New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-07-29
NEWRAILROAD COMBINATION.

AGREEMENT BETWEEN THREE ROADS.
THE CLEVELAND. COLUMBUS. CINCINNATI AND IN
DIANAPoLs, THE INDIANAPOLIS AND ST. LOUIS,
AND THE WABASH TO POOL ALL THEIR EARNINGS
An agreement has been formed for pooling tho
earnings of the Cleveland, Columbus, Cincinnati
and indianapolis, the Indianapolis and st. Louis,
and the Wabash Railroads. The negotiations,w which
have been pending for several weeks, were brought
to an end yesterday by the execution OF the contract
by the president of the Wabash Company IL was
signed on Saturday by the presidents Of the other
companies, having been approved previously by the
officers of the Pennsylvania Company, TO which the
indianapolis and st. Louis Road is leased. The
contract which takes effect from June l, is to con-
tinue in forco for five years provisions for its fur
Their extension are made 1t covers the entire freight
passenger, mail and express earnings of the
three companies during its continuance. IL is said
to be practically consolidation of two nearly
parallel lines from st. Louis to the lakes. The sue
cessful result of the negotiations meets the warm
approval Of the friends of all the companies. j. II.
Deyereux. president of the Cleveland, Columbus,
Cincinnati and indianapolis Railroad, said recently
that the agreement was the bedrock" of all
pooling arrangements; the model on which future
combinations must he made.
The principal feature of the agreement is the
method of fixing the basis of a division Of busl-
ness. The gross earnings of each company for 1878
arc asceTtained BY deductlug from the apparent
gross earnings all rebates, commissions and other
extraordinary expenses incurred IN procuring busl-
ness. Tho gross earnings thus ascertaIned con-
stlute the basis OF division for the following year.
1t is provided that the earnings shall be ascer-
tanned in the same manner at the end OF each year,
and that the business of each year shall form the
basis for tho division In the succeeding
year. The execution Of the contract is ntrusted
TO an Executive Committee, which, at all competing
points, shall divide the freight and passenger
business as nearly possible. At these points one
agent shall act for all the roads. In the earn
ngs Of either road shall exceed the agreed basis,
onehaf of the excess is allowed for operating cost
to the road earning the excess, aud the balance IS
divided according to the agreement. Additional
lines may be built or acquired by either company
and the additional traffic shall be added to its share
of the pooled business.
The Executive Committee, having charge Of the
contract and of all questions arising from It, con
sists of five members. OF these two are chosen by
the directors of the Wabash Company and two bv
those of the other two companlesj these select q
fifth, who is to be the commissioner of the pool
Subject to the orders of the Executive Committee,
the commissioner is invested with power TO es-
tablIsh and maintain rates for transportation OF
passengers and freight TO and from all competing
points; to direct and appOrtlOn business, ana
to prevent the payment OF drawbacks or
any other violation OF the contract. The COM
missioner holds Office during the pleasure Ot
the committee, and Is liable to removal upon
the affirmative votes Of any two members Of the
committee. The members of the committee hold
their offices at the pleasure of the companies they
represent. All disputes arising from the contract
are to be referred to arbitration. The decision OF
the arbitrator is to be tna except thttthe percent
age Of the division or the method of ascertalnlng
the sum to he divided shall not be changed without
the mutual consent of the companies. Settlements
under this agreement are to be made monthly, aud
an auditor shall furnish each month an accurate
statement of the earnings of each road for the pre-
cedng month.
The agreement is to continue in force for five
years. Unless within ninety days of its expiration
notice shall be given by one of the companies of Its
intention to terminate the agreement, 1t shall re,
main effective for second period OF hye years, anu
in the same manner indefinitely.
This agreement completed yesterday and has
received the signatures of the presidents OF the
companies. Members of the Executive Committee
have been chosen they are }. II. Devereux, presl-
dent of the Cleveland, Columbus, Cincinnati and
indianapolis Railroad ii. b. Hurlbut, president of
the indianapolis and st. Louis Railroad, and A. l..
Hopkins, ylce-presIdent and general manager and
Scion Humphreys, chairman Of It's Executive Com
mittee, on the part OF the Wabash Railroad.