The herald., 1895-12-29
Since the Traffic Agreement Is
Declared Illegal
TIE CALL FOR INJUNCTION
Fell Like a Bomb Among Chicago
Railroad Men
The Old Comp ,ct Was Openly Violated, and
the New One Is Imperative Be-
cause illegal

Associated Press Special Wire
CHICAGO, Dec. 2S.-rhe Times-Herald
this morning says:
The action of Chairman Morrison OF the
interstate co nmerce commission in send
ing to the senate copy of a letter to the
attorney general declaring the joint traffic
agreement in conflict with provisions OF
interstate commerce law and calling upon
the district attorney for the southern dis
trct of New York to institute proceedings
by injunction or otherwise to prevent its
being carried into effect, fell like bomb
among men interested in Chicago rail-
roads. While none of them were directly
interested in framing the agreement, all
the presidents of trunk lines residing in
the east have been making provisions for
weeks to carry it in o effect, and since the
first intimation. just after the agreement
was signed, that 1t might he considered IL
legal, no question of its being in accord
with the law has arisen This belief WIS
strengthened by dispatches in which
Chairman Morrison was quoted as saying
it could not be legal held In advance OF
the operation of the agreement that is ille-
gal. Never doubling that IL would become
operative January ], officials have been
preparing to work under It. The reorgan-
iza'iou of The Central Traffic association
practically has been effected.
1t is an open secret that for the last six
weeks ra es on eastbound business have
been badly demoralizad With every cut
was associ ated the fact that the Presidents
agreement was to become effective the
first of the year. ahd it was limited that the
reductions were made in order that per-
centages might be evened up and all start
on an even footing under the new agree
ment. That the old compact was being
violated railroad men admitted. Now that
Abe new one is declared imperative be-
serious.
RAILROAD REORGANIZATION.
New YORK, Dec. 2S.-The reorganization
committee of the Fort Worth and Denver
City Railway, representing the first mort
gage bonds, has prepared plan for reor-
gauization of the company without fore
closu e. COUPONS will be stamped for five
years from December |, 1898, at the rate
of per cent. o 10 past due coupon for
per cent will be paid in cash. For the re-
manning four past due coupons and the
annual 2 per cent interest deferred for the
next five years, total of % per cent,
bnndh lders Will receive STOCK to the extent
of $275 for each $1,000 bond, to draw
preferential dividends, if earned, at the
rate of per cent. More than two-th rds
of the enti'e issue of bonds had been de-
posted under the recognizing agreement
of last June.
THE LAW STEPS IN.
WASHINGTON. Dec. 2S The prosecution
of the joint traffic association of Eastern
trunk lines recently formed in New York
,ity wi be begun Immediately by the
government. The decision of the inter-
state commerce commission holding the
association 10 be violation of inter state
commerce law has been forwarded by
Attorney, General Harmon to the United
States district attorney for New York with
an official communication. and the latter
will endeavor at nee to prevent the carry
ing out of the agreement.