The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-12-08
RAILROAD NEWS.
A New Combination Succeeds
the Traffic Association.
Vanderbilt and Morgan in a
Gigantic Railroad Trust.
POOLS AS PIGMIES.
VIII Dictate Rates and Distrib-
ute All Traffic.
Santa Fe and Rock Island Said
to s'Be Wiling
POOLS AS PIGMIES.

New York, Dec. S.-Before the details
necessary to wind up the affairs of the
Joint Traffic association, which was de-
clared unlawful by the United States
supreme court, are complete, a new
combination has sprung into existence,
and its scope IS so much greater than
the old railway pools and associations
that they appear like pigmies in COM
parison.
The first step toward forming new
combination has been taken. 1t consists
of an alliance between the Vanderbilt
lines and the Pennsylvania system. By
means of this alliance, and the bankers
affiliated with these two great systems,
the railroad rate question in the whole
country is solved. The knowledge that
such union could be formed accounts
for the eQUanimity with which the big
men of the country viewed the decision
of the court.
Every railroad between New York,
Boston, Philadelphia and Baltimore, as
well as all other Atlantic ports, and
Chicago, St Louis and other Mississippi
RlVer points will be under the domina-
ton of parties to an alliance between
the two principal systems.
The New York Central, the Lake
Shore, the Boston & Albany, the West
Shore ana the Chesapeake & Ohio are
controlled absolutely by w. K. Wander
bilt, while that family has holdings in
the Lackawanna, and dictates, as well.
Lehigh Valley, which is controlled by
J. P. Morgan & Co. That firm of bank
ers controls the Erie and, in conjunction
with Speyer & Co., the bankers, who
handled w. K. Vanderbilt's Lake Shore
deal, will decide the rate policy Of the
Baltimore & Ohio Mr.. Morgan, too,
is interested in the New York, New
Haven & Hartford, which has a mo-
nopoly in the New England states, and
the Southern railway, which owns one
half of Dixie.
Thus the several interests have a sin
gle interest between the east and the
Mississippi river.
Every railroad In the Pacifc-N North
west is controlled by the same set of
railroad men and bankers. There the
community of interests is equally strik-
ing.
West of Chicago J. J. Hill is the CEN
trail figure, but he is also a stockholder
in the Baltimore & Ohio, and it is eX-
pected that he will play important
part in its operation. Then, too, Mr..
Hill dominates the Great Northern
Steamship company from Duluth to
Buffalo. Thus lake and rail' rates on
grain from the Northwest to the sea
may be held in hand.
The Santa Fe, or Atchison, as it is
called in the east is without an eastern
outlet from Chicago, except over Van
derbilt-Pennsylvania lines. 1t, perforce.
must agree on transcOntinental rates.
The Rock Island, which is a Flower
stock, and which has terminals at Chi
cago, Kansas City and Denver, is in
fuenced by the same fact, so also is the
Burlington with the same terminals,
plus Omaha.
The weakest point in the whole COM
bination probably is the position of
these railroads, each OF which touches
Chicago and Kansas City, two import
ant terminals. But to strengthen it.
w. K Vanderbilt is now perfecting de-
tails of a deal to control the Chicago &
Alton, a railroad from Chicago to Kan
sas City, where it connects with the
Union Pacific. Such a purchase, too,
gives to the NanderbiltS absolute con-
troll of a line from New York to Kansas
City.