New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-28
RAILWAY CLEARING HOUSE
FEATURES OF A PROPOSED GIGANTIC POOL
TO INCLUDE ALL THE CONSERVING COMPANIES
IN AN ARRANGEMENT THOUGHT TO BE
WITHIN THE INTERSTATE COM
MERGE LAW

WITHIN THE INTERSTATE COM
MERGE LAW.
Chicago Nov. a7.-Regarding the much talhrd Of
conference between Chairman Midgely and several
railroad magnates In Ncw-Yorl local paper says:
"For several weeks past Jay Could c. p. Hunt
ington, Charles Francis Adams w. b. Strong and
other railroad magnatcs interested in Western rail-
roads, have been holding conferences in New-York In
which Chairman MIdgely, Of tho Southwestern Rail
way Association, has taken a prominent part Tho
object Of these conferences has been kept profound
secret. Saturday the announcement was made that
tho conferences had to an end, and that an agree
mcnt had been made whereby tho troubles among
tho Southwestern roads would be ended and rates be
advanced from % to 80 per cent as soon as opssble
But this announcement no nearer the truth than
the previous reports regarding the mysterious con-
ference IL has been learned, however, that the pro
Jet conemplates nothing less than the forma
ton Of gigantic railroad trust or Clearing House,
comprising all roads between points west Of a line
drawn through Chicago and Milwaukee on the east
ST.. Paul and Minneapolis on tho NORTH
Colorado, Now.Mcxlco and Wyoming on tho
west and Arkansas tho south All
the existing freight and passenger associations In the
territory named to be abolished and merged in tho
new trust or clearing house, II is named There is
TO be an executive board OF three, which shall devote
its entire attention to the affairs Of the clearing
house and be entrusted with all matters connected
Herewith. One of the three IS to be elected chair
man Of the clearing house. and the other two to be
known as vicc-chalrman Of tho freight department
and vicechalrnan Of the passenger department, re
srccdvcly.
The chairman It is understood is to be Mr.. Midge
ly who, under tho terms OF the agreement, Will be
q greater man taan Commissioner Fink virtually hav
ing fun control of the management, so far as the office
affairs are concerned of all the roads between Chi
cago and the Rocky Mountains Three propositions,
1t is understood, presented at the New-York
conferences, providing for division Of traffic,
another for a division of earnings and third for
clearing house. 1t finally decided TO accept the
latter, because tho others were more likely to bring
the roads into conflict with the Interstate Commerce
laws. 10 is believed, however, that the trust clear
ing house plan Is much in conflict with the law
the other propositions It Is nothing or less
than a pooling Of all the railroad interests in the
West The agreement states that tho objects Of the
association Will be-:
To complete reports Of all competitive traf-
nc carried by either Of tho parties hereto between
points west Of north and south line drawn through
Chicago and Milwaukee on tho east, st. Paul and Min
neapolls on the NORTH tho state Of Colorado and the
Territories Of NewMexico and Wyoming, all inclusive.
on the west and the State of Arkansas on the south
To prescribe the rates, rules and regulations which
shall govern I'm the conduct OF the passenger and
freight traffic aforesaid and insure their strict mail
To prescribe the character Of the service and tho
convonences which shall be offered the travelling and
shipping public
Tho fates rules and regulations Shall be estab-
l5hcd by board OF managers consisting OF one ac-
credited representative from each company member Of
the clearing house.
Under he head OF rate making power the agree
mcnt says Tho authority 10 make rates. rules reg
uatons 10 apply in any traffic subject 10 the clearing
house carried by either road party thereto, or to
change depart fIom tho same when established.
shall be taken from the officers OF the several railroads
as such, and be vested absolutely in tho clearing
"Thc divisions of all through rates on business
included IN the agreement shall be arranged through
the clearing house, the intention being that the bid
ding fOr business by means OF private concessions
shall ccass, and that the divisions I'm spending
waffle under similar circumstances as 10 receipt and
delivery, snail be open to and aihe via all lines.
" Ono officer OF each road party to tho clearing
house shall be held responsible for the strict maintc
n0nco by his or Of oil rates and rules abshcd by
the clearing house. and he Shall be OF liberty to
d part therciWm unless by authority OF the execu
at IS provided that for vio'a ion Of the rules OF
thc clearing house, penalty shall be assessed of not
less than $3.50 for each offence. Should, however,
the circumstances be aggravated Or considerable
freight thereby have been secured, the convicted
party shall be required to forfeit amount equal
to tho revenue which shall have been collected on |
the entire lot thus contracted The forfeited |
shall be divided among the other members concerned |
IN proportions In the event that any member Is |
convicted OF having violated the rules wfully |
reduced the established rates, then tho facts con
nccted Herewith together with the conclusion reached |
should be certified by the executive board to the |
executive board shall recommend the removal of the
offending officer agent, h shall DO dismissed from
tho service of the said company"
The Times" tomorrow, speaking of the scheme. |
will say; Tho prcponderance of opinion among local
railroad to be that the plan VIII never go |
into effect. 1t is too much in the OF a trust
and in fact, is practically the same scheme that was
agitated by certain parties about year ago. but had
TO be abandoned on account Of the vigorous oppasi-
ton of a number of prominent railroad companies