Los Angeles daily herald., 1888-11-29
TALKS ABOUT THE TRUST.
Railroad NIen lnterviewed-lnter
Stale Inv Obnoxious.

CHICAGO, November 29.-It has been
ascertained 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 competitive business, and
the mission of the Presidents to control
rates, is after all 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 re-
ceived the most favor, in fact, was much
stronger form of agreement and more Sc
we're in its restrictions as to the use of the
rate making power. J. w. Midgley, who
was present at the conference in the ca
pacity OF an advisor said to day:
"This plan is one of several that were
considered. am positive that it will
not be adopted, for the reason that it is
not strong enough to answer the purpose
the arbitration feature, it is but little diff
ferent from the agreement of the West
ern Freight Association. This talk about
trusts as applied to such agreement is
the sheerest nonsense. The truth is that
the railroads have become desperate at
the prevailing condition of affairs. Some
thing 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 property, and who believe it
should yield some returns. They are de-
termined, if possible, to save the rail-
roads from bankruptcy. The Interstate
law prohibits pooling arrangements, and
it is necessary to devise some other
means of checking decentralization.
Mr.. Midgley said if the present condi-
tions, which were in the main attribut-
able to the operation of the Inter- State
law, should continue two years longer,
there would not be a solvent railroad
west of Chicago. When asked if there
was any movement On foot to petition
Congress for the repeal OF the act, he
said: "No such movement has taken
shape as yet, and no appeal will be made
to the present Congress. 1t is not re-
garded as the most favorable time to
present such measure between two ad-
ministrations."
The projectors of the new scheme for
the maintenance of rates and Mr.. Midg-
ley are agreed upon one point, and that
is that the subordinate officers of rail
roads must be deprived of the rate-mak-
ing power, and that any assumption of
this power must be punished by dis
missal.
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 Presi-
dents of the Union Pacific, the Stickney
system and the Chicago, Milwaukee and
st. Paul, while President Gable, of the
Rsck Island, has gone to New York to
personally express his views on the sub
ject.
President Marvin Hugbitt, of the Chi
cago and Northwestern, was asked to-day
if he was favorable to the scheme. He
replied: "I know nothing about it ex-
cept what l have read in the newspapers.
am not prepared to say anything as to
its merits or as to the probability OF it's
being adopted. The Chicago and North
western has not been represented at any
conference, nor has it been consulted on
the question of the new agreement. We
are at present parties to the agreement
of the Western Freight Association, and