Railroads -- United States; Railroads -- United States -- Finance
Traffic conditions from 1887 to 1893 were very far from satisfactory.
The difficulties between the Baltimore & Ohio and the Pennsylvania were
indeed patched up, and the opening of the former’s lines to New York
rendered it independent of other trunk-line connections; but frequent
charges of rate cutting were made in 1887, and a war in dressed-beef
rates was inaugurated by the Grand Trunk in November of that year.
In 1888 rates were pretty much demoralized. Published rates on grain
dropped from 27½ cents in January to 20 cents in October. Emigrant
rates from New York to western points became the subject of active
competition; and, most important of all, the dressed-beef controversy
was pushed till it developed into a war of the most active kind. The
trouble here was started by cuts on dressed beef by the Grand Trunk.
In May other lines retaliated by cuts in live-stock rates; by July
14 published rates on cattle from Chicago to New York were 5½ cents
per 100 pounds, and on dressed beef and hogs 7 cents. In November
the New York Central extended the contest by a general reduction in
west-bound rates.[51] These struggles, though terminated for a time
by an agreement of February, 1889,[52] seriously diminished railway
revenues, and prevented the rapid growth which the general prosperity
of the country might have occasioned.[53] In fact, the Erie management
stated in their annual report for 1888 that their company had retired
altogether from certain classes of through business for a time during
the preceding twelve months, owing to the unremunerative level of
rates. Conditions during the greater part of 1889 were better,[54]
and during the following three years constant attempts at agreement
and arbitration, joined with a considerable volume of business,[55]
prevented a long continuance of any difficulties which arose.
Public-domain text, read in full here on John Shaqi.
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