The sun., 1897-03-16
NEW YORK'SHIGHFREIGHTS
INTERSTATE COMMERCE C0MHLs-
SION HEIRS COMPLAINTS.

Produce ESchnnEo says Philadelphia, Baiti-
more, BOSTON. ana Newport Nows Are Get
ting Away Our Export Trade Because OF nn
Unfhir Ruie OF the soint Trnnnc Association.
Tho Interstate Commerce Commission met
in the Board Room of tho Produce Exchange
building yesterday TO investigate the charges
preferred against forty -four railroads. form
ing tho Joint Traffic Association. The COM
plaint Is that these roads maintain from in
terror Western points to tho Atlantic son
board certain differences In freight rates
called "difIerentials." which are entirely ar
btrary and give to rival ports unjust advan-
tages over New York.
AS result OF this determination tho ship
ping interests at the port of New York have
suffered, while. it is alleged. those OF PhiIa-
delphia, Baltimore. and Boston have pros-
pered enormously. The Produce Exchange
asked fo- an investigation by the com mission
and for its assistance IN establishing uniform
rates.
-Four members Of tho commission wero pres
ent yesterday-M. A. Knapp of New York. act
ing Chairman; J. G. Clements of Georgia, j. d.
feomnns OF Iowa. and G. II. Prouty Of YER
mont. Tho lnr-er lines OF the Joint Traffic
Association were represented by thoir attor-
neys The session yesterday was taken up by
the statement of complaint made by John d.
Herman Of the firm of Baldwin & Blackmar.
attorneys for the Produce Exchange. and the
examination of one witness.
Mr.. kerLan raid that the system Of discrin,-
mating agalnst New York was instituted In
1882 by the Advisory Committee OF the trunk
lines The discrimination against New York
was made on the grounds that The Erie Canal
gave this port undue advantages, and also that.
ocean rates out of New York being lower than
those ont of ".her ports. all Western shipments
10 Europe passed through this port. For these
two reasons grain from Chicago to New York
was rated at 20 cents q hundred; to Philadel.
phia, 8 cents; to Baltimore. II cents. This
proportion has been maintained for all kinds
of produce coming from Chicago or Buffalo.
Mr.. Herman said that neither of the conditions
which this discrimination was justified
operates to-day In favor of New York, since
the Erie Canal has ceased to be factor in rates
and ocean charges are practically tho same
from all ports included in the schedule of the
Advisory COMMITTEES. Up to the time OF the
formation of the Joint Ira he Association. At
as insistent upon enforcing the discriminating
rates. and the port OF New York WAS able TO
hold her own. But since Jan. ! of last year.
the smbers of the Produce Exchange ray,
freight rates through New York have been
hiZh that the shipments have fallen OFT one
pense are Philadelphia. Boston. Baltimore.
Norfolk, and Newport News. At these ports
the advantages OF free storage, freo insurance,
remission of elevator charges. and other ter
minal favors are such that even New York
merchants are now sending their ships to these
places 10 receive their cargoes
The Produce Exchange asserts that it Is
manifestly unfair that the Joint Traffic AS
Norfolk. Va. which is aeventy-two miles
further than to New York. for cents less
hundred pounds, or e. to Boston, on; eiRhty,eight light
ther point OF grievance against the railroads,
as the r,tes are lowered from year i to year. the
New York IN favor OF Philadelphia and tho
other ports.
fully investigated by tne commission and tLnt
these aiscrimin- tions against the port Of New
York be abolished.
asking what the Produce Exchange ex oected
the board to do in case 1t found the rates TO
increase rates to the other ports?
Counsel replied that In view of tho financial
Visnbe to OF order the rates to other norts raised
Commissioner Prouty said he regretted to
state that when it came to ordering change
or attempting to enfoIc ce rules the Joint Traf
fic Association was not In the habit of recog-
nizing the body known as the Interstate Com.
Counsel then submitted a series of tables
showing receipts and exports at the five pcrts
aoer be- Used d'StHssn dnrior s the % investra.on T.
Brown. the statistician Of the Produce E1-
CHI Inge. who prepared the tables, was dues-
toned bv the defendants counsel as to the
sources of information from which hey were
compiled. and. after some discussion, one
table was thrown out on the grounds OF hear
The first witness TO be called on beh alf of the
Produce Exchange was LLOYD Mitchell grain
city. He stated that the firm had found 1t ad-
vAntageous 10 send grain for export from the
elevators in Buffalo to philadelphia in place of
bringing 1t to Ncw York. IL was their custom to
send ships from here % load at Philadelphia.
They began to do this. he said. in 1896. because
tho rates were cheaper. Full cargoes were fire.
Quently sent By way of Boston. because that
port gave free storage for twenty days. equal
to from one hat to three-auarters cents per
bushel He stated that his firm and other slip
ping merchants found that the difference in the
cost of sending corn to Europe in the Southern
cents a bushel. Southern porte included Phil.
adelphia- The reason OF sending by way Of
w6s News Se YIS
1t was cents. He then presented u table.
which tended to show that his firm hnd shipped
1891 and only 20 per cent. in 500. the rest
going VIA the other ports. This falling off was
due 20 the rule of the Traffic ASSOCIATION in his
estimation. The counsel for the Pennsylvania
road asked the witness what year the percent.
age OF shipments at New York began to fall
from II per cent. to 81 per cent, AT the Same
time the amount of full carg1es shipped at Phil
adelphia increased. On being questioned he
admitted that one reason for the Increase aJ
Philadel phia was the immense crop Of grain
and larger foreign trade in grain, which tend
This being the case he was asked, was not the
falling Off at New York due to natural an not
artificial causesr He admitted that It would
OF grain in '95 than in '06y Yes. Then tho
percentage would be still lowerr Yes. Still
fhs TO e IL a e
OF shipping at the port OF New York was due TO
discrimnat ions in charges made by the Traffic
Pennsylvania road eRid hr had no further cues
tions TO ask and dismissed the witness. The
hearing will go on to-day.