Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1904-05-19
DIFFEREuiiAL RATES
Between West and Seaboard Before
Interstate Commerce Commission.

New York, May 1.-THE Interstate
commerce commission, today. began an
investigation of the differential freight
rates of the Seaboard from the West
on merchandise intended for export
Grain rates are chiefly at issue and
secondly grain products. flour, meal,
feed, etc, but the investigation in
cludes all export goods. The formal
Washington for the investigation said
it would include traffic by all rail and
water and rail lines between interior
points and the North Atlantic ports,
New York, Boston. Philadelphia, Balti-
more, Newport News. Norfolk, Port
land, Halifax and Montreal. Formal
notice was sent to all the Trunk rail-
road lines and to the commercial bodies
of the cities directly in the investiga-
ton The circulars asked the railroads
to be represented by men prepared to
tell the facts in the rate dispute and
it was anticipated that the railroads
would be represented by well-known
counsel. The notice of the session, how
ever, stated that the commission would
be pleased to hear arguments and evil
dence from any person or persons in
terested.
Representatives of trade and rail-
roads from all parts Of the country
east of the Mississippi river were pres
ent. Besides the New York trade bodies
there were representatives from New
York and all the Trunk lines and their
subsidy lines. Chairman Knapp an
nounced that inaslnuch as New York
city occupied n position peculiar to
itself in the rate dispute it would be
well to hear from its representatives
first. BENZ. Fairchild who with j.
Carsile was present in behalf of the
Merchants Association said that New
York wanted only just and equitable
rates from all parts. He presented some
statistics which he said would outline
New York case and added that they
would be discussed in detail later.
J. Rich of Boston. general solicitor of
the j. & NJ. Railroad Co, said that there
was misunderstanding as to the position
occupied by the commission. The COM
mission might adopt any one of three
plans. 1t might act on advisory capital.
it might say whether there has been an
interstate commerce law, or it might
recommend whether diffcrentials should
lie abolished. He believed that the com
mission should make clear at the outset
what it intended to do. In reply. Chair
man Knapp said the commission only CON
sidered it necessary to state at this time
that it wants to know how the diiferen--
tials have effected the carriers. ports and
public. Mr.. Rich said the Southern Rail-
way in 1850 has said baltimore was en-
titled to a three per cent. diiferential com
mission. The interest of the Il. & NJ.
Railroad would not be satisfied If this
commission only decided on whether the
In w had hepn ViOlJtpd Ch1S. =. iilmtin
of Boston. general counsel for the BoS-
ton Chamber of Commerce. said Boston
asked no favor and only wanted recogni-
ton for fairness as against diffcrentials;
favnring Soulnern ports. Boston wanted
to be placed with New York i'm a plea for
equal export and import rates.
Mr.. Guilford, traffic manager of the
New York Central. said the New York
Centrals grain export and domestic rates
to New York are the same for the reason
that the Erie canal makes no distinction.
The differential of " per cent. in 1884, ne
said. accorded the Pennsylvania and the
Baltimore & Ohio related only to Phila-
delphia.
His company did not approve of differ
entail rates. The rates cause railroad
wars, destroy stability of trade and are
commercial threat constantly and ne
rate to all PARTS. That, he believed. would
accomplish this he relieved it would be
nect Ssary to take the lowest rate.
Mr.. Guilford expressed himself that ar
hitrary difTerential rates worked an in
jury to New York. The New York Cen
trail. for instances. does not get a chance
to compete for freight that it is arbitra-
rily obliged to carry at rates higher than
railroads going into Baltimore and Phil
adelphia. 1t was. in his opinion. a case
of taking New York for the benefit of 9TH
er cities. The dfferentiai agreement was
forced on the railroads to stop rate
war, he said, and was not reasonable
when 1t was conceived.