The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-23
CONSOLIDATION SCHEMES
BASIS OF RECENT TALK CONCERN
ING CERTAIN LOCAL LINES.
Supervisory Control of Rates and OPP
c., ii. & ID. and MOnon.

J A railway official high in authority and
"a party to the late schemes from which
grew the rumors of d consolidation of the
Big Four the Monon and the Cincinnati,
Hamilton & Dayton. yesterday gave some
Information to Journal reporter which can
be relied on He said that at the outset
consolidation of the roads was not contem-
plated. and that the scheme was not of as
recent origin as many supposed. Three
years ago. James McCrea, first vice presi-
dent of the Pennsylvania Company, called
together the presidents and general man
ayers of the several roads interested and
told them that something must be done TO
secure better rates in the Chicago and Ohio
river territory east of the Chicago & East
ern Illinois road or the Pennsylvania Com
pany which had strictly adhered to rates
up to that time, would instruct its freight
and passenger representatives to go into
the field and get business regardless OF
rates. This led to the securing OF better
rates for time, but soon the old methods
were resumed. and the Pennsylvania few
months ago instructed its representatives In
the territory reached by the Big Four, the
Monon and the Cincinnati. Hamilton &
Dayton to meet any rates made by COM
peting lines and they have been doing So
Meantime the higher officials of the Penn
sylvania presented the situation to the
Morgan syndicate and asked that changes
be made which would result in a better
maintenance of rates. The syndicate people
took the matter up, and. with the capitalists
interested in the Pennsylvania. attempted
TO purchase enough of the stock of the
Nonon and the Cincinnati. Hamilton & Day.
ton to control those properties and cause
them to work in unision with the Big -Four
in rate matters, the Pennsylvania Company.
through Vice President McCrea, offering to
let the three lines above named fix rates
number of trains TO be run between COM
peting points, such as Cincinnati and Chi
cage, and to dictate the entire policy of
operating the lines in this territory the
Pennsylvania agreeing to accept and live
up TO any plan adopted. The Morgan-Penn-
sylvania syndicate have not as yet been
able to carry out the plan, but said the
Official Il am confident that the thing will
be accomplished before many months. The
greatest trouble is experienced with the
Cincinnati Hamilton & Dayton, the holders
of the securities and stock being disposed.
as they naturally would to get all the
money possible out of the deal So far as
the Monon is concerned the matter is prac-
tcally arranged; as to action on the part
of the Cincinnati, Hamilton & Dayton, ]
think the conditions are daily becoming
more favorable for perfecting the arrange
ment which simply means that the stock
will be held by parties who will fix paying
ates and see that they are maintained and
will fTrther reduce the train service to
less extensive basis. arguing that there is no
necessity for twelve trains each way be-
tween indianapolis and Cincinnati, and
ten trains each way day be-
tween Cincinnati and Chicago, the business
OF which could easily he handled with half
that number. The chief aim is to put rates
on a fair paying basis and hold the pas
senger and freight representatives to the
tariff fixed upon. I am confident the Joint
oreration of the roads will come but this
does not mean consolidation.