The sun., 1899-07-08
BIG RAILROADS IN A DEAL.
NEW TORK CENTRAL AND PENNsYL-
YANIA TO STOP RATE CUTTING.

Against Conditions Established by tho
joint Trnffic. Association and Agree to
Upheld Passenger and Freight Tariffs.
A story was printed In a morning paper yes
terday to the effect that the New York Central
and Pennsylvania railroads had formed sort
OF offensive and defensive alliance; that Will
liam X. Vanderbilt had become tho largest in
dividual stockhoder in the Pennsylvania. and
that A. J. Cassatt. the recently elected President
Of the Pennsylvania. had been chosen because
he was the candidate OF Mr., Vanderbilt It was
further stated that Mr.. Cassatt was present ut
the meeting Of the Board OF Directors OF the
New York Central when the lease Of the Boston
and Albany road was sanctioned. and that he
was present, not by chance, but because the
New York Central and the Pennsylvania sys-
tens had become. to all intents and purposes.
one road. In reference to the story. Samuel r.
Galloway. President OF the New York Central.
authorized the following statement yesterday
afternoon:
At an interview this morning Mr.. Galloway
stated that there was no truth whatever in the
report this morning Mr.. Cassatt. President
OF the Pennsylvania Railroad Company. was
not present at any meeting OF the New York
Central board. His presence in the city at the
time the New York Central directors met to
ratify the Boston and Albany lease was simply
q coincidence"
Dispatches from Philadelphia yesterday
afternoon quoted Mr.. Cassatt as making the
following statement:
"Thc story is too absurd to receive any con-
sideraton. There has never been any thought
Of consolidating the two systems. The state
ment is simply rehash OF story published
somo time ago Tho New York Central Ia
practically family railroad. owned by the
Vandcrbilts. while there are 10000 stockhod-
ers in the Pennsylvania Railroad. The rela-
tons Of the two companies are pleasant. but as
the New York Central for Western traffic the
interests of the two roads are not compatible.
m wod e ont "f hs or amaea
A reporter for THE SuS learned yesterday
afternoon. from an oillrial OF one OF the roads
story printed yesterday morning. This official
an agreement by which there shall be no cut
ting Of treight and passenger rates rates BY either
With % III" Is about % what what they poSse to 'er prevent
the cutting Of freight and passenger rates by
other trunk lines. The understanding arrived
at is probably the most important railroad deal
that has been made in years. The meaning OF
it is that henceforth all the trunk lines will be
instead. as is, the case with some Of them. Of
having mIshty hard ting to kSep afoat. 80
holder Of Pennsylvania stock. but so is he a
large holder Of Delaware and l;ackswa1nq. H.
Penmaylysnia. and Mr Cassatt was not % chosen
President Of that road because he was Mr..
Na9derbiIt,s choice.
has been reached by these two great railroads
is interesting. Several years ago other roads
diIorcn,al in their fay6r Of 50 in the passenger
rat" between here and Chicago They said the
beT and Tonq soet and
that the ot her roads could not compete. The
a7 anS tsa F0ns Or e basnn
running faster trains between here and Chi
cago, The smaller roads complained again
and demanded that all excess fare Of 81 should
Association, in spite Of, the protests OF the two
which war T" was started %SS the smsM M Mcr trunk trunk
all cuts, students OF the situation believed
that i the New York Central and Pennsylvania
would take some concerted action the rate
cutting could be stopped and all the roads
would be able to make money
management OF the Now York Central system
after Cornelius, Vanderbilt was overtakcn by
entiaI and Excess as "a IA re Business. Which, he et
was an unfa air discrimination against his road.
especially since the roadbeds d and rolling stock
proved He found however. that in the Joint
Trattlc Association the Central and the Penn:
whenever they suggested relief they were out
voted.
Later Mr.. Vanderbilt gave his attention to
the freight rates. After q study of the situa:
tion he saii that II the New York Central and
PENNSYLVANIA could come to terms they. on ac-
count of their representation in the other
roads. could put stop to the rate cutting. He
also said that il the Joint Traffic Association
didn't see fit to give them fair deal on tho
passenger business the Central and tho Penn
sylyanla could. IL necessary, withdraw and go
it alone. In connection with the freight busi-
ness he found that rates were made by general
freight agents without consultation with
other officials. and that the roads had to stand
by the rates made.
when he returned from Europe he was
prepared to act and ovcrtureS we're made to
the Pennsylvania The latter road followed
Mr. Nandcrblt's lead Mt once. 1t was then de-
cidcd that in future freight rates made by gem
oral freight agents would have to be approved
by higher officials. and that the Presidents OF
both roads would have more to do with the
making of these rates than ever before 1t was
also decided that the New York Central and
Pennsylvania would not participate in rate
cutting. and that. so far aR the passenger bust-
ness was concerned. they would take such ac-
ton together ~; appeared to be for the best in
terests OF both"
Dow. Jones & Co sent out n statement yes
terday to the effect that Mr.. CaSsatt's visit to
New York was to confer with Mr.. Galloway in
regard to q settlement of the Beech Greek
trouble. the result OF which will be that the
Buffalo. Rochester and pittsburg will have n
right OF way over the Beech Creek and thus
gain access to the Philadelphia market
STABBED MS WIFE FIVE TIMES.