New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-02-16
THE DIFFERENTIAL SYSTEM.
HOW 1T DIvERTs TRADE FROM NEW
YORK TO OTHER PORTS.

THE PRODUCE EXCHANGE MAKES srAIh"f'
OF GRIEVANCES AGAINST THE JOINT TRAF-
FIC ACCOMMODATIONS CONCERTED
MOVEMENT TO SECURE REDRESS
The Produce Exchange through Henry u. Heoert'
chairman OF the special committee on freight rate
discrimination has expressed its hearty concur
renee with the efforts OF the Merchants Associa-
tlon obtain tho cooperation OF tho mercantile
assoca Ions Of this city I'm a concerted movement
to prevent the diversion Of traffic from this CITY
and to do away with determinations against New
York In the course Of his letter. when Is al
dressed to William f. King. president OF the Mer-
chants Association. Mr.. TIebcrt makes clear
statement Of the against the railroads com
posing the Joint Traffic Association which was
submitted 10 the Interstate Commerce Commission
In august. 1896. and which is still pending before
that body. MIR Hebert writes as follows:
1T is needless to say that this Exchange Is In
hearty sympathy and accord with your endeavor
to obtain from the railroad associations equal con-
ccssions in passenger rates granted to other trade
centres While your contention is not Of the same
character as the which the New York Produce
Exchange has with the railroads composing the
Joint Traffic Association still Il involves the same
principle. it is but another form of discrimination
on the part Of the railroads against our merchants
and if hostile to the commerce Of the city ana
Conmonw wealth OF the State Of New-York
RATES MADE TO FAVOR OTHER CITIES
while the railroads have efectually entered into
a combination through the agency Of the Joint
Traffic Association. which riGidly enforces trans
portation TAX at this port not charged al COM
petng cities on all east and west bound freight,
our mercantile organizations have remained
divided and disorRan Zed force against this DIS
elimination The Produce Exchange persistenty
and vigorously protested against the maintenance
Of these unjust differences in rates before the
Joint Traffic Association. but in tina; Board ran
road supremacy and ACKNOWLEDGMENT determine me
arbitrary oinerential and consequently the right
10 divert traffic from its natural channels Ihese
managers assume the right 10 parcel out AT points
OF origin the commerce Of the country to destna-
tons irrespective Of the exceptional claims OF any
one as TO geographical position superior natural
advantages facilities for handling. storing and
distributing traffic
The prospect OF relief through the managers Of
the Joint Traffic Association being remote. The
Exchange was compelled 20 appeal 70 the Inter
state Commerce Commission. and accordingly in
August 1895 fled n complaint before the Comms-
sion against thrty-eigh different railroad corpora
tons alleging persistent violation Of the Interstate
Commerce act unjustly discriminating against
New-York Ciiy by giving undue preference in east
bound rates Of freight 10 Boston. Philadelphia.
Baltimore Newport News and Norfolk We now
await their decision
The Exchange contended for the establishment
Of rates that would permit OF the transportation
Of grain and provisions from the primary markets
of the West To European markets at the same
cost via either OF the Atlantic ports Under present
conditions our merchants engaged IN the exporta-
ton OF grain and provisions compelled, parucu-
larry during the OF closed navigation on the
lakes and canal. when Ike all the ports. We are
dependent upon the railroads FOR our receipts. TO
order shipments OF their products via other ports
than New-York because they be delivered 10
the buyer abroad at from two to three cents per
one hundred pounds less cost, that being the !
amount u the direrentia In favor 81 Philadelphia
and Baltimore respectvelv
At hearings. Of the Commission held in New
produced showing a marked decline in IN" gram /
ana provision trades at this port and proving The /
dinerential to oe the cause IN 30 "neH the az
ferential system was established, New OK tx /
ported - nor OF the total shipments OF -four /
which time there has been steady decrease. New
Yorks percentage OF exports in 1875 being 50 per /
The terminal charges grain, -four and pro.
visions practically controlled BY the JOINT |
tenn n'' and these charges are mad~ uniform at mo
different ports to give full effect TO the dif-
control at the Port of New York. whore grain is
pany. which rebates a part OF these charges
LOSS OF BUSINESS AT THIS PORT.
The decline OF the full cargo business at New
York has been most marked. Charters Of vessels
TO carry fuil cargoes Of grain usually made
giving the shipper the option Of ordering the vessel
to either Of the Atlantic ports to load cargo at the
same rate. except between September and April
|, when Baltimore, Newport News and Norfolk
have a preference because OF an arbitrary regula-
ton Of the British Board OF Trade allowing vessels
sailing from those ports TO load deeper IhiS
"wlnter loadllne" regulation gives those ports an
advantage equal to about 500 trip. Thus II will
be noted that grain arriving at those ports at a
railroad three cents per one hundred pounds
less than at New York. md with equal ocean
rate. can be sold in the markets Tor consumption
abroad at price less than grain from New-fork
equal least TO the differontal.
THE decline OF business a, this port is not con-
fined alone TO tho expectation OF grain. There ma.
been considerable decrease In tonnage entered
al this port. and a corresponding Increase a. com
trade. The tonnage cleared from Nev-York dur.
ing the year 1895 10000 less than was cleared
during the year 1852. The tonnage entered during
the year 1896 was $4,000 less than during 1882
i'm ls2 vo thousand more vessels entered this port
than during tho 1896 While II is true that
vessels OF greater tonnage capacity have replaced
sms le- ones vet the decline Of the steamship
trade Of this port is most marked. which * sub
Three hundred and seventy-tNo vessels sailed from
Newport News during the year 1895. port not IN
sxisi enCe In lSS2.
we attribute the loss of business at this port.
after a most thorough investigation. to the diff
ferential system; believe IL TO he a discrmind-
ton against the commerce Of this port as unjust
In principle n has proven destructive In its
,pera don The dnerential system applies TO both
last and west bound freight and the prosperity Of
he steamship interests Of this port Is as material
10 the merchants generally OF this city 70 the
merchants Of the Produce Exchange.
I'VE heartily commend the interest your associa-
he railroads. and are In full accord with your
,rror,s 10 obtain the cooperation OF allied mcr-
'antle a-socia tons in a concerted movement for
IS removal
MORE ROOM FOR THE POSTOFFTCE.