The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1877-10-19
The New Railroad Freight
Pool.

The railroads all over the country
have just got though holding a cOnven-
ton which has resulted under the man.
agement Of Vanderbilt, Scott and
Gould, in the strongest and most extern
sive,and probably the most permanent,
combination to raise and keep up
freIghts, which has yet taken
place. Under this spool" the result to
produces and shippers Is practically
the same a. II all the railroads were
owned by one man, and he was exer-
eising undisputed authority to exact
whatever freight rates he sees fit to
charge. The railroad capitalists hay
ing quelled tho strike of their en-
ployes, and feeling that they have
power enough to tax the people gen.
orally to any extent they see fit, may
now consider themselves as the ruling
monarchs of the country, and In COM
bination with the bondholding interest,
may easily maintain a condition of
affairs which will force nin9-tenths of
the people to labor mainly for the sup
port, emolnment, and grandeur, of the
other tenth. That's the way 1t looks,
certainly. Tho following circular
from q leading Chicago shipping
hous eexplains the nature and strength
of the present freight combination:
MISSOURI RIVER FREIGHT POOL.
We have usually been prompt to adj
wise our patrons of changes in freight
rates, but since the meeting on the
26th ult. Of the Southwestern Rate
Association" we have waited to see
If 1t was really meant to carry into
effect the cast iron agreement then en-
tered into. We are convinced that
such Is the intent of the parties, and
therefore give below, for the benefit
of shippers In localities affected, as
briefly as we can, description of the
old and new pool, and the reason for
supposing the present will be perma-
nent. We do not pretend to be per-
fectly accurat as to percentages but the
old plan was to divide tie net earn
Ings. For example: If the cost of do
Ing the business was calculated at 60
per cent of receipts (and they made an
allowance for that, which lett the road
Q good profit, and a road collected
In q given time 100000, it would re-
tain 100000 and put into the pool $40
600, of which it would get It's share.
Suppose there were four roads, each
would get 100000 whether they did
any business or not, making for
the one that carried the freight 10000,
which made 1t q great object for them
to cut the rate, or allow overlooking,
and bill ut less weight.
Now, see how the road will come
on the present arrangement to pool the
gross receipts. II one road should
carry all the freight and collect $780,
600, and divide with the other three e,
1t would receive but $25 900, as COM
pared with 10000 under the old pool.
So that 1t is evident the competition
will be to see show not to do iE" now.
But to insure each road doing it's Just
proportion, an agent is placed at Kan
sas City, whose duty it will be to APP
portion the cars to each road entering
that city, Leavenworth, AtchisOn and
st. Joseph, and the roads are compell-
ed, under heavy forfeitures, to furnish
their quota. The officials argue this
Is just to all, as 1t gives no one an adj
vantage over another; and while few
who enjoyed special privileges may
complain, the larger number will ap-
prove. It removes competition, anC
the business will seek the market that
legitimately pays the best.
- UNDERWOOD q Co.