Daily globe., 1882-09-18
RAILROAD COMBINATION.
The Lines Running to st. Paul and Min
neapOlis Make an Ironclad Agreement
No More Cutting.
Especial Telegram to the Globe.


No More Cutting.
Special Telegram to the Globe.
CHICAGO, Sept. 1.-THE general man
ayers of the Northwestern and Iowa lines
did not meet yesterday as previously
agreed upon to receive and act upon the
report of the general freight agents re-
garding the details for working the new
Northwestern traffic combination, because
Mr.. S. S. Merrill, general manager of the
Chicago, Milwaukee & ST. Paul, was unable
to he present. The meeting will be held
Monday. The general freight agents
of the various railways in interest
III this matter were IN session
yesterday all day and completed their
work There will be two combinations,
one to be known as the Northwestern
Tariff association which takes in the bust
ness between Chicago, st. Paul and Mime
apolis and another to be known as the
Central Iowa association which takes in
the business at Des Moines and all COM
peting points north as far as st. Paul and
Minneapolis.
Mr.. Geo. L. German will be commits
sioner of both associations, ,and the plan for
working them will be about the same.
There will be no division of traffic, but each
road is allowed to get all the business it
can. The agreed tariff rates are to be
strictly maintained by all
the lines. The roads are
not allowed to offer any special induce
ments to shippers in the shape of draw
backs, rebates, free passes, etc. The COM
mission is empowered to investigate al
charges and will have access to the books
of the various roads.
The working of these combinations will
be watched with considerable interest by
railway men. 1t has heretofore been
claimed that the strict maintenance of
rates cannot be secured at competing
points except by pooling the business. If
the new engagement proves successful it is
quite likely that similar plans will be
substituted for most Of the
pools, especially those in the West. The
railway officials are getting afraid that the
pooling Of business at all competing points
will lead to state and federal legislation
prohibiting it. As the new Northwestern
arrangements are not pools, the roads be
ing permitted to secure all the business
they can, but simply make iron clad agree
ments to maintain rates, it
is claimed that it cannot
be interfered with by legislative enact
ments and there is no law which can pre-
vent railway from making uniform rates.
The success of the new arrangements will
depend entirely upon the honesty of the
various railways making them. If any of
the railway men wish to be dishonest they
can readily get around the agreement with
out danger. For instance, if a
road chooses to give to a
shipper free transportation as an induce
ment to ship over its line, it can be ar
ranged without giving free ride. The
general freight agent or some other Off
cial would simply have to go to the ticket
Office and purchase regular ticket and
give it to the shipper. The sum paid
can be charged to expense ac-
count and the commissioners will never
be able to detect violation of the agree
ment, or if road instead of paying rebate
to q shipper makes present of check
and the amount is charged to the expense
account, it is hard to see how it can be