New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-29
THE CLEARING HOUSE PLAN
CHAIRMAN MIDGELEY SAYS 1T LACKS
STRENGTH
POSITIVE THAT IT WILL NOT DE ADOPTED
ONLY ONE AMONG SEVERAL PROPORTIONS
Considered AT THE RECENT con-
IrrpTNcI -aEYERE RESTRICTIONS
AZ TO RATE MAKING DEMANDED.

FTRENCT-sEvERE RESTRICTIONS
AS TO RATE MAKING DEMANDED.
(h,cago Nov os-It was ascertaincd here to-day
that the plan which has beon made public, OF forming
huge RAILROAD combination to embrace all the 'crory
west Of Chicago and St Louis, with clearing mousse
for competitive business and commission OF prcsi
dents control rates, is after all only one Oh inc
plans that was considered at the New-York conference
and is not tho one that formally adopted The
plan that received the most favor, in fact was much
stronger form of agreement and moro severe In us TO
strlcuons as to the use of the rstemalhng powor
j. W. Midgelcy, who was present at the coniecnce III
the capacity of an adviser, said to-day
"This plan is one of several that were considered
am positive that It will not be adopted. for uc
reason that It is not strong enough to answer NE
purpose for which It was intended. Aside from nc
arbitration feature, II IS but little different nom the
agreement OF the Western Freight Association This
talk about Trusts as applied to such AL agreement
railroads have become desperate at the condition Of
affairs. Something must be done, or they Wall he
rescHs tho financial interests Of iheso roads II was
composed Of mon who own the property, and who be-
licve that it should yield some returns They were
bankruptcy The Interstate law prohibits pooling
rangcments. and Of course u was necessary 10 90
wise some other means Of checking the demoraza
tlon.o
Mr. Midgclcy said that II tho present conditions,
which were in the main attributable to che operation
OF the Interstate law. should continue two years
va
Chicago When asked II there was any movement
on foot to petition Congress for repeal OF tho act
no said
"No such movement has taken shape as yet, and
no appoaI win DO made to tho present Congress. 1t
not regarded as the favorable time to present
such a measure between two Administrations"
Tho projectors of the scheme for the mainte-
nance of rates, Mr. Mldgclcy said. werc agreed upon
one point and that was that the subordinate officers
of the railroads must be deprived OF the making
power and that any assumption Of this power must
be punished by dismissal Before the plan was COM
pleted IT submitted TO the presidents OF somo Oh
the important Western lines. Favorable replies have
been returned by the presidents, of the Union Pa
cGc the Suchney system and the Chicago, Milwaukee,
and st. Paul, while President Cable. OF the ROCK
Island has gone to New-YOrk to give his views IN
person on the subject President Marvin Ilughitt,
of the Chicago and Northwestern, said:
know nothing about the plan, except what nave
read in the newspapers. l am not prepared 10 say
anything as TO its merits TO the probability of
IFS being adopted The Chicago and Northwestern has
not boon represented any conference, nor has 1t been
consulted the question OF a new agreement VIC
are at present parties to the agreement of the western
Freight Association and also to the passenger agree
nent and have present intention Of going into any
other. We shall certainly not accept any new plan
until we have thoroughly considered IT.
Vice President Stone of the Chicago, Burlington and
Quincy said he had paid little attention to the pro-
posed scheme, and he had not been consulted In
regard to It there nothing for him to say on The
subject probable that If the trainers of tho
plan fail to unite all the roads west northwest and
southwest of Chicago the agreement will go into effect
vest of the Missouri River since the southern Pacinc
the Union Pacific the Missouri Pacific and the Atchison
all In accord with the movement, and thcy piac-
tcaly control the territory. Mr. Midgeley says
he called no meeting to consider tho matter as the
proposed plan IS not completed
The difficulties that TO be encountered
before the latest scheme for the pooling Of railroad
business west Of the Mississippi River can be ac-
compllShed were quickly recognized In Wall Street
and in railroad circles yesterday. While the plan
might DO adopted by companies occupying the same
territory its expansion could be successful only On
the condition that every railroad In the country was
included in the scheme for central control There
are for thinking that the recent proposal
Is designed chiefly to prepare the way for central
management of all the railroad lines between the At
Iantic and the Pacific Ocean. Whether such uni
fcaton Is possible is question which railroad man
ayers are unable 10 1t is probable that the
publication of the clearing house scheme was meant
as an experiment Its authors may have known
that important railroads in the West could not join
in the agreement. and while they protested that the
agreement had been prepared with special regard TO
the Interstate Commerce law they may be supposed
10 know that 1t was in direct violation OF Its pro
visions. If the railroads of the country united
in wish TO secure notifications of that law, they
might help their by failing 10 carry out an ap
parent evasion like the proposed plan Practical
railroad men agreed that II the proposed plan
was accomplished any notifications Of tho law would
be impossible.
1t could not be learned yesterday that any one
OF the companies whose assent to the scheme IS es
sential had become party to tho agreement
sharp decline Of about per cent In the price OF
Rock Island stock explained IN various ways
Friends Of the scheme urged that the company
being whipped into submission in about the same
way in which the AtcbsOn forced 10 sue for
peace. Friends OF the Rock Island declared that the
decline due wholly 10 short sales and not TO any
action by the executive officers Of the company. At
the close OF business at the Stock Exchange brokers
were uncertain whether not present negotiations
were likely 10 result In lasting and universal peace