New-York tribune., 1884-01-12
MR.. FINK TO MR.. SLOAN.
A REVIEW OF THE LACKAwANNAs COURSE.
THE COMMISSIONER Defends THE ENFORCEMENT
or THE POOL PENALTY.

OF THE POOL PENAIl1'
The Joint Executive Committee Greight de
partmenO Of the pool railroads yesterday approved h
Fnks action in ordering tho Delaware Lackawanna an
Western Railroad to be cut OF from through faclte
west OF Buffalo The usual resolutions in fayo
OF "an Immediate completion" Of the pools at va
rous competitive Western points were adopted, an'
after work technical matters the committee al
jOurned without day.
Commissioner Fnk's letter to samncl Sloan, president
Of the Delaware Lackawanna and Western Railroad in
reference to the enforcement OF the pool penalty for cut
ting against that road made public yesterday II
dated January 8, 1884. and is as follows:
herewith inclose letters OF Mr. Newell and Mr. Cald
wS nso v6S G tn Ga % hrom @ c
rangemens with your company nnaer the J9ln,
Southern Railway, the Michigan Central Railroad, the
NewYork Chicago and St. Louis Railway, and the Grant
Trunk Railway.
1t proper that shoud communicate to you the rea
which have led these companies to take this step
the necessity for which they very much regret.
have refused 70 be guided by the established d1
a-rail limos. You have made such rates
you deemed proper TO secure such an amount OF bust
ness you wanted, aud your competitors have, except
in few instances abstained from meetin your rates
I'm order 20 avoid general war OF rates lOu have ths
ayaied yourself of their conservative & disposition 10 10
affairs continued until the 18th OF November last,
when. upon representations beng made to you as they
have so often been madel tEat yOnr aclo ws IelhOaI-
ing and in ions TO the best inercas of all tho roads
ST az at' & 8D OF O and
to maintain rates after the Goth Of November.
The question as TO the percentage OF business that
should Ne carried by your left open for further
negotiations After analyzing the business which your
company had transacted and OF which you furnished me
the statistics upon my best Information and knowledge
TO what just and night 10 all parties, suggested
that the percentage OF TONNAGE which yOn had secured
In the last ten months OF Last year at reduced rates should
he increased as TO give yOu hfty per cent more net
made yonr rates ragardiess of the established tariffs As
it was not probable you could much business
hon at thqr
lines maintaining tariffs the proposition made to
you is in my opinion equivalent 10 giving you al least
could possibly obtain under open competition, or under
even rates.
This proposition you declined. You also declined
submit your claim for greater percentage TO r5raon
before dsnerested tribunal by whose decision your
competitors agrced to abide. In the meantime. while
these negotiations were oelhg carTled on ana Wnen you
had promised that you wOud do nothing to imperil the
large number Of contracts 10 carry freight at reduction
OF 20 per cent from tariff rates. The policy Of making
By competitors ia not only unwse on business prnc
pies but it direct violation OF good faith after
the New-IOrk division / have formerly expressed my
belief to you that YOU did not Intentionally authorize
such action. Nevertheless II was taken by your agents,
andit is impossible for your road, under tine many
contracts that have made at reduced raes to MAIN
the established tari and to avoid general war OF
rates inv living the reduction OF the revenues Of all your
connecting roads, unless these connecting roads arc In
condition to protect themselves against the uDaut Orzed
and Unwise action of your company.
The right Of your company to make as low rates as you
deem denied. But llgnt you cannot
exercise for your connecting roads west or Buffalo Idey
agreed upon certain rates With the other trunk lnos
they have also agreed not to maze time contracts,
and they are Therefore under obligations to the other
roads. with whom they transact a large business,
ont their agreements They have not given ana
cannot honestly give You authority to contract freight
for shipment their roads west or Buffalo a reduced
rates They have not only perfect right 10 refuse 10
carry ont your contracts, but IN gOOd fah toward each
Oncr they Obliged to refuse To carry them out lOu
cannot expect TO enter into partnership with these
roads in the forwarding business for your benefit when
you have done all You can by your acton to involve them
IN OF rates and bring about reduction IN Tar Us
which tLcy mad agreed maintain with tho other CON
nccouS and whcn they did not think excessive or un-
reasonable
Yonr refusal 10 transact business with your Western
connecting roads under the established and published
tariffs and under the rules and regulations which these
selves and with their other connecting roads, makes
necessary that the notice given to you by the Michigan
York. CHICAGO and ST. Louis and Grand Trunk Railroad
cOmpan ON November B. must now be enforced.
These companies, commencing with Monday next, the
14th inst, will not be parties 10 any through bills OF
llIing west-DOund relgIt IN connection with your
such through bills over their respective roads; neither
will these roads pay any back to company
All freight which may be consigned to these roads com
ing over your road ana delivered 10 them AZ their re-
spcctiyc dcpUs, Will be billed originating al the points
al which lis delivered and at the ul proportion OF the
established aud published tauhs or at local rates,
cOrding TO the destination OF the freight.
These regulations VIII remain in force until you con
form TO the established and published through tariffs and
act accordance with the rules and regulations
ing ralic arrangements OF these companies with
each other and with their other connections.
have made every effort in my power 10 avoid taking
these steps with the hope that you would finally nd il
TO the interest OF your company to cooperate with the
roads represented the Joint Executive Committee.
regret dt have been unsuccessful IN these etCrtS
IL remains 10 be demonstrated by prac teal expert
ence whether tAe policy you have adopted Is wise or
whether would have been wiser for you 10 have Joined
with the other companies in carrying out the methods
adopted by {hcm ard which they think To
their interests, to the general interests Ot the railroads
am fo e