St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1890-12-09
CHAIRMAN WALKER.
He Gives Out an Important
Letter on Railway At
fairs.
The Traffic Division Should
Control Actual Handling
Of Business.
Henry Willard Formally Opens
the Grand Central Depot,
Chicago.
Freight Rates to Be Advanced
Between st. Paul and
Chicago.

.yEw YORK, Dec. S.-The following
letter from Chairman Walker has never
before been given to the public. 1t
reads:
Chicago. H., Nov. 90. 1S90.-Dear Sir:
While clearly perceive that the pres
ent legislative attitude of congress and
the states toward the railways of the
country is Injurious and unjust and am
prepared to enter heartily into any plan
for its correction, cannot concede that
the difficulties under which the rail-
roads labor are wholly due to that cause,
CT that there is any possibility of the
Immediate adoption of reforms which
will greatly improve existing conditions.
The root of the matter is competition.
There Is Conflict
of interest between producers and con-
sumers in every industry. 1t is not I'M
natural that the public who buys trans
portatOn should desire to stimulate
competition among the carriers who
sell it. On freight traffic complaints
are heard of shippers who are able to
control q given market; of struggles
between agents at points thousand
miles away, which are said to put the
business of large cities upon an auction
block; of routes where commodities
are moved III unreasonably large vol
umeS; of special and long term con-
tracts; of the employment Of commits
sionS, tree transportation and other in
nucements to influence business; of
manipulations of tariff and divisions.
1t has become fashionable to point to
the first few months of the life of the
Interstate Commerce
Railway associationsas a period of CON-
paratively successful administration
among the Western roads. That was
time of armed neutrality. Every line
maintained It's fighting force fully armed
and equipped. A new treaty is now re-
1nired, which should be based upon dis
armament. The lines should rid them
selves of the machinery for rate cut
ting, either open or secret. Both are
alike destructive. l venture, there
fore, to suggest, somewhat more in de-
tail than have heretofore attempted,
the form of what seems to me the best
agreement attainable at the present
time. 1T not acceptable in all particu-
lars, perhaps part of 1t may be found
L
railway associations should be cOncen-
tratiOn of authority and unifcation of
Interests, These results nIay. perhaps,
be reached in respect TO freight traffic
by an agreement providing for
a Rate Division
and tariff division. The rate division
needs no meetings of rate committees,
but its executive board should have
power, both original and final, in the
establishment and publication of all tar
IFS. local and competitive. individual
and joint. This concentration would
largely reduce expenses in printing, land
secure uniformity in the form of rate
sheets. 1t should be composed of a
small, but expert, Intelligent board in
constant session. Applications for
changes in tariffs. claSsilicatiOnS and
rates and reductions governing the
transportation of freight should be pre-
scented in writing, and acted upon with
or without a special hearing, as thought
advisable. The board should also have
an initiative of its own, to be used in
eases of commercial necessity and Of
outside competition. 1t should act upon
bread consi ierationS of right, prevent
ing so far as possible
Unjust Discrimination
In rates between localities, persons and
different descriptions Of traffic, and
seeking to promote the free and equal
movement IN business in every direc-
ton; it should make stability of rates
prominent factor in it's methods, and
should be expected to secure revenues
just and reasonable to the roadS,as we'll
as to the public. In order to properly
recognize the charter obligations of the
several lines, it might be necessary to
give to the full board of directors of
each company the right.after hearing.
to withdraw rate put in by the asso-
ciation.but this power should be limited
as closely as possible, and only exercised
after at least three months trial OF the
association rate. The executive board
should owe no allegiance to any inter
est, but should be in the joint employ
ment of all the lines, as the agents of
each, responsible directly to the several
boards of directors through the presi-
dents. The traffic division should con-
troll the actual handling of the business.
a single
Efficient Commissioner
Is enough; but he should be subject to
the supervision OF board of managers,
composed of the highest traffic officials
of each line. The traffic division should
have the exclusive right to contract with
connecting roads in respect to the eX-
change OF business and the division Of
joint rates, and with shippers at all
points outside the association territory:
joint agencies should replace the innu-
merable separate agencies now in
vogue; this might be extended ulti-
mately to competitive points on the
lines OF the members. The work of the
traffic division might also very properly
embrace the clearing house idea, under
which it would receive copies of all
bills, adjust accounts between cOmpa-
mics upon through business, settle all
loss and damage claims and audit all car
service payments. In other words it
should take immediate actual control of
all joint business, and perhaps in the
end of all competitive business local to
the several roads. In order to secure
A Proper Distribution
Of the traffic, an approximate valuation
of the several roads should be arrived
at; for example, on the basis of the earn
Ing power of each, represented by its
estimated gross earnings, under fair
rates and normal conditions, upon the
entire local and competitive traffic in
the territory covered by the agreement,
and the traffic controlled by the associa-
tion should be distributed in accordance
Herewith, Under such concentration
OF methods, 1t seems to me that the dan
ger of destructive rate cutting, either
secret or open, would be SUBJ
stantially eliminated, the net revenues
of every line would be protected. and at
the same time the public would be bet
ter served. Very truly yours,
ALDACE f. WALKER.