Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1890-12-22

through an agreement known as the
'Gentlemau' Agreement - signed by
the presidents of the respective roads.
This, however, proved Intellectual, and
the conditions which governed their
traffic before the agreement have con-
tinued until this time.
How far these complaints are based
upon justice does not seem so clear. 1t
Is known that the Union Pacific has been
along much of its line a competitor of
the Missouri Pacific, Mr.. Gould IS road.
The rate earned per ton per mile upon
the latter is lower than upon the former,
and in the aggregate this betokeus a
lower rate of charge by the road whose
earnings per mile are proportionately
smaller. No material extern
sions have been made in the
line of the Union Pacific during
the past two years; and whatever terri
tory may have been gained by it has
been within the limits rightfuIy COM
peted for by itself and its adversaries.
The fact, perhaps more potent than oil
others, has been hat Mr.. Gould has
long had the purpose of resuming con-
troll of the Union Pacific.
The opportunity came during the long
period of stringency in the market in
w al siicClS u pCtlob tALCuultS Odth
into the summer months. The uncer-
tainties involved in the discussion OF the
tariff, the final passage of the bill and
the demand of the importers for money
with which TO pay duties on imports ar
irving before the measure went into eff
feet, the consequent movement of money
from the marts of business INTO the treas
ury, the movement of the crops, the
wheht from the West and the cotton
from the South, the former beginning as
early as August and continuing until the
present moment, unfavoreble bank
showing their surplus reserves
to have vanished aud Indicating the
great drain of money from New York
City to other sect!ons-all these were
con tributing causes to the condition
which eliminated in the recent panic,
and added TO them was the long contin-
ued and often patched up war in railroad
rates as affecting the largest class of
their patronage. Railroad stocks went
down 100 per cent. The opportunity
was improved. Mr.. Gould and his
friends obtained control of all the trans
continental lines tina hitherto had been
beyond his power.
a policy of high rates has been an
nouneed. The roads, says Mr.. Gould,
will hereafter be run in the interests of
the owners. There is talk of materially
increasing the dividends; in the case of
the Northern Pacific, 1t is said, the pay
ments on the preferred stock will be
doubled. An era of the highest PROS
perity is promised to the railroads and
their owners.
If this policy is carried out it will be
discovered how far present rates can be
increased with safety to the railroads.
SO far as the section of the country west
of the Missouri river Is concerned the
people are about to witness the effects OF
an actual consolidation of the railroad
systems upon traffic, upon the earnings
of railroads and upon the interests of
farmers and shippers. 1t is an expert
ment of exceeding Importance and with
the control in the hands of Mr.. Gould it
will be worked out TO its legitimate on
sequences.
There are, however, some obstacles to
be overcome. 1t may be hat the inter-
state commission will be
called upon TO determine as to the rea-
sonableness of the rates TO be established.
The commission in the decision presented
bv MI. Morrison in the w~ell-known
''food products investigation. is COM
II ~ 49, nav kheh atS SacAAt w
so adjusted as to secure the largest in
%tercheuge of commodities. AS q COM
mon carrier, having a relation to the
people nearly as close as to its owners,
the railroad Is bound to convey to the
market all products which can be moved
without loss. The requirements of the
communities through which the various
lines run are to be studied aud met, and
an injury to any one OF them involves O
consequent loss to the railroad in traffic
and earnings. The effect of rash and
hasty steps would promptly react upon
the railroads. The Likelihood of in
creased rates and increased earnings is !
not SO apparent. An appreciation of
the value of stock. however, may re-
suit from increased dividends, wrought
through an increase of debts, or through
the operation of other causes promising
a recovery to the market.