | what the Erie cam do, and we simply won't meet its rates. The Erie soon finds that this business is all it wants of that kind at that price and discour- ages any more. The result of this transaction Is that all of the competi- tors pay twice as much for transporta- 1 tion to Chicago and twice as much pro- portionately to St. Paul, Minn., Mill wukee, St. Louis, Cleveland and Gin l cinnau. Moreover the trade tributary 1 to these cities is driven away and goes | to Chicago. The Chicago concern is able to undersell its competitors, and | you have n year or two years at the outset the business of great territory concentrated in the hands, virtually, of | a firm or corporation, or in a trust, from competitors rushing to this firm to be taken under cover. This is the his l tory of every trust in the United States.
 If the other lines are compelled to meet this low rate from great shipping points like Chicago they do not extend equivalent low rates to the tributary points and the tributary points, conse- quently, are dried up, and the business drifts into one, two or three hands The sole object of this agreement of the | joint traffic association is to prevent this condition of affairs and give stable rates and equal rates to everybody. | Its most venomous enemies are those great trusts and combinations which l have been created by rate demoraliza- tion. They are determined to break up our association just formed. They are appealing to the public to prevent what l they call frightful monopoly-in other words, to break up a scheme which will prevent the formation of stronger 1 trusts"
 Don't you think, Mir. Depew, that these big trusts will get the better of your association after all?" was asked.
 well" answered MT. Depew, 'T should not be surprised if they did. Everything previous has gone to pieces on account of their attacks. I hope. however, that this agreement will stand"