New-York tribune., 1879-06-09
PAILROAD COMBINATIONS.

There is reason to believe that the era of
prostratiOn bankruptcy of corporations and
destruction of values has come to an end.
After il must come, in the nature OF things,
an era of recuperation, repair and rebuilding.
Every day the evidence increases that the
day of genuine improvement, and Of
financial and industrial reconstruction has at
last commenced.
The pooling arrangement between the trunk
lines has been regarded with dstrust, for two
reasons during long years of prostratiOn, the
stress of necessity has driven the companies
to break every arrangement, sooner or
later; and it is not yet understood
that the new plan of arbitration differs es-
sentially from all previous arrangements.
The shrewdest railroad men and students OF
the problem of transportation have agreed
that this method offers greater hope Of per-
manence and success than any other yet de-
yised. During the past week the live
roads from St. Louis TO the eastward
have also agreed upon rates corresponding
with those arranged by the trunk lines
for Chicago business. Thus, we believe,
the quarrel between the Chicago and Alton
and the other roads from st. Louis westward
is now the only "war" for winch some set
tlement taking effect to-day has not been de-
yised. OF the permanence or efficacy OF
these settlements it can only be SAID, as yet.
that the controlling roads seem now TO be
convinced of fact known long ago TO all
observers, namely, that they are throwing
away millions yearly so long IS they fail to
place their agents and connections under
definite aud effective control III the sale OF
transportation, and they have therefore
consented to a system of arbitration which
has been found effective i'll almost every other
form of commercial strife.
IN connection with this subject also the
nooling arrangement between the Cleveland
Columbus, Cincinnati and indianapolis and
the Wabash Railroads becomes important
These roads, taking freight from the MiSSis
sippi at st. Louis. and from the most produc-
tive coIn-growing region of the Northwest, to
Lake Erie, have not only deprived each other
of prosperity by their extreme rivalry, but
have been potent IN forcing downward the
through rates on other trunk lines. lt is Of
benefit, therefore, not only to those roads, but
10 all the main lines, that an agreement has
been reached for a division Of earnings, and
the benefit will be the greater when these
roads are placed in direct connection with the
Erie. As TO this connection, it is significant
that Mr.. Keene, who is q director and large
owner in the Cleveland Road, has been in
vlted and has consented, at the desire of the
London trustees, to become one of the Erie
Board. and the arrangement will be made at
the next meeting. This is an indication that
his large interest in these roads is expected
to be permanent, and that the two will be
harmOnized, the more as President Jewett,
Mr.. Welsh, Of the Erie Purchasing Commit
tee, and Others interested IN the Erie, are
already directors in the Cleveland Road.
Another important consolidation of interests
was recently mentioned "a the object OF Pres
ident Gowen's trip to Europe. II is stated
that a formal lease of the New-Jersey Central
Road by the Philadelphia and Reading is so
far arranged that 1t requires only the assent
of the English creditors and owners of the
Reading. If so, it will probably be effected.
For the two roads can be operated as one with
advantage to both, and can thus secure i'm
portant through traffic in connection with the
Baltimore and Ohio. large expansion of the
coal business of both roads, and an enormous
oil traffic in connection with the new
pipe line just opened from the oil re-