New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-11-12
} -

such the Central had there was only one policy
to pursue and that a policy OF compromise.
He acted upon the idea that the only thing TO DO
was 10 make the best OF the conditions they
existed. In the OF his testimony Mr.. Gala
way said that an equalization OF rather than
the distance between the points was the principle
upon which the dinerentals were based. Perhaps
of the most important statements brought OUT
In the testimony was substantially, that there
was little any prospect OF drerentias being abol-
ished; that competing railroads would always claim
their fair share OF the traffic to Atlantic ports.
and that whatever advantage New-fork might gain
over other ports by improving her port facilities
and attracting trade thereby, that advantage
would have be Offset by diferentials IN FAVOR OK
railroads tributary 10 the ports.
In the course Of his testimony President Galloway
said that the question of differentials was very
large one with which the New-York Central had
been wrestling for years. There were three eie-
ments affecting the traffic OF the country, Wiz COM
petition among the railroads. rail and water COM
petition and commercial conditions Railroad rates
and tariffs he said. built upon continual
system of compromises. but the New-fork rail-
roads felt that the present dfferentials wero LOO
large. Continuing, he said:
In making rates to New-York we have to take
into account the condition Of our competitors and
make the best adjustment OF rates possible our
position that the diferentais are TOO ngh, DIs
stand any great reductions The drerential could.
perhaps be atter on of fact the Chesapeake and
0hi6 Railroad is now complaining that the present
oettira the business il ought TO get. The princi-
Die OF dferentials is equalization or through rates
tween points rates to certain ports would be lesA
than to New-York. and II dferenIias Tere aorts
wn9d claim they were not receiving their fair
of the traffic SO far as the " h
ton would naturally favor abolshing dln e,si
but as a far-mlnded man in dealing with my COM
petitors | must consider their conditions NO rail-
TInd G dcuity over derentials and rates win in
opinion at Least, nsyer Of De eGTsed until
Mr. Galloway gave a brief history Of the differ
entails beginning with the differentla Of 10 cents
per 100 pounds OF grain in favor of Baltimore In
1859 This reduced in 1870 after rate war;
10 cents per 100 pounds. at which It remained on,
grain and lower classes until 1876, while on first,
second and third class freghts the difreentiai
was 10 cents per 100 pounds. He said
In 1s75 the direrentals in favor OF Baltimore andl
Philadelphia For Baltimore. 10 cents . cents.
cents. cents and cents on hrst 70 tGu5h csn,s
cents, cents, cents and cents respectively. IN
1876 tariff was agreed upon making the rates ass
Chicago to Baltimore. 10 per cent less than Chs
Chicago to philadelphia 10 per cent less than,
Chicago to New-York. .. -. 49,, .,.n
Cincinnati TO Baltimore. "a per cent less than
cinciDnatl to Philadelphia 70 per cent less than
This was based on relative distances from COM /
mon Western points. Inc agreement idSN'i ono1
month and a half, the New-York Central ana Eric
withdrawing as the agreement gave TOO great an
advantage TO Baltimore and Philadelphia A rato
war ensued In 1877 rates were re-estapliSneu py
agreement on the basis OF fixed dinerentlais CIV
ing on eastbound freights from all points west
TO Baltimore 3 cents less than TO New ork anu
IN PHILADELPHIA cents less; on westbound irelgnts
the difference was from Baltimore. 5. D. ana %
cents on first to fourth class freighs. respecVe1s
and from Philadelphia, s. s. and cents; In lsV
the New-York Central withdrew from TINS agree
rnent because such rates were based on ocean
rates which had been reduced from baI.inore
and Phiiadelpha to the level OF New YORK COM
mission in 1882 reported against e. on
dfferentias. In 1896 however the . ,is sJons
grain was wiped out The Interstate Comm, ,snU ~
report followed 1897 and In 1888 at ine arranoe
presidents OF railroads In Washington ~ 80,
mont was arrived at whereby the batlIno,e 49,
sarential on grain only, was reduced dtonl
n 1is cents and Philadelphia from cent" :"
cent.
In repJy TO questions by Mr. FaircnIu. couns,' "
-, conuission Mr. Galloway said III speaking
- .,a present status of the negotiations ior INC
go y, tho Boston and Albany by the Ne"-iorh
|n,roi that the stockholders OF the boston Anu
Albany wanted a guarantee OF 3 per cent per
onn,m dividend on their capital stock. but that the
directors OF the NewYork Central had declined Al
,he,r last meeting to increase their oner OF pei