The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1890-12-09
RUINOUS COMPETITION.
Plans Suggested for the Prevention Of
Railway Rate-Cutting.

NEW YORK, Dee. S.-The Journal of Fl
nance to-day made public, for the first time,
a lengthy letter recently written by Chair
man Walker of the Interstate Commerce
Railway Association to the various railroad
Presidents on the general condition of rail-
way affairs, and plan for a reform in the
present methods. He says the present leg
1slative attitude of Congress and the States
is Injurious, but the railroad difficulties are
not wholly due to that cause Competition
as 1t now exists among carriers is ruinous,
Is simply war. This situation, he says,
pleases the unrefec,ing public, and the nee
essary inference is that the railroads are
playing their adversaries' game.
lie refers to the fact that during the past
fifteen years about one-third of the railway
mileage in the United States has been re-
organiZe sd or passed through foreclosure
proceedings. He does not believe this sui
cidal process is beyond control, but says
radical changes are required He points
out that wars IN passenger and freight rates
are brought about by scalping, secret agree
mentS, rebates, etc, and says 80 per cent of
all the tariff changes made are reductions
accuses them of systematic passenger rate
cutting and calls il Competition gone mad"
Such Wild and reckless methods are not in
the interest OF the public and are runOus 10
the railway systems. He calls on the Presi-
dents to recognize 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 Commerce Railway Associa-
ton Is commonly referred to as period cf
comparatively successful administration
among western roads 1t was really an
armed neutrality. Every Ire maintained
Its bghtlng force fully armed and equipped
The lines should rid themselves Of the ina
chinery for rate-cuttng, either open or
secret. The fundamental principles of the
association should be the concentration of
authority and the unifcation of interests.
A traffic division should control the actual
handling OF that business. A rate division
should have exclusive right to contract with
connecting roads in respect to the exchange
OF business, division of joint rates, aud with
shippers at all points outside the aSsOcia-
tons territory. Joint agencies should re-
place the lnnumerable 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
accounts between companies, settle all loss
and damage claims, etc. Under such con-
centration of methods the danger of rate
cutting, either secret or open. would be sub
stantially eliminated, the net revenues of
every line protected aud the public better
served
THE UNION PACIFIC.
NEW YORK, Dec. S.-Dow-Jo ones Com
pany's Boston special says: We hear
Oh the best authority that the Union Pacific
officials are not disturbed over the financial
condition of the Union Pacific. We are
told the floating debt is much less than cur
rent reports credit 1t seems the alliance
with Gould was formed only after Wander
bilt and Drexel, Morgan & Co.'S support had
been refused.
Dillon has been interviewed by the Com
merclal Advertiser. He said: tine Union
Pacific IS III no more danger of a receiver
ship than the United States Government
These TumoTS are the most nonSensical tnat
have been circulated in Wall street for a
long time. Who originated them or for
what purpose | cannot tell, but they are alb
solute lies. The Union Pacific under the
new management is getting into shape The
road is all right. Its action will be salts
factory, and l expect to see receiver in the
White House before there is one in this Of
ice. Tie Union Pacific was only one of
the number OF slocks the prices on which
fell last week. These temporary changes in
the market are frequent. Nobody can ac-
count for them"
To a remark by the reporter, at was ex-
pected when you became President that
Union Pacific would go way up" Dillon
answered: Everything can't be done in
one day. Neither Gould nor any man can
advance the stock at his pleasure. The
Union Pacific is in such a condition to-day
that there ctn be no lasting trouble about
its stock. That's all l can say on the sub
ject."
BosTON, Dec. S.-Directori Ames of the
Union Pacific said IN al Interview: "The
floating debt Of the Union Pacific was fully
explained IN last years report. It has been
reduced the past year by $4,000, 900, and is
now about 81, 100000. Mr. Gould knew all
about the floating debt when he entered the
Directory ami has discovered nothing new
about it, He agreed to take care of il and
has provided for the January 1st require
ments, which are less than S2,G0O.00O Mr..
Gould expressed great satisfaction at the ap-
pearance Of everything connected with the
property. He has no more idea of rcceiy-
ership for the property than | have for the
Ames Building. | do not know If any
scheme for funding the Union Pacific debt.
We can easily pay it when the railroad bond
market revives."
The meeting Of the Executive Committee
Of the Union Pacific today appointed 5. IL.
III. Clark, now General Manager of the Mis-
souri, Pacific. as General Manager of the
Union Pacific. AT a meeting later of the
Union Pacific Board of Directors Clark will
be elected Vice-President. Ii. W. Holcomb.
the present General Manager, has been made
assistant TO Clark. Mr.. Clark will remain
1n charge OF the operating department of
the Missouri Pacific. but will receive the
help OF the Assistant General Manager who
has not yet been decided upon.
CALL FOR A MEETING.
j. Pierpont Morgan sent telegraphic in
vitation to the Presidents Of all railroads
west OF Chicago to meet at his house in this
city on the 18th for the purpose of discuss
ing the railroad situation. with the view of
renewing the Presidents agreement"