New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-09-20
TO END RATE CUTTING.
RAILWAY MANAGERS WILL VOTE ON
THEIR AGREEMENT.
- ,wpopr,Nr MEETING TO BE HELD TODAY
DETAILS OF TIE PLAN WHICH HAS BEEN
FORMULATED BY THE MANAGERS OF
GREAT EASTERN AND WEST

FORMULATED BY THE MANAGERS OF
GREAT EASTERN AND WEST
ERN LINES.
The managers OF the great Eastern and western
railroads. comprising the Trunk Lane ana Ce",,A
Traffic Associations will meet In this city to-day
TO take action on one Of the most important agree
ments for the maintenance OF rates ever 'o'"u
lated In this country. This agreement was urA""
I'D at a meeting held last June. At that time
resolution was adopted 10 restore rates on '"y o.
and at the same time a resolution was passed pro
vid,ng for the formation OF a new association ana
agreement and a committee was appointed CON
slstng Of the presidents OF the lines between '"e
Mississippi and seaboard north Of the ONO River
Chauncey NJ. Depew was made chairman ou' !"
his absence In Europe NJ. Il. ingalls,, OF the CieVe
land Cincinnati. Chicago and ST. Louis Haiiroaa
Company took his place, and after weeks OF unre-
hitting labor elaborate pan for the controi ana
maintenance of rates was drawn up.
The details OF this plan have not been given OUT
but It is understood that 1t will undertake TO re-
lleve the railroads OF making rates and invest tha'
mower In a committee OF nine, to be selected from
the different companies forming the two assoca-
lions This committee will have the entire control
OF the rate-makng problem The plan Is known
to provide for clearing house system ior 'ns ~
pontment Of arbtrators, who VIII DECIDE a.i ui'-
putes and continue In force for five years Sohci'-
ing agents will be brought under the control OF the
OF the plan. for OF the great hindrances IN the
making and maintenance OF rates has been the
large number OF soliciting agents. VINO nave en-
ployed various Objectionable methods In their ei-
forts to secure traffic for their roads BY making
them subject TO the central body as this commit
tee Will be known disturbing element VIII NC
effectuay removed.
Since II became known that the trunk lines con-
templated placing the rate-making power In the
hands OF a Joint body. the scheme has been at
tackled from certain quarters with an effort to give
the impression that the plan Will create trust,
the powers OF which will be against the best In
terests OF the public. Non-competitive business Is
not Included In the operations Of the proposed plan.
and as far as can be learned. II merely regulates
rates and while the central body is empowered to
give each road an equitable share OF the traffc. II
has not power to make division Of tonnage or OF
revenues The Interstate Commerce law forbids
pooling; but the managers OF the railroads who
have drawn up the plan assert that the agreement
Will not be a pool. and some OF the leading lawyers
OF the country have declared II legal and within
the meaning OF the term pooling. understood by
It's definition In the Interstate Commerce law.
Restraints are placed upon the central body In such
a way that It's power will not be great TO
allow 1t unduly to advance rates. and according 10
the railroad men interested In the plan. every pro-
vision has been made 10 conform. 70 the law The
object of the agreement. they say will not be to
advance rates. but to maintain them on a lasting
basis.
THE Financial Chronicle" In q recent issue. had
this to say of the proposed plan: The new agree
ment so far from being prejudcial or involving
dangers the public will really be to their benefit
and advantage. 1t will give first of all stable
rates an element OF the highest Importance TO
merchants and shippers. In reckoning the freight
charges they will not have to allow for a variable
factor. At the same time there will be the assur-
ance Of absolute equality Of treatment as between
different shippers. The preferences and allow
ances made TO favored patrons will be done
away with. In this the scheme Will help to
carry the purpose and intent Of the interstate
law instead Of being antagonistic TO H."
For n long time the trunk lines have
been unsatisfactory Traffic rates, both passenger
and freight. have been demoralized more than once
and all efforts 10 reach settlements by the heads or
the different companies have been futile. Tne
Trunk Line Association and the Central Traffic
OF rates. but all their earnest efforts and seem
jngy cast-iron agreements have had little effect.
except for short period and there has been ap-
parenty attempt to keep agreements because
there has not been sufficient power to make the
companies work for their common interest
Last January the situation became aggravated;
Established tariffs were cut In all directions. ana
a meeting OF the presidents OF the roads was called
forfeit was attached TO it. and all roads running
out OF Chicago were to pay q a ton for all freight
carried by them In excess or their percentages
These payments were to go to the weaker lines
But even this scheme failed. perhaps there were
doubts to its legality. and In June the same
Old state of affairs existed Then 1t was that the
companies realized the Importance OF stability IN
passenger and freight rates. and the interest taken
in the subject by J. Plerpont Morgan at that time
helped to clear the situation and TO stimulate me
different companies make further efforts, the
result OF which will be shown In the agreement
which will De presented to the presidents to-day.