The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-29

eliminated against In that they pay 20
the railroad company a. much without
that service az the shippers who receive
their freight through the Merchants and
other subs sod warehouse companies"
Mr.. Brandeis charges also that there
is a discrimination as between the ware
house men that In the absence OF specific
Instructions to the shipper the Pennsyl-
vania Railroad delivers these shipments
In Philadelphia at one Of the subsidized
warehouses
why should the Eennsylvania Rail-
roau tnrow away money! asked MR..
Brandeis. IN paying for service which
other warehouse men would perform with
out pay from the railroads b cause Of the
storage charge paid by the conslgnee?
The effect Of this free service on the
revenue OF the Pennsylvania Railroad
Company was illustrated by these Two
cases:
"f'lour from Buffalo Out of s125es
paid for hauling four cars A<g miles the
railroad company paid the Merchants
Warehouse Company S3s.1s. or 20 per
cent Of the revenue.
For hauling one car Of srits from
Oeneva. aga miles. the railroad received
.SS.se and paid the warehouse company
$lO.6l. or 81 per cent. of the revenue"
Mr.. Brsndeis says that free service In
loading or unloading carload fright.
similar TO those at Philadelphia, WAS
found at other places, notably Buffalo.
Freight Charges Eaten Up.
He gives the record OF several trans
actions Investigated by the comm lssions
examiners. In which he contends that the
amounts paid by the railroads to storage
companies for load ng or unloading have
exceeded the total freight charges col
lected
"A lot or thirty cars OF iron pyrites ar
irving at oirard Point, PhiladelphIa."
sad Mr.. Brnndtls. ARE shipped from
there to Marcus Hook over the Pennsyi-
vanis Railroad. The freight rate Is 20
cents per gross ton The amount paid
the Girard Point Storage Company for
taking the iron pyrites from ship side at
Girard Point and loading into the cars at
Girard Point 10 exactly 20 cents PR gross
ton
There In consequently not one cent
,'t out OF this freight money to pay
Tor the railroads sA-vice In trIpsport,np
these thirty loaded cars from Glrard Point
10 Marcus Hook In fact the pennsyi-
Vahia raid out to the storage co,nnanv
more than II received. for in addition 4,
the 20 cents paid by the railroad to the
storage company for each ton loaded on
the cars 1t pays also S7i4sO month
or Ss.6'1.60 year for the use OF The.
storage company's tracks and the salaries
Of bill ing clerks.
I'm other words, for the pleasure OF
transporting l.3li gross tons OF iron
sse7" ''""' "
Mr.. Brandeis adds mat the C;i-ar5
Ioint storage Company IL Pennsylvania
railroad subsidiary. that tire railroai
owns about ~ 600. 900 of the capital stock
OF the company. but that no dvid,nd was
received on H.
In regard to the Erie Railroad. Mr.
Brandeis SAYS the total freight revenue
or tnat system for the year ended June
80, 1913. Yves s<'.222s $40. The revenue
earned IN business destined TO or Original
ing AT New York harbor was about as nor
cent. OF the Erie's total freight business
Erfe's New York Busin-s..
Owing to the obvious important effect
OF TINS hrs ness on the financial condition
or the E-ie the comm!ss' on undertook an
investigation into the special services incl
dent TO the Eries New York busn. ss
The commissions investigate = find that
me freight rate on large part OF the
're'eht destined to or originating In New
YORK harhor is the same for Jersey City
ana Weehawken as II IL for the Island OF
Manhattan or brooklyn
That Is" SAD NJ. Brande's. The mer-
chant or industry at Jersey City or Wee
hawksn pays for the service that the E-,e
renders Il Just as much as the merchant.
or industry in New York city or BROOKLYN
the added espense OF gettins the freight
70 ana from New York city and Brookiy n
being borne nv the railroad"
MT Brandels charges that entirely