The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1881-12-08
Railroad Pool.

&AIS Is I 1AACANuuOIs tAC0 DI661u0ut VI
the Louisville and Nashville railroad, in
recent argument before committee Of the
Alabama legislature, gave the following ex-
PLANTATION of pool, as it is understood by
railroad men:
"A pool is really an agreement between
competin lines at any given point about to
this effect That if all will agree to maintain
the equal rates, which have been generally
arrived at by long struggles between the
competing markets, in which each has had
oil the benefit Of Its geographical position
and advantages, than any line which does
an excess of business, above tho average of
former years, and above what would seem
it's natural share Of the bushes, shall COM
pensate the line which is deficient in some
satisfactory manner. 1t is hard to explain
how such an effort to prevent discrimina-
tons and lamentations should become sc
generally misunderstood.
mo Nun can study the railroad problem
intimately without becoming convinced
that by far the greatest good Of the greatest
number would result. from what the rail
road managers attempt in their pools.
The Misrepresentation of their policy and
efforts doubtless come from individuals
who had been able to turn railroad wars to
their individual advantage. In such, wa,s
large shippers always have an advantage
over small ones. Their business is sought
small shippers are disregarded. The large
shippers in those markets where railroad
wars have been common are therefore often
10th to see any arrangement by which rates
will be maintained, however low those
rates may be. In fact, large shippers SEX
dom care straw whether rates are low or
high: their profits for the handling are the
same in any case. Their whole care is to
secure rates for their markets lower
than for those for competing markets,
or rates for themselves lower than
their neighbors. The large ship
pers, too, are men of influence and ability,
and it is they who usually cry out against
the pool. So the position Of the railroad
managers is that between the upper and the
neither milestone. The public cry out, and
justly, against fluctuations. rebates and I'M
Just determinations. There is no power
on earth to prevent fluctuations, rebates and
unjust determinations but to remove the
temptation to commit them. The only way
to remove the temptation is to make some
arrangement eQq.ivalent to what is called a
pool; but against the pool, the large ship
pers h "a vf ap especial antipathy; The pool
cuts off their rebates and special rates. No
10 " OOuASr SuV eAOAA OA49 DOSouoO oA4Oy SoA
always be made by some part of the line
which lies out of the state, so that state law
can never reach it. And even general
law by congress can be evaded in hundred
ways.
"There'have doubtless been complaints
of tho wrongs made by pools. but these
complaints are universally that the rates
are not positively high, but only compar-
atively high, as contrasted with the rates
from some other places,
Questions of this sort are of the great-
est delicacy and difficulty of adjustment.
The twelve apostles themselves could
probably never give satisfaction if they had
to adjust the rates between twelve COM
peting markets. It is in fact, to my mind ,
rather doubtful question whether there is
any such thing as justice in settling such
question. TO illustrate by an example
away from home, ia which none of us have
any enterest or feeling.
Boston, for instance, is farther from
Chicago than New York is. Now, should
the principle ever be adopted of making all
rates pro rata per mile, the rate from
Chicago to Boston would be SO much high
or than the rate from Chicago to New York
that all the foreign trade now going through
the former rort would be diverted to the
AesseoAs AAAos " SONApO, "ONAlu No I'LL 0uOC.
nous injury to every interest of Boston.
In fact, no such principle ever could be en-
forced, for the lines injuriously affected by
it would never submit to it, but would work
at rates far below the cost of transportation
for years rather than siro up their through
business forever.
"But whatever criticisms may be made
upon either the purposes of the railroad
pools, or upon the practicable operations
which have taken place under them at any
point, they have been resorted to by the
railroad managers as the only solution
which their experience in these matters has
been able to suggest; and thai any imper-
fectlons or abuses have been the result Of
neither caEelessness nor indifference, but
Of the inherent difficulties Of the problem
itself.
And as an earnest Of their honest intent
to correct the abuses, and to arrive ct Just
and fair solutions of questions between
conflicting interests, the principal of arbi-.
tration OF such questions, by the most dis
interested and competent tribunals obtain
able, is universally recognized and adopted;
and ifeither the state or the national gov
ernments would provide such tribunals the
railroad managers would be only to glad to
avail themselves of their services. -"