The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-08-06
)Chesapeake & Ohio Takes 0v-
or c., c. & [. and'Reduction
Ct Chicago Rates Will Be,
Abandoned.
LENGTHY NEGOTIATIONS
hAvE,BEEN NECESSARY
Bio -Four Had to Be Appeased
Or Rupture With c. 60. 0v-
er Rates Probably Would
Have EnSued.

Offisial announcement will be made
within q short time that the Chicago
iCincinnati and Louisville will be taken
lover by the Chesapeake and Ohio on
November 1. Plans for the deal have
tboen completed. and it has already
lbesu arranged that the Bradford road
which is now in the hands of a receiv-
Yer, win. for ct least two years. be
ioperatod independently as the Chica-
lgo division of the C. and o.. and that
ut Will be given the use of the latter s
terminal facilities, including an en-
trance into the Central Union station
Iat Cincinnati.
The negotiations have been on for
several months. but a number of OBJ
etacles have been encountered. and it
was not until within the past few
weeks that 1t was possible to- remove
khese. In the first place. the manage
ment Of the Chesapeake and Ohio was
Nnwflling to antagonize the Big Four
10 the extent. of causing breaking
off Of the close friendly relations ex-
listing between the two companies. in
wolving traffic arrangements that
have for number of years 3een most
beneficial and profitable to both. 1t
took considerable time and liberal
exercise Of diplomacy to SO adjust
matters as to admit of q continuation
pf these relations after the G. and O..
had entered into direct competition
with the Big Four on Chicago busi
mess. for which the former has been
Ithe latter's heaviest feeder.
Passenger Rate Counted.
The question of the c., c. and LIS
It1ifferenttal passenger rate to Chicago
fentered largely into the consideration
and proved one Of the most serious
)BtumblinE blocks. The Big Four in
terests were unconditionally opposed
TO IN arrangement that would give the
&C., G.. and Z. access to the Central
tUnion station and allow it to continue
10 earry Chicago passengers for S. as
Agaln0t the standard fare Of S. This
sdiffeeenaad has never been Officially
granted the Bradford road. but 1t has
larbitra11ly assumed 1t. and It Is an
Iopen secret that as result OF this the
&C.. G. 4 L. has been a thoyn In the
uide Of no& only the Big Four but the
Dther Chicago lines. being able to
gathNr In not an inconsiderable
amount Of business that otherwise
would have gone to the other lines
Tho insufficient terminal facilities and
ithe remote and inconvenient location
Iof its depot has been about the only
comfort and consolation the competi-
Itors Of the c., G. and L. had in the sit
nation, a. its claim to being the short
rest route. and therefore entitled to a
differential, had to be conceded. It is
not surprising, therefore, that the Big
Fsur held out long and determinedly
Rgainst allowing the c. and O. to pro-
kide itself with local facilities equal
In every respect to its own and allow
1t to continue as cut-rate competi-
tor.
No More Lower Rates.
It Is said that 1t was upon this OBJ
oection that the negotiations came
nearest being knocked out. but 1t was
pointed out that the ultimate result
would be better for the Big Four to
have the c.. G. and L. standardize its
rate, have access to the Central Union
depot and enter into fair. equitable
and legitimate competition for the Chi
cago business than to perpetuate the
present bargain counter policy of the
C.. G. and L. which it is acknowledged
has made more or less tnroads on the
traffic receipts Of the standard rate
Chicago lines. Concessions along this
pine are said to have been made. and
at is understood that when the c., C.
and L. becomes the Chicago division
of the Hawley c. and o. system the
s'save a dollar" rate to Chicago will
be eliminated and the competition for
business will be conducted on an
equal basis so far as the fare Is con-
Cerned.
May End Receivership.
The present organization Of the c.,
e. and L. except in so far as the re-
Cefvership is concerned. will not be
disturbed. The c. and o. will furnish
equipment and under the guardianship
pf it, own management will allow it
10 work ont It's dyn finaNcial saliva
tion. This. however, will be assured
because of the vast amount of traffic.
both passenger and freight tonnage.
that will be fed to It by the C. and O.
The c.. C. and L. will form an import
ant link In the Hawley system.
BY just what means and under what
conditions the Big Four has been ap-
peased has not as yet been disclosed.
but certain II Is that the ties that have
20 closely bound the two roads In har-
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