HYDROLOGY OF NEW YORK 



747 



Xew York as is imposed by the discrimination in the rail rate in 

 favor of Philadelphia, Baltimore and Newport News. 



4) As a result of this situation, in which Xew York is pre- 

 vented from receiving the benefit of her natural advantages in 

 competition with these other ports, each of The ports named has 

 made gains while New York has continued to lose. 



5) While there are port charges in New York that can and 

 should be reduced, it will be impracticable to assure to New York 

 any benefit from such reductions so long as the railroads are per- 

 mitted to offset the saving in expense thus secured by correspond- 

 ingly increasing the differential against New York. That such is 

 the principle of the differential agreement and the policy of the 

 Xew York roads, as well as the roads to the southern Atlantic 

 ports, was conceded by the officials of the Xew York roads when 

 they appeared before the commission. 



6) The theory of such discrimination is that, under natural 

 competitive conditions. Xew York would maintain its preeminent 

 position in the export as well as in the import trade of the coun- 

 try — Xew Y^ork under such natural conditions being the cheapest 

 route to the foreign markets for the products of the west. To 

 the extent that this differential agreement requires the Xew Y'ork 

 roads to charge a higher rate than otherwise would be imposed 

 upon the export products of the west it is, in effect, an export 

 tax upon such products. 



7) To abolish the differential, therefore, would not only result 

 in Xew Y r ork regaining the commerce now diverted to other ports, 

 but it would also benefit the producers and exporters of the west 

 when competing in the foreign markets. This is explanatory of 

 the fact that the western exporters express themselves as equally 

 concerned with Xew Y T ork regarding this railroad discrimination 

 against Xew Y^ork. 



8) The principle of the differential agreement is inequitable 

 and unjust in theory and in practice. Xew Y'ork has suffered 

 much therefrom, and should use every means within her power 

 not only to have it abolished, but also to render it impracticable 

 of restoration. The differentia] rate applies not only on products 

 destined for export, but also destined for local consumption by 

 the people of Xew York city. 



9) The fact that the Xew York Central & Hudson River 

 Railway Company has received exceptional benefits from the State 

 of Xew Y'ork makes that corporation exceptionally culpable for 

 participating in the discrimination to the serious injury of Xew 

 Y^ork. 



10) This railroad discrimination against New Y^ork would be 

 impossible without the participation of the Xew York Central and 



