New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-15
THE G. B. AND @. IN DEFENCE.
PRESIDENT PERKINS, OFFICIAL STATE
MENT.
WHAT HE SAID TO THE ADy1:ORY BoARD-EX-
PLANTATION OF TIE DURNNGTONS
POSITION.


Western Traffic Association In this city have launched
az the Chicago Burlington and Qlncy for It's attitude
has led President Charles T. rer,dns OF that company,
| 10 make public the letter witch he mad on that oc
caslon addressed TO Roswell Miller president Of the
| Advisory Board. In thrt letter Mr.. Perkins says
When the Western Traffic Association was formed, in
December 1890 the underlying idea that the whole
subject o. rate making should b. Kept the hands Of the
directors OF the corporations instead Of -, LEFT TO man
ayers and freight agents This agreed upon without
difficulty and questions Of discussion were those u
method and detail. The plan OF having two directors
from each company period ally Advisory Board
was suggested and the question OF how
body could be practically useful. Was t
practicable and proper give u Advisory Board so
constituted any power questions which might come
before H. except by unanimous consenti The Advisory
y ard WAS b. be composed Of representatives Of Fifteen or
twenty different railroad corporations. with conflicting
Interests. Would the board, OF directors OF these dneens
] companies agree to be bound by the action OF
| such an Advisory Board against the vote OF
| their own Representatives that ard
thought because 10 do 50 would be pacine too much
power the affairs Of SINCE road In the hands Of
Board composed Of rival and competing interests II the
Interests Burlington Company OF stake. cold
not consent lie: It's competitor, decide what should be
done by H. opposition 10 the Judgment Of it, own board
expressed by their representatives on tho
Advsory Board. To this view 1t was objected that. u
unanrity should b. required the Advisory Eoard would
power decide anything a2ain't the interests or
wishes Sny company because the representatives,
Of any company conIf prevent unanny and would be
sire to do so their company might be on trial
10 meet this suggestion, 1t nually agreed b. form
the Advisory BCard the understanding that four.Iths
! ,f its members might have the rlht bind all. This
idea being formulated become the fifth article OF the
agreement, reading a. follows:
That a vote Of at least four.nfhs Of the members OF
shall be required TO make its action bind
| Ing upon ell"
This language is clear and conno, b" misunderstood ;
and the discussion which took place beforehand makes
clear and unm,stakeabe the reasons which led 10 It's
adop., A. II agreed by the representatives OF the
burlington Company compromise and because thoso
representatives. General Paine and myself believed That
no vote four-hfhs could ever be obtained unless IN
cases too clear TO admit OF reasonable dd'rnce OIL
oplnon while time in such c' ~ cases. II
wond Lee lmposs ibe for any road accused OF doing
to prevent verdict Of guilty BY the vote OF It's own
rpr s,natlves alone. So far a know r pfotcuoh Of
tn four.nfths rule first invoked at the Ncw'for
meeting In July 1891. when member Of the sss1ia
ton had APPEALED from decision OF the com
MI sonrr. Ia chit ago the Advisory ard In that Gao
the CHARM an Advisory Board took the ground thas
the agreement required vote OF lOur-hs OF the members
Of the association override decision made 10y the com
MI soacrs whom the Advisory Board had 0rpoln~d to
manac. tho details affairs Of tho association and his
de zion sustained by majority Of the Advisory Board
thus giving subordinate body created ~ The ADVISORY
Board rractl,ay more power than directors the rail
road companies had given the Advisory Board t' In
other words ounths rule, which Is Che most essential
.,fIuad OF constitution Of the association was so
Interpreted that instead y mition on The
power Advisory Board individual members OF
The niion would become Limitation on tse rights
the individual members Instead OF requiring four
nth, vote bind 1t Interpreted to require four
Rrhs vote TO unbind. That + say Il the coz nissones
IA Chraeo. a arm OF the Advisory Board, made
decision that de- son was 70 binding upon the dectors
II thc corporation corporations concerned rneSs The
Advisory poafd by vote four.nfts Of 5s members.
should decide otlcrwie. The directors Of the c. b. and
T. II Go. give their assent to 'nS such pan OF
atcd action railroads and tina: IA not the
a. recrent which made. | protested against the IN
.erlrct ton which gwen the four.Gfhs rule last
July when none Of the companic, represented were
ronccincI and said then that. II persisted in. IL
would opinion. break up the association
President Perkins then reviews at length what Il
known "a, the wool in which his road accused
OF rne-cuttlng lie declares that not being familiar
With the case when II before the Advisory
Board. in January. 1909. the matter was laid over.
one OF the commissioners subsequently told INN that
the Commissioners intended TO make supplemental
report In which hey would say that they believed that
the agent OF the Quincy had made an nnintentional
MISTAKE. which corrected ~ soon a. discovered.
Mr. ierldi,, say, he Is satisfied. after inye tiea-
lion that the agent, Of the Qnucy had not even
made n mi Mr.. Prrkins cr;cises the record OF
the Advisory Boards meeting May 10. when the
question whether the decision 81 the Commissioners -
the effect that the c.. b. and QulUcy had violated the
agreement should be reversed, WIS decided In Tbs
| against Mr. Pcrbns says OF this record
Il. Their, wa, decision OF the Commits 'ionerS -
the effect that the C.. Il. and .. hud wuIly violated
The agreement. the contrary, their decision was TO
the effect that there had been a technical vl0nii N
through the neutrality-suspicious. oi an order. which Was
| corrected demand ana
- The membership OF the Association being SIX
teen agreement requires four faiths, or thirteen votes
q, bind % that the eleven votes stated u have been
| r,ID- hak. A
ciGrd anything. had there been ANYTHING 10 decide
Mr.. Perhn, closes follows.
As You are aware. / had arranged t0 be NJ the
regular meeting In April. which not held because
other, culd not attend But important engagements
In the West prevented being present nj the special
meeting In Nay. and Mr. Grlswold who rcpcsC n our
company. ana who did not suppose, any more than
did that any question about the wool rate controversy
would mp Lecausc Of the supplemental report Of
the Commissioners, not sufficiently familiar either
with the details Of the agreement and III fourlfhs
rule. with the facts IN the case. to enter upon
discussion OF the subject
The ,csIirlion Of the directors OF the Chicago.
burlington and Quincy, which was submitted to the
meeting OF the Advisory Board on Tuesday 10 be fol
lowed Immediately by agreement. reces IN the pre-
amble iha. the agreement Of the association provides
for % f,ur-dfhS vote 70 make the action O the Ad-
vlsoy hoard binding and ha. the Interpretation given
by a majority vote Of the beard substitutes tho
rule Of the beard of Commissioners IL sustained by
cailon for the rule Of four hrhs Of the members Of
the association, Tho resolution then follows: That
this company cannot be Lound BY and for tina,
Is unwilling 10 take part In the proceedings Of The
Advisory BOard. nness II lie declared that the nth
resolution Above quoted Is 10 be given full force and
effect and that the Interpretation Of II which sub,
suts either the rule Of the majority the rule OF
The Commits sloncrs. II sustained BY minority Of the
members Of the association for the rule OF our.fftiE
Of the said mem,ers Is not In accordance with tho
President Roswell Miller. Of the Advisory Board
ycseiday pleaded that too great pressure Of business
prevchled him from replying to President Ferlnss
statements