New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-01-30
RAILROAD INTERESTS.
OUT OF THE INTERSTATE ASSOCIATION
THE UNION PACIFIC AND THE NORTHWESTERN
GIVE NOTICE OF WITHDRAWAL.


Chicago Jan. 29.-Charman Walker made public TO-
day the official notices Of the Union PACING anu
Chicago and Northwestern Railroad Companies Win
drawing from the Interstate Commerce Railway Assoea
ton President Charles Francis Adams. of the Union
Pacific, in his letter to Chairman Walker says:
Referring to the decision made by you at the
meeting of the Interstate Commerce Railway Assoca-
ton held in New-York on January IA, 10 the erect
that the contract recently entered into between TINS
company and the Chicago and Northwestern halfway
Company was in violation of the terms OK the agree
ment under which the association was orgahiIcu'
1 am instructed by the directors to inform you tat
in their opinion the decision places this company Ill
most difficult position. AS l UNDERSTAND IIc
purport of your decision is that the control OF trac
is matter of proprieorshp Of lines. In other words
the existing distribution OF competitive traffic may
he affected to any extent by the construction Of new
lines by members parties to this assoclatloh'
or by the leasing Of lines already exlsung;
hut under the articles OF association, IL can
not be affected or controlled by contracts between the
lines members OF the association, irrespective OF inc
action OF the association. l am directed to inform
Won that II this decision is final. IL would in the
opinion of the directors place this company in
nostion which a proper regard for the interests OF
the stockholders would not Justify 1t has ever been
the intention and policy Of the Union Pacific to com
ply strictly with all the rules and regulations OF the
Interstate Commerce Railway Association. and the
'~iNN'NN
10 take any steps calculated TO impair either the
efficiency or the existence OF that association. The
Union Pacific is unwilling to continue in any asso-
citation except in strict conformity with the
rnIes thereof With view, therefore, to prevent
the mourning OF penalties on its part pending the CON
sideration Of the matter by your committee, am
directed by the Board Of Directors to give you formal
notice Of the withdrawal of this company thereron'
N take effect at the expiration Of thirty days from the
| Is
action is taken by the directors with extreme regret
and the notice will be withdrawn should the rules OF
| the association as the result OF conferences winch
doubtless will hereafter be held between yourself and
the representatives of the company, be so modhed as
| 70 permit the Union Pacific to take such step, mol
affecting rates, may be necessary Tor It's own pro
lection in view Of the manifest disturbing influence
which must lie exercised on the distribution of traffic
through the construction of lines or the leasing
~ old ones nv other members OF the association
The letter Of President Hughitt OF the Chicago and
Northwestern likewise giving notice of the Withdrawal
| Of the company, says:
| @I understand your decision as holding II
| effect, that no change can be made IN th'
| status OF the railway lines, members of the
association, in any manner drectT OF inul
| rectlv affecting the distribution of competitive
traffic unless it be done by the construction of new
| upes or nv acquiring in some manner proprietary
interest in existing lines II this construction OF t
| ayreement in correct, then the Chicago ana North
| western and the Chicago, st. Paul, Minneapolis ah'
| Omaha railway companies, by becoming members
snrrendered their rights 10 make such contracts WIZ
connectinc lines not affecting rates. as In the luug
ment of their directors the best interests Oh le stoJ
hoders required. 1t Is proper Tor me 10 say l"t wv
directors did not understand That by becoming Palt
| In the Interstate Commerce Association usrochicl
hev had so sacrificed their power To make Coliao.
| Thev therefore entered into the agreements VIII
the Union Pacific Railway Company struPuIousH vvu
serving as they believed, all the PROVISIONS Oh lp
nter,t9te Commerce Association agreement ~ ue az
hnwever your opinion that by 50 doing they nav
violated that agreement, ~ only Thialns lor me,
Companies therefore, 10 give formal h0,lce oI uei
,,drawal thercfrom to take effect at the expiration
| az thirty DAYS from the date hereof nave ais
10 assure Won that these companies VIII, unless CON
vo,ied thereto nv circumstances beyond their control
bstain from any action calculated TO demOraze rates
inDnronorly reduce established tariffs, or affect by 4
inotin1afs or irregular means fair distribution q
coS1natitive traffic. The Fremont, ElkhOrn and Mis-
sonr Valley ar the sioux City and Pacific railrOa
comnanies are also included in this notice OF witt
chairman Walker has called special meeting OF IN
| rnterstote Commerce Railway Association for Eel
mary II to consider the action Of the Union Pacl
and Northwestern roads, as well as to consider an
ct unon the report OF the committee appointed at Oh
last regular meeting of the presidents to revise pre-
ent methods and organization.
vi chairman Walker has issued the cali for a NEE
ing ON February 1 10 consider the notices Of will
| drawal sent. by Presidents Adams aud HnChitt. IL
expected that an effort will then be made to reach a
1 ltVR