The morning news. [volume] (Savannah, Ga.) 1887-1900, 1888-11-30
RAILWAY CLEARING HOUSE.
Some of the Features of a Proposed
Gigantic Pool.

RAILWAY CLEARING HOUSE.
Some of the Features of Proposed
Gigantic Pool
From the News York Tribune.
CHICAGO, Nov. 27.-Regarding the much
talked Of conference between Chairman
Midgely and several railroad magnates in
New York, local paper says:
For several weeks past Jay Gould, C. P.
Huntington, Charles Francis Adams, w.
b. Strong and other railroad magnates in
terested in western railroads, have been
holding conferences in New York in which
Chairman Midgely of the Southwestern
Railway Association has taken a promi-
nent part. The object of these confer
ences has been kept a profound secret.
Saturday the announcement was made that
the conferences had come to an end, and
that an agreement had been made whereby
the troubles among the southwestern roads
would be ended and rates be advanced from
70 to 80 per cent. as soon as possible. But
this announcement was no nearer the truth
than the previous reports regarding the
mysterious conference. 1t has been learned,
however, that the project contempla rs
nothing more or less than the TO matiun of
a gigantic railroad trust or clearing hOu Q,
comprising all roads between points west of
line drawn through Chicago and Mil
waukee on the east, st. Paul and Mime
apolis on the north, Colorado,
New Mexico and Wyoming on the
west and Arkansas on the SOUTH All the
existing freight and passenger associations
in the territory named are to be abolished
and merged Ii the new trust or clearing
house, as it is named. There is to be an
executive board of three, which shall de-
vote its emit g attention to the affairs of the
clearing house and be entrusted with all
matters connected Herewith. One of the
three is to be elected chairman of the clear
ing house. and The other two to be known
as vice chairman of he freight department
and vice chairman of the passenger depart
ment, respectively.
''The chairman, it is understood, is to be
Mr.. Midgely, who, under the terms of the
agreement, will be greater man than
Commissioner Fink, virtually having full
control of the management, SO far as the
office affairs are concerned, of all the roads
between Chicago and the Rocky mountains.
Three propositions, 1t is understood, were
presented at the New York conferences, one
providing fer a division of traffic, another
for a division OF earnings, and third for a
clearing house. 1t was finally decided to
accept the latter, because the others were
more likely to bring the roads into con-
fiict with the interstate commerce laws. 1t
is believed, however, that the trust or clear
inghouse plan is as much in conflict with
the law as the other propositions, as it is
nothing more or less than pooling of all
the railroad interests in the west. Tue
agreement states that the objects of the
association will be:
ITO secure complete reports of all com
petitive traffic carried by either of the
parties hereto between points west of
north and south line drawn through Chi
cago and Milwaukee ON the east, st. Paul
and Minneapolis on the north the state of
Colorado and the territories OF New Mexico
and Wyoming, all inclusive, on the west,
and the state of Arkansas on the south.
ITO prescribe the rates, rules and regula-
tons which shall govern in the conduct of
the passenger and freight traffic as afore-
said, and insure their strict maintenance by
all members.
''To prescribe the character of the service
and the conveniences which shall be offered
the travelling and shipping public.
1.-THE rates, rules and reg utatlons shall be
est ablished by board of managers. con-
sisting of one accredited representative
from each company member OF the clear
ing house. .,.,
the agreement says: The authority to
make rates, rules or regulations to apply in
any traffic subject to the clearing house,
carried by either road party thereto, or to
change or depart from the same when
established, shall be taken from the officers
of the several railroads as such, and be
vested absolutely in the clearing house.
"The divisions Of all through rates on
business in the agreement shall be arranged
through the clearing house, the intention
being that the bidding for bust
ness by means of private conces-
sions shall cease, and that the
divisions in corresponding traffic, under
similar circumstances as to receipt and
delivery, shall be open to and alike via all
lines.
Zone officer of each road, party to the
clearing house, shall be held responsible for
the strict maintenance by his, or of all rates
and rules established by the clearing house,
and he shall not he at liberty to depart
tberefrom, unless by authority OF the ex-
ecutive board.
ut is provided that for violation of the
rules of the clearing house, penalty shall
be assessed of not less than $3.50 for each
offense Should, however, the circum-
stances be aggravated, or considerable
freight thereby have been secured, the con-
victed party shall be required to forfeit an
amount equal to the revenue which shall
have been collected on the entire lot thus
contracted The sum forfeited shall be
divided among the other members con-
cerned in proportions. In the event that
any member is convicted Of having violated
the rules or wilfully reduced the established
rates, then the facts connected Herewith,
together with the conclusion reached, should
be certified by the executive board to the
president Of the company concerned, and in
case the executive board shall recommend
the removal of the offending officer or agent,
he shall be dismissed from the service Of the
said company"