The herald., 1897-06-03
Is Stopped by the Traffic
Association
PRESSURE BROUGHT 70 BEAR
TO INDUCE THE ,. q o. TO MAIN
TAIN RATES
The Valley Road Issues Its Passenger
and Freight Schedules to Points
South Of Eresno

Associated Press Special wire.
NEW YORK, June 2.-The Herald to-
day says: The Joint Trafiic Association.
through a committee consisting Of Pres
ident Thompson Of the Pennsylvania.
and President Depew Of the New York
Central, has succeeded In bringing
SUFFICIENT pressure to bear upon the
Baltimore and Ohio railroad to stop the
cutting Of freight rates and prevent the
threatened dissolution Of the associa-
tion. The committee held q conference
with Receivers Murray and Cowen Of the
Baltimore and Ohio Company at the
offices of the Joint Trafac Association
in this city last night.
They were authorized to use any power
that was necessary in order to adjust
the situation. The Baltimore and Ohio
was the aggressor in cutting rates. but
as the receivers were not a party to the
association agreement, 1t was dihlculs
to reach them both, because company
in the hands of the court ID not supposed
to be a party to pooling arrangement.
and because the Supreme Court decision
holds that all traffic arrangements
similar. to the Transmissouri Associa-
ton, are illegal.
Ever since the receivership Of the
Baltimore and Ohio officials have been
active in securing as large q tonnage
as possible, regardless of the percentage
to which the company is entitled under
the pooling arrangement. Its allotted
80 4.
cent and the actual tonnage carried by
1t during the last three months is said
to have averaged nearly twice that
amount, the loss falling on the Erie and
Pennsylvania roads. The receivers
made the excuse that they were not
members of the association and they
could not be held to the agreement that
bound the former management Of the
company. The other companies answer
ed this claim by saying that II 1t came to
scramble for business the Baltimore
and Ohio would be compelled to carry
traffic at loss and the result would be
disastrous to all concerned. The dis
content among the trunk lines became
so great at the unfair advantage taken
by the Baltimore and Ohio, because Of
it's being in the hands Of the court, that
1t resulted finally in demand being
made by certain of the other companies
that there be a re-adjustment Of tom
mage or rates so that the companies fall
ing behind would have q chance to make
up their losses.
Still others suggested q settlement in
money as the only way in which the
competitors of the Baltimore and Ohio
would ever be held to even up percent
ages. But this, of course, the courts
would not sanction and the suggestion
was dropped. What other influences
were brought to bear which caused the
receivers to agree to conform to the ex-
listing rates without being members Of
the association have not become known
The result was surprise to everybody.
Several other companies charged with
cutting rates had stated at a recent
meeting that If the Baltimore and Ohio
would restore rates they would do the
same.
The Generalization will. therefore,
end at once.
The tonnage remains to be adjusted
according to the amount formerly al
lotted under the pool.
THE OGDEN GATEWAY
CHICAGO. June 2.-In speaking Of
the rate to Portland via Sacramento
General Manager Dickinson of the Union
Pacific said:
"The effect of this will not open any
new route. We have always had two
routes to Portland, one via the Short
Line and the Oregon Railway and Navi-
cation company, the other via the Cen
trail Pacific and the Southern Pacific
The only new thing about the matter Is
that the latter will now become more
emphasized because more business will
be routed that way. We are not opening
any new line"
THE VALLEY ROAD
SAN FRANCISCO, June 2.-The new
passenger and freight rates on the VAL
ley road between this city and points
from Fresno to Hanford and between
Stockton and the same points were is
sued today. The rate for passengers
from here to Hanford is $4.65; from
Stockton, $3.50; and to intermediate
points between Stockton, three cents a
mile. The Southern Pacific rates from
San Francisco to Hanford are: First
class, $3.50; second class, $500.
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