Los Angeles herald., 1890-12-09
A SUICIDAL COURSE.
THE POLICY PURSUED BY THE
WESTERN ROADS.
Chairman Walker Urges the Formation of
a Trust That Will Make Rate Wars a
Thing of the Past.

New YORK, Dec. S.-The Journal OF
Finance today made public for the first
time lengthy letter recently written
by Chairman Walker, of the Interstate
Commerce Railway association, to vari-
GUS railroad presidents on the general
condition of railway affairs and a plan
for reform in the present methods. He
says the present legislative attitude OF
congress and the states is injurious, but
the railroad difficulties are not wholly
due toathat cause. Competition, as il
now exists among the carriers, is ruin.
GUS; is simply war. This situation, he
says, pleases the unrefiecting public and
the necessary inference is that
the railroads are playing their
adversaries' game. He refers
to the fact that during the past fifteen
years about one-third of the railway
mileage in the United States has been
reorganized or passed through foreclos-
ure proceedings. He does not believe
that this suicidal process is beyond con-
troll, but says radical changes are re-
quired. He points out the wars in pas
senger and freight rates brought about
by scalping, secret agreements, rebates,
ETC., and says ninety per cent OF all the
tariff changes made are reductions. He
accuses them of systematic passenger
rate cutting, and calls it competition
gone mad. Such wild and reckless
methods are not in the interest of the
public, and are ruinous to the railways.
He calls on the presidents to recog-
nize the essential unity of the railway
interests, and make new treaty based
on disarmament. He says the first few
months of the life of the Interstate
Railway Traffic association is commonly
referred to as period of comparatively
successful administration among the
western roads. 1t was really armed
neutrality. Every line maintained its
fighting force fully armed and equipped.
The lines should rid themselves OF their
machinery for rate cutting, either open
or secret.
The fundamental principles of the as
sociation should be the concentration of
authority and unitication OF interests.
A traffic division should control
theactual handling of the busi-
ness. A rate division should have ex-
elusive right to contract with connect
ing roads in respect to charge of busi-
ness; the division OF joint rates, and
with shippers at all points out
side of the associations terri
tory. Joint agencies should re-
p ace the innumerable separate agencies
now in vogue. This might be extended
ultimately to competitive points upon
the lines of members. The work of the
traffic division also might very properly
embrace the clearinghouse idea, under
which it would receive copies of all bill
ing, adjust accounts between companies,
settle all loss and damage claims, etc.
Under such a concentration of methods,
the danger of rate-cutting, either secret
or open, would be substantially elimin-
ated, the net revenues of every line pro-
tected, and the public better served.
j. Pierpont Morgan has sent tele-
graphic invitation to the presidents of
all the railroads west of Chicago, to
meet at his house in this city ON the
10Th inst. for the purpose OF discussing
the railroad situation, with the view of
renewing the presidents agreement.