New-York tribune., 1883-12-18
LILLE E1R.mESr CONTEST.

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! the Wcst7 Are they in trouble because of poor
! business, CT excessive competition, or are they
only wrangling because the prize Is so rich that
! they cannot agree about division of it The
so-called authorities do not agree. One in
! sists that the ST. Paul made all the trouble and
| would hear of no plan of compromise. Another
urges that the Union Pacific has been hollow,
and cannot stand bit of competition, and Is
fighting for existence. A third is clear that rail-
roads have been built at the West out of all pro-
portion to the business done or to be DONE and
that most Of them must "gO under" Much
smoke means some fire, and the real cause of the
Western controversy must be something worth
knowing. The lines Of the Iowa pool, we all
know, get rich by agreeing. Have they now
concluded to get bankrupt by fighting, or are
they so badly off that bankruptcy has no ter
rOIs
The Northwest Rock Island and Burlington
and Quincy had lines across Iowa, agreed to di
vide the enormous business, were treated i'm
partially by the Union Pacific, with which all
connected, and so became enormously rich.
The traffic was so large that the St. Paul built
across Iowa line closely parallel with the three
others, to get a share of it, and the first mort
gage bonds on this part of its line alone
amount to over $l7,OOO,OOO. On the other
hand, the Burlington and Quincy pushed
branches away into Nebraska To get moro and
more ollthc same trafic-to Columbus, and Cen
tral City, and kcamcy, thus tapping further
and further Westward the business which the
roads of the Iowa pool had enjoyed in common
This led ito controversies, and then 10 the com
plction of the Burlington line TO Denver, and of
the Denver and RIO Grandc To Ogden, 50 that at
last the Burlington and Denver roads were
able to compete more or less along tho whole
length of the Union Pacific, and for the traffic it
received from or took to the California and Ne
vada system of the Central Pacific. For time
there were battles in the Stock Exchange TO get
the control of the Denver stock then for n time
there were negotiations as to establishment of
regular rates. Then the Denver began TO cut
rates, and the Union Pacific for a time did not
respond. But the St. Paul did, by breaking the
Iowa pool.
The meaning Of this movement Is probably
suggested correctly in the following remarks of
Assistant Superintendent BOycc, of the Rock
Island, as tclcgmphcd from Des MoInes
After describing tho westward movements Of
the Burlington road, and referring to the COM
mon report that the Northwestern had a similar
extension in mind III building to Dcadwood, nc
said
While they do this. they perfectly willing TO main
tain the Iowa pool and draw pro rata share OF the
freight earnings arising from connection with the Union
PichcI at Council Bluffs. and yet pocket every dollar Of
the crnings OF their roads from freight taken In Ne
braska. They do harbor for moment the idea that
ii but fair and just II they had share OF the pool
earnings that they should divide their earnings from
freight taken from west OF the Missouri River with the
Chicago Rock Island and Pacific and Milwaukee too II |
the latter joined the pool Do you think that the
Union Pacific going to stand "A one sided ar
raugcmcut longer tnan We could help Z.
1t takes little effort to read between tho lines
here and TO see an intention to force a general |
division of traffic from west of the Missouri
River But people do not fight for division
Of Il traffic that is worthless. They do not 90 TO
war for IA new agreement, if upon agreement
nothing would be gained worth having. All
Inc movements in that whole region, the CON
slant pushing of arms westward and tho vast
expenditure of money in that way by strong
companies, point to the same conclusion-thc
railic is already so great, and is certain to ex-
end so vastly in the future, that the roads are
'cady to make heavy sacrifices in order to Sc
,uIe much of it as possible. The trouble is
lot that the roads are bankrupt. 1t is not that
he business is too thin to amount to anything
f divided. 1t is simply a struggle for as large
hare as possible in rich prize
This being the ease, it is clear that the COM
,atants are all anxious to come to terms when
vcr they can get without more fighting about
What they would be able TO get after a longer
truggle. They all know mcasurably what the
business is worth, and what fraction of it they
an reasonably hope to get in competitions
lence the moment for agreement may come ut
he meeting of the Iowa pool, called for to-day
+ it may be delayed week month, or
Dnger But il Is toerably sure that men will {
nally agree when there is great pile of money )
D he made By doing so. The .wors; thing that
ould happen to either of the cohhatants would