New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-06-23
AS SEEN BY MIR. DEPEW.
OBSERVATIONS on VARIOUS MATTERS
DURING HIS RECENT TRIP.

THE EVILS OF RATE CUTTING-sILvER IN THE
so,,TH-souNp MONEY. HE SAYS. WILL.
ULTIMATELY PREVAIL - THE
POLITICAL SITUATION.
During his recent trip to Nashville chauncey 81
Depew passed three great railroad sys'en,S'
and met a number OF railroad men, with whom "'
talked about railroad affairs The question OF ra'
cutting. which is just now agitatins the ra'Hoa'
men OF the country, looked into by MI. DC
pew and when seen at his Office in the Grand cen
trail Station yesterday ne talked interestingly about
this troublesome question OF rates ana rate "S-
elimination. He said:
with the business Of the country In an I'M
usually healthy condition. with Industries rsvNihs
on all sides with the greatest rapidly. and with
crons already assured or exceedingly promising,
everything ought to be moving on ana upward
with a bound. The country has never had so Huci'
money Confidence Is almost completely restoreu'
and enterprises for the employment OF cap'-
tai and labor should speedily be under way. There
is only one drawback to the rosy outlook for n
Nations prosperity. This drawback Is the persist
ent rate-cutting which railway managers seem I'M
able TO control. We have earnestly tried during
the last six months. during which time We nave
held many meetings and adopted many devices
only have them fall TO pieces through the lack
Of good faith the part OF some railway mana
TO put an tnl 10 tlllS piaSt''' '''' "~''
known fact that a chain is no stronger than us
weakest link applics TO the maintenance of rates
where there so many competitors.
4 CASE IN POINT.
THE roads which persistently violate pl$'ges by
cutting rates do net control 30 cent OF the
business but the losses which they occasion 10
the entire system are greater than their gross re-
ceipts As an illustration OF how rates are cut
will cite a recent incident which came under my
notice Before the recent agreement to MAINTAIN
rates went into effect one OF the lines entering
into the agreement believed from representations
made to It by OF Its best customers that aho'he
line had offered to carry his traffic for one year
AT one-half the rate agreed upon Ona o'heT me
took the same course The result was inc pr'"N-
ing of the agreement before II went into erect anu
each line began to take business at any price Tor
which Il could secure IT, There was no Ulpuha'
10 ascertain whether the reports upon which these
roads acted were true or not The Decentralization
on the castbound and wos,bound systems Is greater
70 day than II has been for years. lheTe II aOS"-
lutey no reason for H. 1t Is simply squan'er'"s
the money Of railroads and doing no good Tor Inc
public The folly OF ratccutting is always demon
stra,cd by the cutting being instantly discovered
and met so that the cutter gets no more tonnage
than he I'D before but carries what he does get
for one-haN what he would have received II ne
had maintained rates.
I'm the rate-cutting 81 the last three months the
amounts carried by all lines have not varied one
tenth OF per cent from the percentages agreed
TO be awarded 20 that line II II kept Its agreement
The question OF the Generalization OF railway rates
is as important a. the tarin the currency ques-
lion and is worthy OF a Presidential procaHiuon
The transportation rate hXes the price o' every
commolltv whether raw material or manu-
featured Therefore. rates by all lines from all
points similarly situated to all places similarly
s,,uai.d should be the same. and should b" as
...f.f He
letter Then no advantage could be secured 10y me
rich shirr,r or the great trust over ne 'ni"irshs
n.ighbor who has less capital but equal AFFINITY
..rhc Interstate Commerce Law prevents one hr"
from, discriminating against it9 shippers be' "''''
,h.-e are ten lines the law does not Apply Inc
result IS that have known this 10 haii"h
weak line goes to a great merchant. say IN 'hl-
coe, for instance and says. The wcsibound r"ie
n, your class or goods is - cents a hundred We
Will carry Il for 40 In THIS way the N'' having
this large shipment would not rush In :" SOLICIT
business and demorallze mo genera market Inc
result Ia that the other lines cont'nu" 10 '"h's'
=, cents a hundred Now. wha; Is the result upon
.,o ,uti,c, The p-on, on his freight enables this
large shipper TO undersc all his riva.s N Chicago
I, enables him 10 draw customers away from
cleveland Detroit. Cincinnati! St Louis ana f'iis-
burg because thor merchants pay 'ui "'shi
rates In other words. a general d"inoi"'AA'v" OF
rates +, Effected the tendency OF which Is TO bu.i
,rd IN buui great cities and destroy smaller onr'.
This decentralization has been greatly increased by
,h nrov,s,on OF the Interstate Commerce law which
prohibits pooling
A REMEDY FOR RATE-CUTTGN1
9TH. oniv remedy !s A pooling law. under which
tho railroads can make contracts win proper pen
aliies for their enforcement. these contracts 'ny
T., be made with the consent ara appr"NN ~ N"
Interstate Commerce Commission and subject 20
,.fef. o,I lt
tina, the Government VIII have It's hands upon the
,.era,,us Of the pool The next thing 10 do - 70
r.,eal the PROVISION OF the Interstate Commerce
law which makes the violation OF IN" Ia" a penal
offence upon the part % railroad oh''al-and rae
cutting IS penal offence under THIS las" Ihrre
70 a feeling among railroad men that causes ihen
70 decline 10 inform upon one another In case oi
r,tn-cu,t,ug which they DO not consider a crime "
they believe their testimony Will send 4 brother
omc!al 20 prison. In place OF TINS provision pro
vide FOR heavy fines 20 be a"-"ss'i upon IN" com
many violating the law. Then the officers OF III"
ca NINA MEG that obey the law 10 the letter would
tumble over each other In their anxiety to expose
~. criminal organization and assure for the GOV
eminent the prescribed fine. Thus an oihrer could
not break the law at Will. or he woulh be 80 "X-
pensve TO the company that they would hav" 10
dispose OF his services. Thus his position would
depend upon oboying the Law, and he would doubt
les, respect H. OF course when there is full rarc
and plenty OF business for all. there is no rae-cut-
ting but when there Is general sta2naton or de-
mOrazation OF business ratc-cuttlns Is most severe
ana severely complexities the situation ana blocks
any policy for general recuperation from the de-
preston existing.
The passenger situation is very good. Within
the last month people have begun to travel as they
did before the panic and passenger rates are well
rnainta aimed II the freight rates could be equally
well maintained. with the bright prospects OF In
crcasing railway traffic and the glowing promise OF
abundant crops. should indeed look forward to
q period Of unequalled prosperity.
FREE SILVER IN THE SOUTH.
Mr. Depew made some interesting discoveries con-
corning the free-sver craze during his trip through
X eniucky and Tennessee and as a result he Is not
80 much disturbed the situation he formerly
was. He said:
Kentucky and Tennessee are supposed to be the
centres OF the free-silvcr sentiment /