The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-09-24
GOBBLED THE CANAL
HUGE SCHEME ENGINEERED ny THE
NEW YORK CENTRAL RAILROAD.
Has Secured Control OF All the Boats
ON the Erie Canal and Killed
ON All scaIpers.

BUFFALO. N V, Sept. 23.-The Express
tomorrow will publish a three-coiumn
article. declaring that the New York Cen
trail & Hudson River railroad has secured
control OF practically all the tonnage that
floats upon the Erie canal and will there
fore. be in a position to control all freight
rates on the sanal The scheme whereby
the Central road has gained control OF
the canal tonnage is said TO have been
conceived more than year ago. II was
set in operation. IL is claimed on the first
day that the canal opened last spring. On
that day boats were loaded at 2s.c ON
the day following the railroads cut the
price to 2 cents from Buffalo to New York.
This necessitated the boatmen taking loads
at 1izc or 1sxc or lower. So shrewdly had
the New York Central done its work. that
until a few days ago nothing could be
seen In this but an attempt on the part OF
the roads TO drive the boatmen TO 90 out
of business. The scheme was deeper one
than that, however. The New York Central
saw that it could do better than Throw
the canal out OF business, even If X was
be iol so o9 s sSe Teere %oua s
harvest when the elevators would. not be
able to hold all the grain for the railroads.
extent that such times the railroads could
not hope TO be able to control IL unless IL
should be able TO control the canal So
the plan of gaining control OF all of the
canal boats on the Erie. making itself a
fast scalping company and forcing out all
scalpers. This. II is claimed. is just what
the New York Central has done. In doing
IL the company has been very careful not 10
show its hand. II he's operated through
three weil-known Buffalo canal men and
through them has gained control of 80 per
cent of all the boats on the Erie canal.
not boatman having come into the CON-
York Central company is behind the scheme.
Assurances OF protection 10 boatmen who
have mortgages on their boats held by
scalpers have also been given. IL is stated
that every boatman who has come into
the combine has signed an agreement 70
take no loads except such as are given
from the Office or the syndicate. II any
boatman should take a load other than
those assigend to him from the Office Of the
syndicate he is subject TO a fine OF 500 for
he will be expelled from the syndicate ana
denied its protection and rates.
The plan on which the syndicate Is being
worked is said to be as follows: The agent
of the New York Central railroad warrant
the boatmen good rates for carrying grain.
and In return the boatrnen carry only such
committee of the New York Central Rsf.-
road Company, who dictate TO the shippers
what they shall pay for the transportation
In this way they will be able 10 make their
own rates to shippers, secure the shaving
which has been going into the hands OF
scalpers in the past, and at the same time
do away with the fight between the canal
and the railroad. The combine will do all
the scalping hereafter and the individual
heretofore known as the scslper will be a
thing Of the past.
The final killing OF the scalpers came yes
terday when the syndicate drew up a con-
tract ard presented IL 10 the Scalpers' As
ISOLATION to be signed. This contract rec
ognizes the scalpers only as shippers and
not as scalpers in the old sense of the term.
The only grace allowed the shippers was a
clause which provided that they would be
given notice of five days of any change
in freight rates The scalpers conceded
everything demanded in the contract and
only held off from signing IL that they
might plead for an extension of notice time.
This question was considered at a meeting
of the syndicate boatmen tonight and re-
ferred TO the freight committee. At this
meeting also IL was said the freight commit
tee would advance rates either every five
days or ten days until the close Of the sea-
son from now on until the maximum rate
desired was reached. Before the season Is
over the Doatmen would be given rates that
will pay those in the syndicate for lying
idle all season