New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-09-08
NATIONAL RAILWAY UNION.
A PLAN PROPOSED BY JOHN ]. McCooK.
HIS HOPES OF PREVENTING RATE WARS IN
FUTURE-ANTICIPATING THE FAILURE

OF THE GENTLEMEN'S ASSOCIATION
Chicago, Sept IA local paper this morning says:
John j. McCoo who was the secretary of the bankers
meeting in New-York in January, which suggesWu
the formation OF the Gentlemcn's Association, ana
who, short time ago, suggested tho formation Oh
a railway trust has written a confidential commum-
cation to Drexel, Morgan Co., Il own Brothers d o.
and kidder Peabody & Co.-thc NewIork bankers III
ange-regardlng his trust scheme In this commune
cation he says that the position taken by the ABOVE
named firms last January largely influential III
tho establishment OF the Interstate Commerce halr
way Association, which, he says has rendered Coca
and efficient service up to this time, but the STABILITY
and permanence of which is now seriously threatened
The recent cut In grain rates by the Baltimore ana
Ohio and the retirement of the Alton suggested 10
him the propr1ety OF asking prominent rdirOau mai
ayers and shareholders to whether The time hdu
NOT come for a union of sharehOdIng interests
upon proprietary basis which Will be more pernia-
nent and effective than the Gentlcmens Assocla'oh
As such union in any form, Mr.. Cook says is likely
to meet hostile comment from the public anu inc
press until It's objects and methods are fully under
stood he presented his suggestion in the baldest and
east attractive FORM 30 to draw out ana give III
advance the benefit of adverse criticism when might
be useful in shaping and formulating the maj plan
10 be adopted u.o,
Many of the officers Of the lines now represented
in tho Centlemen's Association. Mr. McCooA says, III
hi orn,,,nication 10 the bankers triangle while
boetatinp 10 say or do anything which would dis
turb the railroad situation feel substantially as ne
does about the necessity for early action ho
| nroduces letter from a president of ono OF the
roads in the Genhemcns Association, whose name
he does not give, who admits that the Oehuem'h D
Association is failure and says that nc can sco
no escape from an ultimate formation Of railroad
trust This Official MI McCool says, expresses the
feeling of most managers who in good faith entered
the association lie further states that unless inc
action Of the Burlington and Northern precipHdus
unexpected trouble, the association might be ape
IN maintain itself and sustain fair rates until the
nresent crop Is marketed, but when shortage OF
tonnage is again felt by the railroads they will again
s,rcIv resort to the disastrous cut-rate methods
practsed in the past. lie suggests as name Tor
mis- trust or organization North American Railway
1nvo.tors, Unlons The agreement and organization
no suggests must be sufficiently comprehensive to
include the Canadian railway lines as well as those
NJ the United States. Such union' must be
composed Of the shareholders and not Of the cor
porations themselves, and when the control OF a
majority of the shares of any two three important
lines has been secured he thinks the control of Others
will follow. Mr. McCook concludes his argument as
From legal standpoint such an organization, II
nrouerly constituted, cannot be overthrOwn while
tuHerIca an citizens retain the right 10 hold properly
aud go long as the Constitution Of the United states
sustained by the decisions Of the Supreme Court, pro
6its The enactment by the Legislatures of She several
Sat-, of any law impalring the obligations Of con
nt The business questions involved will b. quickly
settled and the public sentiment Will be satisfied by
the working out Of this plan, which Will give as good
n not better results to passengers, shippers ana the
| aaneraI nublic than any now shown by proprietary
lines controlled by the trunk line companies extending
from Buffalo, Pitsburg and ohio River points 70 me
troll by such a proprietary union when once estao
HsL ed will destroy the inducements for cutting rates
ana rate war is no likely 10 be started between
| lines I'm the union than between the Michigan Cen
tra and Lake shore lines controlled by the New arr
Central or between the Fort wayne and Pan Handle
lines controlled by the Pennsylvania Railroad COMPANY
I'm other words the existing lines Will get all me tfdiC
that exists they will handle 1t promptly and chtapy
and the result is sure 10 give satisfaction 10 the public
| and better returns 10 the investors"