The New York Herald Newspaper, March 27, 1879, Page 4

4 THE STATE CAPITAL, Beginning the War Against Tilden and Robinson, ified in the other counties shall fix the ares of the corporation, aud after addi sponte Gre pee cont of the said value the amount shall be the value of the shares of the corporation aud taxos shail be paid thereon. jeneral opinion appeared tp be that the } D ap] at eo committee had # heavy contract ou their hands to frame @ bill that will equalize taxation on. all per- sons and corporations. Fremdent Johu Wheeler, of the Tax Department, presented a very interestin; statément, showing in detail the valuation of estate exempt by lawefrom taxation in the city of New York in the year 1878. The following is & re capitulation :— UBERNATORIAL AMBITION. $10,294,500 84,131,300 6, HISGOCK’S SEE S82 8222222 ere £3 Mayor Cooper and the Accused Po- lice Commissioners, Water fronts and corporation ” Genie ot Rane City missio: me 28 FORIY-SECOND STREET - RESERVOIR. Be 5 aEEE z. 4 Maturing a Plan to Tax the Great Corporations, 828 seeeeeeeees «$185,822, 787 DOU. .....-rerrecrrorrenves ‘The committee finally decided that the State Board [BY TELEGRAPH TO THE HERALD.) ALBANY, March 26, 1879, ‘The guns fired off to-day in Assembly on the intro- duction of a petition from ex-County Clerk Gumble- ton, together with the Langbein bill taking away the power of interference with heads of departments in New York city from Governor Robinson, indicate the preliminary skirmishes of the “machine” re- publican-Tammany-anti-Tilden combination alluded of Assessors and John H, Strahan should meet and prepare s bill and submit it to the committee on next Tuesday afternoon. THE SUPPLY BILL PASSED. The opening business of the Assembly to-day con- sisted of the consideration of the Annual Supply bill, which was passed as srigaay, reported ny the Committee on Ways and , without amend- ment in any particular way. IMPROVEMENT OF TENEMENT HOUSES. ‘The bill introduced by Mr. Strahan in the House to-day regulating the construction of tenement to in to-day’s Henatp, The war has begun | houses in met lis contains all the recommen- in earnest. The Tammanyites appear willing to | dations of the special committee appointed in New York to invest this im; rtant subject. This report was recently publia! in the Hemacp. OVERHAULING THE REPERKE RING. Mr, Varnum aims to reform the abuses in Now strike hands with anybody and everybody to save their organization from the threatened destruction. ‘The “machinists,” too, on the republican side think they can achieve # useful victory under such a coali- | York city rulative to fee pe erga mieed Ferg tion as against the powerful inroads made upon them | gubject are as follows :— by the young legislative chiefs of the House fighting 1, No official uader any city or county ernment shall under the sturdy banner of George B. Sloan. Several | >¢, tod referee, ), receiver or commissioner in auy case. ‘2. Auy such officer shall be a resident of the judicial dis- of te Tammany Hall wirepullors, among them | crise within whlch the appolatmout Is inade, te Sachem Edward Kearney and Major Mooney, for- | poist 9s een ee ny, ppt counecilor-ar aw merly Commissioner ‘of Accounts, are here. fs me agree. default of such agreement the 6. . Ail trust funds received by any such officer: shall oo kept seperate from his own funds and deposited at ance as ‘8 separate official account in some trust company or bauk to be designated by the Court. 5, Where thére is roason to believe that a referee, &c., is safe to intrust with funds, therwise, the Court must, if satisGed vach chargos arc well founded, elther re quire socurity or remove the officer. 6 sales ‘be mado by referoe or other offi- All sorts of rumors ero in circulation as to what might or could be done, but no tangible plana. of operations has been yet developed. Ex-Mayor Belden, of Syracuse, still remains in Albany, watch- ing the political situation. It is understood he is nere in the interests of his friend and legal adviser, Congressman Hiscock, ‘Che istter'’s banner as » ‘Auction may ce ‘cor, either personal! ‘through. joneer, unl gubernatorial candidate, hae. been’ fumg. -to.| Sakseniae etesimenhe Miecomete Winew sente potency the breeze by some of the “Old Guard.’ | *he ofticer shall recely eae airs 0 Any roteroe of other in Senate and Assembly. ‘The corporstions are said | auctioneers! fees In any such case to favor Mr. Hiscock, but such support may be far a more injurious than beneficial when the nomination comes to be made at the Republican State Conven- tion, ‘The present outlook is dangerous tor @or- porations and corporation candidates, The taint of it of Parks as at present con- this poisonous support has already killed off # good to be ap- many ambitious statesmen in Albany doing the Ce, scare, dah alba beat igs a ac present session. Canal ring and corporation in- + REGULATING THE USE OF ELEVATORS. AUasead Gahnoe Bs ted Among the few bills introduced in the Senate was Ta cugl G caukae” bir bsg headin *sacarmagsay notable one from the hand of Senator Ecclesine. abail be guilty of « mis- THE PARK DEP: struggle over New York city legislation. One of the latest pro} in this respect comes from Mr. Hayes, who has introduced a bill which aims to abolish the It refers to the construction and it of MAYOR COOPER AND THE POLICE COMMISSIONERS, elevators in public buildings. It pro ‘to compel Various stories are in circulation as to the cause of | the Proprietor of every building which is used for delay in sending up the charges against the Police | Preuss Grentect ts proviie s uarch’ coven Commissioners, It was alleged to-night bys New} ing for every 0; ugh which an York politician with whom I conversed at the Delavan | clevator passes. covers sre to be that the charges are already with the Governor, but | Muged tthe beams of each floor snd are this is doubtful, inasmuch as such statements are | ically open at a of platform or car Positively contradicted at the Executive Chamber. gis up or down and shall then close after it passes, us leaving the hatch open only whilethe car is It is further alleged that a (hitch has taken place | sctually passing through. The bill further provides in New York between the Mayor and some of his | that the Superintendent of Buildings compel friends as to the persons who shall succeed Mesurs. | owners or lesnees of buildings to make this improve- Erhardt, Smith and Nichols. Tho mames most | ment,and shall seo that all edifices of cbar- prominently mentioned here for the are | acter im question to be hereafter rected Thatcher M. Adams, James Daly, Shook | shall i of the aid Jacob Hess. bi, docide The hiteh means. to have ad curred over the claims of the two, whether or not particular contrivance for open- men. Another story explains the delay in the th | ing and is calculated iaaaes of time required to properly engross the cr go whether it be used. He is together with all the evidence to be submit to | empowered to an be ki as the Governor Robinson, “| Imapector of 8, and who examine ANOTHER BLOW AIMED AT THE GOVERNOR, all elevators in the city and thereon The same committee also agreed to report, for the | to the department. A second section of the bill for- consideration of the House, the sbein measure an opening in the ground or taking away the powers of the Governor in the mat- ter of removal of heads of ts in New | or York. The speedy action of the committee in this | ment of Buildings to inaist upon the closing of aj) matter has ,iven rise to considerable speculation | euch openings now in exis amon the pollticians to-night, ‘Tho bill was only introduced in the Assembly at one o'clock this after- AIA noon. ‘The tollowing is the bill:— ROWELL IN PHILADELP, All the head: e v1 ta iu the city of Ni vs a shor persons whose. appeiutanout toofies Ie peo, | THR PEDESTRIAN TOURNAMENT IN WHICH BE 18 fers ded, for wisconduet or for by section 25 of chapter $35 of the Laws of + hereti EXHIBITING. office, a it wiviel suc head ‘tstopartnont or ator parson shal have {sx reLxeanare To THE uERAtp,|* on appointed to office. apoigeed.co other ucarae ing agge ot be ao} PHILADELPELA, March 26, 1879. of » i York, 0 Judes st a Rowell, the pedestrian, arrived in this city this hief Justice of the Superi “tho city of Now | Morning, having accepted an offer from Mr. Coffin, y wuthorized and empowered to bear and detorminy the matters subufltted to them, as bereinatier directed. Th ay at nny time be presented to said F] or of said city, or by any five or more waid city, » verified vompluint ct or malversation in ufice agal head of depertment ot person. pointed to office in said city ms sforeuald, such complaint the particular act or sete duct or malversation in office ot charged wust be rect. A son made in said complaint jod, the said judy may appvint sume cum mcd in support of the charges so taken to be reported to said co! 000 half mi in 2,000 half hours, wat uny unnecessary delay. It shall do the | Rowell began his exhibition by running eight miles, judges to howr the parties or thelr counsel on | He did not himeelf, ran: ‘at about s nine i astutorcsald a evenressoa anaes auigeett | mille galt. The famous Astley belt, of which Rowell be takon, aud after sue todovermine | fda Fac gg tg acre renner jcbetieinien their | Dine o'clock this for a run ten miles, jo eid = ol a ae ih. lim. 57a. The sy y and 01 tenth miles were run in 6m, SLU, tnd shall forshwith transat to im all the proveed- | G09, each. He will run to-morrow and EN TO JUDGES. SCKKTIONARY POWMR the said \dgos shall determine that contained i any complaint presented to thou, have not been established to their satisfac: apinint shall be diwniseod by thom, end on ho farther preceodings stall be takes Mayor uf said city. ou the opinion of sald dnd the reasons therefur, Hadinggthe charges in aa MILLEB AND COLONEL M’LAUGHLIN—MILLER ‘substuntially admitted of established to thelr remove the head of the THE WINNER. per: complained against from his Batrtuons, March 26, 1879. office, or otherwise dispose of suid charges as the suid Mayor in diserotion may consider to be to the The Greco-Roman wrestling match betwoen Will- public interest. hoad out or iam Miller, of this city, and Colonel J. H. Mo- Laughlin, of Detroit, for $600 a side, the entrance money and the championship of tho world came off other person from odico by the Mayor as by this statute i shall be again appotuted tw the sume office e term! In every case, except where the f the a aeninet the head of o pe 6 mag Eo bea” 5d aay to-night at the Academy of Music, Both men were in splendid condition. The house was crowded, but there was little outside betting. Promptly at half-past eight o’clock the athletes Mer, we said judges, shall’ be o charge against the | when hlin caught up Miller and threw him nen abd Commonslty of eald clty. paris oi ucts iucousistout with the provisions af thiemes | upom the stage, but Miller fell upon hie faceand are horeby repealed. This act shall take effect ‘ely. | inetantly turned his antagonist and pressed both EXIM MKASURES. shoulders to the floor, and s fall was awarded At a meoting of a ation of Assemblymen from | him.-Io the third bout both men went to New York, Brooklyn and Buffalo this evening to con- | Work vigorously, and after ten minutes Mil- for relative to excise matters, at which Mr. Strahan | ler wes thrown, but the referee declared it » presided, u sub-committee was designated to prepare | foul, orm 9 having tripped Miller, which was roper amondments to the measare submitted to the | Bot allowed by the rules g the match. The m the Committee on Internal Affairs, fourth bout was short and ve. Both mon Y-SECOND SYRERT abowed great skill, but after twelve minutes the men Lhe Com AXAKRVODL nittes on Cities to-night agreed to ely the bill providing for the removal of the jurned MeLaughlin ned the fall Fouvvolt at Porty-locond street ‘and Witthavenue, | aod the match. The matoh wae 1h, Sam. tn lengph. ‘Tho reasons given for this are that certain members pamper semen of the committee consider this reservoir as still COCK. FIGHTING. necessary for the city and should not be disturbed. , NEW BILL TO TAX CORPORATIONS. The Committee on Ways and Means of the Assem- bly had an intercsting meeting to discuss the tm- portant question of reviaing the lswe in relation to GRRAT COCKING MAIN BETWEEN PENNSYLVANIA AND VIRGINIA, ¥ the sesenument and taxation of roal and personal (BY TRLROMAPH TO THE HERALD.) property, and particularly the taxation of corpora- onroux, March 26, 1879. Hons inthis Stuto, ‘The Board et State Assessors, | « aaah Prosident John Wheeler, of the Tax Department, | ‘Sporting circles of this section of Virginia aro John I. Strahan, O. B. Potter, and John H. Mooney, | greatly excited over the greatest cocking main for of New York + were prosent by special invite | many years which is to be fought betwean Pennayl- tion of the committee. A bill carefully drawn by the State Assessors to meet the subject was cnssed at length. Yhe principal features of the bill ave Aird—That tho Tax Commissioners ta the city of New York and in other countion of the state, the County Treas- rer, County Ch County Judge shall comstituts « in the 9 countion, whose duty it shail be te ho value of the vanis and Virginia on the ‘th, 8th and 9th of April. Each side te to produce twenty-five birds and fight for $100 each bettie and $1,000 on the odd fight. Philadelphia sporting men will arrive next week with thelr chickens and ® large crowd of the betting and wporting fraternity is expected im this city. SPRING Pick AND COBURN. ‘This afternoon “Spring Dick” and Michsel Coburn, who made such a desperate glove fight « short time ago, will take « joint benefit at Hill’s Variety Theatre, in Houston strect. Besides fistic encounters there ‘will be athietie straggles of various Kinds. Many prominent protessors of the mauly art will appear. READY FOR RYAN. To ruz Exitos ov tux Henap:— Seeing sn article in your paper consisting of a box- ing chmllenge from P. Ryan, offering to mect me ot Hill’s on Thursday afternoon for ® sparring match, 1 willingly accept his offer, and am ready to meet hiss any hare, awd will mabe ® mosen to meet him with nature’s weapons ed STEVE TAYLOR. Naw Yous, March 26, 1879, ij eupit puny or Y foenholdets of evel taxed on the value ‘capital stock, of eapital fixed «of sueplus mone; of anvount 4 jen amount aevuntly dividends y ‘und, iu tho ewse of copartmorelips, te ed to tho copartners during tho Yeut, | Auy statoment fu seh roport shail be if convicted, seutenced to aud pay ve, 3b Io uf ‘the Stave. tb felt to Ibe. peuple ‘and si for edeh day tn doteult, 10 be re etiun “by tho Distelgt Avturney, of the county. Pyd--should « eurpyration fail to te report the Tax Comuissioners in New York city of the county officers RAILROAD ABUSES Important Statements by the New York Chamber of Commerce. EVILS OF “DISCRIMINATION,” Making the Public Pay Vast Sums on “Watered” Stock, RAILWAYS CONTROLLING LEGISLATORS What the Board of Trade and Trans- portation Recommends. Atpany, March 26, 1879. ” The. special Assembly committee appointed on petition of the Chamber of Commerce and other bodies to investigate the organization, and manage, ment of the railroads of the State met this after- noon at half-past three o’clock and organized, Mr, Hepburn, of St. Lawrence county, was in the chair, and the other members—Measrs, Baker, Wadsworth, Husted, Grady, Noyes, ‘Terry, Dugard and Law—were all present. The Chamber of Com- meree was represented by Messrs. Jackson 8. Schultz, P. Van Valkenburg, F. B. Thurber and Jacob Wender. Messrs. A. B. Miller, H. K. Miller, John F, Henry, Darwin R. James, Simon Sterne and-B. P. Baker represented the Board of Trade and Trans- portation, and Mr. George W. Lane, president of the Iniporters and Grocers’ Board of ‘Trade,‘appeared tor that organization. When the committee was ready for business Jackson 8. Schultz introduced Mr. Thur- ber, who read the following address :— . MR, THURBER’s ADDRESS, We respectfully call your attention to the fact that the principle of “the King’s highway” from the esr- liest period has been one of absolute equality*tor all classes of citizens, and in the early Engliah laws per- taining to the organization of society this principle is a prominent feature. With the introduction of the improved highways known as pads, however, the ownership passed from the community at large into the hands of cupitalists, who, to remunerate themselves for the investment, were per- mitted to charge certain tolls or rates for transporta- tion. So eager were the public to avail themselves of the enormous advantages of steam that they granted almost every privilege which the associations of individuals who fei to construct these.im- proved highways asked for, and the result has been that the great blessing has been accompanied with at evils which are now crying loudly for remedy. While the improved highways were in their infancy these evils were hardly appa- rent, but by the combination and consolida- tion’ of the small and weak companies they have grown into enormous organizations, controlling absolutely the production ayd, commerce of whole sections of country, dictating values to producers, mapufacturers, merchants and consumers. Theo value of an article is what it will bring at the point of consumption, and if a bushel of corn is worth a certain price in New York the producer realizes that amount, less the charge for transportation, and this, ag is well known, in many instances is by tar the larger portion of its value. railroads, therefore, have the power absolutely to fix the reward-which every man shall receive for his labor, and it is probable that your investigation will show that this power is arbitrarily oxerciaed, that the rights of entire communities are disre- garded; the commerce of one city or town fi- cially stimulated at the ex, 3e others, andl tho principle of “the public way” entirely disre- @ by favoritism to individuals, which practi- cally makes one man rich at the expense of his neighbors. -It may be found upon investigation that some of ‘these charges are in whole or in part unfounded, for the principal sources of information have been in the possession of the railroads and carefully im, ‘of the publie, We shall be only beeen gy too glad if this should prove to be the case, but the vigorous opposition of “railroad to all investi; mn and supervision tends to con- firm — fair- men in the opinion of its necessity. It bas been to us that reported poe in the “interest of the railroads spoken of our efforts as & communistic movement against capital invested in railroads. We believe that such an sbsurd charge will react upon those who give it currency, for the record of the Chamber of Commerce is such that it can never be accused of making unjust war upon any in- terest; but your committce believe that thetime is at hand when, if the railroads by this State refuse to do justice to the public, the merchants eud real estate owners of New York city must join hands with the producing, manufacturing and mor- cantile interests throughout the State in an effort to compel them to do so. With your jsaion we will now prosent seri- @tim the complaints before alluded to, and ask that they be investi by requiring the officers and agents of the Now York Central and Hudson River Railroad, the New York, Lake Erie and Western Rail- road, and of such other roads 1 muy scem neces- sary, to appear before you and testify in regard to the matters concerned. Also that such other "eel sons be summoned as may be necessary to thor Oughly elucidate the subject under consideration, CHEAP ——— vor a , 1, Regarding the charge “that roads are in the habit of carrying ireight for the citizens of other Btates and also for citizens of foreign countrics at Tae ae a Se a ee ee oe ee ‘ork. "This charge involves the question of through and logal rates on both East and West bound freight and also the relative reasonablencas of East and West bound rates, While it is manifestly unjust to expect a railroad to carry freight at the same rate per ton per mile on a short hau! that it does for a lon we believe that there now exists too great adi: ence between through and local rates on East and West bound traffic. The Railroad Gazette, in an artic! entitled “The Legal Sanction of Combinations,’ after discussing the probabilities of the public sunc- tioning legislation which would enable railroads to enforce combination agreements on each other, seys:— The enormous differences between shroaah and local rates which are the inevitable consequences of the present wm of doing xh, are the oecasion of must of the dissatisfaction with railroads, and they are donvtless the cause of mach actual injury to a groat many persens. As on illustration of ,this, the rate for grain trom Chicago to New York is now eighteen cents per hun- dred pounds, with instances, we believo, of special shipmeute at less figures, while the producers living along tke line of railroads in New York State aro charged much more than this rate for one-third to one-quarter the distance, or, say, five or six times as sauch ia proportion an their Western brethren. The same injustice is done to manufacturers in this State who are obliged) to pay such disproportionately high rates that it is to their imtereyt to locate in States further West, If this is a good principle why should it not apply to passenger as well as freight business? West bound freights are carried cheaper for citizens of for- eign countries than for citizens of this State, For in- stance, an English merchant is given arate from Liv- 1 to Chicago less than the combine. ocean rate to New York and rail rate to Chicago, Why the laws of New York should tolerate this discrimination against its citizens it is difficult to see, for the two kiuds of carriage are distinct, and the function of one carrier coases when the other begins. There is no good resson why @ railroad should paul «car loaa received trom ® ship any cheaper one re- ceived from the drays of @ merchant in New York. At times freight has actually been carried trom Liver- pool to points in the United States 1,000 miles inland cheaper than the same lines would deliver it on the wharf in Now York, the railroads taking their pro rdta share of the through rate, Another snomaly is the enormous difference in the rates charged by the railroads on through cast and west bound treight. With ® full traffic cast bound rates from Chicago to New York fourth class goods are now eighteen cents per hundred pounds, whilo with two-thirds of the vars returning oe UR pn from New York to Chicago for the same class sre forty cents, a rate which is practicaily | re for heavy and bulky goods of low value. Kast bound rates are loss than West bound, owing to the lack of unit; of action by the Western connections of the frank lines, or ift ethor words, the natural law of compe- tition is in the one case left free to,work, while in the other it is abrogated, the New York roads im each caso receiving their pro rdta portion of the through rate avcording to mileage. DISCRIMINATIONS BETWEES [INDIVIDUALS 2. Regarding the second alleyaiion, “that individ- ual citizens in this State are yon special priviteges ‘and rates out of propprtion to those ch the pub- lie iu general.” For instance, the schedule rate trom New York to Syracuse on the New York Central Rail- road is 50 cents per 100 pounds for first class, 40 couts for second class, 34 cents for third class und 2% centségor fourth class. These rates the great mass of the people have to pay, but a few favored shippers st Syracuse ure given rates, wo aro informed, as low as 10 or 12 cents 100 pounds on all classes, as compared with. 50, 40, %4 and 23, which most people have to pay. Now, while it is quite right that ‘the shippor of email Rigen A should pay more than the shipper of a large quarftity, we respectfully submit that the difference should be the actaal additional cost of transporting the smaller quantity, In short, that the principal of equality on high- ways here apply, and citizen should have equal rights under the same circumstances. We belive that the public interest demands that thie great discrimination between in- dividuals should be abolished, and that even the in+ terests of the railroads demand it. A large number of small customers ary more desirable than # small number of large ones, because they will L pay @ better syeraye rate, Individual enter- NEW YORK HERALD, THURSDAY, MARCH 27, 1879—TRIPLE SHEET. prise is encouraged among © large number of persons, and both passenger and ‘ight business: would be stim by a neare? approximation in the rates charged 51 and bi aside from a question of interest is @ question of right involved, which cannot be di . This ple is recognized in our postal system to even & greater extent than we advocate for our trans- pre system, for here everybody, whether sends one letter or # thousand, is the same footing. Performing # . public func- tion, railroad is upon a different basis trom the private citizen, and has no right to sell its commodity transportation at a lower price to one person than to another, tt where cost of service enters into the s. and then only so far as it does so enter. This may be a difficult matter to de- cide, but by careful study the difference in costeot transporting small and large quantities can be closely detined. At present there can be no doubt but the producers and smailer class of mer- chants in this State are taxed cnormousty for transportation service as compared with the large shippers to whom special contracts are given. Tn some cases this discrimination amounts to virtual prohibition, as for instance the Syracuse rates above mentioned, and on ‘coal, regarding whieh we find in the report of Assembly Committee for the investiga- tion of the coal combination in 1873 (p. 9), the fol- lowing words:— ‘The Erio Railroad, having, with many gf the large pro- ducing companies, contracts for the car iz of coul- at comparatively low rater, dependent largely upon the pri of coul a4 to amount, shield wnd protoct thes nies and those iu their interest from the competition of ovher coul producers, and practically shut out all’ competition upon the lines they control. The recent developments regarding contracts with the Standard Oil Company seem almost incredible, and show to what an pxtent individual effort in any branch of business may be crushed out by a combi- nation between our modern highways and favoypa individuals. SPECIAL “INSIDE” EXPRESS COMPANIES. 3. ‘That the rates for transportation are made un- necessarily high by the maintenance of subsidiary organizations desigtied to deplete the revenues of the roads before they reach the stockholders.’ Promi- nent among these are the fast freight lines, bridge companies, rolling stock companies, local lines leased at exorbitant rates through collusion of managerd, stock yard companies, con- struction and supply ‘companies, lighternge ‘com- panies, clevator and othe terminal facility com- panies. These and the practice known us stock watering have, perhaps, done more to enhance the cost of transportation to the public than any other eause;sor, in other words, to afford a pretext for charging the public unnecessarily high rates for transportation service. Striking instances of this practice Gas 3 be found in the history of the New York Central and Hudson River and the Erie railroads; the former, according to current report, having first watered its stock at the time of consolidating the various links between Albany and: Buiffalo, and subsequently iu 1867 and 1868, when, it, is said, some $47,000,000 were added upon which dfvidends have been declared, which, with interest, amount to over $60,000,000,* Is it just, that the production and commerce or this State shall be taxed for all time to pay dividends upon fictitious liabilities thus created? The report upon the coal combination above alluded to, page 8, says :— During the receipt of those cnormous profits many of the coal corporations, ax was the caso with railroads not on- gaged in the coul earrying trade, unable under their chur- tors, or for other reayons, to declare dividends upon their stock that would absorb their unexponded surplus, Issued additional stock to the stockholders, for which they paid nothing, inaugurated what is commonly kyown us stock watering, or capitalization of surplus earnings, which is i tunco exucting money from the people, croating an indebtednoss representing the same, and making this the basis for forever usking the public ‘tv pay interest upon theirown money #0 exact The Railroad law of this State provides that when profits exceed ten per cent upon the cost of rail- roads over and above the cost of operating and main- tenance, the rates for transportation may be reduced by the Legislature so that they will not yield more than this sum, but such practices entirely annul and defeat the evident intention of legislators to protect the public interost after # fair return is received for the be eed actually paid for providing these facili- ties, Theso subsidiary organizations are originated and fostered by the managers or officers of the roads, who thus use their positions to serve their own pe- cumlary interests at the 2a of stockholders or the public. Mr. William H. Vanderbilt wrote a let- ter to the chairman of our committee under date of February 21, 1878, in jation to the termiual ex- enses of the railroads at New York. In that letter Be uses the following words:—‘Every burden of this description is paid directly by the railroad, but necessarily reimbursed upon its traffic.” It seems to us that these words also apply in the subsidiary ab ‘ganizations ubove noticed, ‘OF THE PROXY SY#TEM. 4. “That rights of stockholders are in ot! ways disreguded. By an, abuse of the prox: tem bad management of @ railroad can be almost indefinitely perpetuated. Even without proxies one- third of the stock of a large corporation acting in a body can usually control an election, the two-thirds being scattered and unorganized;’ but under the present system of buying and selling proxics stockholders gutside . of the managing ring have little co =for justice, and al- most .none for overthrowing a corrupt management. There is also a great absence of relia- ble, detailed information regarding the condition of railroad companies, and investors are almost on- tirely in the dark in this respect. In our opinion provision'should be mado for the representation of the holders of a minority of stock in boards of direc- tors and such regular and reliable statements pro- vided for as will make investments in stocks less hazardous than it ia under tho present system. AMBITRARY AND INCONSISTENT MANAGEMENT, 5. “That there is a general lack of that publicity and Le sen rm ag the public which properly be- long to organizations exercising a great public func- tion ke that of operating public highways” we would say that we belicve that rates should be regu- lvtly posted ut every station; that they should be the same to all under like circumstances; that a unit of quantity should be established beyond which no one should-have lower rates, and the mghts of rsons who ship leas than this quantity should defined and rates established theretor, only #0 much higher as it costs to transport the smaller quantity, We believe that the prosent management of our railroads isin many respects arbitrary and inconsistent, among which we may mention the arranging of freight tariffs and Classifications, in which the public interest is seldom consulted, An instance of this was the abrogation by the pool lines of the fifth or special class on West bound freight, by which the trade in heavy goods of low value—such as ash, cement and salt—is greatly injured. The present classification is full of incon- sistencies; for instance, a bale of sheetings which in 1864-5 was worth $400 to 9600, is now worth but $50 to $00; the average value of # chest of tea in 1865 was, perhaps, $50, while at the pres@nt time it is about $12, yet in both these instances the articles re- muin classited the same # they were fourtecn years my - : POOLS AND COMBINATIONS. The pooling system above alluded to is worthy of your attention. " It is ostensibly @ device for pre- venting railroad wars and securing uniformity and permanency in rates, objects which in themselves. ‘are very desirable, but the present pool is objection- able in that it enforces too high rates on West-bound freight. It may be the only method by which divi- denus can be paid upon the, inflated capitals of the trunk lines, but in .the minds of many persons there are grave doubts as to whether the public ought to be thus taxed. It is safe to say that, asawhole, the railroads of the United States are capitalized on a basis of $2 to every $1 actually paid in providing these facilities, and they could probably be constructed to-day for one-third their present nominal value. Combinations and pools are the only methods by which returns can be paid to the holders of such ridilroatl securities at wesent, even with honest management, and too many cases the interests ot’ stock aud bond holders are subordinate to those of & manxging fing, who purposely and dis- honestly depiete the revenues so that a majority of the bona side owners yet nothing; and if it bedecided that the maintenance of such rates are unjust to the public, then # prohibition of pooling aud combine- tions is the shortest way ‘to reach such @ result; for the natural competition of railroads would soon result either in scaling down present obligations or in loa (the same as mercantile houses which y their nature are wnable to combine), and if reorganized upon @ basis of actual value, they could then perforin the service at a rate which would be just to the pub- he ang at the same time afford « fair return to share- rs. Such « process involves hardship to many persous who now hold these securities, and it isonly ‘@ question whether or not the greatest good of the greateyt number demands such a course, We are of the opinion that the rest of the community have al- ready, to a great extent, undergone this process of “getting down to hard pan,’ aud that the sooner such & basis is reached by the railroad interest the sooner permanent and enduring prosperity will be @ew yorx cuxatep, « The Mines have also established differential rates between the principal seaboard cities and West- ern points, in which occurs the carious anomaly of Baltimore, Setar cent and Boston all being ac- corded lower rates New York, tho first two os- tensibly because their distances to Western points are shorter, and the latter because its distance is longer» or in other words, because Boston has the ad- vantage‘of ® competing road (the Grand Trunk), which by reason of its sitaation cannot enter the i ‘The present jers o1 the New York trunk ines profess to be power! to remédy this discrim- ination because they say to give equal rates to Now York would divert business from other reaboard cities, and this would bring one railrosd war, Yet on through business to from foreign ports the rate is the same through all our seaboard citios, and it would seem as if there is no good reason Why it should not be so on traflic which stops at the sea- board, Aa regards our own city, we are fully con- vinced that New York merchants are entitled to not ouly a6 low but even lower rates on West-bound freight than from any other seaboard city, “distance argumen.” being far outweighed the by the preponderance of business furnished by our city and by other considerations well known to rail- road experts. It is # fact admitted among railroad mon that it costs the New York Central Railroad, dis tance notwithstanding, considerably less to take goods from the seaboard to the West than it does either the Baltimore and Ohio or the Pennsylvania Railroad, and it the doctrine enunciated by Mr. Van- derbilt in one of his letters is to be accepted, which is substantially that thé natural Fe hts go of New York must be abrogated at the dictation of the Balti- moro and Ohio and Pennsylvania railroads in order to prevent « raiiroad war, then our merchants must look fo: to establishing branch houses in other séaboard cities, our owners of real eatate to ting @ further reduction upon ‘their already ly reduced rentals for property, our municipal authorities to e reduction in tax pay- ; road before ual degree to’ ing power, which not only will inevitably compel a wholesale reduction in the expenses of vern- ment, but also impair our ability to pay upon our municipal securities, the savings banks, the savings of largely invested. MAKING THE PUBLIC PAY FOR “WATERED STOCK." The late Cornelius Vanderbilt, previous to his death, stated that New York sho have rates for railroad transportation as low as any competing city, and your cominittee have been loath to believe that the present managers of this great highway are dis- posed to pursue a policy eaten is not only unjust and detrimental to New York's interests, but” which cannot fail to injure theirown. The Erie Canal doubt- less concentrates a large business at New York which, during the winter months, yields # large revenue to the railroads, but the Erle Canal cannot retain the great jobbing trade of New York because this is de- pendent chiefly upon railroads tof the distribution of its merchandise throughout the country; with this once diverted, and with manufactories of many arti: cles firmly established in the interior, the property of Mr, Vanderbilt and of other citizens will dep together, Thus far the depreciation has been all on one side, but cannot always be so, nor can Mr. Van- derbilt, even if so disposed, vontinue to maintain rates which yield eight per ceut wpon @ largely in- fiated capital, besides a personal revenue scarcely in- terior, derived from a@ variety of subsidiary cor- porations designed to deplete the revenues of his reach the stockholders, Noone can have failed to notice the diversion of our jobbing trade above alluded to, The changes which have taken plaice in the dry goods, grocery, hardware and other leading’ t are enormous, and it may safely be said that New York jobbing houses generally are at the present time doing business on Unsatisfactory margins, which they are forced todo in order make up for the disrimination against- them Yn freights,and this is perhaps the least injurious feature of the situation, the loss of prestige being even more hurtful than the actual money loss, All New York jobbers know that the “difference in freights” is constantly and effectively used as an argument against them, both by the interior jobbers who are favored with low special rates and also by the distance dis- crimination. in favor of other seaboard cities. This is a phase of the transportation question uot generally appreciated. Some persons cannot understand that with our export figures so satistac- tory there cau be much cause for complaint; but most of the produce exported merely ses through on ita way to a foreign market, yielding but little proiit to New York, while a jobbing or distributive trade of smaller proportions is much more re- munerative. Thé railroads apparently care nothing for the jobbing trade of New York so long as they can secure the large export and import trade, and also charge the present enormous local rates to the peo- ple of this State; but this policy is most detrimental to New York city, and the lack of prosperity for this city aneans # poorer market for the producers of this State and @n, inability on its part to contribute $1,000,000 per annum more than its pro rdta share to inaintain the public schools of the State; this the members tor the interior of the Scate wao were free from railroad influence and who voted for tie in- vestigation, doubtless fully understood, GIVE GOTHAM A CHANCE. Your committee believe that New York has a prior claim to this trade, as it firat settled and natusally belongs here. ‘the railroads have no right to break upthe jobbing trade of this city and transter it to the interior either of our own or other States, nor do we think they have the right to so discriminate between large und small shippers ss to prevent the latter choosing in what market they will mrke their purchases. /It was for the purpose of having an impartial trial of the questions at issue between the railroads and the public that an investigation was asked for; we believe this is due ike to the public and the railroads. Similar inves- tigations in England have gradually defined the rights of the public, and a permanent national board ot commissioners been established to supervise the working of this great power for good or evil. Upon the thoroughness of your investiga- tion depends, in 5 measure, the com- mercial and industrial welfare of entire community, Tt is hardly possible to imag- ine a subject of greater importance, or one which affords wider scope fo# patient, statesmanlike investigation. We venture to express the hope that saiticient time will be given to the subject to make the examination dn exhaustive one, and that if any eee aor ae required for Cire P may be conferred upon your commit. toe by the Assembly. say POINTS FOR INVESTIGATION. For your convenience we recapitulate below some of the points which seem. to us to be worthy of in- vestigation :— * 1. Whether the railroads chartered by this Stat froight for cltisons. of ‘other States, and alvo for eltisens of other countrios, at lower races thgn for eitisens of the State of Now Yt 2 Whether individual citizens of this Stato are given “Rasa the eb and rates out of proportion to those el ‘he the public in genoralt ether the rates fpr transportation aro mado an nocossurily high by the maintenance of subsidiary organi- uations dovigned, or which have the effect. to deplose the revenue of the before they reach stockholders, includ. ing the effect of the practice known as “ of stock,” or “capitalization of surplus osrnings,” and to what extent these practices have obtained? 4 Whetuer the rights of stockliolders are adoquately Inck of that publicity and respon- E hich properly Welung te organisa, reat public, fanction like of operating pul ways; including undor this bond the arrauging of freight tariffs and classifications; the effect of thy pooling aysyem; the differential rates cher Now York frolghts ax compared with other soaboard ef und their effect; the effect of present local tariffs apon the fobbing trade of New York: what hae boon dono 40 raxu- jute transportation by railroad in other States and coun- tclon, and such other Granchos of the oubjoct a8 ay poar'worthy of attontion for, the purpose o : Hating JACKSON 8, SCHULTZ BENJAMIN BSURRMAN, THURBER, DODGE, A. FRANCIS B. CHARLES itvou, JACOB WE: BENJAMIN G. STATEMENT? OF THE BOARD OF TRAKSPORTATION. Mr. Darwin R. James, of the Boara of Trade and Transportation, followed in the same.tenor. Ho made many points not covered by Mr. Thurber. He called the attention of the committee to the follow- iny pointa:—The history of railroad legislation. in this State showing the gradual abandonment of State supervision, the causes for such abandonment and the consequences that have flowed therefrom. ‘Whether railroads are public highways, and if so, arethe principles that govern highways applicable tothem? What has been the cost of the construc- tion of our railroads? What monetary aid have our railroads received from State, county and ¢ity funds ? ‘What analogy do railroad transportation charges bear to taxcs ? Have they not the same effect? .To what extent aro railroad directors nter- ested in contracts with their own trusts? Are not, as a whole, the inhabitants of this State discriminated against by tariff rates? What becomes of unreclaimed dividends of our rail- roads, the difference between summer and winter rates, aud how far do they upon canal com- petition? What is the method of keeping railroad accounts? Is there any method by which the State cun acquire ownership of the 2, EVILS OF DISCRIMINATION. Mr. Lane made a few remarks, and wus followed Mr. George B. Sloan, who complained that the mill- ing trade in Oswego and other parts of the State was being killed by rimination on the of the railroads in favor of freights from other States, Mr. Tuttle, an Orange county milkman, and « Mr. Hines hoped the committee would Ibok into the milk traffic ae managed by the railroads. Mr. E. Ham called sare ovgaed to a point ONS was not touched by any’ o! speakers—namoly, the condition and posi- tion of roads that have been abandoned. Chauncey M. Depew, counsel for the New York Central ilroad, was present, but took pals ps in the pegs He said the railroads wo wait until every one had made his complaint against them, and would then reply in detail. The committee then went into executive session. SUICIDE OF A JURIST, ISAAC EDWARDS STABS HIMSELF IN ALBANY— CAUSE OF THE 6AD EVENT. * Avuany, N. ¥., March 26, 1879. A very sad event took placo here this afternoon in the suicide of Isaac Edwards, one of the most learned professors of the low school and ® member of the Board of Public Instruction, As far as the facts could be ascertained it appears about noon today Mr, Edwards walked from his office at No.74 State strvot to his residence at No, 73 Ten Broeck street, and there conversed for an hour with members of his family withous showing anything unusnal in his demeanor. He then went to thé second floor. After about ten minutes the family were alarmed by ® noise overhead, and a girl who stepped into the hall found Mr, Edwards clinging to the bannisters. Assistance was called and he was carried into one of the rooms, but @ doctor who was summoned found on his arrival that the gentleman had died from the effects of two incised wounds which he had inflicted on himself in the region of the abdomen. It is su bee ig gr the i with @ ci nite w! 0 bathroom alone, and then made hi out to the landing. em SKETCH OF MB. EDWaAnDS, Mr. Edwards was born in 1819, He leaves a wife and son and two dwughters to mourn his tragic fate. Their grief will be shared by. many persons who knew ana valued his excellent character, He waa @ momber of the Albauy Board of Education, and prominent mombor of the Congregationalist fold. He was also the author of several valuable law books. wel ad oss bye ed terminated his life is suppor Avo ty insanity arising from overwork. He brooded mash lately over his public responsibilities and was frequently much ex cited. For gome time he was kept under su lance by his friends, but on the day of his death ba peared in good heulth and his usual frame of mi ARMY AND NAVY CLUB. Tho Army and Navy Club gave # social reception in their club house, West Thirtioth stroot, last mght, ‘Tho attendance was large. There was music, mar- tial talk and a pleasnnt time gonerelly among tho.old compasions in arme, Committes, CITY SALARIES. Mayor Cooper Reports How New York Tax Money Is Expended. POLICE, FIRE, EDUCATION, ———_>—__—_ Seven Millions a Year to the Three Departments, —_+__—_ AMOUNTS FOR OTHER DEPARTMENTS. —_-—___. ‘ Atpany, March 26, 1879, Speaker Alvord laid before the Assembly, just be« fore the adjournment to-day, the following commu- nication from Mayor Cooper, of New York, in answer to a resolution of the House offered some time since by Mr. Strahan:— To tux House oF Assexmiy:— . I respectfully submit tho annexed schedules of the amount aud distribution of moneys expended for publ purposes, including salaries. in the eity of New : wsed upon the final vstimates or appropriations for the years 1877, 1878 and 1879, and the an- nual official list of ‘officers und subordinates in the various departments of the city und county government on tho 31st day of January In each of those Years. The details of the payments for salaries have boon tathen to Sg your 1877. bucauae the distribution of appro- ‘ations is thade somowhat more specifically for that year That has since been do ou i made the average of th exhibits the gross amounts appropriated from taxes in years 1377, 1878 and 1879, and the distribution of those amounts ainong the soveral departmonts, The expend tures of the Department of Docks, which aro paid from bonds, are. omit It for purposes other than the te and on ac- city debt there was appro) m of $16,099,416 12; for 1878, the suin of $15,548,009 15, and for 1879" th f $16,301,434 87. About two-thirds of those amounts in r were for sularies, oxcluding all sums pal ir, day, week or any time loss thi month, makiug ‘allowance error ari from the difficulty of analyzing accounts $0 as al td distinguish between expenditures for service aud f material, ayd also allowing for sularica which ewadot be promptly ascortained ayablo from bonds . The total umou city departments and oflicers, including mont, of an those above. named, 8! amount paid for salaries, $9,390,225, ; SOMEWHAT DIPLOMATIC RRCOMMENDATIONS. ‘The doteils of the distribution of the above amounts 1@ various departments and offices are exhibited schedule 2. Tho salaries in the three departments referred to in the resolution—Fire, Police and Education—boing so i portion of the total amount offsalaries. It ix ob- if these be excluded from the general plan of to in tho resolution the saving that i fected would not be a lurge pergcent- age upon the total. Tho salaries of teachers in the common schools aro now fixed by the Board ot Education subject only to the restriction that the ex- onditures shall not exceed the appropriation made by t rd of Estimate and Apportionment. Tho differe grades and qualifications of teachers would seem to make {t inexpedient for the Logislature to attompt to fix by law their respective salarios. If the Legislature take auy action in respect to this class of salaries such action, in my opinion, should be confined to a limitation of the seeregele amount to that purpo: I luk thet the salaries Police ‘an Fire departments should be fixed by law. If the Cyd ne sation of policemen and firemen should be made dependent upon the discretionary action of any local authority the rate of pay.of the uniformed force would become s que: ton in partisan politica, and the men would be tempted to become be interested in I elections. Whatever may be the difficulty in reducing the salaries fixed by statute of ‘consequence of the con- stitutional provisions limiting legislative suction in compensation of public officers rims of office. alaries now fixed by law ed to an equitable and economical basis, a8 rho pay be porpetiar elected or appointed, in- mbersof the Police aud Fire departments. also schedule 3, in which the salaries are gr amounts, and which shows the number of por- sone receiving salaries of each grade from the city and sounsy: of New oreel The ER Se of tho entire. si except $2, of the appropriu- Board of Education. From these achodulos t $7,124,225 wore distributed in 1877 among wen thousand fivs hundred. persons in sub- the following proportions :—36 ved ¥ ‘in, sums of $10,000 and over; 72 recely in sums of $5,000 or more (and Uy Mell rocolved $1,003,510, { a of ' or ; 296, im a ee ), in sume us now in office in roe} to the Sering shete should be to offi Tyeelv ‘of lass than 81 000. Vor RDWARD. Mayor of the City of New York, SCHEDULE NUMBER ONE Schedule No..1 is s statement of the appropriations for three years, as follows :— «+ $4,162,883 $3,911,326 9,176,501 9,144,388 principal . eceesees 1,665,467 1,108,297 314,884,868 $14,231,007 $4,090,175 $3,909,896 3,703,000 '3.535,000 1,226,670 1,220,870 ++ $8,959,845 — $8,755,705 $858,026 329,800 $1,187,825 $1,632,000 1,190,000 357,000 235,000 204,872 163,000 114,600 114,500 76,000 70,000 49,000 aos ees $4,194,972 $1,816,714 329,800 $1,183,025 $1,611,100 $3,982 Seu $1,926, (78 For State other purposes. Recapitulation, taxes and city de- ‘ ts, $14,884,863 $14,231,007 16,090,416 15,848,069 Totals. +». $30,984,269 $90,079,077 The tabi ‘in detail the ‘total spproprin- tions made for 1879, which amounted to $30,007,003, and which havo already the Hera. been published in SCHEDULE NUMBER TWO, Schedule No. 2 gives the Aggregate. amount ap; riated for salaries in 1877:— atta 1,041,670 $7,424,070 The Courts— lice courte ..... tors ..., Serteamae fem . },000 jonpeation ney. . Public ‘Administrator. ‘ Attorney of Personal Taxes 6,500 —— +$118.500 Col City Age! ate of salaries undor the from tax for strict Fire and eeege tees gregato BMOUNG..... 6... cece cesses 5 «60,800,226, és ent of Docks, payable from ‘souds” — not including men paid by the day, week OF HOUF (TOUDALY)....ceccreeeeeeeseeeeees 86,000 Gyand totahe ieee cece eee eee 0,800,205 Bchedulo No. 3 aliows the amounts | vari ule No. we tI ous of res ows the amounts pald to vario rece! 470,000 in sums of $10,000 over, 12 received $446,500 in sums of $5,000 tha Jess than $10,000, ‘ 376 received $1,009,810 in sums of $2,000 of more and less than § ° $4,805,296 in sums of $1,000 or mote 3,981 recet 3,000 (avout) Foceived $368,619 in sums of less than and less than §: SCHEDULE NUMDER FOUR. Bchedule No. 4 gives # dutailed acount of the em. Ployés of the various departments and bureaus of the iwi with the salarics paid to each em- ~! $853,225,