The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-29
MUST MAINTAIN RATES
THE PENNSYLVANIA PEOPLE TEACH
THE B. x o. A LESSON.
The Decision of the United States Su-
Decentralization in Freight Rates.

That the Pennsylvania Railroad Company
does not intend to allow the Baltimore &
Ohio to secure business, even on reports of
rate cutting, is evidenced in the following
incident, related by a well-known vice pres
ident: Some time ago the Pennsylvania
and Baltimore & Ohio entered into an
agreement to carry coffee between this city
and Staunton, Va, at a rate of 10 cents a
hundred pounds There was some move
ment of the shipment when, rather unex-
pectedly, the Baltimore & Ohio traffic de-
partment was Mortified to find that the
Pennsylvania had published n rate of 5
cents on the same article. The cut was
inaugurated by General Freight Agent
Chpley, and Immediately there was an in
vestigation. Receiver Murray and Freight
Traffic Manager Wight hurried over to
Philadelphia and saw Freight Traffic Man
ager joyce, of the Pennsylvania. Explana-
tons were in order but Mr.. Joyce informed
his distinguished visitors that Mr. Chipley
had secured what he was satisfied was
proof positive that the Baltimore q Ohio
was carrying the coffee at a reduced rate
of 13 cents, as against the agreed rate of
10 cents. Mr.. Murray wanted to know
whether the Pennsylvania supported the &C
ton of its freight agent in cutting the rate
in such a sweeping manner, and the reply
was that the big company had the fullest
confidence in and did support Mr. Chipley.
The further statement was supplemented
that Mr.. Chipley and every other Pennsyl-
vania official would be supported under SIM
liar conditions, and it was intmated to
Messrs Murray and Wight that the Penn
SYlVania would cut by One-half any unfair
rate made by the Baltimore q Ohio, where
ever and whenever such evidence was dis
covered, The two Baltimore & Ohio Off
Gals returned to Baltimore, and the atti-
tude of the Pennsylvania in the matter OF
cut rates was then established.
Can Rates Now Be Maintained:
''The recent decision of the United States
Supreme Court" said general freight
agent yesterday, has been construed by
shippers to mean that the roads can now
name any rate they choose on through bust
ness as well as local and have only the
Joint Traffic Association to hold them in
line. AS a result shippers are already
clamoring for lower rates, so that they
can move their business and 1 fear that the
pressure is so strong that some OF the
freight officials will weaken and the bottom
go out of rates. The only method | can
think of to prevent demorallZauon III
rates is for the presidents OF the ROADS TO
notify general freight agents and their sub
ordinates that any general freight agent
or his subordinate who directly or lndl-
recty cuts a rate will, without ceremony,
be dismissed The revenue the roads are
now earning is ample evidence that rates
are low enough without any shadlng OF
Irregularities | am sorry the decision OF
the Supreme Court in this matter was
given as I fear il has unsettled rates Just
at a time when business was showing some
Improvement" The general freight agent
then remarked that he had been asked If
he could not reduce rates on certain
freights that have been carried at very
fair rate for the road and the shipper, and
agents were sending in to ascertain II the
decision gave any more room for naming
rates stating that they could secure some
business on a shaded rate; the agent was
afraid he would lose business unless ne
named a certain rate. That Is the way
said he 1.-The troubles in this direction al
ways begin, and l really am troubled over
the matter, the more so from the fact that
freight men who have in the past been
known as rate cutters are much elated over
the decision they as we'll as some OF the
shippers. feeling that it has let the bars
down. Enemies of the JOINT lTaI ne Assn t5s
citation saw there will now be less litigation,
and both the railroads and the Interstate
commerce Commission Will pc aple 10 ols-
charge their functions with less Irictiion
than has been known since the commission
was established ten years ago.
AGAINST the wabash Company.
The case of the state against the Eel
River & wabash Railways went to the jury
at Kokomo last night, The suit was brought
to forfeit the franchise of the Eel River
Company, whose road is now the Logans-
pogt & Detroit division of the Wabash
Company, operating under ninety-nine-
wear lease The triad lasted week and
the result will probably be a black eye for
the Wabash Judge Brownies y ena IN for his his
state holding that the Eel River had no
right under its charter to lease itself to a
connecting line; that the life of a corpora
tion ceases to exist when 1T abandons It's
property and ceases to EXCISE d1rect con-
ttroI Of its own affairs; that an organiza-
ton for the sole purpose of collecting rent
al, does not fulfill the requirements of
the franchise, and that surrender 10 a COM
peting company warranted revocation OF
The charter The jury, according to dis
patch from Kokomo will find as instructed.
The case was tried at Kokomo on change
of venue from Cass county. 1t was charged
that the Wabash acquired possession OF the
Eel River it's competitor, by unfair
means.
Refused to Join.
All the arrangements made by the exec
utive committee of the western Passenger
1nnrOEN6 and