St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-11-29
Stockholders Are Compelled
to Do Something to Check
Generalization.
Subordinates to Be DiveSted
of Power to Make
Rates.
A Central Committee Will
Control Every Detail Of
the Combine.

y
tanned here to-day that the plan which
has been made public of forming huge
railroad combination, to embrace all the
territory west of Chicago and st. Louis,
with a clearing house for competitive
business and a commission OF presl-
dents to control rates, is, alter ali, only
one of the plans that was considered at
the New York conference, and is not
the one that was formally adopted. The
plan that received the most favor, IN
fact, was a much stronger form OF
agreement and more severe in its re
strictions as to the use of the rate-mak-
ing power. J. W. Midgely, who was
present at the conference in the ca
pacity of an adviser, said to-day:
This plan is one of several that
were considered. l am positive
that it will not be adopted
for the reason that it is not strong
enough to answer the purpose for which
it was intended. Aside from the arbi-
tration feature, it is but little different
from the agreement of the Western
Freight association. This talk about
trusts as applied to such an agreement
is the sheerest nonsense. The truth is
that the railroads have become deSper-
ate at the prevailing condition OF affairs.
Something must be done or they will be
driven to the wall. The meeting at New
York represented the financial interests
of these roads. 1t was composed of men
who own the property, and who believe
it should yield some returns. They
were determined if possible to save the
railroads from bankruptcy. The inter
state law prohibits pooling arrange
ments, and of course it was necessary
to devise some other means of
"CHECKING THE DECENTRALIZATION"
Mr.. Midgely said if the present con-
ditions, which were in the main attribu-
table to the operation of the interstate
law, should continue two years longer
there would not be solvent railroad
west of Chicago. When asked if there
was any movement on foot to petition
congress for repeal of the act, he said:
mo such movement has taken shape as
yet. and no appeal will be made to the
present congress. 1t is not regarded as
the most favorable time to present such
n measure between two adminiStra-
tons" The projectors OF the new
scheme for the maintenance OF rates,
upon one point, and that was
that the subordinate officers of
the railroads must be deprived of the
rate-making power, and that any as
sumption OF this power must be pun
ished by dismissal. Before the plan
was completed it was submitted to the
presidents of some of the important
Western lines. Favorable replies have
been returned by the presidents of the
Union Pacific, the Stickney system, and
the Chicago, Milwaukee & st. Paul;
while President Cable, of the Rock
Island, has gone to New York TO per-
sonally, express his views on the subject.
President Marvin Hughitt, of the Chi
cago & Northwestern, was asked to-day
il, he was favorable to the scheme. He
replied: II know nothing about it eX-
cept what | have read in the news
papers. am not prepared to say any
thing as to its merits OF as to the prob
ability of its being adopted. The Chi
cagO d Northwestern
HAS NOT BEEN REPRESENTED
at any conference, nor has it been con-
suited on the question of a new agree
ment. We are at present parties to the
agreement of the Western Freight as
sociation and also to the passenger
agreement, and have no present in
tention of going into any other. We
shall certainly not go into any new
plan until we have thoroughly consid-
cred it," Vice President Stone, of the
Chicago, Burlington and Quincy, said
he had paid little attention to the pro-
posed scheme, and as he had not been
consulted in regard to it there was
nothing for him to say on the subject.
1t seems probable that if the trainers Of
the plan fail to unite all the roads west,
northwest and southwest of Chicago
the agreement will 20 into effect west
of the Missouri river, since the Southern
Pacific, the Missouri Pacific and the
Atchison are all in accord with the
the territory. Mr.. Midgely says he
ter, as the proposed plan is not COM
pleted.
PRESIDENT HILL NON-COMMITTAL.
President James j. Hill. of the Mani
toba road, was interviewed last evening
on the reported formation of a general
combination of railroad companies to
maintain profitable freight rates. He
said: II know nothing whatever of the
proposal contained in this dispatch. 1t
is the first time | have seen mention of
it; but can well understand that the
managers of the roads named must do
something of the kind. These 'cut
rates. work disastrously to the working
of the roads, as they would to other
undertaking. You can we'll see that.
The managers must do something to
make their roads pay, or else they will
have to Civ way to other men. That is
the only question; but the scheme you
have just shown me is quite new to me.
know nothing abont it, and, Of course,
cannot say anything"