^aJ %* ^.^ IMAGE EVALUATION TESi TARGET (MT-3) 1.0 I^IH IM 1^ I.I 1^ I!: 1^ M ^.0 1.25 111= U i 1.6 A// o V] O^^ ^^M ' ">* ^'^' "m c%. A7 »?i^ .V '^' o 7 ^o w Photographic Sdences Corporation 4^ ^ iV s V ^ signifie "A SUIVRE", le symbols V signifie "FIN". Maps, plates, charts, etc., may be filmed at different reduction ratios. Those too large to be entirely included in one exposure are filmed beginning in the upper left hand comer, left to right and top to bonom. as many frames aa required. The following diagrams illustrate the method: Lea cartes, planches, tableaux, etc., peuvent dtre filmte 6 dee taux de rMuction diff^rents. Lorsque le document est trop grand pour dtre reproduit en un seul clichA, il est filmi 6 partir de I'angie supdrieur gauche, de gauche 6 droite, et de haiit en bas. en prenant Ia nombre d'Imagas n^cessaire. Les diagrammes suivants illustrent la m^thode. 32X 1 2 3 1 2 3 4 5 6 R E P O R T -^&. 1 «iF riiK Spec il Comm ttee on ]i mm, 1 Al'l'OITi'KI* rNI>K|{ A Ui:s<»[,( TI(»N OI' THK ASSEMBLY, FEBRUARY 28, 1879. * 111 ■ 1 ' ' INA^ESTIGATE ALLEGED ABUSES ; IN TIIK MANAGEMENT OF 11 AIJJMADS NilAHTKKKl) MY TIIK STATK oK XKW VOHK. i ! 1 1 HKl'KINTKn KOK CIHCILATION BY THK OKKI;!? VAl.LKY KAIKWAY iNVESTIGATE ALLEGED ABUSES IN THK managi:ment of railkoads (■iiai;tki;ei) r,v hik statk ok ni:\v voi!k. HIM'HINTKU KOU CIKCLLATION BY TIIK CREDIT VALI.KV RAILWAY OnMI'AXY. Toronto: THK (iLol'.i; I'KINTINd ANIJ PL i'.IJSHlNG (JO. 1880. 4 1 Orn^,ph Cjo . ij-LJ- 1 8TATE OF NEW YORK. No. 38. IN ASSEMBLY, January 22, l.SSO. E^EieOI^T. To'f/i'' //(juunililc, t/H> Asfieinbh/ 0/ t/i'j state 0/ Neiu Vork : Till' uiul(M'si<;ne(l, a coinmitteo appointed in pursuance of the following resolution, ado|)to(l F(>1>ruary '2S, 187D : lii'^iih-i'l, That a sjuiciiil cominittei' of live jn'rso.is bf iii)])oiiiteil, with po\vrnin<; tlieir powers, contracts and olilij^ations ; .siiid coniniittee to take testimony in tiie city of New Vorl<, and such otlier i)haees as they may detsni necessary, and to report to the h'^'islatnre, eitlier at the present or tin' next session, liy hill or otlicrwise, what, if any, le^dslation is nei'essary to protect and extend the coniuierrial and imlustrial interests of the State ; And also of a resolution adopted Marcli 12, 1879, of which the following is a copy : L'csoh'cil, That the nundiei' of ncndiers of tlie speiial co.i:niittee of investij,'ation into the relations of the lailroads to the State be increased from five to nine, a'ld I )e ap- pointed by the speaker ; And also of ;i resolution ado]iteil Man h 27, 1S7!>, ofwhicli the folloivinix isaeopy: ^tni/ if is J'urt/nr fi'.ot/rnf, That the said committee lie and is hereby autliorized to sit durinij; the reeesa of the Icijislatnre, and take testinmnv in the city of New York and elsewhere in the State as tlcv shall deteriiiine, and cause theii' pro,'e,'dinL(s to lie printed daily ; I'cspcctl'iilly [AsscHi. hoi'. No. :',S.] m was a(i,Iras«,.,l f' „ . m^'>^ntuu"U „r v.iir ,.,„mm.;h •■"'"'""-"■•■'H"", .vl,i,.|, „, ^ '"■'-• ''"l™fii..M„ , I,,, ii I "'''■«"»■ («- fi-t .-i,. ,,,,,'■'■ «;:'"■-".'- ""i".>...i ,„.,. ,:'■:?': ■" '■"•'■ I' -"■-''■■'<• r.;!; :r,:;'"r'^"" ^'•'-" :;;;:;"■ ^n,:';:;:r:;:;:';---'-'M,,,,, ,,.,:,,:,-■- 'i ,»„,.„„. ""•^ "''"'"' view (,]• ti, , ' " '"' "i'' mwsi . ""■i;t:::;;:i. '^ ■ --- -^.^ -■;:::; "toval l„.,„v,.„ i|„. ,,, '' ""-■ '">«tiK„(i„„ „-„„),l ,„„ ■■ewivi,,.-,,,, ' """'"1 '" «t li.„t„. ""■'■"""'•,»,,! 1,,,,^.),,,, "■^^^■■' "■■■ «'''H,:,,.^;. ,:':;;;;;''■'' ;■■ '■-■■^-.^ .• u,J ;•,:"; ''''''■■'^'^- '»sa» aiil to fli,.,„ ;. ,, ""' '""' '•'■<]". ■st,,| 111,, , 1 "' '""""lUoo '''^''-'-"'■--^.--;i;i;:::;::;;:-''-."™..;;;:;"::^ I 4 \tU "liivors ''•■ I"''''^<"ii.llv. ,„. 1,^, "" ""• -''id. -lav ,;f '""'' '" "Xisf in IIh. '•■ ""■' ••' 'A^'Urrn] ro- '''■'"''• '"Ml Trans- "' '■''•"■.^<- ..I „,,,,, ^'"'" "■'">'••, uic.ui.l. '""' ''••\v<.t(. ,,rtI,o " ''"■ ••"ininitt,.,. ,( ■""' '■•''< MIL,' iss,„. "" ""• '•'^^ii.' (In,. "' '■""ii'iittc,.. tij,. ■'■"''■" '-■■nl -iv.-n ""■'■'■••'' <« incur \'lll III,, invrsli- t 't "-as '* attempted """■ the ont/ro ""'tt<'H liavin.r ' ^^'''" I\ii(n\-n, ■<"iuuitt.',., did '•■'■■'■■^ "'■|n,'i((,.,. '■' '"i'"' i'littiiiM- '"' ''"'"initlco "' of ••<.iuis(,.l "-^^''tliled tile "lainly eon- ' '>och(i,st('r '""' iiianu- It is (liic (liat tlic I'oiiimiltcc i'\|>i'iss its oMi^atinn tn tlif I liamlirr .if < 'uiniiifici' aiiil till' l!.iaii| iif 'i'raili ami Ti'aii-<|ii>iiat inn. anil csiiccially to Cliarlrs S, Smith ami I'". H. 'riiiirlHT, ..!' tin ronimil tfcs rcinvsrr.tiii.L,' tli(»su hiiilit's. |ur llifir ni ii|M'ralinn ami assistaiicc, wlijrli rdiitrihiitcd larj^cly to tli(i siit'ci'ss of oiii' work ; ami also to Mf. Stcriic for the aMf, jiainstakiiif,' !invious study il' this suhji-ct and fund of inl'oriiiiitiou possi-sscjcl were a vovy iiiat(n-ial aid by difVerent attorneys at various staf^cs of the procciedini^s. Your conimitteo commenced taking,' testimony .June iL'th, in tin- ' tlnM.„,.,...u tl««'i,„n ,.iv,, ,|„.t ,7J"«" """"""' tl"„„,,l ,.ive,.s „l„,.tu,.,.- It was origiiiiiUy sunpuscl t' ..t i " "^ * ••" H.C. n,„,t li,,,,-.:, ,,!. r : t'c ""■ T'f ■" '""' ■""• '■■'■■«'"■ -^I" ™,1„ ,..„. f„H,i.,,,..„ to carry ,!'.:"'''''•'•■ .''^ ''"""'^■" »''""'-• H- to the tolls exaot,,! f,,,- . simi ,, ' '^" '" "'" '••""•' '' ■ «"„, ,.,.,,.1 nnrortricl,,! and „n,=„„t,.„lk,i as to ca,,l,! . !f 7" ,""""«""«>"'. P"'cti,..lly IW, Ap,.i| ,4, 1855, „,„,/;;" f "''-'"'■'.»'■ .vra,un»,,t,,-,l„y. co,„n,ission,.rs. J,„t thi, ,™ ,■„„,„; ■ , '• , ; '' "■".'"»« a I»>ar,I of n,ilr,.,„| -a.l plana, a,„l,o the .-oa,!, pai.lth,, '"■""■"''"""■'"'■""- »'•"■ ■'ail- «al«.-,™ ,„,. t,,.. t,.r„, for „.,,;!,, tl,^:™ '::;'■"'■';!,' ,''• '■"" — ■' of thdr ■n ^l-iii. 1«57. (T..»„n,„ny, ,, 27^f "' "'" ''"" ««'""« tl- co„„„i,si„,. In (li.scliar^«o.,ations of citizens. There i, , f ' ."■"^"■"■"°" "f lailn,,,,!, ,„ ■ '" ■'^iale has e„„tri]„,t„l i„ •ivUny poiii'!,,! ;i'<'iiiilf'r advanc*' fpf'iimi-jitiil, at fato to ask iiia- n es.sioii hy f|„, itc. Stroii-ftli- it W('iit forth, •aili(i;i.|,s, com- ;od States, in V the currents >* of nature — • olHtiiclos as "lilt llii-ni <.n :"v<' liicction "''fig ill their 'iglit, except ietions waro uted in aid of railroads in round luiiuoi'is, .■JS.OIMJJ'OO, and vavioui* localitieH, )»y donati'.ii and investment in .stock and honds, nearly !iit.'H,0(i(>,(i()() (see Kxhihits, |»p. 3 and 1*"5S J.'V) ; for which unwise, action so many hn-alities are now sulferinj,'. Mr. N'andcrl nilt correc^tly states the relation of railroad corporations to the State, as follows : " Tho niilwiiy ('((rpKratiot! is )r<,'iiiii/fil |irimiiiily. •'•!' tin- liciirlit nf the j>co litizciis of tliu Stdte to rtssuiiie the i»erlcrinunco of tlio tluty of tlio State." The mistake was in not providing' proper safej^Miard.H to prote(!t tho prihlic interest, .ind hold the roads to a strict accountability tor their trauHactions. Thus, throu^di the laxity of our laws and the want of governuicntai control (measurably excusable, considering the unloresecMi possibilitii^s Oi' railroatl development at the time of the enactment of those hiws, bu'^ no longer pardonable in the light of the evitlence herewith submitted), hav(! crept in those alnises hennifter menticmed, so glaring in their proportions as to savor of iietion rather than actual history. This investigation must prove of valm; to the railntads as well as th; public, for, while disclosing their inismanaLjement, it will clear up and dis- sipate many erroneous impressions in relation to supposed abuses. Alhany 1)IUD(;k. The charge so oftei. made, that the Albany Ihidge is largely the private projjcrty of prominent railroad otiicials, and makcH enoi'mous diviilend* by- charging three dollars a car for fr-".' t and ten cents per passenger for all traUic (uossing it, is erroneous. Such charges were attempted, but compe- tition compelled their immediate abandonment ; and nov/ all the bridge earns from freight crossing it is the mileage proportion (two miles) assignti to it as forming a jKirt of a continuous line. No s(q)arate books are kept of the freight or pass 'ng(!r traffic of the bridge. £t is owned, three-fourtlu. by the New York Central and Hudson River Railroad, and one-fourth by the Ijoston and All)any Railroad; and these roads keep the bridg." in repair, in [)roiiortion to tii' ir ownershii>. The fi-.re from East Albany to New Y(jrk is $;i.00 ; from Albany to Now York .ii>3.10 — a virtual charge of ten cents for crossiuLt the briduo : but the latter charge is strictly legal, the Hudscm River road, under the general law of 1850, having the right to chiuge three cents per mile for passengers. (4*J N. Y. Reports, 45.")). Separate books are kept showing the amount of receipts from foot passengers only by the bridge company. (For particulars see Testimony of E. 1). Worcester, p. 10'J7). Fast FiiEKiirr Links, The Ived Line, Blue Line, White Line, Canada Southern, CJreat Western, Jluosac 'runnel, Erie and North Shore Dcsputdi, and all oUkt fast ireight 8 linos ruiiiiin^- over roiids in this State, (•xccpi ilic Mcnhants' iK'spatdi, are urgunizod for tlio [.iirpuse of <'(iiistiliitiiio: a liinm-li line Ix'tween distfuil points, as follows : The various mads ',v]iic]i are to eoiistitute the tlinmgli line im-nisli a niiniher of cars in i)r(ii)orti(in to ilK'ir niileaL^e, furiii an or<;ani- zation, appoint ollieers to solicit business and niaiia.n'e tlie alfaii's of the line. Each road receives a specified mileage per car (three-fourths of a cent), and bears th(> exjiense of the organization, and shares in the prolils of tiie line m proportion to the cars furnislied, each load retaining absolute control over the rate of transportation on its line. The o])ject of these organi/-.- tions is to enable a through sliipnieiil of goods to any point, however re- mote, Avithont lireaking buik. They are known as co-oj erative lines ; and are organized in the interest of the i)ublic, an 4,000 shares held by different railroads ami three thousand by individuals. It furnishes ;3,ir)l cars, and gets three-cpiarters of a cent per mile for each mile any of its cars runs, and five per cent, on fourth-class and special (dasses, and tiftei-n per cent, on all other clas.ses of freight handled, for soliciting business. As to soliciting business, they do precisely the same that the agents and officers of the co-operative lim-s do, with this .lilferenee, that it" pays its agents and officers out of its commissions, while the agents of the co-oi)era- tive lines arc i)aid by the respective roads constituting tlie line. The Merchants' Despatch was formerly owned by the Ameri('an Express Com. pany, and is an olfshoot of that organization. Tt r(>tains all the agencies for soliciting business which belonged to that ( 'ompany : and it is claimed that its organization is more efiective in securing freight for transportation than any of the co-operative lines. It has paid ten i)er cent, dividend lor the past four years, and twenty-five per cent, of the (tapital oidy having been i)aid in, it amounts to an annual dividend of forty per cent, it is in evidence tl-at the Xew York Central, by reason of its large ownership of stock in the AFerchants' Despatch, earns more for its stockholders on the business done by this line than it would under the co-operative system. AViiaf it gains. I 9 lints' l)('s|):itcll, ill'O ic I)ct\V('C'ii (lislfini litiitc llic tlii'diii^li ^'L', I'nriii !iii orgiini- allUii's (if till' lino, lis of a ccnl), and proiits of tlu' lino y al)solut(j control : (jf these or''ani/?»- point, lio\v(3vor ve- I'l'ativu liuL's ; and terest of good rail- It i.s a ])artnor.sliip u's, reprt'scntcd hy have been issued, issued. The New thirteen tliousand luindred, the Lake land, Colunihus & •innafi Short Line I one hundred and hundred and lil'ty of all tin abuses that have beiMi for- merly practiseil upon stoc-kholders through similar (Ugani/ations. This is not the oi)inion of the c(uumittee only, but of good railroad men as well. (8ee Testimony of (1. K. I'.lancbard, pp. lilH')l~G.) DUAWINO IJoOM AND SlREI'INO CaI; r'OMl'AMES. The Xew York Central Sleeping Car (Jonipany is a partnershiii with a capital of $2, 78-1-, 000, representing one hundred and eighty-one cars, with patents, offices, S:c. Considerably less than a majority ol' its stock is owned l)y ollicerK and directors of roads over wliich it runs cars, [t runs drawing room and sleeping cars over 7,000 miles of road ; 1,200 miles in this State in winter, and 1,400 in s\uumer. l>y contra.ct with the New York ('entral i^' Hudson Eiver road (E.Khibits pp. 182, 18;"), 1S7, 190) — and its contracts with other roads in this State are very similar— -it places cars upon the road, keciis them in rei)air, and pays the road twenty per cent, of its gross earnings for hanling them. There is no special law in relation to drawing room cars in tbi"s State. They are placed iipon our roads under the original Railway Act authorizing any one to place cars u[)(ui any road with the consent wf the company, a law passed at a time Avhen it was thought that the railroads would simply own the road-bed and track, and keei* it in rei)air, and that other people would furnish loco- motives and cars, and transport goods by paying a i)roper toll, just precisely as they use the canal. The courts hold the authority under the scatute ample ; so there can be no (juestion as to the validity of the contract. The following is an extract from the Testimony of Mr. Wagner (Testi- mony, ]). 24."')'.)) : _ " (,». 1 want to call your attention to the statute fixing the fare upon sleeping cars, wliich'says: ' Such patentee or his legal representative may charge for the use ot ' said car, in all eases, to each jiasscnger occupying the same, forty cents, which sum ' shall entitle sueh passenger to tlie use of a bertli for one liundrcil miles ; and the said ' patentee or his legal representative may charge at and for the rate of three nulls for ' every additional mile, but in no case shall the charge exceed eighty cents ;' you arc familiar with that law, are you ; A. Yes, sir. (). Are not your charges in excess of that? A. I don't know ; 1 am not aware that'theyare in excess of it ; to Syracuse we charge $\J>0 ; it is three hundred miles. (,>. It could not exceed eighty cents ? A. For a single berth ; that is, -Ijl.OO ; tor a doulile berth we charge i^l.AO. Q. Vou charge i?l. 50 for a double hertli ; A. Yes, sir. Q. Do you furnish single berths ?— could a man upon any of your sleepnig cars call for a single berth and receive ii ? A. We have very few. (,). Kxplain tliis matter fully ? A. We started with one double bertli and two single berths : there were a good many started with three single berths, but on my ^ars we first started with a double berth below and two single berths. Q. Two single berths above? A. Yes ; people laid on cushions m those days ; no jmattrasses or sheets, or anything of that kind ; alter a while people objected to single 10 now, except in e eu'l of l. ''', ^■"■*"""-^' •. t'"''"'^ ■« "<'t «.u'h a thing known havenocallfoVlr ,11 Ti '*''"■ '^""'l^t''''''^ '^ loung,- or a ningl,. berth; we O Tf ., <..,Vi ', '"^ it^l'orted to im- in htteeii yein-.s. i;iyAi::,aM::M'''''''''^''''^''"''''' '" ^'- ^'•-"-'i"«ist.-a,of,.ours.- w,...oul,l like t. ^;e'e";rl;rn;;r' ;,' u.!"": "r"^ '""''U, ^- ^* - ^-^ - ^^-'^ •"•- ^^ '-"'«" - -<* A. veryoL;;riila.^j^raa;;^il:Tts^':.,!;;;i.:^::'j^ ^-^ -'• ^' "-'^^ ^--'^"^ Sleeping car fares range from .^1.50 f,o .^2.00; for drawing room car faro see lestimony, page 243C. The present charges were explain..! as follows : The above law was passed when the cars were mainly lilled with single berths, tlie back por- tion being raised eight or ten inches above the front, forming two single berths, instead of being placed on a level, as now, and formi.ig a doul^e 3uti. Ihc cars then were cheap, costing about three thousand .lollars, the ^yH:J^ TT:'""' •"" ''''' ^"^"^^'-"''^^'^ -•^^-" f-- fi^'teen to and soon the public were attracted to their use. The si.i.le berths were peaied Ihus, from New York to Syracuse they would be entitled L charge for two bprtl,« «i nn +i i . , tutiued to »1,50. ' ■>■ ''"■'" "" """"''""1 '■■"■ ^' 'l"liWo hertl, Mr. Wagner was asked the following. |,.esti„„s on that suhje,.,! : «l (io*!^' A °"i' "" *°,"" '''"''' '''"" '^'="' Yoi* t(, Buffalo ; v„u sav it is S-> • tl, t y N ;,";;. 'T' "™*'' ■ -*■ ves:ti,Hti»,„i,,.,.'i„"kt,^^'""""" ■*■ ^'^''■™- As to the relations of this company to the New York Cent,,,! l{ail,.„.,.I .creontraet ,s the n.ost lavorahh, to the roa,. ot any i„ the „ r ,' J o™nn„ttee are „f o,,inh,n that the interests of the' s.oekho h ': t """' " '","" "■'"'^ '■'■'■J «"'. -"' """ tW,. have no eanse fo, ,aint he onl, reauuning question to eonsider is, whethe,. the ,.har,es for Iraw,,,. roon, an,l sieepioK cars are nnreasonahly hi,h, an.l eall tor LZ " « '."" ':>■ ■"■'"""■■ i^-"'« -™ -- are essenUallv a l,,.,,.-. a,, oe,.,,paoa,r^e,,,,re,y., ,,,,,,,. T,,e railroads a, hhg,.,, ,o tornish sea a . ,.,,a,.|,es. an,l. ,n .ase the.v ,lo n,„. any pass,.,„er is en,i,le,l to "■"''• """' -^ '''■^'"■■"" ' ""-■ that ,nay l„. at.a.he.l to the t,,.in L' all our cars, and It'll a thing known a single berth ; we I, of course we could lave a lounge or sola led lis a single Iierth. dl a double berth ? tig room car faro i above lavv was S tliG back por- uing two single jnniug a double ■saivl dollars, tlie as not to attra('t from fil'tecn to >ved ventilation, igle berths wei'e ouble and get a gradually disap- bo entitled to ' it double berth abject : $2 ; that exceeds )oni ear, thiit is in sc .' A. Yes, sir. I'use in season for- do or SusiM>nsioi» L. That is the way 'iiti-.d Railroad, le country, and holders of said for coiiiijlaint. ln' chai'gcs f()i> call Ibr specilic xury, and their furnish seats r is entitled to id tit tlie train without extra cliarge. Sleeping cars are not a luxury, but a necessity. In the active pursuit .d' business, they are iuilispensable to a proper economy of time and the proper and successful prosecution ot ..ne's l)usiness. They aree(iually indispensable to those who travel for pleasure; and the con- venience they ailord to the public should be furnished as cheaply as possible- There would' seem to I)e no i)ropriety in reipiiring sleeping car companies to cliarge less fn' lodging, acc.Miipanied with transportation, than would be- cliarged in the first-class hotels of the country, and the advantage of carriage- and sleep combined might proi)erly be urged as a reas..,. for charging slightly more. It is in evidence, that first class i)asseng(!r fore on the New York Central & Hudson River road, plus drawing room or sleeping car fare, is les» than first class passenger fare alone on any other road in the world, except it ])e between competing points where tlie usual fare is varied. After all, these rates siiould be determined, not alistractly, but with refer- ence to the cost and what the service can reasonably bo done for. From the evidence, it appears that twenty-five per cent, of the l)usiness is done in the- State of New York and the remainder in other States, and in Canada. The portion of the capital of this company invested in this State is $1,000,000. The estimated gross earnings in the State of New York for the year ending March 1, 1879, were $209,000 ; the estimated proportion of expenses in the State of New York, $172,902.01, or a profit of nearly ten per cent, on the- investment in this Str'j. The Pullman Palace Car Company, a corporation whose stock is on the market, runs cars over the Erie road under a contract dated September 5,. 1871, and, with certain congislature has already recog- nized the propriety of difierent charges on dilferetit roads in accordance witli tho volume of tralfic, varying from two to live c.'nts per nule to each pas- senger; an done overall roads. 'IMiis ■co-operation it may he dillicult to obtain. Were all the roads in the .State — stated by Mr. Depew to be 70 in number — to do their own exjtress busi- ness, tliere would naturally l)e an increased expense, in transferring from one company to another, that would doubtless prejudice the public interest by increasing the cost of service. The advantage of an e\})ress coinjiany is in enabling one to send property over one oi' many roads, the goods all the while being in charge of one responsible company. Very much of the service which express companies render to the public is not at all gerniain to the business of transportation. Tlieir contracts an; sufficiently fnoi'able to the railroads. Their rates to the [lublic were not for want of time in(iuired into. 'J'hey are l)oun(l by contract to "reasonable rates," and their charges are held in oheck by comi)etition and also by the fast freight lines, which run at about Jialf the rate of speed of express trains. (See Testimony, pp. 33G3-4-5.) Stock Yard Companies. The Union Stock Yard and ?ilarket Company has the excdusive control of the terminal facilities of the Xew York Central, under a lease dated January L>9, 1875. (Exhibits, p. 3r)0.) And all cattle delivered in New York must, by the terms of this lease, pass through this yard, and must jiay the yardage. Senator John R. ^fcPhorson has the same control of the Eiie cattle l)usiness, under a similar lease (JCxhilnts, [>. 2()1) ; and then by agreement the whole cattle business of the i)ort of New York, including the Pennsylvania and the Baltimore & Ohio roads, is pooled. (Testimony, pii. 1728-9.) , '' Since all cattle must pass through these yards they become a neces- sary unit in the route of transportation. It may l)e stated as a general proposition that railroads ought not to farm out to individuals or associations any portion of their business which can as well be transacted by the roads. The objection to a road's farming out its functions is that such instrunuuit- alities have been the most fruitful sources of abuse, and are usually attended with additional taxes upon transportation. Cattle yarding differs from warehousing in I'etpiiring extra care, feinl, etc., for the cattle ; ami the railroads claim that this is no part of the busi- ness of transportation. These leases are sufficiently lavorable to the roads ; and, contrary to the general impression, the stock-yards are independent 13 ;]ir('ss l)ti-iiii('ss ddcs i'\]ii'<'ss liusiiicss on liiii In I'dcgalc it to vcr all roads. Tliis I' mails ill tile .Stale 1' own <;xi)i'ess husi- 11 transrcri'iiij^f IVom ■ the public iiitcri'st express C(»ni]iaiiy is Is, the goods all the Very luiudi of the ; not at all gerinain uffieieutly fa\'orable Kpiired into. They charges are held in which run at about , pp. 3;3G;}4-5.) le excdusive coiitr )1 inder a lease dated i ilelivered in New yard, and must pay ! control of the Erie fJl) ; and then ])y Ynvk, including the 1. (Testimony, pp. y l)e(M)ine a neces- itated a.s a general iuals or associations acted by the roads. it such iustrunient- re usually attended g extra care, feinl, lo part of the busi- rable to the roads ; l« are independent organizations not oHic(n-ed or controlled by the railroads. They cliarge foriy- livli cents per IkmkI on cattle, six cents on sheep and eight cents on hogs, and forty -five to fifty dollars a ton for hay feed. Mr. Blanchard, the Assistant President of the Krie road, testified on that subject as follows : " () In vnur jiia-ni.'iit, i.s that a reasonable charge ? A. I shnnl.l tl.iiik that the ,.luu-e' eouia l.e r'edueed on.', iui.l ix'tliaps two ecnts a luMd on hogs, and that it slioul.l be dune. . * * * * » * * () You think that no othe- class of animals than liogs would bear a reduction ? \ We have a verv small busin..ss in sheep and ealv,.s reiativ.'ly and I only know :.,.nerallvtliat tlie.'e are more diliimlties as to the drivui- and liandlin- of thetn ; and Ti.atairthe sh....). are yarded ; tliat nobody else has yards lor slieei. : t,iat the slieep slau-hterers use these yards constantly, while s.m.e nl the Im- men do not : 1 thcrel.Mc tliink tin- rate for varda- sheep is, p.Thai.s, what it probably slu.uld oc. O Do you not" tliink that forty-tive cents a head for yarda.tre and wei,-!un,!,% and .>oO piT [on for hay, is rather an exorbitant charge ? A. I think it is. ' The coniiiuttee are of the same opinion. See also Tcstiiuouy of John 1'.. Dutchcr, pages [IVJ-oT. Si'i;vti:n r>i;Yvii. S: I'oirr >rt)i!i{is IJailuoad. The Spuyleu DuyviKK; Port Mollis Kaihoad is (•a[)itali/i'd at actual cost and IraJnl to the New York (Jcuti'al iV lliidsnn Kiycr bViih'oa.l (foni- pany al a rental often jier cent, upon cost. (See Testimony ot \V. IF. Vaiiderbilt, ]). 1 i'l'T, etc . ) The Syra Mise .lumtion road, Ihili'alo .luiictiiui roail, and other similar organizations admit of no criticism. It is uunecess.iry to reyiew the subsidiary coi'porations and inside rings that hayc barnacled the Krie road (hiring a large part of its existence, and ma.ie it the foithill of the street, the prey of cliipies and strikers, used its credit and its revenues in reckless speculation in properties not at all c(m- sonant with the proper functions of a railroad, weighting a valuable franchise with colossal obligations that must look to the future growth and develop- ment of the (•luintry for a return, leaving it the owner of an opera-house and coal lands of which Mr. nianchard, at i)age 3290, says, '♦ I rc'Mrd it as one of the blunders wliich started some of tlie misfortunes of the Kric railway that tiioy invested in coal lands," the i)ossessor of onerous contracts with stock yards and branch hues, and much other less valuable property, and yet with(.ut I'unds or credit sutHcient to enabh> it to own all its cars and other indispensal)le property of a railroad. It is but just to President Jewett and his associates to state that Avith their trust they inherited a legacy of del)t, iini)air(Ml credit, and mismanagc!- ment that must continually embarrass their action, and, of necessity, in .some instances render their only course a choice of evils. The investigation, however, fully establishes an honest disposition on their part, and an earnest efl'ort to extricate the road IVom its embarrassments. 14 Elkvatoks. No railruiid tfriiiiiiatiii,i;' iji Now Voik owns juiy ,i;rain olovators oxoopt ; the Central ; ami clcvaUnj,' at its elevators is pnu'tically frcf upon all ^oods accorded free lii,diterajj;e, which covers all (ixpurts and much else. The j-:iic lias one in process of construction. The elevator management at Kochester calls for no ci'iticism. The elevator association at IJuH'alo is a barnacle u])on the comnifrce of the canal, and seems to have been organized for the purjxise of tollin<'' the -commerce of that port to the greatest possible extent. There arc; thiiiv-foui- ^ilevators, including floaters. The Central road owns two ; the Krie controls one and lias just completed the construction of another ; tlu^ remaind(,'r belong to individuals. Twelve only are working elevators. The ehtvating of the port is ])ooled, ;?,50 shares in the pool, of which the railroads have the controlling interest. It makes no dilference Avhat elevator does the work •all get their res[)ective shares of tlu^ money earned. One of these elevators has not been used in twenty years, and many of them, according to the testi- mony, were built for the sole purpose of coming into and receiving a share in tlie pool. The following Testimony of Washington I5ullarvel!iu- is$:3.f)0 and !S() jier tliousand tor sail vessels, and .'?4 fori)ropelleis- for a thousand liiisheis. »«»*♦* Q. Is thef" any other eliarye tlian the elevating,' and the trimminj,' ? A. That is all. O. That involves the transfer from the vessel to the canal l)oats '.' A. 1 think that is all t^. Tell us what this trimnuug could he donii for on ^'ood pruunples ot husiness eeonoiny ? A. For half the money. When I made this allusion to these voters, there may he'a misapprehension as to what I mean; I e a consideration with'the'authorities of IUitlal."> : if they were riotous in asserting' their demands or the priee of trimming', it would he considered hy the authorities of liuH'ah), and they would not he put down with that promptness and decision that they would he other- wise, if they weie not voters. That is what I mean ; it is precisely what I mean ; thi-s tiling has ti'> he suhmitti'd to on that consideration. Nohmly would dare ^'et up and tiike action to have this thing corrected hy the proper supply of lahor, which could he had otherwise. 1 think you can understand what I have said aV>out it. (,). It is important, as' getting at the exact matters that the canal has to couteiid with? .A. It is pertinent precisely to what you are after, in my opinion." Also the following testimony of Niles Case : " Q. What, in your judgment, is a reasonable charge for elevating at this port ? A. Half a cent a hushel is a large price, in my opinion. (,). What would he a fair price :' A. I think that a (piarter of a cent would pay an elevator for transferring. Q. Have you evei- conversed with elevator i)eople upon that suhject ? A. Yes, sir. (.). How do they express themsidves? A. I have heard idevator owners say here that they wnnht not want any hctter husiness than a quarter of a cent, and he guaranteed a rcasoiiahle amount of work, and they would not ask enough to keep them going all the while, hut a reasonahle portion nf tlic time ; they wouM not want any better husiness tlian a (luarter of a cent. * * « * ■■* * (). Then tlie elevator gets tliis ^ from tl-.e vessel, and the J or J, or whatever it may l)e, from tlie grain, and lialf ot the shovelling in addition :' A. Yes ; so it costs for the shovelling and the trimming, tn transfer grain ^it costs from steamljoats $'} a thousand : it 'osts a dollar a tiiousand to trim it into the canal hoats, in addition to this other shovelling ; it makes it a pretty costly husiness here for handling grain." SiH' also testimony of .Mr. Perew, p. 2350 ; Mr. Ensign, p. 2285 ; and other M'itiiesses examined at lUiOalo. There is an association of elc-vators at New York ;;ity, described Ijy Mi'- P)l-3n(diard at page 'Mo2. "(>. 'Phi'se tloating elevators comhine together to do tlic w>irk ami lix the rate ot elevating in New York ' A. Yes, sir. (). Pi'ccisely the same as they do at Hutl'alo.' A. Tn cisely. (>. And yoii arc not able tii say whether there are any stationary or laud l>udt elevators in this association or uot^"^ .Vll the Brooklyn elevatdrs are stationary and land hnilt. a very large nnndier (i>. And tliL-y" are all in it ' .\. 1 think tliey arc dl in it. " A reduction of tolls is uMially attended l>y an iiu'ivas,' nf the charge foi elevating The attempt to clicap^-n transport ition l)y .lung away with + m11> upcu the canals must inevitably result in fiilure. so long as the 10 entrance to the ctinal and the point of delivery arc under the control of such conihinutions as these. Wateijki) Stook. The financial histury of Mic Krie road is a tliricc-ldld tale, and needs no detailed recapitulatiuii. It is capitalized at alti.ut 81.")r),()(M),0()(>. According' to the testimony of (.'oj, riaich, a former employee of the road, and wjio was em])loyed to make an invciutory of its jirojicrty, the road and its eipiiinneut could Ije replaced to-day for $4(>,()()(V)()0, an«l that .^L^l.Odd.OUO more would cover the additional value of tlu; road as represented by stocks, Iwnds and interest in other corporations. (Testimony, pp. H.'jO -S.'il ). The companv's report to the State Kn^dueer in IST.'J shows, under head of construction account, forty-seven millions ''discount on sale of convertihle houds," etc;. This ite;n covers a iliar^v to coustiiiction ai'couut of •' le,Lfal expenses .SSlll,l'.").').(;r," lor the year endiiii,' Septemher ."JO, 1S7(). (Testimony, pp. S4;}.4..-)). These instances serve to iljustialc! the fact tliiU the construction account (d" this road not only covers the proper cost of t he road, hut, like charity, it cov.'rs a multitude of sins. Accordin-' to the same witness, nolhini,' has l.eeii imiuupcrly cliar,L;-ed to con^t .lU'tion aivoimt since 1S7l>. The amounl of wlmt is poiuilaily teimcd -water," vliieli enters into the capitalization ol'tlie Krie road, was .lijlrreiitly est inialed. and raii,ue«l up to .>^70.<'(M),()(l(i. (See Testimony (.f Mr. I{ol,|.rtsoii. pp. li,s(;-7-8-'.». Te.-,tim(Piiv of Mr. ( lully. p. L'l.'t I, etc.) While some altjinpt was made to thn.w discredit upon the testimony of some of these witnesses, it should he noted that not one particle of evidcni'c was olfered hy the railroads tendin,u to correct or contradict their tesiinionv. The amount of '-water ■' in the Krie was calculated from the evi(ience liv an expert, and made .•^.■);;,l(i;5,S,s 1 . I( matters litth' lor the purposes of tins report, whether lifty orscvenly nullioirs of dollars, representin*,' nothin-' save nusmanagement, i)ro(li,irality and pilferin-, have lieen in,je<-ted into theeai»italization of this road, anan of $25,000,000 was placed ,,n the Knglish i and one .McIIenry was the party through whom it was placed. Pe ag its negotiati.m two successive dividends, of limited amomit and of \ . .y (piestionable propriety, were dechu'cd. Of (]„. ten millions of •■onvertibles 4 ic control of such lie, iUul needs no ,000. Acconlint,^ i>!t(l, and wlio WHS id its (Mniipnieiit ',000 more would tfudvs, l)on(ls iind TIh' ('((nijiiiny's 1 (if coiistrn(;tinn :il)Ie bonds," etc. ■' IcLfill e.\|»t'll.uvi)oses of osentin*:; iiotliinif en inji'eted into iiin interest and ise the Avi'on,Lj is perative. JIow- incri^ascd, these under cover of I' legislature to )ad was lu^apeil e adniii "tion Kii,L,dish 1 ., teed. I'c i]rr lit and of v . .'v of eon\('rlil)Ies i 17 first placed th." road received eight millions of dollars; of the ri^maining fifteen millions the road received .'><(;,-2(iO,0<'0. Thus, out of the t(.tal loan ,.f #!-.>:),000,( )()(», the road recoivcd^l l,2O(»,()0O, and contested claims against worse than wortliless parties for the halatice ; its bonded ind«d)tedness. calli-ig for interest, increased 8l'r),000,(»00, its rev<'nue3 !?ll,-20(),0()0. (See Te.'itimony of President Jewett, pp. 13f)8-9 and l.'J'JO). Could any more certain or ex[)editioiis course he taken to bring a roaJto ruin than such management as this I It was urged that confidence was had in Midlenry. Something more than rontidencc ouglit to have been had as .security f')r honest conduct, and if railroad managers expose their trust so recklessly, the legislature must interpose s(nue protection for stoek and liond- holders anil the public. The contract of consolidation ot the ten roads forming the New York Central Hailroad was made in ls:.3, in eoiifoniiity to an Act of the legislature of that year. (See K.\hibits. [i. 1:8.) The stock and bonds of the several mads were as follows : Albanv Sc Schenectady .^l,ii-Jl.S0O Seluneetadv A- Tlov •!^'»-'»"<» rtica a: Scheneetady 4 r.dO.dOO Mohawk Vallev 1 , .-.7. ■),<»< H > SvraeUM. .V Utica -.V<"»•<»'»<> Korhi'ster A: Sviacuse 5,(;oS.7O0 r.utlalo.V Korln.sier :i,000.000 Kochcster, Lockpovi k Niagara Falls L', l.">o,100 liutllilo a: Loekport inry,0{)() Total ??:2:5^s:),0OO St(K'k of the IK w corporation was i.ssued in exchange for the stock held in these, several coriiorations. These several roads had enjoyed ditleri'iit degrees of ju'osperity, their stocks possessed tlill'ereut vabies, and llieir rela- tive ditferences were adjusted by issuing premium bonds. For instaU'ie, in the- language of the agreeiiuMit, " To the stockholders of the AlViany A' Scbe- nectady Eailroad Company, it is luavby agi-ed to allow seventeen per cent., or seventeen dollars on (nu'li one hundred dollars of the capital stock there- of;" the Utic. V Schenectady Railroad Comiuiuy was allowed tifty-five per cent. ]>reiiuum . the Mohawk Valley IJailroad— a road authorized to be bir.lt ">-oiii Scliriiec.ady to Utica, on the south side of the Mohawk river, and which was never built, nor any iiart of it— was put in at titty five per cent, premium: Syracuse iV" Ttica, lifty p>a' cent.; Syracuse vV L'tica, direct— a is road M'liifli wuh never cunst meted, liur any part of it — was also imt in at fifty i»er cent. i)i'eniiuni ; Jkodiester A- Syraense, tliii'ty \n'V cent. ; IJiiHalo A- liocliester, forty ])i'V (!ent. ; Kucliester, Loc.kport iVr .Niii.Ljara Kails, ami I'Miiralo & ].oe]<|)ort iJaili'oad ("onijiany, twenty-live percent. .Stock of tlie Sclieneo tady iV 'I'rov road was put in at a discount ni' twenty-live per cent., its stn(!klioIder.s having to pay twenty-live dollars per >liare in exeliani^c for the stock of the new roail. The i'moimt of said preiniiiiiis was ?(i() ; in other worths, so much water oi' licittioiis capil,d w,is .nlded to the road. Tin* sul)sei|iient watering process upon this road is succinctly di'scrilx-d l)y 3Ir. Kohertson, at pa.-!' '.)!).'> >if the Testimony, as follo^'s : F " *}• What Win tile ainuiiiit of s\i>rk (ii\iiU'i)il iUbl iinTcisc (if stm'k in isiiS jiiul ]8()'.', of tlic two liiilways. tlii' New Ymk ('nitiiil and liiiUnii itivt-r, si'vcraliy atiil upon ctiMsulidiition t A. It wm iivcr .':;'44,aao,0(i() lu'twccii ImIs ami ls70. wlieii tiio consoliiliitimi was etl't'cttMh (). 'riiere was onf ili\'i.liii() ef li^'lity pel cciit. , tated it was ah(jut douMe tiie original stock eajdtal V A. Yery nearly. " Also hy Mr, Worcester, seei'etary of the New York Cential iV' llud.sun Piivcr IJailroiid ('J'estiniony, ji. 1110): "The New York Central didn't douhic its stock nr aU'ect its stock ; it couldn't : it ■was not authorized to ; the Hudson IJiver never doubled its stock — it was not autle'. rized to ; tlie Consolidation Act authorized railroads to consojidate and form a new comjiany ; the nev, eomiiany was authorized to lix its capital .stock ; tln^ eajiital stock of the New York Central & Hudson IJiver Company -the new company— was made a eertain amoiint ; and that amount was about twice the ori;,'iiial eajiital ot the New York Central and Hiid.son Kiver llailroad alone. It was very nearly douhle the amount of the eomliination of those two capitals." Thns, a.s calculati'd })y tliis export, $i^S,')()7,()(\i) were wrongfully inhh-d to the cai)ital of the-so road.s. At tlie sos.sion of the connnittec of Oct(d)('r 13th, tlio Chairman called the attention of Mr. Depow, attorney of tlie New York Central Kailroad; to the fact that the coimiiittee wouM infer from the evidence as it then stood tlnit the dividends above refi'rred to were simjily " Wiiter," and that if any i>ortion thereof was properly constrnetion account, the committee de.sired him to submit sjieciiie evidence on that jioint. No evidence whatever wa.s oll'ered hy the railroads upon that sidjject. 'J'he only answer made, and the only answer to he made, is that the legislature sanctione»l it. True, the legislature of 18G!), upon the ri'iiort of a committee, authorized the consolidation of adjoining railroads, and authorized them to fix their capital stock. Under this law the Kew York Central and Hudson vus iilsi) put in at criit. ; Duniilo A- h'iills, ami ItuH'ulii ;k ill' till' ScIm'Iioc- vc jtpr cent., its (•\cliaii;4(' I'nr the wiis !!i«s,s!t4,r.r;() ; IimI 1(1 till' I'tiad. I'l'iiirtlv (U'S('ril)('(i stiiik in isiis Mini liver, Hi'\ci;illy Jiiid ml 1>70. wiicu till! stdck (Uviik'ud ol' yon ni;iy fall it u nf .ijsso ' A. .'iSlSO. tion, wliiiii wa.s in- iinnd li^'nic'H ; tlicio vcr |{;iilr(i;i(l st(n:k 'oik < '(lit ml jiio]"'!'. lurty-fonr millions . was alxmt (lonMe entiul it IIinLsuii ck ; it I'diildn't ; it -it was udt aiitlic- (' and foini a now : tlic cajiital .stock I'Mny— was made a al ot tilt.' New York iilik- tile amount ol' ii'oii^'riilly a(l(lf(l litteo of October attorney oi' tlie .tee would inl'er • referred to were •rly eoiistnietioii ice on tliat }ioint . at subject. 'J'Ik; t tli(^ legislature t of a eoiiiinittee, tliorized tliein to tral aiul Hudson Vj Uiver roads wei' iisdiidated. and their stock fixed nt sudi a sum as to cover and l(';^'ali/i' the sevend scrip dividends and •' preuiiuiu bonds " issiied. These dividen(ls Wert! tllUS legalized Up(tU the pretence that they ri'presente(l former earninos ol' the i.)ad and real vahies, which the stockJKddi'is were entitled lo share. The sworn re[)orls of the company up to that date siidw 'no sucli .sHr[this, nor any corresponiling amount as having enteivil into con- slruction, and if propdly and truly made there i'i)m1(1 have been noni' sudi. Kit her a gross wrong was perpetruted upon the stocklndders prior to 18(51), or a gross wrong was perpetrated upon the publi( at that time. The pre- mises a'lmit (d' no doiiht. Tiiese several diviihnids were lictitious, and the .sail " preniimn li(»nds." The legislature legalize(lit I The legi>latur(.' too jia sed the I'liic '' classilicalioii bill ;" l)ut Joes any one imagine that the passage (d' those laws was tln' deliberate attt of conscientious c(»nvietion on the part (d' the Ixidifs who passed them — that a patriotic sense of i)ubli(; elongs to a period of inllation not likely to o-cur again. 80 late as June, 1879, parties in New York, by a (di'Vi'r arrangement, added thirteen millions of watered stock, ])ure anl';, to the capital of the elevated roads in that city. Stock ■watering has always been practised wherever the possible earnings of a road ■would warrant it, and it always will be done in future -where the po.ssible earnings of a road v/ariaut an increase of capital, until the strong arm of the gov(!rnnicnt prevents. Tkrminal Facilitie.s. The cities of Xew York and Brooklyn, from their insular position, enjoy ])eenliar advantages in receiving antl forwarding freight by w'ater. AYhat is to their advantage in this respect is to their disadvantage as a railroad ter- minus. .So long as freight was brought from the west via canal and Hnthson river this harbor sup()lied every need, and was entitled to the high enco- miums so oft pr(.)nouneed upon it ; but with by far the greater part of com- nuM'ce done by junction of rail and vessel, New Y'ork is at a disadvantage as <;ompared with her mainland rivals. m At llaltiiimiv til." harks ,,|' t|,.. IliltiniMiv ,iii,| (Hiic mad, niiuiiiii,' l.r Locust I'.,i„f, uln-ivall its ii„|„.rts m,.! vs\u . aiv ivrrivc,|, .In „(.l ("ven run thiMii-li th.. .■..ipural.- limits ,,f l!:iltii.ioiv. TIh> wan liniis.-s aii.l .Inrkn of the city nf UaltiiiK.iv. alni|M tlif ciitiiv wairr tVniil. aiv r-n. !„,,! direct l.v cai-M of thr liiili'oadst.'niiiiiatin;,' tlinv. TIii> is ,|on." tliroiiyl, t|„. sticrts ,".] thu city )t lic.isr i.Mwcr ; aii.l in ail ca^.s t|„. Iiviylit is traiisjrriv.l iVni,, tin cars t.. the wairlioii.r cr wssd witlmut li^ditna-c and uitliMiit diviyin,'c. Tin liaul l)y li.M'sc [•uw.T tliruiiijrli tl,,' stints ol' tii-' rity is don.' Kv llir laili. id, l)iit an extra cliaixf is niade tlirivlnr. |,aiur elcvat.ns ar- pn.vide I at I-(»cust I'nint and Canton inr iiaudlin,:,' -rain. The ehvaiMr r|iai.;,.. i\,y ■,'raiii aic, on the -rain tn.ni ears I \- cents per l.nsh.d. inelndin.-r stora-v for ten days ; same from vessel, when rcrcive,!. |A rents ],ry i,iis|„d ; ,.;i,.h s,,,.. (•('•>(lin- ten days, ..r parts .d' t hr >; t hic(-ei,Mhth> of ,.1,.. rent per I,iish,d. Vess(ds ran rut,.,' that haihur with ti.r samr diaii-lit uf water that vesM.|s can enter \e\v Vork, There is a limitlrss aiiioiml ,>{' water fr,.nt. easily avidlalde an.l uf eomparatiwly little value. S,.me ditlimlty is evp .rienreil with iee. hilt hy the Us,. ,,f ir,' hoat^ the i l.rnll \ -lllelire is i llruHsid IMM M". The State uf .Maryland -iiaiaiitred ihr Hall iiie .|v and OiiiM rnad, in it- '■''■"■"■'■' '"""""ily I'l'Mii lax.tiui, nf vvny kind |,,r all li,„e. itpiivs,,.. taxes i,p,,n lis re;d nr per^aial prop, riy. in thr State ,,f Marvlaiid. uhairver; '^"'' ""•'■'""•' "I' last !■ snri. ,„ tl,;,, ,,,,,,.. I,;,. ,,,|i,,,„„| ||„, validity and in' vi.dahility of that pari of t .hartrr. The mv ,.( Wynun^u s,d,..rrih..d •'^•V"»".'"»'Mo ||,e.t..rk of tie. Daitiino.e ;,nd (»hi,,r |. ,„d th, State of Miiryland suhs.aalied s l.ODo.odo. 'n„, ..[p^ ,,|^,, ,,„,|^ s:,.(.;i(mi(i,) ,,(■ i„„„|^ "'■""■' 'I'"">^ toenahle it to l„,ild ilss,.,.,,„d ,,a..k. (Statement of \Vm^ luyser. I'd V. I'. 1;. ,t ,„ue respeets The passage np the I.elawaiv river, a distan.e ,,,f ,,„e hundied miles, is ,t hindranee to sailin- vessels. i,eee,si,ati„. l,,,,^,,. .i,,,,,, u,^y^^^,■. H ,.„|l,.,.s more annoyanee from ir,.. lait llin... hu-e l.o,,t,. d.'si-i,,.,! t,, hv;,k and puh veri/e the iee, ..wimmI and maiia-ed hy the r||y ,,f I'hiladrlphia. aiv said p, eireetually ,onirol this .dement. While vrss..|s .hawing onlv tw.mtyd'oi.r IWt of wat..r ...11 ..va, h Maltinion, .„■, as a nil,.. X,.w V,.,k. v..ss,.ls ,.f t u-,.,it v- six feet draught can enter th.. harln.r at Philadelphia, \ew V,,rk linh,',r being a salt water hail„.r. vess,.|s ,an l,,a.[ ami ,arrv liv.. p.T ,,.,„ i„.',viei. cargoes than in the fr..sh wafr harho.s at I'hila.lelphi , ami MaliiMMav (Test.mony, p. -oh.. T.hl.^, Th.- ..xport and import l-Usiness thmvis (lone m part at Civenwo.Hl l'.,int. hut maM.ly a! (iiranl I'oint. Ijv.. mil,.s heh)W the eitv. There are 1; ugi. gram el, .vat. as inanag...! in.lepend.aitlv .d" the railroa.I.s, an.l wl,.,s,. ,.l,aig,.s fa ..|,.vatii,L:. ineiu.liim- tirst ,en divs' storage and .hdivery to v.-ss.d. are one ami o„.-,p,a,i..r ,.,.ut p..r la,sh,.I on treight re,.,.,v..,l f,om .ars : on freight re....iv,..l lr..m vessel, imdu.lin- t.u. 31 ' i'".i'l. riiiiiiliiL,' t" I'lVCil, (111 not CVCi! I Iniiisfs mill (liM'ks f r<'ii(!i('(! direct l»y •'•llyli til.' sticcts «(1 iiiisi;rn..| iVuiii tile I limit .v I Ik- rfiiliMi,]. • ai'" |»i'u\-ii|r ' It IrVuloj' r||,il'.;i'< liii' •|i"liN,i.' slnr;iM«. t(ir l'll>l|r| : |.;|,.|l sil('- 111- ll'lll jlt'l' llll^lll'l, U-.lliT that Vi'SX'ls w.it"!' liMiit. fa^iiv' ill) is evil ■lirliiTil in.''iii-iili..i rili;.,| ■■Mni ill, Si.it,. of ":"»J'(i() ,,r l„,ii,U 'i.itciiicjit i,r Will, ill >ii|llC IVsjiccl,;. ii'lii'il miles, is a \\'.i-,'. It Miircrs " I'lvak ami jMil- ipliid. aiv said |<, •Illy twenty I'mu vessels of t \veiit\-- <'\v \i>vk liailini- |"i' 'I'lit. iiea\ icr iiml llaliiiiKire. i'llsiiic'ss there is ■'"int. live miles illi|e|.elii|e!|||y ,,|' ; first ten days' d pi'i' Imshcl (111 1, iiiidiidimj- Irii (lilVH* ^torii;,'!', *\Vil '••'lit* ; deliv .lilll^ >ame l^ Ve-sel. Mile (|Uai|el' (if ;, relit. ; eVi'iy .sucrrediiin' t'!ll d;iys' st'>|!i-e, llirt'<'-t'i;;llt hs n| a ?4,li(l4,lH;i).'.l(i. and the .\lle^dleny I'ovta-e 1.'. !{., II miles, at a eost of !'i'l,SlJS,Mil.."^'). These isolated railroads were eoiilieeted 1i\ the KiisteiM and Juniata divisions of the canal, respectively Ml and 127 miles in leii-tli, and eostiiij,' sl,7:lL'l, Hl'.'JI. The Poit- a,!^e Jv. |{. was eoiiiiected with IMttshnr-- hy the AVestcM'ii Division of tlu (;mial, 10 I miles Ion-, and .ostin-' s;>,, tiiou.ijth the railroads were not eomjdeted until lS;]3-34. On the liith day of May, 1S."»7. the main line of puhlic works constnictt'il ami owned hy the Stati' was soM to the I'eiiiisylvania Jt. li. Co., for !?7,50(),- (»00 in bonds of that company, bearinj^' five ,ier cent, interest mnmally. Till' I'ilv of I'iiiladelpliia took five millions of stock in the roiid, an interest which it finally parted with to tlit.' J'ennsylvania (;ompany at par, in December last. The citv oi' liostoii lias a tine harbor. Tin' State of >rassa(diusetts re- centlv completed tlie expenditii'v. according to the statement of the Massa- eliusctts railroad commissioih . •, calcn'.din.n- interest to January, 1S80, .f«l'.),52:?,579.!)4. in building I he Stale raili'uail between (ireeiitield and North Adams, and in tunnelling the lloosac ]\rountains to improve its commercial ^connections with the \,est ; and has incnrred great expense in huihlingbulk- lieads, piers and slips, ami otherwise improving the harbor of l>oston. All railroads terminating at I'.oston have access to all docks and warehouses along the city's water front, and the same facility in translerring freight with- out intermediate handling is possessed that Baltimore and Philadelphia •enjoy. Norfolk has one of the tinest harliors in the worhl, and only lacks capital iind enterp-ise to attract to its comparatively nimsed shores -i large shave of the south-western commerce of the country. o v.«,.|. .|,,,vv,„g ,.i.l,t.,.„ f„.l „r wat,.,., ,„„i i. a,l™,„.„„ it, ,.|ai,n l„ si,:,,,. in tiK! i-.,|iiiin.re(! of tin; in-st iiii.l s,,iifl,.west. In tl,„ l,,„.l„„. ,f N,.„. York tl.cr. is a li,,l„,.,,,.,. .x,,,.,,.. ot tl„-,.,. ,■,.,„» p« I,u„.I,,.,hv,.,gl,t nccossarily i„cu,T,.,l i„ l,,„,.|,o,.,i„., I,,.i,l„ |,,,„. ,i„. ..■01« t™,,,,,,,., of tW. railroad to variot.s waro ,., a,al points of sl,i,,. po„i s al,„„t tlH.. harbor. Tl,„ lijjhtc.rago cl.argo is d„,l,„.l,,t fro,,, ,|„, tl,o,.„,.h K- gl,t ,,, . ro,„ tho west, „,„! tl,„ l,alan«, pn.-ntt.,! ovvr tl„. o.,ti,v l„o,l h,'ll of'-f ^ '"■■■'*° "'* "'■''"'■'"'■'• '"'' f^'""- Y"'l= (•.■.,tral i„„s tl.o blUlv of ,ts Ircight to .Sixty-fifth st,-oet, tho low,st ,io,v„-to„„ ,.]■,...■ „]„,.o -t c.„.,M secrc lan.l a.k,,„atc to the ha„mi„g of ,,,„l,. a,„l „ai„. 1, ha. , P at ll„rly.th„,l sticxd a,„l a station at St. .lohn's |,a,k l,„ lo.-al ln.i,.ht t°c m r , V"'t *° "'" '"■■"""■'■ I''"'' "'""■" '■'-"' ""■•■•■'. I"" '"■ , u ,r° ; ■ ' ."™ " "" " '""■ "'"'' """■'■ ™"«"'l»' "■■■1 -^■'- Vo,l, on Wan., iho I,r,o „„.l the Pennsylvania Kail,,,,,,!, ,„r ,.„i„,a, .1,.,.... h tt, r"/ 1 '»'',"'""'■""■''■'■'■"'-'"'" ■■'■""■■" " 1-1 M-- ' tit '-tf^:;" ^'""'' '"""' ""'"'• "'^- ^^"'' ^'"'1"- -■'•'■■ - ,0 tX 1 1, " ", : '■"""' "'■" ™"'''"""' '" '''">■"■■ '■■-«■'= ■■■• -V a„,l all t™c.l ,nto the harho,, as a n,atte, of eonvo,,!,,,,,,, t„ ,|,eM, I„. .,asi,.,t 2ctfvi,',I ;',''''"° "■;"■„':;"="«'''- >""■"■' "I"..,. sl,i,,.si,l,. a,.,l „„loa,h.,l I ,, 1 ■ ' I- -"■■'«'!» tmnsporti,,, „.„;,,„ i„ ,„„„,„„;„„„ .,th canal were ccnpeiled to .leliver th,- f,.ei,ht as ,h,. .,„„! .H.l : a,„l li nee tl,e |,ce„l,ar,t,es of the harhor a„,l th,- ,.„s„„„ .-stahlish,.,! ,,v ,l,e una! eon,,,el, at tins ,lay, the perfornn.nee of ,i,is ,.x,,e„siv,. ii.hte,,,..; ..,- vco, nee,.,ssa,.y to e„nn,.et the terminns of ,l„. ,,,a,ls v.ith th,. po^.t of tleliu.ry, to,, shtptnent ahi^oa,! a,„i the warehoeses „f „,e,v],a„,s. Th,- ,■,.,■,. prnpertty „, ,,„. h„,,,,o,., ;„ „„„ ,,.,„^, „,^,„,^,^.^_,_^^ ^^.^ ^ ^^ _^ ,^,^^^ ^^^ _■>_ sh.ps ena ,1,.,1 to oht.ain a go fro.n the p,.o„,is,.„o„s flight olle.ang ,ts,.|f, eiuato,, „, the ra.iroa.l, a,„i i„,i,t „|,„„ ,„ ,.,.„,„,„ |^^,._,^ ,^_,^^^^^|^^ ^^^ ^^^^^^ l*h. he .s.tne ,s generally trne of sa ve.sseis, „-ho ,e,.,.ive th.ar f.e,gl,t alo„gs,.le lytng at an..h„r in ,l„. harho,, Tl„. e.vlent „f this li„h„.,.. age s,.rv,ce ,s w,.ll ,ll„s,rato,l by the f,ct that the ICrie rail, I „,a,l,/; ,v> sptolal ,leUver,es of gtain in the harhor of New VorUor the vear e„,'li„:. Deeetnber ... ,878. (Testin.ony. ,,,. 32(11-2.) Th,. ICie ,.oa,n,as ,?. chsfnet stations in the harhor of Xe„ York for the ,leliv,.,.v and ;,.e,.p. ,^ ■» ; ii\'ci', is acfcssililf ,u' its claim to sliaie iciisc (if tlircc cciits ,14 iVfii;]it Iroiii iho 11(1 jHiints (if sliip- iV ooasi and dilior 1 fi'iiiii the llioviin-li • T the oiitivf liaiil, Ci'iitral runs the -tdwn jilacc ■wlicie t\ ,^^;liJl. II has a k lor Ideal IVi'ightv ilnct station and dy hy lloats and lal street, hut to Sixty filth stiiMt, lid ^I'ew Yolk oil ise on ]\Ianhat1aa liiiai iiin' at ricrsey I ]ioiiit^ on .Maii- II these rii.lds ilk III i''. ;'iiy and all ft. Canal hoais 1 and the easiest iih' and unloadeil It in eoni)ietiti(ilL I' eaiial did ; and talilished hy the Ve li;4hteran'e sel- tli the jionit of laiils. 'I'he vei'y ler. The stei'lu- ht ullei'iiin il>eU', the wlmi'ves or brought to their lo receive their it of this linhtef- oad made ,^, .";;!> the year eiidiiii,'^ IL! road has nine- V and reeeptiuu 2a of tVei-ht (Testimony, p. IV:-'!), and leeeived fnd-ht duiiim the year l.^TS from seventy-three diiVercut points in tiie harhor. (Testimony, p. ;i-'''». ^ AllutluT roads tenninatin-' in New York, of course, in coinpetitiou, are i oai- p.dled to do the same thiUK. Tliis lighterage charge is of no piotit to the railroad and of 110 advanta-i' to any one save the parties eugaued in per- forming the work ; hut is just so much tax upon the transportation of g lods througii this [)uvl : and must ever continue as a Imrden upon commerce, threat^'iiing a. diversion from this city, until the vessel and the car aie brought together. Our canal tirst tai-ped the storehouse of the w(>st and gave New York its impetus, and when the railroad became a factor in transportation, whatever rivalry may have existe.l l)etween it and the canal it mattered little to New York! for they alike drew commerce to her.loors. In 180') the Pennsylvania TJailroad entered Chicago, and began, in its own interest and that of Phila- deli)hia, a contest for the trade of the west. Now, according to Mr. lUanchard (Testimony, p. 3090), it '•Controls tlielinc toOliicago liv wav of Richuioud— making three routes or parts of routes to Cliicic^o ; it controls pnicticallv mi.l absolutelv (.lie route and onedialf interest in another to St. Louis : two routes to Louisville : two routes to Cineimiati ; (me route to liuliaimpolis ; one route to Columbus and all intermediate points ; it, bv roads under its own control, touches the lakes at Buifalo, Erie, Cleveland, J oledo and (j "liave they .>,'ot any steamboat line on the lakes ? A. Yes ; the Anchor Line. ' In 18";) it e.KtendcMl its eastern terminus to New York. The reim- sylvania Railroad system has a capital of nearly 8-"'00.000,()00 according to Judge vShipman ; and in the pooling agreement is given twenty- live per cent, of the New York business. Last year it carried thirteen per cent, ot all the freight shipped to New England, and in so doing lightered it from its terminus at Communipaw to Port Morris, a distance of twelve miles, and thence by rail. The Baltimore & Ohio road entered Chicago in 1874, and l)egau a contest in the interest of Baltimore. Now, according to the same witness (Testimony, p. 3007) : "The Haltiimnv & Ohio Railroad reaches Lake I-aie at Sandusky ; it rea(dies Lake .\Iirhi"aii at (dliea^^o; it reaches the Ohio River at Whecdin^ and at Parkersburg : it ivaclu^ the Ohio river aii;aiii through the Marietta road at Cincinnati and l'(ntsin(Uith ; it controls the Ohio dfc Mississippi road leading to St. L(juis and L(aiisville, and tlie ]in(> known as the Springfield & Illinois Smith-eastern, running from Springliuld, Illinois, the eaiiital of the State down to a eonnection with the Ohio & Mississippi road." It comes into New York hy an arrangement with the Pennsylvania road, and Philadelphia, Wilmington & Baltimore roads, and is given per cent, of the New York business in the pool. It is only since 18(ji) that New York has been seriously threatened with a diversion of trade. She has little to fear from Boston, nor, indeed, from the north, unless the com- 24 pleliun 111" tlic AVcUaiid canal enlargement sliould l)e sujiplcnieiited by a corresponding enlaivenioiit of tlie 8t. Lawrence canals, which would create a rival ])l('in('iite(I l)y a lii'li would I'lcatc of Nl'W York tti iince.s : 320 iullc'8 .11. M lie 23 do and 581 do .... jjm^ do .... 420 do . .. 421 do HiO do oston, Portland, . . . .3,023 miles .... 3,242 do .... 3,4.')0 do . .. 2,!»0() do .... 2,S50 do . 2,822 do . . . 2,rir)0 do 20,,S37 do 438 do 538 do 07(1 do 446 do 224 do 284 do i i>54 do 25 Now Y(irk t(» Chicago : K.'W York ( "cntral and Hudson IJivr R.K 44S niilos <;ivai W.'st.Tn IJy --• '" Michigan Central II. V. __l!!^ '^" ,,, , 1 liGl do l,otaI : New York to Chicago : ii -? 1 New York, Lake Erie A: Western IJ. R - • • \[- "^ Atlantie & Great ^^ estern Ky ^^^^ ^ Pittsburg, Fort Wayne, & Chi.-ago '"'''' ' '^ ry , . 975 do iotai - _ New York to Chicago ; _^_^ New York, Lake Erie & Western -- ^ " Lake .Shore i\: Miehigan Southern '^ *" " T, , , 9G0 do iotai - New York to Chi<^.ago : New York, Lake Erie & Western ^'^^^ ' " 2 i' do Great ^Yestern Py ~. :Mieliigan Central P.K "'"'"' rp .„, , 1^40 do i The short route distance from Chicago to ^Nfontreal is, via Michigan Central and Grand Trunk Ry 8 18 do (Chicago to Portland, Maine, by same route) 1,145 do Same, Cliicago to Moston, via Michigan Central, Great West- ern, Xew York Central and Iloosac Tunnel 1,010 do. (Chicago to Boston, via Xow York Cenlral and I'.oston ct Albany R. R.) 1,017 do Short distances from St. Louis to New York, via New York Central . do And via International Hridge, Canada Southern and Toledo, \Yabash & Western, it is 1,114 do And via LuJlalo, Cleveland, Indianapolis and Fudianapolis i»L' St. Louis R. R. it is \Ao\ do Short distance from St. Louis to New York, via Pennsylvania R-R-i^ 1,001) do Short distance St. Louis to New Y^ork via Baltimore 6c Ohio I'^-I^- i'i 1,108 aL> Distance from St, Louis to Philadelphia is, via Pennsylvania 1*^-1^ *>79 do Distance from St. Louis to Paltiuiore is, via Baltimore & OJiio J^- R 920 do it 802 miles 830 (V> via 848 do . .. 1,145 (l.h ■(•st- . ... l,Ol<> do. 1 ct .... 1,017 do ork .... 1,1(]0 do- st. .... \,\(>7 dc!- tlic . .. l,14() do ak." .... 1,130 do 'do, . ... 1,144 do 1.151 do . ... 1.0(50 do 1,108 do 079 do hio 020 do 1 n 27 Distimcc from St. Louis to Kiclmioiul ••• - ^^ ^'''' Distance from St. Louis to Norfolk via Richmond I,v all the rontes of transportation connecting the port of New York with the west ami south- west, an.l cspeciallv as showit.o- how utterly disregarded distairce is in tha tornmtion of thes; lines. Instance, sending freight fronr New York to (Jhicago via New London and Portland ; and yet it is frequently done at a less rate than l)y the most direct line. All through route connections for transportation of freight from New York to Avestern and south-western points : New Y\n'k Central ct Hudson River R. R. Co. New York, Lake Erie & Western Railway. Pennsylvania Railroad. Raltimove & Ohio Railroad. Grand Trunk, via steamer to 1 -itland, Me. Central Vermont R. R., via steamer to New London, Conn. Chesapeake & Ohio R. R., via steamer to Richmond, Va.^ Virginia k Tennessee Air Line, via steamer to Norfolk, Va. Savannah Line Steamers and Georgia Central R. R. Charleston Line Steamers and Carolina Central R. R. Morgan's Line Steamers to New Orleans and Mississippi river boats, l^Ior^an's Line Steamers, via Galveston and Texas Central R. K Malhn-v's Line Steamers, via Galveston and Texas Central R. R. liound Brook Route, via Philadelphia, Wilmington ct Raltimore and Raltimore v*v: Ohio Railroads. Union Steamboat Company, rail to Ruflalo and lake boats. Western Express Co., rail to Butialo and lake boats. Anchor Line, rail to Ruftalo and lake boats. '? 28 Lake Su]M.iiuting and receiving depot of the south-west. Why should not these cities send their produce seeking European markets by th^ shortest route to ' the seaboard and thence by ves.sel abroad? We looked for the answr to this question in the topography of the country. Its solution must be foun.l in a united and co-operative effort on the part of our railways, our State, iiendix.) Mr Depew tells us in his argument that during the war of rates with the r.aitimore .;- Ohio and I'eunsylvauia roads, from 1S75 to 1S77, the N.'W York roads, lighting h.r themselves and i\>v New York, IWrce.l rates down iVom .^1 00 t.. 10 cents, and then stopj.ed. The New York roads m this contest spent manv millions. It was so .lisastruus to the Haltunore ^: Oh..- and renusvlvania roads that they ceased to pay dividends. A strong arr^ument in tavnr of the superiority of the .■arrying rapacity and la.'dity oi ouT roads is found in the fact that during tlus war, so disastrous to tlieir southern rivals, the New York reutral c.ntiuued to pay its regular eiglit per cent, dividend. Our loads are in need of no subsidies ; but while other States ami cities ■vre suhsi.li/.iug their n.ids and incurring vast an.ounts of indebtedness m uc. paring a lai-ei- share of transportation. New York must not puisue au obstnic'ive policy, whicli the Testimony tends to fasten upon her. (le.^H- numv, i.p. 7, also i'i'JS:).) Our roads do need termi.ul fariliti. s to place them .m a par with other roads and to plaee New York on a par w,th other cities. Mr Ya.clevlnlt t.stities (Testimouv, p. KmO) that the business of Ins road co,dd not l-e inereased without increasing its ternunal lacilities in New York. Mr. iihin- ,hard describes the terminal facilities of the Krie (Totnuony, p. liD-x ) : '•••-'- ''','S'"%L'i„^"lCktSa kt Jersey City, thvou.h which we han.lU. the moic m .eta 1. Lht ';< " '"^ '^ " i,,aaeqnate to ..ur l.usin..ss, an.l we are now hv.-e hulk .. ..uv I' ';!;'>• !'f,J';i^,e ...St. just tor that reason, a large new e e- puttni- ui. at .lers.'y ^.'*>:' ''* -J J.^V.^^J'-.u.eh.. uses upon l..,th si.les ..f it ; an.l for the vat..r,l.utltuiH.nahasmth.Mst^ h.uc.^^^^^^ l^^ ^^^^ this husines. We tune beuig all ^"''*^ ''* ^ *'', 'V^;' ';;j ^^^^^^^ compcUea t.J take freight up l^\i.k\'hr;^/Skta;^' •;;;!! uJere^"^ - ^ ^-m- -'> ^"'^"^ ^^ '- ^"^ -- because our usual naniinal facilities are .ua.le.iuate. N..W York has recentlv subnntte.l, in the interest of raphl transit- wisely stduuitted-to have her streets occui.ie.l by uu ungainly structiire. the value of certain property seriot.ly .listttrb...! and th.. convenience ot a p,r..e poition ..f her citizens materially intertere.l with, ami it seenis ^tAally ue:^.ssarv, in the gn.iter int..rest ..f commercial supre.nacv that she subnu to whatever incot.venieiice may atteml in bringing Iter railroads m cntaet ^i^;;': warehouses ami the wharves of her st..amships. ; If t e motintain ^ ^.x.\ „uf Vfiboniet must "o to the m..untain. It tlie tracks w.jii tcome to Mahomet, 3ianouin. mu ^ ;K) icannot be. brouj'ht tlowii Id thr wlmi'vcs of the st.Miiisliiiis, .st.iiic iikmiis imist be (levisc.l of iinbunng the stcainships t(t n,, t,, ili,. clcviitdis iiml wlmiVKs ot iUv. railruiid. This would still leave Drooklyn iiisiilalc.l, ami alloid lacilities to the Ceiitralliue which would -ive it just so uiuch adviuilaye over the Kiie and otlier rivals. At this point }h: \'andcil»ilt's Ti'stiuiony (|». \'M]>) that liis rivals would not penrit him to use the licit lim- of railroad lor f'rci-ht cars at night, a i)rivilege accorded hiiu l)y the city. i.-« pertineui, as showing the complicate 1 nature of the «|uestion and the extent to which railroads com- bine to dictate to each other. With proper facilities tendered to the roads, their own intcivst avouM promj)t tli-ir use. Sln.uld they neglect their us.- it would justify the imposition ol' such terms and ivstrictions as the ]pro. tection of commerce might reijiurc. To.(hiy the Pennsyl'. una road carries grain from Chicago to lMiiladel])hia .for thirty-eight cents per hundredweight, to Xew York for forty (;ents. and out of that pays three cents lighterage charge, realizing thirty-seven cen'.s to New York. They virtually pay one cent ])er hundredweight for tli(; piivilege of hauling freight the additional ninety miles. Could this charge be done away with, even under the agivement as to rates, New York wouM be on a ])ar with Baltimore on east-bound freight. Less complaint was made of the dillerences on west-bound rates ; the subject rec.'ived less attention .in the testimony and arguments of counsel, and iience le,.s in this rejjort. The export controls the import. Goods will be imported at a point where an export cargo can best be obtained, as a rule To b)-ing all the roads in connection with all the water front (.f the |,n()ii ,h.i- annuin-iiii vk comvr anu.unt-an.l nmny othor .hu.-rs ;„v i,i proportion. Tl.is nl.ol. luuttor n..,M|.s tli..,o,,^rU oxaiuinatiun. Whil. ,;.,. l.-i,latiuv shouM sta.nl •VH.ly, an.l probably .lo.-s, to l.,,,} ,,My aid i„ ils pou-,., t.. ouhnur. tb. ,.o,n- morc-o ot Xow Y-.k, by .ua.n.lin,; p.vs.nt lau-s ur ma.tinx n.vv nn.-s suj,'gest.o„.s ..,,,1 b,.st ..o,ur fn.ni tbus. pra.-ti..ally conversant witb tl„. n.r.U ot th. port or tron, a ronunitto.- of th. Mslatnr. oivn tiin. an.l pou„r to M"""",^l-ly taunliari/.. tlu-nisdvo. with tb. present ron.lition of alliiirs an.l proper remedies, Tliis .pie.stion of terminal facilities wonM seem to br in vi-u- of ronsti tut.onal restrietions eminently u lo, ,1 ..ne. in tbc solution of u-bieb .vnv in.lu.4ry m the port of NVu- Vork is ..pully interested, and uitb no conllie't ol interest. I nd.'r tbes,. .■in-umstamvs, it does srem that a solution .aedit to 1)0 attauuMl. n.vn-.s. ^ <>" April :., I,s77, tbr Xru- VorkC-ntral A- Hudson iiiwr, the K,i,. tbe Knn^ylvan.a Ila.lro.d and ib. Maltimore ,V ( )|,io entered into an a^reem-nt (hxlid.it. p. liO). tl,(. pn'ambl,. ,,f wbicb re-ites : I Ih'11 follows an a-iviuiicid ibat Imiidivd pound; lai Inindrcd [lounds time to Xew \'ori "11 ''ast bound tici'lit tbic('_ cents lc>s per '"' ''liar-cd to llahimnrc, and two ..vnts less p,.r "■'■•"••■Ipiiia, tban tiu. rates c-tablisbe.l iroui lime (.► also. While this ..p,ali.,.s the t.rndnal ebar,,.. it should l>o ,en,end.,.red that what .s pan fu^ elevating goes, not to tin- railroad elevators, but to the floaters and Atlantic Dock elevators. '^""' ^-^ -"^^ '-^ ■-■ '"-^-^ •' ' ''i.iiad.b,;na Zu z ';;;v;!r;ltirrri;: x!w Kr'^ I5y.isimihrr agreement of June S, lS77, the west-bound business of the innt oKNew \ork was divided between tbe above roads as follows • Tin- Ne^y York Central & llnd.on River, ;5;] p.r ,•..„.; the Krie. X, ,,,■ ..,.,, • Pennsylvania, 2o per cent.; Haltimore .V Ohio. !, p..,. ......t • and .dlcdi' iorma I>usiness divided equally. The contract creates a Join, connuissi.ucr and provi.lcs, among uiher duties, that ^•^ • T aiiiuiin — iiii cv- ti(Hi. 'I'liis \vli(.l(> tmv shoiiM stiunl '•Illi;ini (' tlic ciiiii- lili'tilii; new ones, lilt witii the in'('(I>t iiiii' ami ji(»\v(T to ti'in ui" iilliiir.s and n vii'w ol' const i- u oC which i^vi'vy I with no conliict a sohition oU'^ht V'.'l', the Miic. the iituan aLircenicnt. M||liii;il ;iilv:iiii,im.s I'l'ilc, a.N allcctiMlliV »''|"'i'iziiti t' iliV itivc [((lint- in ijic ^iiM'llCil llllnu-ji tl,,. If', Ci'llt.-- leys [icl- ' i.'cnts less ]„.r L'"! Iiiiia liuic to 'I'lii^' grain at chIi it is c\]i(irtc(i, as I' -ainc. " I'luciiilii'icil tliat tors, hut to tiio XiW Ynvk .-,liall. veil III; cast hound < fiMMi Ualliniorc, I'li'iu New \'(ni<." I'Usincss of th(? folic i\vs : 'J"]jo , 3.J |)cr cent,; : a!)i! all Call. i.'oniiiiissioncr, <• He shall lurrish ca.h ...niimuy. at the ch,1 ot each wcU. a sta Cncnt ^\u>^uuK \u' *xccH ..r Hicit of- cveh class cai-ricl aL.vc ..r l.duw tl,.. a.^Tccl pcrccuta^ic .,t the m ■ 1 he e / w^^ I'f a. .npa.ne,! l.y instructions t. the cou.iun.o n, excess. rtclUvi-'^M;.' the .h.nan.l of tho .U.p.uv u. -leii, it. tie. ann.unt ot ton..a,e o| each «lass njiiiireil tn uiiuiilize. jih agiL't-.l. irn.l."rth.>s.'ag>vnu'nts Pl.ila.l.-Ipliiahas th- same reason tu eo.ni.hiin of the rat. ^'iven to Ihiltinioiv that New V.ak l,a. lhou;J. nnt to the sann- <'Xtent. This a-nrmont of April .'>, l'^77, iusleaa ol c^iuali/in- the thfon-h nitivs IVont westNU points to lo.vi-,. ports, has lia-l the opposite eth.,t. " LoNi'oN, i Ith Aagast, Ifsr."^. "We the un.lersi8ne.l Hhip l.rokc-s, certify that the -teat >ua.,ority of charters raado yv, ^"', '" . « ,...,,^,.1' -,,,rvin>' L"'aiii from the I'liitd ^tale^ to Kumpe. give i;';;:™ .1:^m;;S- t: s::^^;- ;^^ '..1.- to Nc.. VorU. Plnla,lel,.iua or Ualt, re on the sumo terms. " (;.\ M'.i; .Mill I'KM I'.IK >K I'., " 11. CLAllKsoX .V ( o.' The ("viacn<;e as a whole shows t,l at the ocean rates fnan I'hiia.hlpliia for tin. year av.-ra-e sli-htly higher than tli*' rates from X.'w York, and thai tho rat.-s Iron. lUlti.nore average slightly nigher than the rates from rir.Li. v>t, i.M.l l..aN,.,s it |,v., „. n„, uil.l. Tl,.. |,a„i via tl... Ca,,,! Trunk t.. (Incay-Ms l.V.MMil,..slon«..r tl.a,. ..tL.T .oMt.. ; ami hmn. th.-v n.nnot .n-t any buH,,,..... „„|..hs, to us. Mr. K'ntt-r's ,.x,Mv,si,.n. th.v '• Imv it " l,y n\ly. n.g a ..w.T rat... Tl... sl.o.f •, r.a.t,. .uust I.av.- tl.. luuvr n.t".. 1,...,,.,,... th.-y cm, uHonl to c.M.Ty to,. I..S. ; thH,.,,,. r n.ust .ut „.,.l,... ,|,i, rat.- Ih.-hus.., if It .io,.s rn.t oIl.TM,,.,,. iM.lur.nn.Mi. f.vigl.t will Maturullvs,.,.k tl... n.ost, .li,v,.l route, ami it will g.t uo husini'.s.s. Tl.,.,se aK.v...[ rat..s w..,- tl„. n-suit of a srwvv railma.l wa,-. Wl,.!!,.., the n.aua...t.s ..f tl... New V,..-k liues at tl... ti,.... ,.f n.aki... thin a«n...M...ut Av...... i...j,n.|H.,..sil.k. „,. ,.o, tl... fact ....n.aius that tl... citv ..f X..w Vurk is il.scm..mat...l a.aii.st ; that is, with flu- a^u:d .lillbreuces in .uilroa-l .at... inu.nta.n...l, au.l the suh«tantial ...luality ui' ...au rates, a. n.-ov..M t.. ..xist tin. .■xp.M.t tm,h. will ..f ........ssity s.-k I'hila.h.lphia au.l Daiti.,..,,.... A .lil' Icn-Loe lu ..at.. ..t .m.- ......t i,...- l..,.,..h.e.lw..i^M.t w..,.|,l |„. ^._,n ,,...• ,.ar a.nl on a la,.ge sh.pn.....t, wouM ,.o..t,.ol the nu.t.. iu u.aki,., a tl....,u,h hill .„• hu n.g as w,,uhl also ....e-half .... .uu.-.,ua..te,. ee,.t .li.i,.,....,.... It was ...... n.a. ,y ml,e.l.,pn.au. iu his a,.,..n.eut helo... tl. itfe, tl.at the ^^.en .1, ..eue..s u. ..a,| .at.., with sui,sta,.tial e.p.ality i,. ....au n.,..s, w..ul,l W r ''^;''^''f;-'"^^'-"^- V...k t.. naitiu.o,.e ami Pl.ila.l..I- .IM.. VVhateveH,a,H.lule,.us..,,ue,...es atteml sueh .liv....siou, the raii,.ua.h. must tl...u.seve«, ..t necessity, sullei. nunv h..avilv tl.au auv .tl..... iu.h.st.-v and pro.upt..,! i.y t ...„■ owu selt-i,.t..rest, tl...y will 1... ....ust,:ai,....l f. u,.i,„ h any el . at .... to .. tattl.. si,.gly, t., preserve the e.pt ,lity iu this ...-s, t ..f th.^ port at wh.ch the,..rua,ls t....,uinau.. (K.u l.ist,.,.y ..f th..s.. .1,,,;.,..,..... ...^ le«t.m.,ny, pa,,. .1 , >, eW). A ..lai.u tor a nu,.lili..ati..u ..f tl... .lilK.n-n.J.s i« now pon.lij.g on tl... part ..f tl,.. New i\,rk r..a.U New V.>rk p.>ssesses the key to the situatio.i iu the Ei-ie eanul. While he con,n..ttee n.a.le no attempt to investigate tlu- rolatio.i of the ..ail,.,...!, to the canul and sought to lessen their Jal.ors ],y avoi.ling this .p.esth.n tlie canal, like Lan.p.o's ghost, woul.l not -.lo.vu ;" ^y. w.-re con.pell...! t.> meet It at eveiy point and turn of the invostigath.n. Tl... c.-st of .vat.>r transportation Iron. Chicago to JNew York deteru.ines the rate .,f .-uil trans portation ; and the .,tte of rail transportation from Chicag.. to New York is the hase Ime up..n whi.-h railroad .ates are determined and fixe.l tl.r.,n..h' out the country ihe rates, by agreement of the pri,.cipal railroads of th. country, Irom all points in the west to the seaboar.l, are ma.le a certain percentage of the Chicago rate. (Testimony, pp. 3001-2-3-4 ) Tl.,i. Cin cinnati is 87 per cent of the Chicago rate ; 8t. Louis, 1 Ki pe, i.-nt. ; Kansas City, HGper cent. ; Louisville, 96 per cent. ; Ch^velaml, 7U per cent etc There remains for the railroads to do this additional a.-t ^f justi... ".u„l see that the rates from points in the State of ]Sew York to the citv of^New York are made a proper percentage of the Chicago rate. 35 piiy (llviilciid (•! < Iiainl 'riMiik to ' tlicy <'!IIllll»t jLji'l I'liy it" l)y nllcr- I'iitc liccaiisc they ) I'iitc licniiisc, \i k tilt' most (liii'(,l Will-. Wlictlit'i- ; this ii;^i'cciii(iit >i' Xi'w York is ill iiiihoiul liiti'H |)i'ov('ii to exist, Itiiiioi'c. A (lil- .*>(» jicr car, and, tlll'oil.;li hill of (!. It Was coll mittcc, that tho (Mil nitcs, woiilil !••' and Philadci- >ii, tlic i-ailroad.v other industry, iiH'd to unite in is ivsiiecl of the dlHeiviiccs, SCO lie dill'ereiKie.s \» canal. While f the railroiids this (juestion, re compelled to i cost of water of rail ti-ans- o Now York is fixed llirou<>h- •aihoads of the iiade a certain .) Thus Cin- ccnt. ; Kansas ^ per cent., etc. if justice^ and le citv of New Mr Blan.hard (Testimony, \^. -JHIdlsays: ..T...Stat...;..a.wit..nits^....t,.,..^^^^ tlR' ciiiml polU'V Mini iMlo.H nf tins Stiltr. Mr Kink a veco-ni/e:<<>) that whenever a .eduction is nnule in the mil rate Iron. Cl.i,;,'.., to New York, oecaHi..ned hy lake and .amd oompetith.n, that that reduction cxtHidH to b.uiHviUe. Nashville and Savannah. (eats. _tlu\ ''''';;''■ 'vti,,,,,,i . \tl;,at;i is i.-rhiins tlir most iiil.Tiur ..t ,.11 towns a..ttM'nuu.^ a|i, u t .• tc^ A^ n. U ..a tli.t a.Tuunt ; tl...y .any tlieir '(!■ ait'l! u 4i. K u • a.^« 't" N.'w Vurk :.li.n..t, ...,1 then In.n. lu-iv l.y w.t.. to Sat 1 "'u V . IT sl.oit ai.taan. IVuia Sav.niiah u,- to Atlanta .l.HU- 'Xs - .'a t . hull, na ,uil.8-aiMl th. utiicr rail Hu.-h that w..rk Iron. Tliua^'o to V vniV misviU 'hattaiiou.'aaiia Atlanta, liav. simply to r.mtunn to tl.e niti-s Su ^l-'S;';;.. s a^l'Uu. niil li.u. .Von. Cl.i.a^o ai.l N.w Vo>k ...ke ; t has he I'.k.- luivi^jatioi, a!..l .anal iiavij,^ati..ii n-ulat.. ti..- rat.s ot th. wliol. oaii.ti\. >ou n.a\ say, I'ronrCanaila (low to tlii' tiult." Mr. Vanderl)ilt in his testimony attached equal importance to the canal, and reoarded it as an important factor in the commerce of the State and country. The maintenance of our trunk canals slu.uld en-age the earnest solici- tn.le of the State. Nothing could be more lu-ejudicial to the interests of the city of New York, or tlie State as a wliole, than to permit their etliciency to be impaired or their usefulness compromised. Standard Oh, Company. Tlie terminal facilities for han.Uin- oil used by tlie New York Central n.ad in New York are owned in fee by the Standard Oil Contpany. This company also owns all the oil cars run on the Central road. The ternnna facilities of the Erie for handling oil in New York are leased to the Standard Oil Company. rE.xhil>its, p. 57.^.) This company owns all the oil cars run over the Erie, except about two hundred. Thus, these roads have placed in the absolute control of this conpany the handling of all oil carried by them to New York, and they can char-" a rival shipper any price for terminal handling they ch.iose. They are bound to charge no more than is char-ed for a similar service by other roads, but remembering that they own'uid control the facilities at Baltimore and I'hiladelphia as we., as New York, the force of this limitation is nothing. They can use the power here given' them, and have used it, to crush out opposition ; and this is an illus- tration of the worst results to the public that can follow the leasing by a tJie chani „f traiispurtotmn in the liniuls nl' „|I„., ,„,u.,.s. „„,";;',f';''f, "''"-""■iv.n.tio.. . . „ni,,„. in.,,,,,,,,,,, of tho,„«sii,i„ u s owth „l the |,„.s.„t ,v,tom or railroad n,a,>aKc.„u.,nt, in givi,,.- prrfe can g ow n„,k.r tl„:, l,„vs oi thi.. country. .January 8tl,, 187-^ ll„. Co, tn Tlicy then ;i-ieu(l : til' gro^H rates al.ov,. .s),eci(ie.l •, ?, 1 1 1 '' '"^''' "'''"'' ^''"" 'i"t ''" !o.s.s tlnm whatsoever, the .sa.u.Mvaue io , e' 1^ nv 'sh lir.'',"' f 'r''/^""'^' "'• "1">" ^n.; pretext •art, f,...m the n.t rat-.s I.,.<,^•i |e 1 , ,f I?*': '" ^''^' I'^-'ty he.eto of ti.. li.v.t the pe,.,u.l for which su^h i.duct.o,; .hLin"';;..;!;: S;\,f;r ''°''^'''"^" •-• th'-. .lun,,. , , " * » , ■■ tween'lhe''pa^?Se^f Jj",^ the^':;';;'?' ll;:;:^!;:'i;;';-''''='"*-' -^'^ ^V^'-'-.l l.- L l,e. ;;-'.'I'<-''ate as far a. it legallv n>av w 'tl ' anJ . 'T",'' '""'^ ^''^''^ '-^^ 'ill tinus ..s.ness of the p,,,,, he^^.to' of the i .^t^ ? j^^ "' ^.''^ "''-^t P'^'t to M.aintaiu ho en, that the party hereto of tla- H.^^ , ut v t '"' "'""''' ''■' '^'^"^"■tUinn, t., full aii,| regular husiues.s, an.l to tint en 1 '^') . iT^ '' "'! " '•^'"""•orative, and so a portat.on over its railroads an'u^n^^ if ! ',• '^r'' I'l' '^T "'*' "''"^'^ '''^te; of trau ' t" sueh e.xtent as mav he iieces.^ rv to m '. '/* ^''"'''^'>' '"">"' ''>'' «"oh times an.l -•a-^..«U. the party ofthe.:->-,-—^^^^^ followinu, ^'^' '^"^^^'' Inq.ruvc.ent Company, in April TJiis contraci is important as sliowin- tlie li-ht in u I.; i -i i agors view tlieir rcktinn.tnfi i r •'/"^ ■^'''^ "^ ^^^"<''i milroad man- common law obli.r.-ition to tro.t oil .• , "i''"''^" ^^^-^tin- nnder the t»i.-o to „r„to,.t a :.z In ;',::;: : ; !"-^- "'■'"::.™'t """"'- 1 .* "-^'■•'"•^'^ "Miiiy '>,V (.'ompetition ' >86», with a ^.s: ^^;;;r"r" ; In '""" ■, ^' ™ "'"'■■-' -■ raih-oa,i,s, teti.i'. (Tctimon;, ,, erCG) : ' " """"" '"■"'"""'' ''>■ "'" -m;'S\i;:rtit.f"i:'''^t:'l!,i;;;Si:;;';^,»l':' 'I- «'•-'. inMa.ov,,n..„t f^^ li.ent e,.,a|,„„y. M.ia'lai.1 (>,1 ton.pany «m part ot ll„, SoatI, |,„|„.„' ,.. paay ,,„,! a ,,„.., „thj. mircronV,irr;i;u;it't',,;:;.Xn;rn:lj,t "» ^■°- Ol necessary link iu II of the [)<)ssiblo in giving' pi-cfer- ivliich monopoly S72, tlie Contrai, t witli tlie Soiitli xliiltits, p. UN), 'U sliipnients to (8ai(l Exhibit, I to in article 3(1) II llDt lie less tllMU eliiiri,'e(l, dircrtly "1"'" iUiy int'text lieictu of tile lir.^t for tlicin (luniiif a ■Srecd liy and be- sliiiU at all tiuKs I'iiit to maintain '.'/ C'>/Hprf!/.io)l, to irative, and so a 'ss rates of trans- >r snch times and The rehatfs and <' i,M-os.s rates." isylvania legi.s- I'Uiy, ill April I'ailroafl man- ipou their sub- ig under the irately under- iou.""^ at Cleveland, cliartered in -Iiiced by tlie C'oni))niiy tlip ontli lnij)r()ve- mnnreliendiiig lard Oil Coni- After tlio vcpoal of the South Tmprovouuuit Company .diarlrr, thr attempt made to mouop<,lize the oil trade throu-li this eompnny w;is transierrod to the Standard Oil Company, the rontrullin- spirits of botli organizations Leing the sanu'. From tluit time tliis organization grew rapidly in iiaportanee, uatil n-w it comprehen.ls, according to the testimony of Mr. Patterson (Testimony, i'. 1008) : Jiany & Co. :"' and other refiners of oil. :\[r. Rogers testifies (Testimony, p. 2615), the p(!ople that are working in harmony with "us," meaning the Standard Oil, comprise about ninety or ninety-tive per cent, of the refiners of the country. Your committee were unable to ascertain the exact relations of these dilfercnt organizations, owing to the refusal of several members of the St'Midard Oil Company suh- ])a)nae:l as witnesses to ob-y the subp(ena, and the nd'usal of those wlio did attend to answer our (fuestions ; but succeeded in establishing th3 fact that ninety or ninety-five per cent, of all the refiners of the country act in " harmony" with the Standar.l <)il Company, and tliat they ship ninety-five per cent, of all the oil of the country ; and, of course, the three and a half millions capital of the Standard is but an insigniticant portion of the aggre- gate capital of this mysterious organiz itiie\v \ (Ilk "^ .^ ' ,. " Philadelphia and Baltimore :J ;^V " Boston ^ '''* " The roads transporting the refined oil shall rrnnh/ fo th" r<:fiiirr.^, n< « o„ fhi' cradr oil nwhiwifhrlr Mhwrks h,f,;>,l ; and tlie roads transportinir through crude oil to the eastern seaboard shall refund to the shii)pers . twentv two cents per barrel ; both of said drawbacks to be paid only on oil reaching the initial points of rail shipment through pipes, the owners of which maintain agreed rates of ]iipeage." I5y this a^,v,.,n..nt ll„. r.,:„ls r.wy ,rn.]o nil fVu,,, tl,. nil r.-inns tn ( 'l.-v. ,"';""' ^^^•^'""•>^1^ ^",,1 th.-n ranv tl,. ,Hn,..,| nil In ,1,. s,.al>nani ,,. - ..■aply as iUry ,vnuM ,Von, tlu. n.nulltnf ih. ^v.ll. Mr. \-an.l..H,ilt oxnlai,,. tills (Icsiiiiiniiy, |). i:»!Mi): ' ' * ♦ ♦ * " * * * ™' "" 'f. '"-"■■! "f ""■ ■«^"-i' >•-■ Vnri<- „l „r ,1,,.,,. ]„„„,,„„, t^^tnLt'VT'"'?' .1.0 .vH,„.,. i„ X,.>v V,„.t/ s]Kn,i,l,l„. losisi;,- t".e enact that tl,. ,ail,„,„ls „f ,|,i» stal. ,l,.liv,.,. all Cinci,,,,.,!! IVei..|,l M,»ul,,i.| 0,1 c.,m,«ny (KxlnKits, p. 17.-^), „.i„.„0,v ,!,„. „.„,,„.,, ,„ .,„ i ;'. " ;:: r^: " "r .'""'" '"■' '"■• "• •■*"- "'■■"-■ """• ''- < ■ - ...1. .....I eo,„,>a,„es a to,, p.,. oo>„. ..obate „„ all »l,ip„„.„ts ,f „il vml t ..„.pa,„o« oo„.,. tl.oso tinm a»d i,„livi.l„als wl,„ ,'„,1, „, .. ,,,„, „ t'.^' «t-.la,,l, a„a ,!,„.„ to .,„„„ thoy ia,.,„ „„, „„.: , ' ' , ^^H^ ..t.,.,,tho Co„t,ala„d K,.ie.,avi„« to tho Po„„»vlva„ia n« u t '; o«e o.,t ,t. ,„torost i„ tho iaapi,. T,,,„spo,mti„„' i • pa„, W a l'o„„,,ylv„„ia roail's Stan.ianl. ft sliipp',! „i| ,,„, „. ' , ''" """ "" rrii..i.,« oil. The Ce„t,.al a,„l IC-ie i,^ ^o , V 'f"''' """^'"'■'' "' tl.» p.ope,. f.„,etio„s of a .,,i„.„a;, : i , a Z," j'- ;"'««" "' ~ ; a„a ,,„,„a,.„e., that th. Po,,,,, l.l.ia ..rihl ' ^ t i' ^r m t .at oo„,pa„.v, a .k.,„„„,l i„ „„i,.h thoy ,ioi„o,l ha,„I. with , s a! 0.1 Co„,pany,a.„l pro,™.!,.,! to o„h„oo hv a wa,. of rate, « o 1. sucoos»f„lly i„ Ootobo,. „t that yea,-. The oil t,-,ffl,, in ,'"""""'' l..-oHtahle to the Cctral a,„l E.-i , has o ai ■ h' . "'"" """'" ti.at .„.. tua„ hefo... We a. ..;.ah,„;r, :; ;;::::;:;-'f '--« .t re.,ultoa to the advantage of tho.,e ..„a.l. Tl„. J^l V' ,t:.r"' and a. a ..e,,„t ,t o.,. e.xe.„»ively tho tennina, faeilUie: tb,. I , „i, ' ,• . il ivyidns t'l ( 'Icvc- " the scaltoani as 'andcrliiK p\],laiiis • ef|iiali/c it ;is to tlic il rcliiicrs ; makr tliu caiTV a raw in-odint li:it, without rhaiw, raili'natl ccdiioiiiv icil iliscriiiiinatioii ''f throe liiiii(li'o(l ui'gli rctiner may lioiiM tlio limjsla- 'inciiiiiati tVeinht aiul Oliio deliver ' heiuii '2^\) miles )a(l, the I'aili'Oiid.s of thi'ei.' liuiidied the roads of this '1' interest. I'ement with the ' .acfreed to yivc : inid then (Kx- >any and all its 'f«'il. Adiliated 'harmony" witji J-itei', in 1877, »ii"l that it nuist '■ This was the ',14'ely eno-ao-ed in I was foreign to nterests as rival out its interest I> the 8tamlard »ich terniijiated i of 1)oinl,i,a,l,.l„hi,. a,,., UaUi„„.,v. .. ,..v„s a.a .■.■uU:U ,!,.■ Knanul n,oiHti,. ,,, |,„„L., „i| „r .1,,. ,.u,- ln„>k n«as, h own, an, -"■•';' ,^ ,,„„, ,„„„ „r u„.a ,,„ais. rt, si,i,. ,u„.,y-,,v,. ,..v....... . ^a - ,,,„,,„ „,u ,,.,in,as all ..v,a- .ha .onnt,,-. V.y .aaau. of "'l^^'l^'' J^"' ;,, „..-ions au.l i.n,lar«U ill tko mai-kets ol tl,o ^v.M. Hu , i la, ,a yin, out and f,«in« .a,f all ..,.p.-tio„. unlil it as a-.s,,,-,,.! a.al «o,. ,,011.,,: flu. ,n,,at traffic, Ihis «voat produ-tion wh„.h va„ks -- '^ o It of oxportH of our ,.ount,y. Tl. pavli™ wlaaa tl,..y '-■■■; ;';',. ,vall have l,a,l a,n,>lo oa|,ilal an.) ..,"^'1 ^•'■"■t.V '" ''^i;"^" .' '' ,,1 r ,,„si,„.ss, i. all things »avc tlaav alalitv to a,.,,-,,,, lanl, u« '< - ' " . ,io„. ClV^timony of M,-. S,.hoi,l,..) 'Ihc te.tMno„y <.l l..« -' " » f' ' SahehU). a. a whola, i« ..paoially iuterastin,, ha l,av,n, 1«a,r P'- "- ' > „„. raiutuls to ,i,„tify tl.oiv ralations to tl.a «ta„,la,,U 1,1 > .nipa,^- (^ ■ also ■l>.tin,„ny of Mr. Howitt, p. ^^^' ^ ^'- ^'f!X2Jl^f:^•:J^ ,,,,„,„.i„„.,,, ,, :,,oi8,) It wa, clainiaa liy M.'. ^f-^^ " ^, " ,, tl,a Staialanl Ooiupany «-as ilue to thaiv supariov b,,sme3s ao.l.ty , au.l t u tUL .-.laiiuai 1 , •n,,,t th.'^iO "auHamall possess ClUlUI'llt I'laiui has b..eu seuerally uiaae. Ili.it tlu s,, „.uci ,',.,,„, >,,,,i,„.„ luisiuess talent is obvious : but that tliey posse.ss a mouopoly «' ""■ ' " f" Iwbtyof.tkeeouutrv.eoiuiueusurate witli their in. aiopoly ot tlie oiltia.k, is emiiuMitly absurd. In June 1870, tho Tide Water Pipe Line efTcetod a conneetion with the ^d II and ,:ounnenee.l shippin, oil. Opposit.n, o «--. ^^^ 1 lu-ool-ed anda..dn the Standard railed upon the radroads to prote-.t ;; : ' i:!; il .; i. eonn^titiou," and a^am .. ^^-^^:^^ r l,n,e 5th at a eonference hotwoen the four trunk lines an.l the bt.x^idaid :;!:;';"';; N-^ara, tm. rate on cr».e -^ ^J^^,:;^^:^- l.altunoK ^y^»« . ^.3a,,,,tiou was made on the .)th of ,,,, ;„ the ..enera, pnblie .as nia,,e ft™ one -,„ ,ar aud ^^^^^^^ (Testimony, p. ^^^''i^'^) : .. Q. Ila I ua.ba.st.i,.l yea tlaU the ™'™t r'o:tS''-T.l wMirth?,r^ve tZk^:':t:Z:!'^^':^ Ci*^;,^::;^*. tl rate, . ... sa.e tiiae I -jri^ 40 K^^f lat:'!:;;];;^;,!;';,;;;^; ii:\ ^';,T:;'Sr' t' "''r'"'''^ ^^^^ *^- -i-p to this iMihiif f ' ^"'''' P''i^^\i,.iis to tlii^ ,lr I. in tl '-"'^'^ ' '" t'"^ trade genonily that i-""'H .;..• ,, i,„„i „f ,„:„,, , r,,;'r , .', '""'^ '"■'■ '""■'■'■'■ "■-«'"'« 3"" C"M,.,t .,„, ,,i«, .,,„ ,.,,.;'■■;; ;r;.''V'"';'"'^' " """>• -■■■^ '-i<. ""> »>ll"a. ,„„| „.c.i,,|,i,„, .„'; , , "'"" *"'■ '"'"'"'K ^' ■•"' "f "Nik l,„l,|i„„ -■-s 'ii^- oil c,.,.s "",.;; ""'-^ "'v'^-'T' •"■^'■■'■"- "'■ «" ...ii-. Mi,k -^11 amount so in.sii'ni/i(-i..t ,•„ . to ,-,11 ,,oi„t» „...,,, 12, 000,,4(; ,.!,;;' °f";'"l"»-'» from the oil ,,.,io„. «-ily have 1,„,.,„ „„„ ,„, ,, „,; ' • ;" ■; ;i™<;'.tH .o tl„ »oaboa.,i Wo,„,l "•'^■"""^ «i„, „„■, „, ,„„b,, ,',"'■""'' '■■«:'■' 1-- 8.0W,, i„U, .„„,. ■■■""»"» ">'T ...igi.t bave , ,:vr'; ■"■""' *» ''>'"S" ^'H ti,™o ™".,t,.y f„, tl,ei,.,.evc.„„c.. T , b, ,' , " °"'"' '"■°''"''' °f "'- "'%--t i„j,„,. by ™,,;,::';i;,;;r' ■'"' "- -• of .-ate. to ,„.„t.ot it P«OAIK.s. Oneof tI,eo,eat,st imlueoiiu.ats to mism.n,, '«---,. .be ...,,tio., .,,0,, a,. ::;:::t-;;;-^^^ JK)- 41 I, .i/'ter tJic (hop to tlu\, ml .Siilrs (.f i-o(iii,.,i l,y "iillioiis ot twoiilid a 'OS" (•(.iitiacts, iuul the I', uiitit iiinstiinddiil.t- lie trade ^.fiiei-ii I ly that ■ tlif Ciipacitv of tlifii- 'onthly ivj.ort 1 «,.,it "liide about a milli.,,;. 'lislicd l)y the railroad. IS made on Aii^'UHt 'ao'o allowed to the ■•■'■1, H'ci-hing 3!>(> ' ''iiipty cars hack, in of milk holding i' <»0 miles. Milk iihke regular. ami (For Milk traific t was not dono ii>. ' of puhlic ])olicy ^ovember, 257,78(1; le .shipment that sweoj)ing rodiic- -N'ewYork. Jt ^^"0, to Octoher I the oil rcirioiis seaboard would, i^'i'l, tested hy I it should have- :iown into such forego all thes(^ iroduee of the tJie interest of s to protect it »e part of rail- theni selves iu pow.-r. 'Hiis is done by niakin,!;' cuntvacts and leases, or by otherwise eaiployinj^alu; owners of^lar-e blocks of stock at rates prcju-licial to lb. interests of the roads, by l)uyin,i:- proxies of the real owners of stock, and. in very many instances, of tlie pledgees simply, and thos,, who have no interest in the shares vote.l, and consequently no interest in securing proper oirucr> for the company, but in whose names they luq.pcn to stand. Mr. dewtH (Testimony, p. 1 U") •'-^iiy^ '• " With re-'ard to proxies, I think one ^I'fat error in tlie Stiite of Nnv Vr.rk is, that stock l.ehl as collateral is transferred upon the books into the name of the party holduig it as security whohasno interest in it othertlian as seeunty lorthedebt or tlieailvanee nia.le ur.on it. He has tlie riglit to vote upon it : having no nitevest, as I have sanl, bevond that of the value ..f the stock as seeu.ity for his debt. It is the same in Kiuoi.t". as 1 nnderstand it, that it is held in that uay ; the party ni whose i';''"/-' J''^ J .;;;j^ stands upon the register givts his ].ro.xy t(. A or Ji, tor whieh a payment of %>2 a sliaie, or .^1 a sliare, or }^5 a share, according to the emergency of the case, is paiil. O To these parties who have no iiderest other than as security in this stock T A Yes sir; now 1 think that is all wrong; I .lon'ttlnnk it would be right to preclude a nartv owning stock, who has an interest in it personally, Irom benig representetl b\ nroxies because that would prevent a stockholder living at a distance, or living aJu'oad,. from bein-' represented at the election of the directors of his company at liome or in \nierica -"but proxies issu-.l by tliose who liave no such interest ought in some way to be regulated and controlled ; and the habit of selling pix-xies is extieniely ol)jec- tionable. '' Mr. Wolff, banker, of the tirm of Kuhn, I.oeb & Co., testilies (Testi- mony, p. 2521) that his firm, in the election for Erie directors in 1877, voted hfty odd thousand shares of stock in which they had no interest whatever ; that in buying and selling stock it frciuently happens, in the regular course of business, that the stock stands in the name of a broker, without his having any interest whatever in it, and fre.iuently is transferred to a pledge ior l)rmlential reasons ; and that it is the general practice in Wall street for parties in whose name stock tlius stands to vote the same or issue proxies to others, and fre.piently for a consideration. While it is very important that this practice be corrected, it is e.pially important that stock be not disfranchised. It would be undemocratic and unjust to either disfranchise stock or impair its most vahuable feature negotiability. It is believed the accompanying bijl will correct the evils- without in the least prejudicing the rights of stockholders. AxxuAL Report to the State Engineer and Surveyor. If the intention of the framers of the present law, rcpiiring railroads to report.annually to the State Engineer, was to give the public or the State a history of the year's transactions of the different roads, they most signally failed. 'The idea of making pubHc the transactions of a railroad in order that publicity may deter mismanagement, is an excellent one ; Imt the pre- sent law utterly fails to compass that object. It has been ■ f""y ■■"■"|.ii..l with n„. at p. ISIO, «,;.' "" '"-" ^''■' '•""'■■ -"l"o,. or ,1,0 K,i,. ,«„,, „ . ' "''"""' <■" tl"* "iilil-t (Tostimoiiy. p. 9S3) : -■.j:::." u";r;;:;r' "^ '- "'^;'^''^* '"■"■'■ ■— ..' la. .,,.1 ,„Hho,i „f ^i-feeu ,. above u' ,;;; ".'■ "•■■;"!"i'-.-'.^ '■■■". '«-.,, „,„„ ,,„ -nJ^r:t'iL:;:"::!;;r;':'''^'f "^-"-' '«»™.'™te ^«ain.t «. .,. -tain ,oealiti..s i, L SH t , "'"",""' "'"y •'-••"'■"-«■ a«ai„s, The ,.l,arg. that th.v In' ui; ;;?'''"';' """ """■'■■^' ''^ '■""^- '"-•- -"'. otho. i„ the .,„„ i,::;;;:;:;^:;;:;:;::::"""""-""*. -p-- a sjx, i.il rate on a similar shipment. ' ..c^t, ai;^'- ;i,;';:::rir"''^ f r"^'"'- "■^'"'- - ^ -^-""^ «'i..,.t,.,.. They." ,; „tL '"^rt "'" '""«"■ '-'' «-t '- tha,.t„ road tariirc... , ™ " °s "^ "' "" ''°'"''»'' «™-l'*-"" <"' -'-t « rail- o.;t n.,, a.ro;,hr:.,s Tinz-" 7 '■'■"■t ""■' ^- "■■^- "•""- '>. the ..„.«,, ,„,„.,e at ... t.„o.at:, ,t ^Z ^Zj^^'"-'"' "inch hss,th„„gh the practice of Kivinc them w,.t , ™' "''■'' «..d all other roads si ecial „,"''"'"."""«''■- "'"■•"""• ''l"-,, these roads, "Pon single shipn.e.'rts 3 , l.^:::;,'.',':'; ''"T r"'''" ""^ "•'■ - dii mstantcb tliey varied tlie open rate to the ■'3 I'iiili'oad i)i'0|)l(., MJin "iiiittcc. insist thiit a ■''' tlic tvnv liii;nici,il y (.'oniplird with the I'lc. (lid II, ,t .lis,:],, so tor of tlie Kiic road i Kii;,'inc'or to contain a ay to^'ct at the ooii.li. !t(i lialaiiot; 'w-t ;. y,m iudgc foi' liiiii.si.ir." ' II fxprrt ill railwav . p. !)Si>) : 'luirintf wliat is rall.il I leport." liiw- and niethoi) of 1, liiiseil upon thf ^^'il.' fully cover all ite against the citi- IH'oduocrs, is fully >";rinii]iatf> against s, is fully proven, duals, as compared against, when any - as a controlling ^'ost less than tin; •n of what a I'ail- 111 and vary with- al variation of the it disoriniination, od of one year, a 1' road, estimated lie Erie was very ^pon these roads, tracts, and inan}^ n>en rate to the 43 ndvanta..- of ll>. i^artv .l.tainin, ihr 'sp.rial rate. These vaW< are made secret ; serrerv hein^' expressly nv impliedly i-arl ni' tlie agreeme • \ • ur ,.omu,itteemadeanal.straet .ftl e loeal special vates.m the Central ( KxlnlMts, p V20y also of tlie local special rales on the Krie (l-Ahiliils. p. -J'i-J): alsoan aj- stra.t oV the through rates to other Slates on the ( 'entral ( FA-hihit^. ].. -•' • )• This hist illustrates the through husiuess ..f th." Erie .p.ite as well as of the, (Vmtral These ahstracts do not contain ev:ce].tional eases, hntare lairlv lUns- . trative of the system or want of system in making rates, liy exannmng these abstracts it will he seen that certain localities are espe.-ially favored : that in.fividuals in the same locality ni.on ear lot shipments even are giveii prc- f.-rential rates. The rates to local i.oints in the State, compared M-ith the rates to points out of the State, show the extent t(. which .^stance is disre- garded, and justifv the comidaint as to th." relation of through and local rat.^s. Note (m page ;U)7 of the Kxhil.its a rate from Chicago tr. Liverpool of thirty fents per hundredweight as c.mipared Avith local rates, and also on images 2!)S, 200, etc., how rate between same points made same .lay on same class of gooils varies. The committee, iiowever strenuously emleavoving so to do, have faile.l to elicit any principle, rule, criterion, or limitation, in accordance with whudi special rates are given. We Avere told that special rates were given when the arthde could not hear the taritf rate. Volume does not control, nor regularity of shipment, for special rates are given on single shipments and on parcels as well as car or train loads. Mr. Goodman, assistant general freight agent of the New York Central, testities (Testimony, p. 142) that sp.'cial rates are given to all points; are almost iuvariahlv given wdieu asked (T.-stimony, p. 159). He also estimates that f»0 per cent, of the business from New York to Syracuse, and 50 ]ier cent, of the business from New York to other p.^nts, is done on special rates. We are told that every application is judged by itself and with reference to its own peculiar circumstances, ami it depends upon the judgment of the officer to whom the applh'ation is made whether a special reduction is given, and the extent of the reduction. It is very easy to sec how this might depend up(m the prejudice or the favoritism, an.l not the judgnu-nt of siK'h ofHcev. In the joint letter of Presidents Van.hn-bilt an,! Jewett to the committee (Testimony, p. 47), is laid down the rule of charging all an article will bear, and at the same time stimulate its prodm-tion. As to the manner in which this rule is carrie.l out see Mr. Uoo.lman (Testimony, pp. 122-1 ")(>). Mr. Vilas, general freight agent of the Eiie road (p. 374), Mr. Eutter, general traflic mar.ager of the Central road (pp. 453, 454), also Testi- mony of Mr. Blanchard. What an article will bear is to a certain extent a 010 44 lc>^itinmt..c.unsi.lM.a,i„u in .I.tenniniu, n iV-i,!,, r.U-. ,t is a n.l. ,v,.o.ni..,l' . -mous vonU,ons, ...ably so l>y ,1... ...v.-nna..,.. in i.uj.sin, it. r^.nu.. •^ '•- i- .H.n.s.s,t...s ofli,;. an. >na,I,. IV.r, c.x,v,.t nM.,.,e , ,,,ot,.,.tiv,. l-^-y -t.n-en..s, an,l Inxun.s a.. ,ux.„i, si.aply ),....,... tl...- w 11 h,.' Ac \o k for k-n ,vMts ,H.i. lunulre.!. In Au.uust it was put up to (i^t.^n ■t I'ount In harvest 1...,,. ..n.at.-.l an .xtruonlinarv .s,.p,.ly. Th. carrvin - ::::;! "' rt '"-'""^ ^" ^'^^^ ^'"^•"-■'' ^^'^^ ^^'-^ ' ' ^^^ "t" >r t Mte. ^v re ;,ra.lually ,a,s...l fVon. firt,... ,.,.„ts, i„ An.ust, to fV,rtv rents L tio„ of th,. mnl , "■'" '■■"""' ■"'"'''>■ '*"'"* "'<■ '■""- -'<^ " :^ "•Lthcr I,., ship,, in ,"""*•"" '^ " '•''"'■ """■"-■'■ -'"'•■■■'■■i- P ol,t o, lo.«, ,„„1 t|,„ amount „f profit or loss. Thus m„l„v tl.i- ur uuiMagMni.nlan,! this i„ell,o,I „C ..ki, , '"''"" """""»'^""--. "-■)■ ^1..,., r ^-'^ '■''''■""•^' '■' ""'■.v-'chunt, „vc,,- 0,550 n,il,.s , f rail o.„ ,; s '">; ■ " ""''' ""''^''''""' '"'"'=' "-' will ,ou,t, fl,;.!,. .' ' ' ' «"-l'»''.-"""«. Conciliate Iheir Kood lm« been weUi 1 .•"''■'' ""'" ^^ '^"^ "" ."""■ f-vight bill. Thi 1') '-*inif its rcvciuie 'I'e a protective lit'y Mill I,,.,,,, i^ iVi.in Cliicji^'o to )llt ll). to liftccK miiisiiiil (IcinaiKf . The carrying R utiuoKt. The j forty cents in pounds of grain' atisc tli(3 ('(iiKJi- !• it. It would tidgnu'nt Would y'>< an insi(,Miiti- '•I'st but H sor- •iig consists in 'inity,, secretly, '•'loping tiutt — ^^t taking into an4 adjusting ii large j.rolit, 1»*7 detuTmine ill result in n IV this system t^chant, every I'lal along the lions of capit- ate their good iheir hostility, It bills. ThU Not a shij)per 'ivate, but in- ;nd before the ice Exchange nation to aid ', ]>p. 34 and e more f.-iniiliar :> Juerchaiits of latiire of such al.usfH • • ♦ buy.. Un- many ve,us ,,ast snUVr..,!, ;n„l aiv still ,snll,..i„u, iniustice at In. hanls nt ra, r.M.l mamiuoMM.nt * • • .In nut want a s,H...ialcnm.„itt.., .,„ nulioad niatt.Ms vliiis,. funi'tinDH muMt M.M,n 1,.1-niinatf * * ♦ iuit 'i cnMiini«si,,ii t,. stan.n...t\vc...n tli.' railroad c.M'pmati.m.s and tl.os.. uli,,-.. intf.vsts , nnn...] tin m to Hon' is plainly exprosKod, on the part of a pow.'rful bo.jy of nier-liants, an unwillingness to disclose abuses they know to exist, be..ause th.^re is no power iMMinancntly to stand b(!tween them and the railr.)a(ls with whom they must deal, and who woidd doubtless make them pav for their dis- closure by increasing their rates Of l)y cancelling special contracts. This power on the one han.l ami this fear on the other, will always exist so long as the scale of freight charges is i»ermitte.l to be a system Of ntwards and punishments. The political influence of these corporations shoidd l)e understoo.!. Not less than :iO,0(l(t voters are in the .lirect employ of tli." railroads of this Htate— a numb..r sutlicient to have turiie.l tin- seal., in any eh.ction in recent years. These employees are .ioubtless divi.led in political sentiments, yet in times like the past and tin present the .pu'sti.m of remunerative employment is of paramount impoitance to the in.livi.lual employed as •compared with the success of either party. The political sentiments of corporations have been aptly and tndy described by a prominent jailroad man who testiHed : '' In a republican district I was republican, in a demo- ■w come our railroads ))lacing our agricultural products at a marked disa.lvantage <;omi)ared with the pro.lucts of the west, annihilating the advantage of proximity'to market, and imposing, at times actually and as a nUe lelat- ively, a heavie; tax on their movement than is levied on tlie movement from other States. IVfr. Boardman testified that he was one of a committee representing the millers of Rocliester, appointed to obtain from the railroad companies m l>ott <'i- nites nn t'lvi^iUt himI, if ,M,ssil>k., to ul,(„iu i, • illiMi,' ill tniiLsit ; th.-if. t lev <^;iu' \r.. I <\ I 1 ». . '"^ '" n'HI«ll llUlt. 1> V01\ iMluf (|„„,l»,.inua IMlMfMI,,! lUJulilnr): .st;ilc it ; •< Voiir ..niiiinift 1 1 "M^KTINd, S,it)it', ,1 V /i "''r'^t''^''i''''"-y to ours..|v,.s. Our liisfc tl.e '-■M.l'.-rsofourassociat on ;,;:;" y'l"""'''"^ '" '.'"- '-y ""■■" """til aft..- ;:»;''"''"'. ">":>ovaMeos woro s,.t Korth, : l,a,| „u t - Stat.. ; in ,,,. thi'autvo " , ti;!;;: TJ?]^'' '''J'' ,"""' '^l"- ^'^ A.se.nl./^llf l»o su >,„.ef orn.ill.ni,^ in transit .Ms'.i "' "'^''," '''' "'• ^'"'.V pr...ni.s..,| to Kiv.^ ;ve.v .l..smss,Hl at c..n.si,ie,ah J Kl/ n^^^^^^^^ th. .|,.ta>ls of ' Milling in Transit ' Mianchar.l,oftl,o \,.«- V.nk I ,'.;,.; V'W T'"'^""'■'■'"•^^■ "'^^ ^^'tl' ^■iI.■..s an.l .l.sposc..lto,|,M,o,l.in,Mor u^-ii ? ^-■-> -tl. tlu. New Vork Ce.Unll'i Swiniive; Si,;"-, "'"" ""*" '''' '''' """- ***** 11.0 n„.„il,„r., ,„■ ti,, I, „|„|„'„ ,*;',,.:'.'.'" "' "'« ^'»ti'. »r.il .•.l.|.lyi„(. .,r .,|.,„.Mm(; to ...0 »;.,..,:;■:? £.'i-^;;,;;;-^;,|-;p;. not;V;:;;:,r';;:r::';r'r'r' "''.''-""""•■"■■- "«-»t ti,„ 8..*., c.o„i,i given. ''" '""'"'■>' "' "'" «'^""I->1 «" oo,„l,inati„,, al,.,.,„|y Jn tilt! (H. V7. .t 0. lestnuony, pp. 145-6) is the f„llowi„, 11(1 OgdensburorKailroua 4f I triili.sil ; tJl;if. 'lit nil, mill Mr. ). K.\)(l!iiiiiin,' '"I'd i,, stilt. ■ it ; 'illi iiistnictioiis 'iit/itivcs (if tiio 'I'stciii Uiiilroml Ivt's. Our first l'lim\s(|ay, April tlifui until lifter ^ from ;i i-crtiiin li, inn! hail pul)- lio A.s.seiiilily of roiiiiHi'il to ^iv!• .ipiieiiling to •State could tiun, already iro; Kail road SiK.iAi, Joint l!.\ri>nN tmk l-'niu Ct.AssKsni.' l-'iiKi.i iiT 1 N I'n,;,,: .].ss. -,rii 18-8 I Itii.M NkW VultK AMI UdMoS. ' ' '^' X'lt l.'iiii'ii/iiiil Ffi Itjht. Tor'anton, I'utMliini, |'otsdimi.Jiinrti.,ii. Ogd.'nsl.unr. Ni'W York. Iiiiston. CLASS. !!. W . k <>. pro|)nition.. .. X. \' . ( '. it M. |im|ioitioii. Throii'di 1 «j •j:'. •ji) IJ.-lfi 05 'lii I t.AsS. •^:'.-''Mt;;l;V|{. W. .VO. nrniioitlon 01 4-';-i.^ •Jit -j-j jKiist of Uom.'... ■.",'.■.■. ; ; ; 44 45 3r.j; Througji ^ 2 SU 181411 3r3124 C'liiiiiil 111,11 Frii'jfif. To OgilfHsliurg. Niw York. Boston. . ILASS. 1 1,2 3 4 K; 13 11 9 2!» liL' IJi liJ 45 35 30 5^5 : ' 1 1 ri.Ass. 1 14 31 2 11 •24 35 3 10 20 30 4 R. W. & 0. iroportion. N. Y. C. & I . proportion Tlirouicii , R. W. Sc 0, ]iroportion Kast of Home Through 8 17 25 In the examination of the Utica it lilavk River Railroad (U. & B. R. Testimony, \>. H\) will be found the following : Rates from New York and lioston to Ogdciusburg and iMorristown for Canadian [toints : First Class. Second Class. Third Class. Fourth Class. 29 z2 19 16 10 13 11 9 New York Central... Utiea ife Bliiek Hiver. Total throuirh. 45 35 Id 25 Rates from New York and Boston to Ogdonsburg and Morristown for local consumption : New York Central.... Utiea & Black River First Class. Second Class. Third Class. Fourth Class. 42 35 29 22 23 20 16 13 Total thruuj'h. ti» 55 45 35 ■ 4S My tlH..„ „.,rHc.. ,V.„n tl„.,nid,. , i, ,„,,„.,„, Ii,„,. ,U.,., „i„„ ,, ""' '" 'J"^ "' C«"-l. 1 a,nhHt .V,.„. ^■,„.k ,,, ,„. |,„j,„„„ !:.'"■' V" '"'■';: I'" '=^'"' "' ""■ *""■• i^ '■ r IV,.i«l,l ,.,m..,| I,. ,.i,|„, Vw ^ork„,. li„.,„„ f,.,„„ c,,,,,,!!,,, |,„i„„. ^1,,,^ ,,^, _,,,,,,,^^^^^,^^^ 1^^^^^^ ;:'':7 »'"|.|«'. "V,.,. ti,,.s,. ,,,.,,.,, i„„„„ ,„„ s,. !,:,„., ,' ,.iv,.,. .■„,.,, ::';"■ :;"■• ■"• '>• '" ^"« v.«i< ,.,■ ii,.»i„n. (u, & v.. n. tJ-, ,. „ ' -i.) I :..• .■..,»,„ assi,-,,,,, ,;„, ,!,„« ,.„.i„„,,riiy r,„,.i,„ f,,.i,.i,t .,,,., „„, ,„ ;, : ■■■'..." of t:u.„-.,.,s „.,» ,. .atrioli,,. ,„„._t„ , „., „„. r,vi«l,t „ : . ..t. tu xc.,v v,„.k ,„. n„4„„ „„.,.,.|,,,nis i,m,,.,i „r ,,„,,i,„ i, „ ,,, ; Ml-, a . .W... ol ,,atn„lis,„ all.„„,l„.,. I,.t »i,,,t „r „.|„.„ l|„. ,,,„. „,,. ,J rst:''Trvr';- '■';'■''■''■; '■''•'"^^ -i^ip,.:,"; "1 he St. Uwronn. ,n..,, ,s r,v,|,„,,Hj. „„,. ,„„(, „, ,„„„. ,„, ,,, ,•„,,;:.,! """' ' •^''™»" ■""'"•'■^ "f "- "«"'l-™ tin-, w„ul,l l„. val.uuJ ''''""''"'•'■""illations a.^'ml.st the Stateon th" ,vi,( nf II, ,• , , j ;:.i« :pe„„any ,.„.,.,„„, t„„„„. ,„„ as s„e„,n,!:„ ■,:„:: :,;':;,;;' « . .■™ls hvc stock, an,l all arli,:!,-,, ,„a,u,lart,n«l tl',o,vr,,„„ la , I ' :r-:r^r:;n^:::---..™'-^ i:;::r i.io,c ov «„.ryi„,, to Ncv York cattl. mis.l i„ „,■, st2 ,,,,?' the;'iZM^;i,;i:^.1;'iri:;r^^r:iJt^f ,[- --i^,;.Hi.., . • ^ -^ .i.y .«.. , „ '). That ,„oa„s wostcn, cattle' A I;' f'''" "l ""« '-I'-l'l-'l ">>,■ ll,,- ""Wo. '*■ """ ""■■■■>"• »e»ton,,altlo 01- sl.ii,|,,l from 'r«^-ylX^'T^^S:rr'"^^''"' '•< mo . oa,. agai... .„c y„, v„,, „.,„„ Mr. Willar,! (Te.,ti,„„ny, p. ls,,.i, „sti,i,„! : « ^, ., „„„^,. . , ^'■e'gi't .s trcn H.ty to ...ty .lolla. „i,l.er per car loaat,:, t^ "to;-:: R ► 'iiiiiiniiion is "(' Imtwct'ii i<'"l t(» citlici ont hetu'ocn I'llM.'l' Mtlil 'IT, (Icstiiicd lipiiicnt till' 'stiiiioiiy, p. rM to |.;iy lid) I'oi'cijLCIl '' w;is made •pors ol'diii' niiiiiiciilioii »' . 1(504-5 ; also testimony of ^Fr. Hinds, p. 1955-0.) Port Jervis millers have grain shipjied from the west via Port Jervis to Newburgh, and thence hauled back to Port Jervis, a distance of tifty miles, at a less rat(i than th(>y could stop the cars at Port Jervis in the first instance. (Testimony, p]). 2928 and 292i).) For instance of proaol. Boston, until it is ninety cents trom St. Albans, Vermont. ((). & J. C. Testimony, pp. 41 and 4-. I he passenger charge on the ( )gdensl,urg & Lake Champlain road of four cents per nnle is higher than the other roads centring in Ogdons]>ur. • and It IS a fair deduction from the testimony that the reduction to tin.; .'ents -^. .1 no on y be ,n the interest of the public but as well in the interest of 1 road Itself. At page 12, (). ., L. C. Testimony, Mr. I^id.ardson, general j.assenger agent of the road, testifK-s : . ^^i^^i-n inc,;;i Ih J^nlS" o/TX '"1 " ^i''ty\ "'•: "t ''"''' '^"'-^ ^^ ^'^-'-^y to passeufrer rate, ' ^ ''' '" = ^ ■'^''""*" ''^^ '" f^vcr of re.lucin.r the ■«n;j.p:';£"r,Li^i«l,;v;;;''lJti:y ■'"-' •-■"■ "-« «»"i- ,„n« .i.re?.\el;;l,';;;L:i'i;;';.,,;; ;":f vr" ''■= "■'"■■■'■■^' "' «"-i ■.-aso.nct t,.,„ak.it lnv„li,,.ti„n of t|,„ Uti„„ ,t Rlu.,l< Un:. ,,n„l ,l,n.<.|„po,l th,. li.t ll.-.t ..n.,1, ., „, tl,. „a,.K. ocKl,t,„„» .. „, ,.„„„,,,« „„., ,„,,,., ,.^^^„ , '• to ex,,4 l„.rc. n, a .legreo tl,„t oxisW „!„„„ the xN'cw York Central! Wl,e„ i„ tl,e .su,„me,, the Now York Cent,,,! rodueod its „,es o„ f„„rtl, class g„e.lH to „„,„ cents to Uti,,,, I(„„„, „,„, «,,,,„„„, „,„ ^ "" ' "' R.ver,an,l the Rome, WatertowM & (),„U„shu - r, 1 .ith ^ og.ensh,.^*Lake ..■i.a...pi,i^ '::; 'iL^'tie :'.::„:f '^r from l.t,ca E„me an,I Syraeuse to St. Lawrence river points „n tl r r„" s JUS as much as the Central had red„eed ik charge, so 'that if a me , ; ,' Ogdensburg, Can on or Potsdan, purchased goo.l, in „„■,,, ,■„„ „X , ' o.se, lie oMained h„ sl,i,,ment at a certai;, j.riee ■ ii' he ,„„ ll ' , .' an, other point and had them shipped over\hese\l,t ' ^ If: n,: A uni(ine illustration of the effect of sneci-il rnt<.« ,'. f« i 4- 30. ,f the restimon, Kahhitt . Co., of kC'C L r^I 't 'cT of Syr,acn,se, arge .slupn.ents of soap delivere.1, and hill..d it ,o n, l, certan, s,nn less schedule rate, which an.ounted to twelve .ent, " ' According to Grouse's special rate he onlv „.,i I • i ■ ' '""'• i>i« .ett.ments with ,>,i„it. de-ii^d e ' ; fp::t';T '"r • "r '" four cents ,,er hox out of his sp,.eial rate Tl.i '*' '""""« ...-took to ove.„me ,„ ,„^,i„: r^,,., I^;:i;::'r™;'r :;: 51 nearer county II, until it is (, pp. 41 and 1 road of four nsburg ; and ' tliree cents 10 intorest of Ison, general a tondeuey to reducing the ents per mile it to make it I the maiiage- lit' fact that ])oints was for ex])laji- ilack K'ivcr were found d. s on fourth :;a *k Jilaek agreement ;ht charge heir roads, orchant in \ or >Syi'a- 1 goods at >ve-nanied 1^. Testi- J at i)age ■se k Co., IxMn at a per box. : ; but in y marring Ht & Co. rate cor- responding witli Crouse's, whidi was refused, thougli their shiinaents by the New York Central i^- Hudson JJivcr road in L^78 aggregated 1,.'UG tons. (Testimony, ]>, 311.) The testimony of Mr. Pierce (p. 2512) illustrates discrhuinations in the 'grain trade. •" Q. Have you heard of pnin])laiii1s, ;md di. you know the fact, of aciuvity of means ot transportation by the railways, to tiic ,c;rrat hulk ofdealers, while others had transportui.i,' facilities.' A. Ther.; have l)ccn times when tliat was the case ; in the winter, iiotal)ly, of 1877. (l To M-hat extent did that invvail: A. To such an extent that two houses con- trolled^tlie grain trade of New York— one house most of the time. il. Two houses most of that time controlled the grain trade? A. Because of 2.', to 5 cents per hundred lower f r. Did they let out cars ? A. They allowed other merchants to ship over their Kixy bills." The discrimination against the protbieers of tlus State in cereals is known of all men and eontiovert(!d by none. Suppose ttie average rate on grain from Chicago to be twenty cents per hundred, which is probably above the average, the i>roportiou to the New York roads would be about nine cents for tluMr haul from IJulfalo to New Y'ork, or about six cents per bushel. The farmers in this State can easily compare these rates with the rates they are reiiuired to pay. The (daim so often made, in justification of low rates on cei-eals from the west, tliat the State of New York consumes vastly in ex- cess of Its production, and, therefore, clieap rates on cereals from the west benefits tlu; State as a whole, is deprived of its force by the testimony ■adduced \\\wi\ this examination. The price of cereals is regulated by the demand. I'jiropean demand regulates the demand at the seaboard, and that in turn regulates the quantity to be brought forward. Western Europe is the great consuming community of the world. It derives its sujiply fnuu Ea.stern Kurope and from America, and the price of breadstutl's is governed by the liiverpool market. The western ju'oducer can receive for his cereals the market pri(,'e thus hxed, less the cost of placing his produce upon tl at market ; and the testimony of men who have for years been engaged in this trade, who swear from actual knowledge, is that a redu(;tion in the rate in- ures to th(! beniifit of the producer west and does not affect the price to the consumer, whiht an increase in the rates would, pro tai/fo, decrease the jjrice of the commodity to the producer. Mr. John Allen, Jr., of J>ufl'alo, the proprietor of the Allen line of steamers on the lakes, running in connection with the Central road, testifies .as follows (p. 22G7) : ■ ri that he W(.ul(l send to I'inhi.loli.hiii than )i.. ,„ul.l t.. sen,] it to \,.u V .11 ^ ^\ ima.edntc.IyshirthislMrsin..s/allnthut)n,,,sT^ ^^'" ^"''^' ''^ "••"''' y. Suppose that there is a, (liireienee heiueen the r.iiir'.lo mrrkef .,,,,1 tl, < -i ■ A. No'sir'"''^ ""*"'"''" ^"'>' 'l'^''-'^'"^-^" tl"^ <-t, of the pmluet iu Xeu- York? Q. Nor upon its value in l.iverpool ? A. No sir JiiKe ireiglit to-( iiv ot seven cents ■\ Imcl,..! .,,, i f -i. r •' ' . ''"^•^ '■''i' nothing else to disturb th. va e of tl w ^ '\^''? ''"7!' ^'J*'"'^"' '»'"' three .'ents a laislu;!. ''* '"'^ *''''^' *^'"' '^^"'^^^ ^^"»''l ii'lvanw justi Q. Just three eents a bushel at Alilwaukee am A. Ves sir Q. A H e rate in New York would remain the same i ^ A. Yes su ^J. An;l likewise in Liverijool ? *->'•.. "^' ^t=». *"•• A. Y e.s. sir. Also at page 2268 : to-day, there bein, nothing else ^;jLSb'h'' duo' orwlil-Uliit r til " '''r''^" Charles Ensign proprietor of a lino of propellers on the lakes, and l"..- many years engaged in the grain trade, (testili.s pj,. 2;50r;-7) : •thin_crs reiuain the san and no^S Uupp "'^^'uie^ ; ;;*'^^ the same, no special d the rate, l.y ,o„n c' itio o hei e tli'"'/ ^"I'l-'-V^"""^'" - iciiiiir locality, to ten cents a. On I'iist hound 1 Xi!\v York ? rty 11)1011 a re. 'I'ty ; we have ly. Take the 11 tojthiec, and ' advance just , sir. that r made, lel ill ( 'hica^^o ;, there heing it a hushel. >ur husiness ? kos, and I'm- )ecial deniaiid hat .suddenly n (i\e cents a ■liiini does it otlier tilings inures to tiie ir. A. it would sti fit's (pp. price of tlie ytliiiig being ill New York ill ("hieago, ly iilion tile one dollar in i;ago ; some- til' than 2se\v ! a corner or 53 Q. You have ol)servcd this business. Q._ Take your illustration ; the fieiniit rate g .es up to twenty cents ; you say the man in ( hiea-o lakes <)() cents for his piuduet insiead of (uie d'oUar ' ' -'^ -' -■-- he pays the lainier so iiiiieh less.' i"\v long ' A. 'J\veiity-live years I have hceii in you say the A. Yes, sir ; Wasliiiigtou P.ullanl. (.f r.iill'alo, maiia.^cr of tlic Union Steamboat Com- pany owjH'd liy tlu! Kric Railway, tcstilics (p. 1';!l'7) : "^'^" .^^'*'"^'' ^''" ^"•^^^ "'' t^'ii'i'iaye to tlie sliipjier he anv less provided the toll>as taken oil :' A. I sympathize with .Mr. Allen in his view iipon that, that tlie man in tlie west IS largely favored in tlie matter the producer. Q He gets a higher price for his grain if the cost of carriage is less? A. I have stood upon 'Change in Cjiicago for a nunihur of years as the Vepresontative of this lompany in securing freights there, and I know very freipiently that the decline in the arty of the lirst part, from Chicago to Xew York, at the times of sliii»inent, ailding tlier(;t() three cent* jier barrel for Hour and one and one-half cents per hundred poumls'for mill fvcA or grain as a terminal charge, to provide for the incidental expenses attending local transiior- tation. ' "And will transjiort their freight to Boston and all |)oiiits in New Fnglaml, takiii"- Hoston rates at the saiiu' rate as to New York, with ten c>nts j.cr barnd added for Hour and live < -'uts per hundred pounds added for mill feed or giaiii. "Provided, however, and this agreement is made upon the express uuderstandint' and consideration that said second party shall regard and treat this agreement as coii- tideiitial, and will use all reasonable ])recaution to keep the same secret. " -And upon condition also that saixist in other parts of the State. The i)racLice outlined above is conceded. Hut it is claimed that by a wise exercise of the power to grant sj)ecial rates, seeming discrimination is real Justice, and in reality conserves the interest of all. rcli, 1878, hy , piirty 1)1' till! of the second [reed, ami by )r in HuH'alo. 'iick.s may be or ojicrato. at nislicl. ,nt and allow iju'd ))y tluMin I'ornniodatiuii r Bullalo and s and l)y cDiinsel, that special rates are the instrumentality which railroads use to increase their business, by devcdopiny manufacturing,' interests at dlHerent points, and by building up wholesale and jobbing interests along the line. It was alleged as a reason for making the Sehoellkopf i*c Matiiews contract, that but for that contract this business would never have existed. If this increased the business of the road and enhanced the prosperity of the State, how vastly jnore would the principle of justice on which that contiact is based, extended to millers at Butlalo, lioohester, TiOckport, Seneca Falls, Oswego, and other milling points, incn^ase the business of the roads and liow largely con- tribute to the wealth and prosperity of the State ; and, adoi)ting the logic which induced the making of that contract, logic that is above criticism, ami an[)lying this principle to all the industries of the State, would correct the evils of which people complain. There is no uniform application of any rule or [(rinciple. At one time volume of business is advanced as a controlling element, so clieapening transportation that special reductit ns are just and pro])er. Again, Mr. IJlanchard tells us that inciease in ex- pense very nearly keeps {)ace with increase in volume. (Testimony, pp. 2054-5.0.) Singularity of shipment is another consideration ; and yet single shipments partake of special rates <|uite as largely as any. Develop- ment of jobbing trade is another reason ; and yet their disparity of rates, while it may develo[) o!ie man's business, tends to destroy another's. Dev(dopment of manufacturing interests is their climax reason for special rates ; and yet, with evidence before us that grain can be milled in transit in this State with rates adjusted upon the i)rinci|)le of the Sehoellkopf & Mathews contract, in successful competition with the west, one of the largest manufacturing interests of the State is permitted to languish and to die out without even an att(!mpt to " develop" or preserve it. The appli- cation of this rule is illustrated in the Testimony of Mr. (Joodman (pp. 8089-10-11.) "Q. Vou maile the rate for A. T. Stew.irt k Co. ? A. Yes, sir. (). Was that to Imihl up and develop their business? A. Yes, sir. i). That was tiiu ol)jcct ? A. That was one of the olijccts. (I January nth, 1S7!)':' A. Yes, sir. (}. Vou tli'ought that business was not yet sufliciently built up and developed* A. No, sir ; not the niaiud'acturing part of it. Q. Ffow long had the fietories of A. T. Stewart & t"o. been in existence? A. The one at Duchess .Junction about three years, 1 think ; it isn't completed yet. (}. Ami they were laiiguishin their tratlic ; we wanted to carry the freight ; boats nnght have carried it in the sununer. Q. Do you know anything of ('}. C. Buull & Co. ? A. Yes, sir. (,». You wantetl to devel(»p tiieir business ? A, Yes, sir ; tliey are at Rochester — wholesale dealers. » ««»•♦•*•** 56 |.». I)(. y.m kn„u II. S. IJallnii, „r liodic^tur' A. I ,lo n„l .. hv .so.M.is tn 1,0 ,1 un„H.r tli.ro .' A. A siuiiH c.mcon,, n.rliaps. tai I uu^.s ;ire lou- ,.ii()ii:rli lor tht'iuat l{(M'Ii,.Hti-r. ^ . i 0(.u vVn l^''f!.!,r''' '' ■^"'^^'V'""''^''»!'"^'''t to pay 40, ;5 .. 2:. an.l I'O as .-ii^unst a l.uvro If Ti'"! '"■ '?,■"'''* *'\''''^^' -^ -^^ '^»'''i"«t !•' • -^- Vos, sir. (}. At -20 against Hi f A. OIi. yuvs. J^. D(, y„u call tiiat tli.. saino rliance ' A. Almut tlic same ,,-han.H' • vos sir Q. You .uns„l,.r ,t the sanu- d.ai.eo ! A, Yes, sir." ' ^ ' ' Ml', m.iiichanl (Testimony, pp. i>S4r, to -JS;-)!) a„,S71 to 2SS1) ,lis- cns,se.s tins quo.stiou with ..luracteri.sti.t force and ability, and makes as stron- ii .ju.stificatiou as can bo niado. '^ VVc ((uote what we re^r;u.,l ]^[^ .sti'ongest case : " IJy Judtre Snii'M.vx : ,.?,. li„: °" ' '.'" '"" ''"''"■" "'ly '■•■>ilr"»'l man ,-ii,,al,li, „f ii„,l,.,. tl„. ,, '„,y ; ' H'e I. '<.-kawaii„a roa.l t.i I'at.remi, t.nlir,.ly in tlic State „f New Jeraev or w;is;;;l°;?^i °'yi™;™r'' "-^''T' n'-'''-- '^^' >'.'i"-"i.lt'^a,;r:;;::^ B„t even l,e (pp. 2804-5) acl.nits tl,e s,„va,„e,i ,.C all complaint ■ In a speculative attempt to increase bu.siness they favor one shipper at the expense of another. on :' A. Oiii- ,'iinst a lai'yo ti luifjincss is xace tliiit tliu 'OS, sir. 2SS1) (lis- c.-i as sti'oiiLT you iiiako i% uid iiiiyiflil- >f uiKltT the ur lint', the ./eisoy ; our k interests ; is State can sey, and tiie liil come uj) New Ynrk ; river. more road, large of the ahieless ex- 'ity of >,'e\v ers proeure it did away elied more, : at our full un material it, it aided )tive works e of irafHe ve sent the ive done to it : i minimum ated. iome othfjf I you think lake a loss s, tiiat the ust be so.' Iiippm- at 57 Mr. lUanchunl (Trslimoiiy, pj). l".)--'!)-!) .sliows the tcniiinal cxpfiisc ol" tli(! largest iuid siiiaUcst statidus on caeli divisiou of 11h' Krie road, and sliows tli(! aggregate (H)st of teniiinnl liiuidliiig at ^relvilli' ami Hoitper last, year to liavi! l)e('U ;!.■> cents jicr liund.i'd pounds, a)id tln'ii inlVrs: " How imiiracticahle it wuulil be to nnki' a rulin<4 tliat in ;dl ciise.s the sliorter dis- tance should not be charo;ed lit a rntc exci^'diii^ the ,i,'ieater, and at the same time deal justly by the railway oonipany." We liave seen wliat gross intVactions our railroads make upon the apparent rules ol' Justice ; and yet let the Stale propose to make a general rule or law and th 'v imim.'diately produce some rciu'di! e.Kception. and insist that il^ argues the in,justic(^ and unwisdom (»t' such a law; stil! Mr. lUanchard dotis not regard cost of terminal handling, ami makes rates disrcgardiiig e cu the average co.st of handling and haul. It is possible, uudev tlu; present .system, tor an engine to sta"t from any one [loint hauling cars uf the Blue, Wliitt^, Ii(Hl, (Canada Southern and Merchants' Despatch Lines, all laden with the same Supi.ose a man loads for von one .'ar every day from Amsterdam for New York, re.Milariv, of a certain e]a«s of jroods, au.l another man loads lor you two car« t'vijy day from the san>e point, of the same class of goods, is there any reason ""'I''',;' °^^;;f,^^j^^ stances why you should charge one nuui more per car than another i A. It is not likely ''*^Q:T:prSpl"ot' railroad management, ought he to be, under those circum- stances ? A. No ; 1 don't know as lie had. 58 ^U: -J..uvtt reco^Mii/os tli." s.iiu.- unit ..f sliipnuuit (Testimony, p. 1481): U;1/,„hV .,/•■;; '^7,^^^ '^'"' ■■VMotlMT man w,.„t...l to .shi,, two .ar \ \V1,,. n ,. .; 1 V " *''^' ""'■ '""" """'^' ^''"" twice as luu.'l. as the ..tlicr? uul^rJl Zl^ ::i^ unktliat a..aHoa,lu„,.l,l 1„. a pro,.,.,. „„i. of shHan.nt witlioiit n.Jri 1 '. ."^'"''' "i"'«^l"'iiiL,'t3i|iial.' A. As a i.iartiral (lUcstiui, Mr. Fi.ilc. the present pod eoiuiuissioner, and a reeo^.,u/e.l autl.ority on •;" >'"J'<'i''i M..e.t.o„s, discns.es this .p.e.tion with sueli perspieuitv and force, and ns vn^ws so heartily accord with the views of the conunitte.;, that wo (piote tliein at hwi-th (Kxhihits, pp. 1 U).150) : o" llri^'ZmuM!ts'^Z;;''!;"r:,"r' "-V"'''-"' -l-"!''"'!- si,oul,l^,anf lower rat..s than n.tail n • <■ nnK T I"'nr,,.|,. hat wl,„l,.sal,. .n..n.|,nnts ..,11 sell .-L.-apcr ' ; '•, ""; ''*'""/' ••'•■'•^;'"-^ "''.^ wlmlesal.. nirrchaiits ..,11 sell ,.I„.a mt than t 1 ..,.',. . f .'1""^"/'^"" '•""'•'•a.ls in less than ear loa-ls, the ..st will l,e ..reat..r st'.Hn.w Af'f ? 1 ■^''ipiiK'i'ts are made, wlneh l,i,ve to l.e unloaded at liireienr i-ured b^S^nmroadr^Jn^alir^"" " "'" "' "'"" ""' '"'"'^' "" '"^•''^-"-^^ "^^ - Tt e^sJs t!;;;;i.:'t;r:hl;:';'':;tds:nv; •;.,:?■ ;";*' "■• '-^ ■"•'■?■ ^•'"-'-■^' '^ < -^« *>- -'- .a.. .;;i .. "'a-;; i^rs ^TS'aS;;.;-- ' ■■ "^ "- a-i. ; ^H^r!;::;;;;!^.^';;.-,:-:;;::;;;,;^^^- "•■ -aM.hed orde.nded. .. san.e iiai^oi/lMain'p'.id^t:';;^;;'.;:::;;.'?:;;!! "'"t'' : '"r^- r"' "'""^ ='i''"';' -^ ^-^ "- ^'ives to the l;,r.r,.,. ,,,11 ,, ,., ?,. i" , , r, •'"'';'"' ,'''""l'^'".y 'hM.„l,..s that it ''Tin. la,.... ,7,il „u des. tf '^'^^^ IliisohtseireouMitutesafairprotit. uantstosella ta ,,, tselt ui ;- ''''''^^ thesn.ade a ls|'„ :r. ^^ "h. " i' '"""' '^""■, '!"''" '""'^ tolnvaki,,. up of is aeeo.upli.sL.d. '""'^ company is the ius(,un,ent throned, whirl, it emplovna.n otsn, n: ,; " , ''" '°- , ""' l'"hey of discrimination prevents tho I'Hilt up. 'n ar..- ,.,,,, Z,^^^^^^^^^ If p.ope,ly fostered, lar^e enterprises are small,.,.' H,.i ''a '^ o n oZ 1 '"'' ""iT^' "'■"'^^' '"'"'^'""^ a,lvanta;,es over tho h-ies to still n;;;l;e,.;nsS;;nat; lulls. ;!;;4 '•'"'"•'" ^''" ='''• "'•-'-i-.u. Also at jKige 15-f of the Exliil,its : 5!) , p. USl): rn tenniniiv lii|> two ( (ir the (.thci'?' II' (>llj,'llt to. of slii|iiiicnt il i|iii'.stii)ii, I'licc ill my liority oil t'liity iiiul itttui, til, it lowtT rates it'll I'liciiper I'll rhcapiir 1 iiiilroads, ii'icliaiiilisc a (liUcrfiit Di't'd, iiiort! !»'• /greater iilly loailcti t (liUV'icnt has to [IT' - s tlii'icfore- 111 t'ur ili*- ailf by tlin Hill I'ust is tint .saiiii". 1, ulli'tllrr ii' loads or vor of tJH'/ ili'il. AU' fit at till- I's tliat it fair jirotit. ari' I'oiii- 111 ill, if it iiiK "I" of 1 wliirli it ^. Morc- vciits tlio iiiiliistries 'V ari' not 1 irises are over tlio oad oom- sliippens all orlier sed to a ne to all " The payment of -ebates, drawliacks, l.y whiili means their unjust discrimin 'tis- are praetised, should lie forliiddeii." Ho who f,'0('a into a railroad oHico and barters for a low rate gets it ; be who, relying on the e(iiiitublc treatment wliicli cniiniiou carriiirs arc bound to give, or no! knowing that secret special rates may be liad, delivers them his goods and calls for his freight-bill, pays a higher rate. Competition among railroads as a regulator of freight tarilf is a failure. From tlunr nature they do not admit of competition in th(! sense in which that word is generally understood and used. No community can support parallel rail- roads. Practically but one load reaches the same territory except at certain specilic points— competitive. Even in the absence of any pooling agree- ment, there is no such competition as is alforded by the scores of grocery- men, hardware, dry goods, and other dealers, to the public in the purchase of the various kinds of merchandise that supply their wants ; and where competition does exist it is of a cut-throat rather than of a business charac- ter. . It is demoralizing and unjust to the public instead of protecting it against excessive charges. It gives certain points and certain shippers- large shippers, as a rule— very low rates, which intermediate points and other shippers are taxed to equalize. The competition of water way.s serves as a general regulator of rail rates. We have discussed its importance in this country; and the cost ot transportation by vessel from Odessa, the great grain emj-orium of the East to Liverpool, has an important effect upon the rates of transportation here. These two granaries of the world, competing to supply this market of the world, measurably fix the cost of transportation on both continents. In a general way, between one country and another, between one section and another, between rail and water, which is a free highway, competition exercises a beneficent othce, and the natural laws of rivalry and trade adjust and correct evils in the aggregate ; but as the railway is artificial, so must the restraining power that adjusts the relations between through and local trathc, between competing and non-competing points, between large and small shippers, be artificial also. The evils that railroad competition leads to, and with which we are too familiar, are succinctly set forth by Presidents Vanderbilt and Jewett m their joint letter (Testimony, p. 56) : "Thiseharacter of eompetition, as is -^\^-^^^^j:::^^:1:i^ tremes, and to the great and unnecessary loss ot prolit to the lailioaa compai , out ei.rrespondiui,' beiieiit to shippers or eonsmuers. changed at any Tl e shippers are not profited, ^^^^^ ^X^ x ,,11/ AI..1 tl„.i,- roasons Ibi- .,o ,l„i„j, „re stated on p...... .11 :1 „(• tl,„ Kvl,il,it.s • efleots of loci „|„..,al ,,,tes. It i, i,„|,„rtant t.> nolo i,. tl.e aLov,, aj;,-,«- onl '" Tr""""" "'' " """• '■"" '" " I'-'i-i-T ""ti>.„ to an a.l^n™ tuus a\ ouls the evils oi nncertainty anu eeciw Tl«n,y othe,. element which i, acl„,itt,,l to control „,,nic n,an:.,.,» in Tt Z ; r '" '■"" ""''"' "" "•"«'« "'" '"""■ -"' '" "'« -"- "- ..act.cd ailroad n,an tt wonM seen, that the cardinal .hnnents that onW.t 'w • -r ',■■■?'' '"'■'"'"'■'' *=■"" "f "■-»l'™ta'i"..-to n«. the w^d Joel T T T ""''^-'"''"■'"'t "I'on hon.l.,, and a ,livi.l„nd „ , 2 td in" 'T """' "'"™ '""""•"' "■■ ' '> "'«>' ''"^ ^ '-I'l'" "■'■■'»"' of capital ,n none of the mads affects the rates for tra„s|,„rtin,- tiei.-ht or passengers; and every railroad n,„„ who has been before nslas tItiHed th t ™,„un of capital and hence interest and ,lividen,l, i, not considered, and cost of transportation is not oontrolling, and "practically" disie-mrde, in nuiking rates. Instance Testimony, p. 414. Tl.Iir ml,, of action Is s, c- It he years balance sheet does not show a loss, good ; if it show, a profit they got all they conid ; and it seemed to yo,n- committee that it was ow.ng to this method of conducting their basiness that the railroa.ls were imable to give „s more specific data as to the actual cost of transportation Ihey gave ns the cost of their aggregate business but co.dd not approxi- mate even thecostinanyofitsva,ious .letails; could not sepai-ate New lork btate from through business, nor give any comparison of the cost of m 1) luiinltor, iii,!;li Idisi- ts, p. .-ill) ;,'iv('ii lots, I'.ilntiiid, 1)11 In li(. ;.'is'cil '' tliuHt! tun ^'xliil)its : i.v (»r iiiiiiii- for Miiiiil.ir lest of tli(! mjunoiis i Jidvaiice e is. and fiiiling to \n<^ rates. Makers in line tiiiH! me not a at ought he word 11(1 upon uount of (Hgllt oi- testitiod isid(!rc'd, •egardcd n is suc- 1 for it. ii profit ir fault, ; it was ds were irtation. ipproxi- te New cost of tlirougli and local Ixisincss. Mr. .Towctt did tell us that noithcr through Moi- htcal l>\isin<'ss would pay of itself; only their coud)ined volume was prolitalile. It is in evidence that loeal freight rates on our trunk lines are less than on the roads of any other State (Testiuiony, pp. 2^f^\ to L'ro and huy tho catth), thoy had to see that (lur proportion was niadf np." Th(\v recuivod 61') on ovory cur load of cuttle sliipiM'd from tlin west to New York, no matter by wliom shiji|)(!(l, wlicther tlicy Hhi|)|)(!(l it or had nnytluuj^ to tlo with it or not. The commission was hiter nnliiccil to $10. TJicy soon hocamo lar,j,'o shi|»j)L'rs of cattle ; and with these marj,'ins in tlieir favor, " evcninj^ " was not diHiciilt biisi > vs-i. The crude kind of jiistrcB here attem|>ted |)roved iiuflll'ctual, and last sprinj^ Mr. Vandorbilt proposed to break it up. It took a war of rates to do it. As Mr. Vanderbilt testifies (Testimony, p. l(»r)!>) jiis road carried one thousand car loads from •Cliicaco to New York at one dollar per car, of whicli the Central got thirty cents. lie siicceediul, however, and now every man is made his own evener ; i.e., if he ships his cattle by the road he is requested to, he gets a o<'rtain price ; if he shiits contrary to directions, his price is made titiil iiuj,Mt'giiliuij; jiIkjiU tivo liiliioiis of dolIiiiH, is cHM'tiiiiily 11 .stioii},' r(!iisoii why tho ^'oveniinent shoiihl sultjoct this vast interest to proper r«(j,'iihitioii. The proposition that ( 'on ^ress should j^'ivo to the poolini,' agreements the force of la\r, if practical*!*!- which is doul)t- i'ul — the jMiople of this ct)\inlry, with the good reaso.. thtn have to distrust the exei'.ise of viis, corporate power and the luotivc^s of some of the most potent I'ailway kings, will never consent to ; analti- more. Many of these comjieting roads are foreign cor])Orations, running but a few miles within tliis State, and therefore could he controlled by absolute law to but a linuted extent. Rates ought not to l)e secret ; but to go to the extreme urged by some, and compel the i)\iblicati(,>n and posting of rates at all stations within this State, and [)rescribe a fixed period that all rates must be posted before they could go into effect, a rule that would be eminently just and proper could it be enforced generally throughout the cotuitry, wouhl not only give notice to \h ' ))ublic, but also to all com[)eting roads. And at all points of contact — ivu 1 there are many along the Erie and Central also — Pennsylvania and New .'ersey njads could make their rates just enough lower to get the busi- ness anlatur(! may eiiaet, until they get 1o the State line and then, uiireslricted as they are in Pennsylvania and New Jersey, could vary their rates so as all the 'while to place our own State mads at a disadvan- tage ; this road, wliich is a Pennsylvania corporation, might publish its rates at all Xew York stations, and for instance charge twenty-live (;ents per huudiv Iweight from Oswego to the State line, and nothing from there to •leisey ("ity. The line being a continuous one, it would make no did'erence to its treasury whether the charge was located upon a portion of its line, or tlie whole of it. The same; may be said of the Northern Central running from Canandaigua to P.altimore, and the same of the ButfaP, New York ^ Philadelpliia, running from IJudlilo to Philai'ineiple of railroad management, no more should he charged on small ship)ai'nts than on large shi])m(.'nts, ])roportioniitelv than the additional cost for iiandling. A j)ro|)er unit of shi])meiit slujuld be li\e(l. The ])ractice of charging more foi- a short haul ihan foi' a long haul sjiould Ik^ forbi(hlcn ; the grantiuf •of une(|Ual or prelcivntial rates should be forl>i(hlcii ; tiie making of secret rates and the giving of dra\vl)a(ks and rebates ibr such ])urpose shoidd l)e forbidden ; and your committee.' arc ol' tjie opiniiui tliat the legislature may safely go to this extent without infringing the yvo\tvv discretion and elasti- city of management which railroad managers must of necessitv possess, without driving the business from our own State I'oads to the rival roaplete history of the year's transac- tions of the road, both linancial and othei'wise ; designed to remove those provisions of law whereby it is possible to issue bonds c(uivertible into stock, convert them into stock and place the stock upon the market, all in one transaction, as was notably (huu' during the Fisk and Gould administration of the Erie, and which niay ])e done at any time for the purpose of obtain- ing or maintaining conti-ol of a road ; amending the law i)assed in 18G9, and still in force, which permits any two railroads, ui)on consolidation, to (ix .their capital stock at any amount, or, in other words, to infuse any amount of water into it; amending that provision of law which ])rovidesfor issuing stock by railroads, so as to give to the transaction publicity, ami recpiire, preliminary thereto, the consent of the public, through its propiM' orticiu-s ; and designed to juevent discriminations u])on like and cotem[)oraneous shipments. The business of transportation reipures the greatest freedom of nuinage- nient of any business extant. This is manifest to the must casual observer. 67 'The diffiniilty and the (hinder of imposing cast iron rey investigation, could l)ring them lo light, and the I'estraining ett'ect of possible or i)robabl(! ex[)osur(' of improper management would, in itself. l>e a powerful conservator of i»ublic interests. Commis;;ions have been ti-ied in many other States of the Union, and from their long contiuuaiiiM^ it is to l»e presumtnl that tluiy have worked satisfac- torily and beneficially there. Whih; wt; ciisily foresee that an iiupi'operly constituted commission, composed of dishonest and incompetent men, would be alike a .rse to the I'ailroads and to the public;, yet the neci^ssity of enforcing a proper relation of these; vast interests to the |)ul)lii' and ho'ding them to a proper accountability, and especially in view of oiii' State (.Jov- ernment as at ])reseiit constituted, your connnittee are of opinion that the example of other States and other countries in respect to a commission may, with pro[uviety and with profit, be copied by us. Your committee have suggested remedies for the prominent evils discovei-ed. TIh; very limited time since our testimony was in print has not enabled us to review the whole field of legislation with the thoroughnes^s desired, but the testimony sub- mitted and the wisdom of the legislature will suggest such remedies as we have omitted to specify. Rel.vtions oKTriE Statk to thk Raiijioads. The relation of the State to the railroads and its j)Ower over the same is fully and clearly laid down in Matm v. llihwis; 4 Otto, 113 ; Chicago, Buni'Kjtdii ''>p^ex. Ilnsfnii <(• A Iha in/ Railroad CoDipaiiif, 70 N. Y. 50'.). In iicconlance with the doctrine laid down in these oases, the legislature has not only the power to regulate tlie transportation of freight and pas- sengers u[»on our railroads, hut it lias the power to regulate the cdiarges of all other persons or corporations whose functions are, by lease or contract with the railroads, made a necessary link in the chain of transportation » including the charge for elevating and warehousing, the chai'ge of express <',ompanies, sleeping-car companies, drawing-room car companies, stock yard companies, and the charge for the terminal handling of oil, fast freight lines, etc. A. B. HEPBURN, Chairman. H. L. ])UGUID, JAMES LOW, WM. L i\oyp:s, JAMES W. WADS WORTH. CHARLES S. BAKER. I concur in the summary of the evidence and in the statement of facts ■embraced in the report, and generally in the recommendations that it •embodies. 1 /)!'■>■ of .rp hf /iHif''i/ 1,1/ f/tr Sfii/r I'lH/iiH'ir nii'l surrri/or initll xncli lltiir l' niHroiitl nnaiais.'/ oinj rititr>)oil roiii/»iii!/ riohitiiitj till' /iroriyi)))is o/ this siu-fio)) ^h'itl >,<■ ij)i)tt)i of " ii)i)iilci))cinior, oiul upon ro)irirtioii tlnn-i'iif xlnill /"' /))i)))''li':i /*// im prisoiiiio'iit not l!> ^,,„^ tl,„ »tre„,n o,- wnfrcour... ^tvot, Im,1,w.,v. ,.1^'"1< ;™ ' ""' ' '' ^. i„t,.r..ct,..l o,. l.„u.l„.,l ... its r..„.,..r ».„..■, or (.. s,,.-!, .... c „» "" " .s,cil..,..,t., „t t1,e |,U,.<. wl,« „y .„M,.o o,. ot ,„• .. ..tvu t .VI ,.l,„,.,ly loc.to.! i„, „|...ii o,- .,.-,..s» ,.„y »t,e-t ,n ..n, -it), ^„,„,,„„v „,■ U,„;„,,,o..,>t,on of »,.c., city ; „..,■ t.> ....ti.on... "">; ^ ' " ^ ,^ "^ , „„ to consfuot it. ■ 1 ,„,o„ a„.l „1..0S ..ny '"^^ ""■»'; ;™,; »u„„e.l, „,.,.k. .,t ,1 »|.ockl term of «,..l cu,.it, alt...' at Last .a .U. s oftl,e into,' tiou to make a,,,li™tiou tV„- "-'^ "'■:'«'- 1'' ' " a W*vav i» to tl,o c.,n„„issiono>. of l,iKl,«„ys of tho town u, wh.ch x.ud h,„hway situated ; 6 To c-oss, i«te,-»ect, joi,. an.l uoite it. nul.-oad with ,v.,y otl,-,- mil^ .oa. bo.o,.e const,.,.oted, at ,.„y point on i.» .-onto, and ".."«"■« St- anch otho,- ,-ail,-.».l e.„np,u,y, with tl,0 ,«c,oH.uy """^ ".^' '" "f; "'„ .witches, an.l othe,. conv..ni,.,ces in furtl,e,.ance o the <= 0° ' " ;™, nections. An.l ovevy co,n,,any whoso ■■aihoaas ,s o,- »'"'''«;"«; intcrsoctcl l.y any now ..ilm.ul, shall unite w,U, tho owne,- of s.uh „ » railroa.1 in fonnin« snch intovsoctions and connoct.ons. ""> S^"" *« ^^ ; litics aforesaid ; and if the two cor,.o.-ations cannot agro upon th n, of con,p.nsation to be n.ade tl,e,.efo,-, or the po.nts ;"\™;»" j^J, , crossin. san.l connectio,rs, the s..n,e shall be ascerbuned . nd '"t" '"'"^'"^y Tmr^^ioners to bo appointed by the court as is provn.ed .,> th, A^t n . "It to ac^„iri,>g title to .-eal estate ; and all co.np.u.res -' - ; ""^^ .l,..ll lu.rpatter bo crossed, intersected or joined as atoies.ua, sua rr-e Her :„d forwa;d to their destination all goo,.s, „,e-cha,uh Tana ot.er property ..tended ^ l-- » ^^ ^^^^^^^^ wld from thel,ne points for individuals a.rd othe,- corpo.-at.ons ; 7. To take and convey persons and property on their raih^ad by the power or force of «tean, or of animals, or by ..ny meohan.cal powe. , and t-eceive conipensatiou tlierefor ; 8. To erect and maiutuin all necessary and convenicmt buildings,, stations, fixtures and machinery for the accommodation and use of their passengers, freights and business ; 9. To regulate the time and manner in which passengers and propeity shall be transported, and the comi)ensatioa to be paid therefor ; but such compensation for any j)aHsenger and his ordinary baggage shall not exceed three cents per mile; the re-enact )nenf of thi.^ prorision xhall itot tie ci>n- strued at:< uicreasiny the rate of pansewjer /are whir/i auij railroad oj this State ia now authorized to charge ; 10 From time to time to borrow such sums of money as may be neces- sary for completing and Hnishing or opiuating their railroad, and to issue and dispose of their bonds for any amount so borrowed, and to mortgai,'e their corporate prtoerty and franchises to secure the payment of any tlebt contracted by the company for the purpose aforesaid ; and the directors of the company may confer on any holder of any bond issued for money borrowed as aforesaid, the right to convert the principal due or owiiiji; thereon, into stock of said company, at any time not lesH than two nor more than twelve years from the date of the bond, under such regulations as tln^ directors may sec fit to adopt ; provided, however, that if the already autho- rized capital stock of such corporation, at the time such Ixntds niaij he issnrd, shall not he .nijlicient to meet such, conversion ichen made, the stockhohlert^ shall, he/ore such issnr and in the manner hereinbefore provided, authorize an Increase of capital stock to an extent snjjicieut to meet the dejiclencij. § 3. This Act shall take eflect immediately. An Act To amend section two of cliapter 917 of the laws of IHGD, entitled " An Act authorizing the consolidation of certain railroad com- panies." The People :>f the Slide of New York, represented in Senate and As- semhlij, do enact as follows : Sec. 1. Section two of chapter UlT of the laws of 1869, entitled " An Act authorizing the consolidation of certain railroad companies," is hereby amended so as to read as follows : § 2. Such consolidation shall be made under the conditions, provisions and restrictions, and with the powers hereinafter in this Act mentioned and contained, that is to say : 1. Th(! directors of the compiuncs jToposin^' to con«oli.luto miiy <'.nt('r into a joint a-rooinont, uudor th« corporate, s-al of oach .Hmipuny, f.)r tlu| consolidation of .said cotnpani.-.s and railroads, and prescrihin',' tlu". terms and conditions thereof, the mode of riirryin- the same into elfe.a, the name ot tho new corporati..n, th.^ nun.ber and names of the directors and other officers thereof, and who shall he th.' lirstj.lirectors and ollicers, and then- places of residence, the number of shares of tlie eai.ital stock, the amount or par value of each share, and the manner of converting the capitid stock ot each of said companies into that of tho new corporation, and how and when directors and officers shall he chosen, with such othe,r d.dads as they shall deem necessary to perfect such new .,rgani/ation and the consolidation ot said compani..s or railroa.ls. lint In no case shall thn capital stock oj Uuy cvmmn,/ formrd b,j such c.oH.niidatlon exceed the sum of the capital stock o the 'conipanics so consolidated, at the par ndm thereof. Nor shall any ho.al^ or other evidences of debt he Issued as a consideration for or in eonnecttofu with such consolidation. 2. Said agreement shall be submitted to tlte stockholders of each of the- said companies or c-orporations at a meeting' thereof called separately for the purpose of taking the same into consideration ; duo notice of the time and. place of holding said meeting, ami the object thereof, shall be given by each company to its stockholders by written or printed notices addressed to each- cf the persons in whose names the capital stock of such company stand.s on the books thereof, and deliver to such per.sons respectively, or send to th..m by mail, when their post office address is known to the company, at leas thirty days b(,fore the time of holding such meeting, ami also by a general, notice published daily for at least four weeks in some newspaper printed in the city, town, or county wh..re such company has its principal office or pbux of business ; and at the said meeting of stockholders the agreement ot the said directors shall be considered, and a vote by ballot taken for the adoption Trejection of the same, each share entitling the holder thereof to one vo e and aid ballots shall be cast in person or by proxy, and it two- hirds ot all Z votes of all the stockholders shall bo ibr the adoption ^^ ^^^^ then the fact .shall be certiiied thereon by the secretaries of h csp- v companies, under the seal thereof, amd the agreeinont so adopted, o a cu ^ lied copy thereof, shall be hied in the office of the Secretary o & ate, and X II om thenc: be deemed and taken to be the agreement and act ot con- solidation of the said companies ; and a copy of the said agreomenc and ac ; consolidation, duly certiHed by the Secretary of State under lus offi. seal, shall be evidence in all courts and places ol ^^ --^n^^^ new corporation, and that the ioregoiug provisions ot this Act hav^- • observed and complied with. § 2. This Act shall take effect immediately. An Act To rtvniliitt^ votiiii,' Ity .■>tf»(:K ;. d liuiitlhuldurs ol' niilroad (Mivponitioiis. The Vi'i'lJi' of Ihr Sfdfio/ iXt'ir Ydi-I:, rrpi'i'snilal hi Snifhr (hiil .'{■^sriii/ih/, do I'nficf an f'offoiVH : Skc. I. Ill viiliiiL; for Llit- (il<'eli(»u (if diiuctcM's, or for imy oMicr jxirposo, by stock or Itoiidlioldiu's of iiiiy railroiid corpunitioii in this Stiiic, no proxy .shiiU l)c valid unl(!s.s executed uiid dnU'A wilhiii tlirec iiioiillis prior to the election at \vlii(di it is to bo used. It shall not \n- lawful for any person to voto npon, or to issue a proxy to vote upon, stock or bonds not actually owned by him. No person bein^' the pledj^ee of stotd'C or ])onds, to whom stock or bonds shall have; lieen transferred as security, shall be permitted to voto upon such stock or bonds, or ^dvo a proxy to vote to any other ])(M-son than the pled^'or or some person dosi<,'nated by him ; and sucdi ])led^'ee shall issue a proxy to such plod[,'or, or any person .lesi-,Miate(l by him, wh(u\ever rcipiosted so to do. No person having the right to vote upon stock or bonds shall sell his vote, or issue a proxy to vote ujion HU('h s;r)ck or bonds, to any p(^rson for any sum of inonoy or anything of value whatever. Any person otlering to vote npon stock or bonds owned by himself, shall, if iwpiired by any inspector of election, or any stockholder in such (corporation, take and subscribe the following oath or atlirmation : " I, , (los(deninly swear (or affirm) that in voting at this election I have not, (Uther directly or impliedly, received any promise, or any sum of money, or anything of value whatever, to influence the giving of my vote or votes at this election." And any person otlering to vote as agent, attorney, or proxy for any other person, shall, if reiiuired by any inspector of election or any stockholder of such corporation, take and subscribe the following oath (or allirnnition) : " I, ^ (b) solemnly swear (or alHrm) that the stock (jr bomls upon -which I shall vote at this election, are, to the best of my knowledge and belief, truly and in good laith owned by the jjcrsons in whos(! nameii they now stand ; and that 1 have neither directly nor indirectly nor impliedly y iiiiln.ad corpoiutiuns. Thi I'rnph oft/ir Stutro/Neto York, represenh'l In Smnh' 'ovl .Uw;m%, do enact att/i>lh>n's : 8fc 1 Kv.'i-y r'-:--.l.-..riH.ration slmll -iv to all p-rsous iviismmble an.l .■iinal'trnas,' i,u..uu-s aiul accoauu.ulatiuns tm- tl-.r transportation of tluMUsrlv.s. thrir a-onts an.l servants, and of any Mu-rchanaisc or other pro- nortv of every kind and des.u'iption, upon any lailroa.l owned or operated 1,V sneh corporation and for tenuinal han.Uin^s th. use of the dopotand other huildi.i.'s an,l ^ronnds of su..h corporation, and at any point where its rad- ,.oad shall connect with any other railroad, reasonable and e.pud terms an. r,eilities of intereha.^^o, and shall pnunptly forward n.eni, ^n.hs.. consi^u'.l or directed to be sent over anoih.a' roa.l conne.-Ain- with its roa.l, accordni- to tlie directions contain.nl tliereou or accompanying the same. jj '> No railr..ad orporation shall .•harge or receive for th.^ transporta- tion of frei-ht to any station on its n.a.l a great..- sum than is charge.l or rcceiv.l for th." cot.'nuu.ran.H)as transportation of the like .'lass an.l .pumtity of fr."i.'ht fr..m the same ..riginal p.unt ..f .h-p^wture to a station at a great..- distanc.. .>n its roa.l in th.- sane- .lire.-ti.m. 'I'vvo ,.r mon- railroad .-orpora- tions, whose roa.ls c.nn.H-t, shall not .d.arge or receiv.- lor the transpo. atuu, ,nV..ight I., any stati.UMHHh.. roa.l ..f . ;ile.' >a' tle.n. a gm|.-r suun^ ^.,,„,„,, „, ,„....ivvd f.>r the rot..mporau.-..us transp.n-tat.on ..t th.- bke clas. .H.l^iuautitv.^f IVcight fnuuth.- sanu- .mginal point .d' .lep^irtur.-, t.. a sta- tion at a gr.^at-r .listan. nthe r.Kel ..f .-itlu-r .-f th.-m m the same .In... - '""^ :; Xo railroad c.^rporation shall grant ..r allow to any person oi- asso- dutl>n"up..n th.. transp.n-tati.>n of freight, either .lire^ly ..r -f^^^^^ secret rat -, rebate, .Irawba.-k. nnreasonabl.- allowance for use ..I cai. o. any L^^advintage whatever; nor directly or indirectly charge to or vcceu. Lni any pers.ni or persons, or association or crporation any greater or s. e.nnponsatio.n or rowar.l than is charged to .>r r.-c.-ived from any other 2n persons, association or corporation ibr like and cot.miponuie.>ua ^ i^e in 'he receiving, transporting, storing, delivering or lundhng o " "ht, n..r shall any railroad corporation charge ni.,re tor tr.uisi>o^ing treiglit om any point on its iiiio than a iair and J nst proportion ot the price it charges for the same kin.l of freight transported from any other point. Nor shall any railroad corporation charge more for t.uisp.>rting fr^glit from one local station to another, or from a local station to a ternuna., Jun tlic" Xrge for a like and cotemporaneous service from one terminus to another . I § 4. Tlio nir loii.l is h(nvhw ma.lr tl.c unit ..f shipment, and no railroad corporation, nor t-A niori- railroad corporations whoso roads connect, .h-.ll char.'C or receive fnr the transportation of tw<. or ni<. re, car loads of frei-^ht a -reater or less sum per car load than is charged or received for a single car load of a like class of iVei-ht for a cotomporaneons shii.mout LetAvcen the same points ii]...n su.-h road or roads ; exceja that any railroad c..rporation..r this State, whose terminus is upon or near the border of the State when receivin- frei-ht by the train load, of not 1<-sp than twenty cars, fVom a n-tation of freight shall include all terminal charges, and the road of a corporation shall include all the road in use hy su.'h corpm-ation, whether owned or operated under a contract or lease. ^ .■). Any railroad cori)oratiou which violates anv of tlu^ ]u'ovisions of this" Act, in a.hlition to liahility for all damages sustained by reason of such violatioti, shall he liahU. for each (dfence to a i)enalty of one hundred dollars, which may he recovered in an action of tort, in any country wher follows : Sec. 1. There shall be, in and for the State of New York, a board of railroad commissioners, consisting of three competent persons, one of whom shall be known as chief railroad commissioner, and each of the others as associate commissioner, and who shall he appointed as follows: The "overnor shall, by and with the advice and consent of the senate, appoint, before the first day of June, in the year eighteen hundred and eighty, a chief railroad commissioner for the term of live Jyears, one associate com- missioner for the term of four years, and one associate commissioner tor the term of three years, from the date of such appointment. And after such appointment first made, the governor, by and with the advice and consent of the senate, shall in each year that a vacancy occui-s appoint or reappoint one commissionei- after the year eighteen hundred and eighty, for the term of five years, to take the place of the outgoing commissioner. If any vacancy happens by resignation or otherwise, he shall in the same manner appoint a commissioner for the residue of the term, and he may, without the advice and consent of the senate, but only upon charges pre- ferred, remove any commissioner. If the senate shall not be in session at tiu'time anv such vacancy shall occur or exist, the governor shall appoint .a commissioner to till the vacancy, subject to approval ..f the Senate when ■convened. Said board shall have a clerk, who shall be appointed by the Board, and whose duty shall be to keep a full and faithful reccn-d of the proceedings of .said board, and file and preserve at the general office of said iboard, all books, maps, documents and papers intrusted to his care, and prepare for service such papers and notices as may be rerpiired of him by the commissioners, and perform such other duties as the board may pre- .scribe ; and he shall have power, under direction of the board, to issue sub- p.rnas'for witnesses, and to administer oath?, in all cases pertaining to the duties of his office. Said board shall ,,iso appoint a marshal, whose duty it shall be to attend at the offices and at the meetings and examinations of said board, as re.piired, and to serve notices and other papers, and perform .such other duties as the board shall i)rescril)e. Said commissioners and clerk shall be sworn to the due and faithful performance of the duties of their respective offices before entering upon the. discharge of the same, and no person in the employ of, or holding any officuvl relation to, any railroa"", for the transaction of any ot t e business or dnties of said board, and n,ay hold u.eetn.gs thereof, at any time or place within the State, All examinations or investigations hereinafter provided for may be held and taken bv and before any one of said eom.nissionors, it so ordered •UKl directed by tlie board or by the chief co.unassioner ; but the proceed- ings and decisions of said single commissioner therein shall not be deemed iinal and conclusive until approved and contirmed by the board. S 4 Siiil boart or manager of each railroad iu this State to mlorm'lu chief commiss-nuer of any such accident, and the tacts relating to the s,,u>e, immediately aiLer i*s oceurrence, Before proeeeding to make any sueh examination or invesi igatiou of th.^ condition or operation. . f any railroad in this State, or any a ■cident thern, in a<-eor.lan.H> with this Act, said hoard shall o.ve reasonable notice to tin; coi-poration, [xusou or persons conduct- ing and mMii.ging the same, of the ti.ue an! place of entering up.ai the same. And such board of i.dlway commissioners, or the chief comniiH- sioner thereof, shall have power, foi- tlu^ purposes provided for in tids Act, to examine the books and alfairs of any railroiul company or Cm ;- r-ation, or to compel the production of copies of books ami papers, subpu'i. a wit- nesses, administer oaths to them, and comi)el tlndr «.,tteudance and exu:i- ination, as though such subpcena had issued frovn u cnu.rt of record of this State. ' Whenever any svich examination of the alfairs of my railroad cov- poratiou shall take place in which such board will re.pr e tlie exuminatioii ^ of the books and affairs of witnessess who are board or a I'omiiiissione town of this State whei poration may he situa have the power to rerp this section, to be sen visions < '' this Act shal atioiiH, receivers, trus same. 55 "). Whenever, in it shiiU appear that ai provision or law, or lie t(M'ms of th(! Aft by w act of in(H)i'poiation <. any of the laws of tlie corporation, and if tin the boanl may I'orthwi take such ))ro",o(Mliugs 5$ (1. Whenever, ii it shall ai)pearlhit re] or that any addition ti stations or station h alforded, or that any i [)assengers, or that ai ducting its business, security, convenienc(i .nienc(>, and accommoilation of the i)ublic, the said board shall .• <-uluct o any o the railroad corporations, as may seem to then, appr-.pnute. And the sad La of railroad eonnnissioners shall b.. cha,..! wiU. the duty to recomm^u and draft for the l-gislature such bills as will, in theuMudgu.ent pvot-^ l'« ^oph-'s interest in and upon the railways of this State. And .t shal d^ L be the dulv of such eonnnissioP.e.s to lake testimony upon, and have ,.:,:,,Mo,. andagau.st. any proposed change of the law Heating to any rad- !;;;.; railways, or proposed ehange of the geuend nv ui nat.^^^^^^^ rtiW.Ys if requested to do so by the eonnnitte^- on radroads o the suut., : temblv. or hy the governor, and such e„u,u..sione..s shall thereupon veport their eouclusions, in writing, to su-'h eou.uuttee, or governor, bom whom th(! reipu'st to act emanated. >; 1(1 The hoard of railroad eonnnissioners shall have lunver to prescribe. thetbrmofthere,.on icpuredto be n,ade by nulroad corporations. umU. ction thirty-one <,f • -.apter one hundred and loHy o, the laws o eighteen ^Llred and hfty, entitled'' An Act U, authorise the ionuat.on ol radroad ■ c^poiations. and b. regulate the san.," and may from tnne to tnue make sue 1 changes and a.hUtious in such lbrn>, giving to the corporation s,. ,uonths' miticeoi uiy such changes and ad.utions which would require any alteration in the method or fbrm of keeping th.-ir accounts, and the repoit bv said " Act to authorize tho formation of railroad corporations, and to Jniiate the same," of eighteen hundred and iifty, re.pnred to be made to th"^ State engineer ami surveyor, shall hereafter b. ma.le to such board of railroad commissions s. Until such board of railroad e,ommiss,oners, how- ever shall change or alter the form of the report, the form now prescribec by law shall be followed by the said railroad corporations. And tl., hoard ot railroad commissioners shall on or before the lift.^enth day ot September H'lneiits, Icasos or itli any pcidon or )a(l coimnissionors, ; to impair in any ' railroad coii)ora- or of the neglect e an annn.al report ,eui('nts, i'aets, and J system of railroad perity of the State, f the State, or the ' )■ eondiK^t of any of iate. And the said duty to recommend di^'iucnt. protect the And it shall like my n])on, ami have ivlatiiiL;- to any rail- Iwv, in relation to lr,,;els 1)1' the senate, leis shall iherciipDn (ir Lidvei'iioi'. IVom e ]Hi\ver to preserihe eoiporalions, undei- the laws ol' eighteen I'ori'.iation of railroad n time to time make; tlu- e tlu^ "workings of the laws of the State, on the sul)ject of railways and transjiortation, as to the said board may seem proper and ex- |)edient. The originals of the I'eturns as amended, sidiscribed and sworn to, as now provid(!d by law, or as hereafter to be provided b.y said board of rail- road commissioners, shall be preserved in the olfice of tlu^ l)oar(L § 11. There shall be printed, in addition to the regular number pre- scribed bv law, as a public ccssary for the purpose of preparing the rt'ixirts reipurei'l liy this Act, and such other (derical duties as may be re([uiredof them by saiil boanl. And such board of laili'oad commissioners shall have the jiower to employengincL'rs, accountants, and other experts, whose serv.ices they may deem to be of temporary importaiic-e in the conducting of any investigation herein p/ovided : and they shall have procured for them by the State the necessary books, maps and statistics incidentally necessary for the discharge of the duties of their offi(,'e ; and they shall also have reimbursed to them quarterly the expenses and dishnrsements they may have intuirrcul in travelling, and for the necessary travel expenses and disbursements of their clerks, marshal, and of experts ; which expenses, however, shall not excecul five hundred dollars a month , and a statement of such expenditures, in detail, shall accompany the annual report. - 14 S 13. The. annnaltotal (^xponsn of the board of railroad commissioners, inclutliiif; salaries for commissioners' clerks and marshal, and additional clerical force, printing of additional c()])ies oi' r(>port, as i>rovided by section thirteen, and all other expenses incident to said board, excepting only rent of oftice, shall not for the first year exceed the snm cf forty-liv(^ thou- sand dollars, and for all subse.pient years not exceed in any one year the snm of forty thousand dollars ; and such exjienses shall be borne by tha several corporations ownin- or opeiatin- railroads, according to their means, to hv. apportioned by the comptrolh'r an,'th of road, and such assessment shall be collected in the manner provided by the law for llie collection of taxes upon cori)orations. S 14 Said railroad commissioners, or eith.-r of them, shall have the ricvht to enter and remain in the ofiices and depots an.l upon the railroads of" any railroad company within this State, in the performance of oHicial duties • but neither the said railroad commissioners nor their clerks, agents or experts shall accept or receive any pass, present, gift, or gratiiity of any kind from any railroad corporation, and the acceptance by them, or either of them, of any su(d. presents, gifts .>r gratuity, shall be a misdemeanor, and punishable as such. § 15. All Acts and parts of Acts inconsistent with the foregoing pro- visions are hereby re])eal(;d. § 16. This Act shall take elfect immediately. An Act To amend an Act entitled " An Act to authorize the formation of rail- road corporations, and to regulate the same," passed Ai)ril 2, 1850. The People of the State of New York, represented in Senate and Assem- hly, do enact as follows : Section 1. Section ihirty-one of the Act entitle.l " An Act to authorize the formation of railroad corporations, and ^to regulate the same," passed April 2, 1850, is hereby amended so as to rea heaihul and contain " Amount at last report," and the other " Amount by this report." 9. Number of shares of ordinary stock. 10. Number of shares of preferred stock. 11. Total shares of stock, of par value of $ \ivv share. 12. Number of stockholders. A talndai- statement of the funded debt is "by this report" shall bs given, showing : ^ , (1) Each kind of Vurnds or obligations. (2) If, and how secured. (8) Date of i-sue. (4) When due. (5) Rate of interest. (6) Amount of authorized issne. (7) Amount Jictually issued. (ut 3 in iirea. ■ompany during; for the year. hilp:s uun. cars. r of passfingors lumbf'V of tons linary passengiT .mins, including, ng stops. 19 90. Manufactures. 91. Mcrciliandiso. 92. Other articles. 93. Total number of tuna. Tahle H. AMOUNTS MOVED OV CERTAIN SPIXMFIED ARTICLES INCLUDED IN FOREGOING DESCUII'TION. 94. Flour (tons). 95. (Uain. 96. Live stock. 97. Fresh or pickled meats, and provisions. 98. Petroleum and other oils. 99. Lmnher, 100. IMg and bar iron and steel, and ir Unfunded debt, (as '' by this report " in l\ible A.) (4) Other liabilities (classified). The balance of - InconuV or '^ Profit and Loss," must appear on U.e side on which it may fall according to whethe,- it be " surph.s or " deficiency," and the two sides of the " Iklance Sheet must then be equal in footing. The "Balance Sheet" in ™oh report, after the first one shall have been made nn.ler the provisions of this Act, shall he tahnkted w, h double columns on each side ; in one of which columns properly headed shall ar.pear the amounts at the end of the year or which "htport is mlde, and in the o,l,er the amounts of the corres- ponding it,.n.s as they appear in the report for the previous year. 170 The number of persons injured in life or limb, and the cause of the L.ry and whether passengers or persons employed, and whethe a" y such accid<.„ts have arisen frour carelessness or neghgence of Ty .ersons in the employment of the corporation, and whether sudi persons are retained in the service of the corporat.on. 17T The names aud resi