The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-11-28
A BIG SCHEME
The Southwestern Roads Combine.
A So-Called Railroad Clearing
House to Ee Established,
And Composed Of All Lines West
Of Chicago and Extending
Through Arkansas, Missouri and
the Southwest.
ne Gig antic Pool Brought About BY
Gould Huntington, Adams, Strong
and Midgsly - The Freight
Rates VIII Be. Advanced.

man Midgely and several railroad mag
mates, in New York. a local paper says:
For several weeks past Jay Gould, G.
p. Huntington, Charles Francis Adams,
W. b. Strong and other railroad magnates
interested in Western railroads, have been
holding conferences in New York, in which
Chairman Midgeley, OF the Southern Rail-
way Association, has taken prominent
part. The object of these conferences has
been kept profound secret. Saturday the
announcement was made that the confer
ence 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 % TO 80 per cent rs soon as possible.
But this announcement was no nearer the
truth than the previous reports regard
ing the mysterious conference. The
railroad magnates evidently desired to
keep everybody in ignorance Of the
actual importance Of the proposed agree
ment until all arrangements had been per-
fected and the new scheme put in opera
ton. II has been learned, however, that
the project contempates nothing more
nor less than the formation OF u gigantic
railroad trust or clearing. house" com.
prising all roads between points west Of a
line drawn through Chicago and Milwau-
kee ON the east, st. Paul aud Minneapolis
on the north, Colorado, New Mexico and
Wyoming on the wesL, and Arkansas on
the south. All the existing freight and
passenger associations within the territory
named are to be abolished and merged in
the new trust, or clearinghouse, as il is
named. There is 10 be am executive board
OF three, which shall devote its entire Mt
tention 10 the affairs OF the clearing.
---LOusc,' and he intrustcd with all matters
connected with II. One OF the three In 10
be elected chairman Of the clearing.
house." and the other two 10
be known az vice-chairman Of
the freight department and vice chair
man Of the passenger department,
respectively. The chairman, II is under
stood, is TO be J. w. Midgely, vino, under
the terms Of the agreement, would be- a
greater man than Commissioner Fink,
virtually having full control OF The agree.
mcnt, so far rs traffic affairs are concerned,
OF all the roads between Chicago and the
Rocky Mountains Three propositions, IL
York CONFERENCE.-The providing ior q d.
vision Of traffic, another for division Of
earnings aud third for "a clearing
house."
II was finally decided 10 accept the lat.
ter, because tie former were more likely
10 bring the roads into conflict with the
interstate commerce law. II is believed,
however, that the trust or clearing house
plan is ~ much In conflict with the law as
the other propositions, rs IL is nothing
more or less than a pooling OF all the rail-
rad interests In the West.
The full text OF the new plan Of agree.
ment is also given, the paper stating that u
lass only been submitted TO a few Oi the
leading railroad presidents. The agree.
ment states that the objects Of the associa-
ton will be:
/. To secure complete reports Of all com.
pctitiye traffic carried 10y either Of the par
tics hereto between points west Of a north
and south line drawn through Chicago and
Milwaukee on the east, st. Paul and Min
neapolis on the north, the State OF Colo
RADIO and the Territories OF New Mexico
and Wyoming. all inclusive, on the west,
and the State Of Arkansas on the south.
@ To prescribe the rates, rules and regu-
la,ons which shall govern in the conduct
-eS'he passenger and freight business a.
aforesaid, and insure the strict main,cn-
ancc by all members.
g. 10 prescribe the character Of the scr
vice and the convenience which shall BE-
offered the travelling aud shipping public
The rates, rules and regulations shall be
established by a board OF managers con
ssling Of one accredited representative
from each company, member Of the clear
ing house. In case the members fail 90
agree upon any question brought before
the clearing house, Il shall BE- referred 10
the executive board above mentioned.
Under the head OF rate making power
the agreement sayE
The authority TO make rates. rules OF
regulations 10 apply on any traffic subject
20 the clearing house carried by either
road party thereto, or 30 change or depart
from the same when established, shall be
taken from the officers Ui the several rail.
roads ~ such and be vested absolutely In
the clearing house. Tho important spcci.
nCaiiOns are:
Division Of Through Rates The divis
ions Of al through rates on business IN.
cludcd In the agreements shall be arranged
through the clearing house, the intention
being that the bidding Tor business by
means Of private concessions shall cease
and that the divisions ON corresponding
traffic. under similar circumstances as g
receipt and delivery, shall be open to and
alike via al lines
Single Responsibility on Each Road
One officer Of cnch road party 81 the clear.
ing house shall BE- held responsible ioF lhC
strict maintenance 10y his company Of al
rates and rules established by the clear.
inghousc, and be- shall not be At liberty
90 depart thcrcir0m unless 10y authority 81
the executive board.
No Concessions 10 Influence Business 81
No voucher or other form Of concession
which would induce the established rates
or influence the routing Of the business
subject 10 the clearinghouse shall b,
paid or allowed unless authority therefor
shall be given 10y The board Of manager
or tho executive board
The Auditor TO Examine Reports, Etc.
In order 20 satisfy that the full agrcc,
rates ~ established by the clearing houi,
have been charged, In no case related o
refunded, the auditor Of the clearing
house, and those whom lac shall appoint