The Indianapolis journal., 1897-04-10
ANAGGRESSIVE RAILWAY
THE BIG FOUR WILL HAVE A PART
RAIL AND WATER ROUTE EAST.
The Pennsylvania Company Calling in
the JeffersOnviIIe, Madison &
indianapolis Bonds.

1t was announced recently that the Bis
Four would spend considerable money il
improving its terminals at Sandusky ano
endeavor to increase its business at tha
point with the aid of lake service. but
more important steD,has been taken in that
relation by the company at Cleveland. Chiei
Engineer Kittredge has plans prepared ant
work will be commenced at once OH al
elevator at Cleveland which will have q
capacity of four hundred thousand bushels
of grain. The Bee-line and the St. Louis
division of the Big .Eeur have always beer
unable to meet the competition of the Wa
bash and the Toledo. St. Louis & Kansas
City in connection with the lake service
but construction of the elevator and other
improvements the Big Four will make al
Cleveland will enable it to meet any compe-
tition the lines named may offer. The
satisfactory results of erecting elevators
and other shipping, liabilities at Newport
News by the Chesapeake & Ohio, which
works in connection with the Big Four
have opened the eyes of President ingalls,
to the value of connection with water
routes. and the business which had been
developed at Benton Harbor through the
Big Four establishing lake connections with
has still more strengthened Mr.. Ingalls, in
the belief that it is a master stroke to have
a water connection with which to NEE,
competitors. Some Years ago the building
of an elevator at Cleveland was talked of to
help the Bee-line. but after some talk the
matter was dropped but now il is to be
built and put in operation early as pos
sible. 1t is believed it will largely increase
the business of both the ST. Louis and Bee
line divisions of the Big Four. With this
elevator completed, when Newport News is
blockaded, grain can be sent to Cleveland
taxed there will be, plenty of boats at Cleve-
land ready to carry tire grain across the
lake. The fact is thatIit will place the Big
any aggressiveness Of competitors without
delay or figuring with some other connec-
tion to push its business.
Recovering from Their Panic.
The legal advisers of the Western roads
are rapidly recovering from the panic into
which they were thrown by the recent de-
cision of the Supreme Court regarding the
right of railroads tpEform associations.
They have advised the committee that is
now working on the new agreement of the
Western Passenger Association that there
is nothing in the decision to prevent the
roads from granting reduced rates when
ever they choose, and they declare
that the roads can agree to make or main
tain any and all kinds of rates as long as
the rates do not interfere with the con-
venience of any individual road They base
this assertion on the supreme Court de-
cision which stated that the reasonable
ness or unreasona blepess of the rates did
not enter into consideration at all. There
could not be any agreement which did not
to a certain extent interfere with the free
dom of action of all the roads parties TO IT.
Just in proportion to the extent which IL
ad so ttcton of wit trade and
lawful. Therefore no agreement OF any
kind affecting competitive rates could be
legally made. Now the railroad attorneys
reason that any agreement that does. not
restrict the action of any OF the roads is
not unlawful, and that ii does not become
unlawful until il does so restrict Under
this advice the old agreement of the West
ern Passenger Association can be allowed
to stand with the exception or the clause
regarding the maintenance of rates and
that providing for the division of traffic
for the purpose of maintaining rates.
The Western roads are expecting trouble
Court decision has knocked out the emf
grant clearing house as controller OF
rates. although the roads have been ad-
solicitor of business There has always
been much trouble over this class of bust
ness. and the roads of the western Passen.
ger Association have been having grea'
trouble with the Southern Pacific which
tbev declared was paving commissions toe
high for the provisions, OF the agreement
hsgs is ross @ be d able qoe 70 induce
Southern Pacific to lower It's COMMISSION
rates. and the Union Pacific and one ol
two of the other roads are becoming restiv'
under the situation. All of the roads are
looking for generalization in the emigran
business within the near future and they
see no means of avoiding IL
Reporting to the Commission.
The Interstate-commerce Commission |:
daily receiving replies TO the circular
sent out March 10 TO the thirty-four rail
roads comprising the Joint Traffic Associa
ton calling for tabulated statements of the
east t-bound shipment of grain and grair
products from Chicago TO the Atlantic sea
board. Although the time fixed for making
such reports by the terms of the circular
expires to-day. it will probably be the enc
of the month before all ara in. No dispo
sition has been shown by any OF the rail
roads not TO forward the reports. The In
vestigation contemplated by the circular Il
based on complaints made from time tC
time of rate cutting carried on by rebates
drawbacks etc. The tabulated statement:
called for by the commission require tn,
railroads TO give a detailed account, Will
names and dates of each shipment. from
Jan 1 TO Mach -. from which. the com
mission believes, any irregularities, rebates
ises immunity to such as confess violations
il is not believed there will be any dispo
sition TO conceal the facts where violation.
have occurred. These reports. however
can be made the basis OF prosecution where
they lead TO detections not acknowledged
After all the reports are in hearing will
be given by the commission. probably a
Chicago, the latter part OF May or early
I'm June.
Desire a Lower Rate of interest.
The Pennsylvania Company controllin.
the Louisville division of the Pennsylvani;
lines, formerly the Jeffersonville. Madison
* Indianapolis. has become tired OF payin.
: per cent. interest on s.. $4,000 first mort
gage bonds. They fall due In 1906. but th'
company proposes 10 take advantage of !
clause in me contract which gives then
the privilege Of redeeming them al 10. IL be