Evening star., 1898-11-19
LOSES EXPORT TRADE
Probable Effect on Baltimore of
Change in B. and O.
The QUESTION OF DIFFERENlIALS
Contest fer Supremacy Between
Hill and Murray Interests.
COMING ANNUAL REPORT

While II is generally understood the finan-
ciaI troubles by which the Baltimore and
Ohio Railroad Company have been so long
surrounded have come to an end. II is
tended that the day is not very far distant
when it will be that the change of
ownership has caused loss in the export
trade of the monumental city.
The purchase some months ago by Chi
cago capitalists Of a large block of the Sc
CCrities of the Baltimore and Ohio Company
from the reorganization syndicate and the
sale Thursday last by the Johns Hopkins
University trustees. the state of Maryland
end other Ral;imorCans of their holdings
to the New York capitalists mark the pass
ing forever from Maryland fpanciers of the
control OF the road, and place the manage
nent of the great corporation with those
whose larger interests lie in New York or
Chicago. and it is believed in some quarters
that Baltimore will soon become as much
Of way station on the Baltimore and
Ohio line as are Cumberland. Grafton and
scores Of other places that can be named.
For many years there has been a contin-
ual war between New York and Baltimore
exporters OF grain over the fact that the
latter city enjoyed a differential of 5 cents
Per hundred on grain products shipped east
from Chicago. 1t is claimed by New York
merchants that one result of this has been
a great decrease in the amount of it's for
eign export trade during the last few years.
and it Is asserted by parties who are in a
position to know that the port of New York
fas lost per cent of the total foreign COM
merce of the United States during the last
two years. II would not take more than
twenty years. it is asserted, to put an end
to New y Ork : entire foreign commerce at
that rate of decline. What such a loss
would be. considering that New York's
Foreign commerce comprises III per cent of
that of the entire country and is valued at
between eight hundred and nine hundred
millions of dollars, is subject which is be-
ing seriously considered by the merchants
of that city.
Existing DiTerentiaI.
The differential referred to has existed
for many years, and although the New
York people have several times gone to
Congress and sought the aid of that body
10 secure legislation which would break it
up, they were never able to get any relief
. from that source. Whether the differentiaI
will be maintained, now that persons who
are more interested in New York's business
than that Of Baltimore are to operate the
road. is matter that cannot be settled to
the satisfaction OF Baltimore grain export
erS at once.
A recent report from the chamber of
commerce OF New York declared that the
prime causes of diversion of traffic Were
First, the charges for lighters, ware
houses, elevators. etc; second. want of suf-
ncIent depth of water in the harbor to ac-
com1nodate the large and profitable class of
vessels now used third, the failure TO
make improvements in the Erie canal"
The report added further cause the lack
of terminal facilities. and stated that New
York IS the only city in the United States,
In Great Britain or on the continent
where the traffic cannot be transferred d.
-eCtiy from to ship
1t is the only city the Atlantic coast"
It was said, which has not increased its
percentage Of import and export business
in the last twenty years.
'Dinerentials, the report went on to
say were first agreed upon by the rail-
roads in 1869 To prevent rate wars. 1t mas
been found necessary TO continue these diff
1eTeutial contract relations between the
railroads. While it cannot be hoped to
abolish the differential system entirely, on
account Of the armed neutrality between
the railroads. it must be met. Three ele-
ments enter into the fixing of the differ
entails: First. distance: second, competi-
ton; third, cost. Terminal facilities consti-
tute part Of the third element. New
iork's harbor is quite as good as Boston
haTbor. but Bostons export and import
traffic has continually increased since 1873,
while New IOrk's traffic has continually
decreased
acquired Facilities.
1t is also to be considered that with the
purchase Of the Baltimore and Ohio prop
erty the new owners come into possession
On staten lSLdLQ OF lNG very IdCllltlSS which
are needed to remedy the existing troubles
to large extent. and. while it would take
3 little while to build a connecting railway
SO that these facilities could be made avail
able by the various lines which now termi-
nate III Jersey City, the expenditure in
vOlyed would, it is believed, be a paying
investment.
There is much alarm in Baltimore regard
ing the possible abandonment of the differ
ential by the new owners of the Baltimore
and Ohio. and the Merchants and Manu-
faCturerS' Association of that city is
deavoring to enlist the merchants of Chi
cagO III an effort to continue the present
system.
Great interest Is felt in the details OF the
forthcoming annual report of the receivers
~ the Baltimore and Ohio Railroad Conn
pany, an abstract of which was given to
the directors at the annual meeting, which
was held yesterday. and will be laid before
the stockholders Monday.
Il is stated on excellent authority that the
fun report viii make much better show
ing than that Of last year. As the readers
Of The Star already know a vast amount
Of money has been spent or the Baltimore
and Ohio property, both from the proceeds
or the receivers certificates and from earn
ings 1t is also Well known that the road
has for almost its entire length east of the
Ohio river been brought up TO high state
OF efficiency. and II Is expected that the
port will show a great increase of the
Eumber OF tons hauled per train load.
1t is stated. however that the new own
ers Of the road will aim at higher results
than hauling big train loads, and it is with
the object Of attaining results much more
remarkable that Mr.. Hill has been called
into consultation
The report is further expected to demon
ktrate how closely the Great Northern road
of which Mr.. Hill is president, and the
Baltimore and Ohio, In which he is Un-
dOubtedly dominating factor. will be al
lied in the future.
Financial Exhibit
The financial statement made at yester-
days meeting was follows: Gross earn
ings. 81. 1876. s2.1+O Gsi5 increase Op-
Grating expenses. SO 2T6 09I "a s263 ,99T in
crease. Net earnings. STAG. 696.52: 81 ,s76,-
G;S increase. Income from other sources
H.ol7.4T7.I6: s23.239 decrease. Total. S.
4bifI33s5 81 l.sj3.i2S increase. Deduct net
earning Washington branch S127 405. .9S
leaves as available income, s. s2s:;6. T6S: fixed
charges. $N.1l6.I2I.41; balance. $3.50, ,04U. 80:
81 3';1. 1Gl Increase
As i already well known in July last Mr.
IiiI formed a syndicate which came to the
relief OF the Baltimore and Ohio reorgani-
Zation committee, interesting such men as
Philip D Armour. Marshall Field y ornan
b Ream and others. II was then under
stood that Mr.. Hill had agreed TO sscY,r,, os