Omaha daily bee., 1889-01-11
A REMEDY FOR RATE CUTTING
Result of the Conference of Railroad
Men and Bankers.
NEW PLAN is FORMULATED
BY Which the Members of the Assoc
citation Are Forced to strict
Compliance with the
Interstate Law.
Thc TrnfliC HrnhIen.

| the railroad lines west of Chicago and st.
Louis, which lasted three hours, Charles +.
Adams, William Il. Strong and Frank S.
| Bond who were appointed committee Mt
the last meeting TO perfect plan of organ
| RatOn ana confer with the interstate com
| mcrcc commission, submitted their report
and plan, In the report the committee says
| it has considered that in matters of traffic it
| was best to adhere strictly TO the agreement
known as the "agrecmcnt of the presidents
of January |, 1S>9.n They have not sought
to extend the provisions of that agreement,
| or Introduce into the present plan any features
| likely to excite discussion. They have sought
| to introduce In the simplest possible form the
| machinery necessary TO secure compliance
| with the interstate commerce act In order
| more effcctuaiy to secure this result, il is
| proposed that the association should be an
| association of presidents, to the end that the
highest officials of the various companies
| may be made responsible one to another
! The plan appears to be in ITS entirety very
| similar TO that of the proposed clearing
house, which created so much comment n
| short time ago 1T is substantially as follows:
The object OF the association is the en-
| forccment of the provisions of the intcr.state
commerce act and the establishment and main
tenance of public. reasonable, uniform
and stable rates, in conformity with the pro
| visions thereof; also to secure complete re-
| ports of all competitive traffic subject to the
| provisions of the Interstate commerce act,
aud such other traffic as is deemed udvs
| able.
The board of managers shall consist of an
accredited representative of each company,
the president of which is a member of the as
soCiation. Rates committees appointed by
the board of managers for the freight and
passenger department shall be constituted,
whose province it shall be to consider all
proposed changes in rates, rules and rcgula-
tions on traffic subject to the association.
Their conclusion, when unanimous, shall be
made effective when they so order, but If
they differ, the question at issue shall be re
fcrrcd to the managers, and if they disagree
it shall be arbitrated by the executive board,
as hereinafter provided
The provision OF through rates is provided
for One officer of each company the prcsi-
dent of which Is member of the association,
shall be held responsible for the strict main
tenance by his company of all rates and rules
established by the association The board
of managers shall hereafter establish such
rules and regulations as it may deem eXpedi-
ent to limit needless outlay and reckless
striving for business through scperatc agen-
cics, or the payment Of commissions or they
may if they deem proper. totally abolish and
forbid the same in whole or in part, and
cause Joint agencies to be established, the OK
penses of which shall be paid by the assoca-
ton.
The auditor of the association shall have
authority to examine and check any and all
accounts of each company. No vouchers or
other form of concession which would reduce
established rates or influence the routing of
business, shall be paid or allowed unless au-
thority is given by the executive board. The
cOmptrollers or general auditors shall
be instructed by their respective
presidents to pass no way-bills, expense bills
claims or vouchers extended at rates or
charges different from those duly author
izcd Officers making reports to the associa-
ton shall certify to their correctness and,
in case of irregularities charged, may be ex
amined under oath by the executive board.
When a charge is made to the executive
board that any provision Of the inters
commerce act has been violated, or any rate.
rule or regulation established by the associa-
tion disrcgarded the accused shall be given
ten days in which to reply, and if after in
vestigation it then should appear to the eX
ecutive board or majority thereof that the
charge is sustained, said executive board
shall, if such otfensc involve violation, real
or apparent, of the provision of the inter-
state commerce law, forthwith com
municate its finding, together with
the evidence i'll support thereof, to
the Interstate commerce commission
for such action as said commission may
deem proper. If such offense involves vio-
lation only of the articles of this agreement,
and does not involve in addition thereto any
violation OF the provisions of the Interstate
act a penalty shall be assessed of not less
than $3.50 for each OtTenSe
The presidents agree among themselves to |
Immediately discharge, on recommendation |
of the executive board, any employe guilty |
of violating any provision of this agreement,
and he shall not be engaged or employed by |
any member of the association except upon
the approval of the executive board. The |
board of managers shall determine the terri |
tory to be covered by the agreement, and the |
association shall, ON matters which par
tcuarly lie in any given territory, be |
divided into sections by the board of |
managers, and for the consideration of |
subjects solely concerning such groups sep |
l,,h hall
Statistical statements snail be issued |
weekly to members. In order to test the |
sincerity of the members and to create a |
fund from which the fines assessed can be |
collected, each member shall deposit and |
keep good in bank to be named by the |
managers, to the credit and subject to the |
draft of the executive board, not less than
81 900 in any case, nor more than 5000 as |
may be agreed or as the executive board |
shall determine. The agreement of the pres
idents, known as the agreement of January |
l, 1889, is adopted as portion of the articles
of the association.
In presenting tine documents, Charles |
Francis Adams, on behalf of the committee,
said that the plan had been discussed with
the inter state commissioners in detail. They
expressed decided opinion that the plan
was vast improvements on anything yet i'm
provised which had come TO their knowledge. |
They suggested alterations substantially
affecting the report these changes the com
mttee accepted The report of the committee
was unanimously adopted and the committee
discharged After u discussion in which ,
the trunk line presidents participated the fol.
lowing resolution was unanimously passed
Resolved, That the fundamental principles
upon which the plan reported is based, to-
wit, the enforcement of the interstate COM
irerce law and tine arbitration of
all differences between companies |
be and they are approved and
will be adhered TO in perfecting the proposed
organization.
a resolution was unnnimously paSsed by |
the trunk line presidents to the general effect
that the trunk line presidents should meet at
the earliest possible date to form an assocla-
ton to carry the same purposes into effect.
A resolution disappearing of the payment of
commissions was passed unanimously by all
present except MIR. Gable, of the Chicago, |
Rock Island 4 Pacific road, who objected TO
voting until his competitors, not present,
could be heard.
Banker Morgan said in regard to the re-
marks made informally by Roberts about