New-York tribune., 1902-02-21
HEARING ON RATE BILL
r. B. THURBER OPPOSES THE MEASURE
AND CRITICISES PRODUCE EX-
CHANGE MEMBERS.

ALBANY Feb 2o-The Senate and Assembly Com
mittees on Railroads gave a joint hearing this
afternoon on the Elsberg-Bedeu BILL introduced In
accordance with the suggestion in Governor OdelIs
message that to the Board Of Railroad Com1nls-
sioners be given power to hear complaints and TO
reduce or fix rates because of the allegat ton that
there is discrimination the part of the railroads
in making Buffalo a point where traffic is diverted
Boston. Philadelphia and other ports, instead OF
it being directed to New-York from Buffalo.
The bill prohibits any dferential or greater rate
for any service rendered in the transportation
and delivery of property at the port of New-York
than is charged for the service under like
conditions by the same carrier, under agreement
with other carriers to any Atlantic port outside
of the State 1t also provides for hearing before
the Railroad Commissioners and confers on the
board power to fix the rate for the future. The
rate shall prevail unless aside by the Supreme
Court application Of the carrier.
In favor of the bill appeared David Bingham
president of the New-York Produce Exchange;
Francis Herman of Utica. and John C. Seager and
John Valiant, OF New-York City. Mr.. Bingham
presented the principal arguments. and also filed
with the commission memoranda of facts concern
ing railroad discrimination and remedial legisla-
ton prepared by the committee freight rate
discrimination and terminal charges of the New
York Produce Exchange. He presented also facts
to prove that Buffalo traffic diverted TO Bos-
ton. Philadelphia and Baltimore. and to show effect
of the diversion of Western products from New
York. In conclusion Mr. Bingham said
we nave SHOWN COnClISiVCly serious diversion
OF the commerce of New-York State and city and
the consequent damage the steamship trade and
attribute this Iareey i to to railroad Discrimination
and believe the Elsberg Beden BILL # enacted into
law, VIII afford effective means for the protection
Of the commerce of the State The New-Yorl rail
roads having refused to comply with the recon-
mendatons Of the Railroad Commission to modify
me excessive terminal charges In the port Of New
ing appealed in vain these roads for protection
from the discrimination practised. we now appeal
the pending bill. which will confer upon an author
the State Board Of Railroad Conmissoners-pow
to enforce their recommendations. unless upon ap-
pHcauon Of the railroads they modified or set
William p Rudd. counsel for the New-York Cen
tTal Railroad, argued against the bill. and de-
clared that its enactment would work the great,
that under the bill it would be possible to obIige
from Montreal to Malone as it would To- carrv il
further to New-York City.
The principal argument against the bill was made
by F. B. Thurber. OF the United States Export
Association, who spoke in part follows:
To the bill under consideration, Senate No 400. 7
az am no nof opp opposed, as whole; but am opposed
Dover td 4g upon 3e KaFo2d on the
bin Study and observation have convinced me
unwise The pioneer OF ali raIIToad com88issians in
the United States and the most successful is
that Of Massachusetts. The act creating our New
York State Railroad Commission was based upon
ne ~ MasS5achusetts act 1t has the fullest powers
0njni01 ~ % @ o5o' & a @ can pCme ana 9rths ing puutc
Orr or the leglslature, II sufficient cause is shown,
The members OF the Produce Exchange are
suffering from diversion of trade from New-York.
which is due 70 natural causes, but they are seek
ing the wrong remedy. The development OF rail-
road lines TO the seaboard at the Gulf and South
ATLANTIC ports naturally diverted a portion OF the
export business 70 cereal products which formerly
came 10 NewYork. Our railroads have done the
best they could to retain that business. The
men who these railroads are more largely
interested in them than in those leading TO com
peting ports, and they naturally do ali they can
TO retain the commerce OF the port OF New-YorIS
But when competing ports orer special advantages
business follows the line OF least resistance and
some OF II goes elsewhere.
OF Bunalo the rates on which have averaged
curing the last year perhaps 3A cents a bushel
from Bunaio TO tdewater, rates which our canal
and have alleged that the railroads purposely
made them so IN order to break down the canals.
30 Tar as jne canals are concerned, heartily
agree with the members OF the Produce Exchange
who advocate their Improvement; but leading mem
bers Of the Produce Exchange do not come into
court with clean hands, for they are stockholders
In the floating elevator combine. which, shown
by the investigations OF the State Commerce Com
upon the grain commerce OF the port OF New-York
out OF all proportion TO any tribute levied upon It
by the railroads
They virtually in contempt OF court at the
present time, because when the legislature passed
law reducing their rates for elevatng they evad-
eo II by nomlnaIy reducing for eleVatng, but !
added charge for towing elevators, of which
moved by their own steam from ship to ship. of |
ne-half cent a bushel.
The net rate at the present time OF the floating |
elevator combine in New-York for taking grain |
out Of canalbOats and shouting IL into seagoing !
Included In the railroad rate of from to ~
q bushel (at different times OF the year. is the |
and transferring Il into railroad at Buffalo
and at New-York elevating ii from cars into the |
lightering the grain alongside the vessels which
convey 1t across the The floating elevator |
combine gets one-fourth as much the railroads |
get for two elevations 0he lghterage and carrying |
mtlea).