Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-16
MORGAN'S PLAN ADOPTED.
II First of All Provides For an En-
tirely New Association
WITH A STRONG ADVISORY BOARD.
The Companies Closely Bound to Remain in
the Association.
TIE RESULTS THAT ARE Expected.


mostly presidents OF railroads west of CHI
cago and st, Louis, was held to-day at the
house Of J. Pierpont Morgan, the banker,
No. 2l9 Madison avenue. The meeting was
called for 1850 O'Clock, and for some time
be ore that hour and q short time afterward
brougham after brougham with hne horses,
coachmeu and footnen, rolled up to the
door from whicn aiighted the railroad mag
mates who had been hidden to the confer
eHce.
The meeting was presided over by Mr.
Morgan. and Samuel Spencer acted as secre-
Iarv.
The following companies were represent
ed: Chicago and Northwestern BY Marvin
Hugbitt, President, H. K. Mex. Twom-
bley. Vice President: Chicago, Burlington
and Quincy by c. E. Perkins, President,
General Paine, Vice President; Chicago,
Rock Island and Pacific by R. r. Cable,
President; Chicago, Milwaukee and St.
Paul by Roswell Miller, President; Union
Pacific by Sidney Dillon, President; Mis-
souri, Pacific by jay Gould, President;
Atchison, Topeka and Santa Fe by Allen
Marvel. President, and Colonel J. J. Nc
Cook: Wabash by o. D. Ashley, President;
Chicago, ST. Paul and Kansas City
BY J. NJ. Fagen, President, and A. r.
Stickney: Illinois Central. by Stuyvesant
Fish, President; Southern Pacific, by c. Z.
Huntington, President, J. c. Stubs, Vice
President; Denver and Rio GranGe, by
George Cappell, Chairman Of the Board
Directory; Northern, Pacific, by f. Oakes,
President: Rio Grande, West by General
W. J. Palmer, President, and George f.
Peabody, Director; Great Northern, by J.J.
Hill, President. J. Kennedy Tod, Director;
Iowa Central, BIZ Russell Sage, President.
The following gentlemen were also pres
ent: John Crosby Brown and Howard Pot
ter. of Brown Bros & Co., and Mr.. George
c. Magun, OF Kidder. Peabody & Co.
JAY GouId's Plan Presented.
The preliminary agreement as published
in this mornings papers and recently signed
by several of the eompany's represented
was presented by Jay Gould and read. A
general discussion then followed as to the
best means of carrying out the objects
sought to be accomplished at the meeting.
Mr. Morgan stated that after a long ecn-
sideration simple but comprehensive, and,
TO his mind, effective plan had been agreed
10 bv the Vanderbilt AMI Pennsylvania
lines Tor their mutual AMI competitive In
rsrest, and that based upon that plan he
had ventured to prepars a paper for the con-
sideration Of this meetin- whicn he then
proceeded to read, as folloWss -
Resolved. That the Presidents here assem-
bled agree 10 recommend TO their respective
Boards of Directors the passage OF the follow
ing resolution:
WHEREAS, 1t is to the benefit of the public
and of the railroad companies whose lines are
situated west OF Chicago and st. Louis, that
they shall cooperate closely with each other in
The management of their properties for the
purpose of securing uniform, reasonable and
stable rates for transportation, and such
economies in the operation of their properties
for the better accommodation OF the public as
will insure equitable returns upon the capital
invested: therefore, be 1t
Resolved, first, That new association shall
be formed between the several companies
whose lines are situateT west OF Chicago and
St Louis, OF such Of them as may now become
or may hereafter be admitted as members
thereof.
Second-That the affairs of the association
shall be under the management and direction
of an advisory board TO conslS= OF the Presi-
dent and one member of the Board OF Directors
of each company.
ThIrd-That the Advisory Board so consti-
Iuted shall have power to establish and main
laiu uniform rates between competitive points
aud 10 decide all questions of common interest
between the members of the association. 1t
shall have entire charge through properly con-
stituted representatives of all outside agencies
for the securing of traffic at competitive points
If any officer or representative of any company
shall authorize or promise, directly or indirect
w. any variations from established tariffs, he
shall be discharged from the service with the
reasons stated.
Fourth-TRe rates established and the policy
adopted by the Advisory Board at any time
shall continue in force, and be binding upon
all companies comprising the association until
altered by subsequent action OF the board.
E'ifth-A vote of at least four-ffths of them
here Of the association shall be required tc
make all its action binding upon all.
A Board of Arbitrators Wanted.
Sixth-That the ADVISORY Board shall ap-
DoInt proper arbItrators, commissioners and
other representatives and adopt bylaws to car
" out'the purposes of the association.
Seventh-That no company withdraw from
the association except after 80 days written
notice by resolution of the Board of Directors
10 every other member of the association, with
the proviso however, that the association shall
continue for AT least six months from January
!, 1891
Eighth-That under existing conditions it is
expedient for this company to set in operation
The policy and plan indicated in the foregoing
as early as practicable.
NiuJh-That the President and Mr. - one
OF the directors of this company, be- and they
are hereby appointed. to be the Representatives
OF this company in such Advisory Board, with
fun power TO act for this company in carving
the foregoing preamble and resolutions into
1ull effect
The Resolutions Are Adopted
The action proposed to be taken by the
various boards, as suggested above, then be-
came the subject of discussion, and alter
long debate and consideration, was finally
adopted by all the corporations present
voting in the affirmative and none in the
negative, the Chicago, Kansas City and ST.
Paul declining to vote, desiring time for
further consideration.
The resolutions as adopted are binding
upon the 10 companies voting in the affirma-
tive, it being understood that the following
three should be invited to join: Chicago
and Alton Railroad Company, Kansas City,
Fort Scott and Memphis, Missouri, Kansas
and Texas.
The following was then adopted:
Resolved, That Mr.. Roswell Miller, president
OF the Chicago, Milwaukee and st. Paul Rail
way Company, should act as chairman OF the
adjourned meeting. with power to call the first
meeting Of the Advisory Board after receipt by
him Of notices Of the action of the several
Boards of Directors upon the foregoing resolu
TONS such notices to be sent to him at Chicago
Resolved. That it is the sense OF this meeting
that the several boards of directors be called
together to act upon the resolutions above
ADOPTED on or before January L 1891
Perfect Harmony Prevailed.
The most perfect harmony prevailed al
the meeting, and it was considered by all
,,resent that the action taken was a great
stride toward securing conservative and
effective cooperation between all the com.
oanies IN arranging to vest absolute power
jn cne body of men, constituted as lhe Ad.
yisory Board will be, and acting with full
authority for all companies members Of the
association.