Omaha daily bee., 1889-06-16
THE ALTON WILL WITHDRAW
It Refuses to Be Longer Bound by
the Gentlemsn's Agreement.
THE CAUSE OF ITS COMPLAINT
1t Charges the Milwaukee with q
Notorious Disregard or Each and
Every One OF the Rate
Provisions.
The Combine Broken.

CHICAGO, June l5.--ISpecial Telegram to
THE BEE. The die is cast The Alton road,
after trying in vain to stay in the Inter-
State Commerce Railway association and
preserve ITS trafflc, gives notice of withdrawal
in the following language:
June 10, iSsa--To Aldaoe r. Walker, esq,
chairman of the Interstate Commerce Rail-
way association, Chicago, nl,-Dear Sir:
You are hereby notified that the Chicago, 81
Alton Railroad company will withdraw from
the Interstate Commerce Railway associa-
ton on the 18th day of July next. IL has be-
come necessary for that company TO with
draw from that association for the reason
that II has been found impossible TO induce
all of the corporations who are parties to the
agreement upon which the association is
based to comply with its provisions 1tis but
fair TO say that nearly all of them have mani
Tested disposition to comply with the obi
cations they have assumed, and to do all
that could reasonably be expected of them to
make the experimental association success
full. Unfortunately, there IS one member OF
the association, the Chicago, Milwaukee &
st. Paul company, whose peculiar methods
present noted, and, we may say, a notorious
exception. 1t is unnecessary to state in de-
tail what that company has done but your
attention is called to the following statement
relative to the transportation of live stock:
The transportation of live stock from Kan
sas City, eastward, is participated in by ak
competing lines. During the last half of the
year 1855 las has recently been admitted by
it's officers) the Chicago, Milwaukee & st.
Paul company resorted to cut rates, manipu-
lation Of the division of through rates, aud to
various other methods for reducing the
tariff rates IN order TO obtain live
stock traffic. Notwithstanding its efforts
in that way, it secured much
smaller proportion of that traffic than
did the Chicago & Alton railroad at its pub
lished rates, which were strictly adhered to.
Since the beginning of the present year, 1t
has been member of the Interstate COM
merce railway association and party to an
agreement under the terms of which it and
its competitors are, under mutual covenants,
entered into by their presidents to adhere
strictly to their advertised rates. 1t is be-
lleved that the competitors OF the Chicago,
Milwaukee g. St. Paul company became a
member of that association about March |,
since which date the Chicago, Milwaukee &c
ST Paul railway has secured more Of the
competitor live stock traffic than any two of
the other lines.
BY what method has this great change in
the relative traffic of the six competing lines
been madel 1t can not be by reason of su-
perior facilities by the Chicago, Milwaukee
& St Paul. Its line is longer than any Of
and, in short, it is not in its
power to offer superior facilities. There can
be but one answer to the question: Secret
inducements have made it for the interest
of shippers to patroniZe its line.
The Chicago 81 Alton company has been
deprived of more traffic than any other by
the peculiar methods referred to. 1t has en-
deavored to secure fair treatment in every
honorable way. 1t has appealed to the asso-
citation under the provisions of the agree
ment, and the facts upon which its appeal
was based were SO notorious that the eXecut-
i've board promptly issued an order directing
the Chicago, Milwaukee & st. Paul company
to pursue different course and deal justly
with The Chicago & Alton railroad company.
But its order has manifestly been wholly
disregarded, and the association has no power
to enforce it.
Tho Chicago & Alton company has for
several months submitted to this unjust and
unlawful eXtortion, hoping that it would
cease, and that this last effort to secure
proper relations between the several parties
| in the association would not prove com.
plete failure. In the light of experience, ex-
tending over several months, we have now
no basis for such hopes. The agreement has
| tied the hands of those who complied with
| its provisions, and has enabled others to
obtain unfair advantages over them. The
Chicago u Alton company will no longer
quietly submit to such unjust and unlawful
competition. The notorious disregard by the
| Chicago. Milwaukee g. ST. Paul company Of
| that part of the agreement which relates to
rates has released the Chicago & Alton COM
pany from all obligations under it, as
an agreement which is not complied
| with by all the parties to it
cannot fairly bind any of them. After this
date the Chicago & Alton railroad company
will, without further notice to the associa-
ton, ADOPT Such means as ~ may ma neceS-
sary and lawful to secure its fair share of the
| live stock, lumber and grain traffic with re-
gard to which it has already appealed to the
executive board without obtaining relief.
Yours very truly, J. G. McMULLIN,
Vice-president
Approved: T. B. BLACKSTONE,
President.
The above can hardly be called surprise,
as 1t has frequently been foreshadowed in
these dispatches. The letter was given out
| too late to get the views of the presidents Of