New-York tribune., 1896-05-09
WHAT CAUSED THE DIFTERENTIAL RATEs7

WHAT CAUSED THE DIFTERENTIAL RATES?
To tie Editor OF The Tribune.
Sir: The recent action Of the New-York Produce
Exchange In resolving to declare war upon the
Trunk Line railroads to secure an abatement OF the
differential freight rates on grain against New
Yory City is likely TO disclose humorous side to
a much-debated and serious question Possibly. too
II may furnish another Illustration Of the familiar
nroverb: Courses are like young chickens. and still
come home to roost." 1t need not be assumed that
the railroads without fault touching the SUD-
iect of differental rates, as whole, for on some
points they are manifesty open to grave criticism.
But It can. and perhaps Will, be SHOWN that 'he
especlal conditions complained Of by the New
York Produce Exchange were brought about oy the
Exchange itself A little history will help to make
this clear.
The Erie Canal from 1895. when It was first
onened until 1880 wcs the sole connecting link In
the highway of commerce between the Atiahuc
seaboard and the Western States Dorderihe Oh
the Great Lakes. For twenty-five years New-forK
haa the monopoly OF that commerce. Under the
stimulating effect of this great advantage the CITY
enjoyed a career of unexampled prosperity ana De-
came the chief commercial centre OF the western
world. The business Of the port. the capitai ana
the private interests Of leading business mep De-
came thoroughly welded to ways and methods es-
sential TO, and that were the outgrowth o. the
canal. A.. - ,-or, ,sso N
Xxx constituted a period OF marvellous changes.
Railroad building assumed unprecedented actvity' y
conneei,nr the sranares OF the West with the A.
antc seaboard Iron @ ancircIed the
globe annhlat!ng for business purposes Gosn
time and distance. Commerce was revoaohlier dsisr.
Tho Erie Canal longer supreme III u uete a,
mining the course OF trade Baltimore. Philadei-
pa and other had SanSs WITH fdcfh h eH
and invested millions OF money IN ways su''eu ~
The discovery OF rapid diversion Of business LED
to an awakening of New-Yorks business pubic; sr:
For time the railroads terminating sr mere esvators
etc. such rival cities possessed put IL Mas ,ss
learned that there was another side 70 'he 4ue'
To construct elevators at the termlns OF vtre the
on the or aTreed to adopt the
system OF grain grading would have been , toOi,Sn
ntsrence e Knows that the grading system is
essential TO the modern gram elevator as srair
Centres q OF the West and every Atlantic seaboard
cy had SdSp'ed ed tSs aSopss sss'fmn IN
because the business methods of the city the cap,
and the large bonnS fas To- the old
order OF things that had grown up with tne canSi,
Finally there came nsn t%e baa in iS 80 Toes loea
blocked the wheels q progress had to yield s,dIns The
Produce aaGptsa Grain tne
at the termini OF railroads sprang into exist ho
like %Ss and Rya wSen f
kened it was found there were different,ai rates
lowed a protracted and memorable war OF rates.
Eew-York striving to the utmost to regain ITS ioss
mort the differental rates were not wholly wlped
ont have never since been. and 1t appears doubtful
II they ever will be: =, .,,,,..L.r
The moral OF all this is too plain to be mistaken
Had the New-York Produce Exchange. at the cri,-
cai time recognized the inevitable and promptly
CON formed to methods demanded by the changed
Conditions instead OF clng.ng for so many years
served the private interests OF few influential
persons there would have been no lost commerce
- regain no large differentia rate for our rail-
roa is to fight against. and no small dinerential
ate sadded upon the port for an indennlte time 10
come ,on,
New-York, May s. 1886.