Q. Did the cheap rates at New York arise from competition with water transportation?
A. Yes; at sea. That only applies to heavy articles, about which there is no question of time or of insurance. It may apply to heavy drugs; but it does not apply to dry goods or groceries, or things like that.
Q. Are your local freight rates governed by your through rates in any way?
A. To the extent that whenever through rates come down below the local charges we reduce the local charges.
Q. Proportionately?
A. No; but we do not exceed on our local business the amount charged on other roads.
Q. Do you reduce the rates on local traffic when you reduce them on other traffic in equal proportion?
A. No. Say the rate from Chicago to New York is fifty cents, and the rate from Philadelphia or Harrisburg is fifty cents, and the rate from New York should be reduced to forty or thirty, we reduce the other rate.
Q. To the same per centage?
A. The same gross rate.