Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1881-12-29
a Railroad Pool.

Mr.. E. p. Alexander, vice president
of the Louisville s. Nashville Railroad,
in a recent argument before commit
tee Of the Alabama Legislature, gave
the following explanation Of pool, as
it is understood by railroad men:
"a pool is really an agreement be-
tween competing 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 COM
peting markets, in which each has had
all the benefit of its geographical posi-
ton and advantages, then any line
which does an excess of business, above
the average of former years, and above
what would seem its natural share of
the business, shall compensate the line
which is deficient in some satisfactory
manner. 1t is hard to explain how
such an effort to prevent discrimina-
tons and fluctuations should become
so generally misunderstood.
mo man can study the railroad prob
lem intimately without becoming con-
WINGED that by far the greatest good of
the greatest number would result from
what the railroad 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 wars large ship
pers have an advantage over small ones.
Their business is sought by rebates and
private concessions, while small ship
pers are disregarded. The large ship
pers in those markets where railroad
wars have been common are therefore
often lost to see any arrangement by
which rates will be maintained, how
ever low those rates may be. In fact,
large shippers never care a 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 shippers 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 unjust determinations but
to remove the temptation to commit
them. The only way to remove the
temptation is to make some arrange.
ment equivalent to what is called a
pool; but against the pool, the large
shippers have a special antipathy
The pool cuts off their rebates and
special rates. No law could cut then
of, because they can always be made
by some part of the line which lies out
OF the State, so that State law car
never reach it. And even a genera
law by Congress can be evaded in {
hundred ways.
"There have doubtless been com
plants of the wrongs made by pools
but these complaints are universally
that the rates are not positively high
but only comparatively high, as con
trasted with the rates of some othel
places
Questions of this sort are of thu
greatest delicacy and difficulty of ad
justment. The twelve apostles them
selves could probably never give salts
faction if they had to adjust the rate!
between twelve competing markets
1t is in fact, TO my mind, rather /;
doubtful question whether there is an,
such thing as justice in settling such
question. To illustrate by an example
away from home, in which none of III
have any interest or feeling.
"BostOn, for instance is further from
Chicago than New York is. Now
should the principle ever be adopte,
Of making all rates a pro rata pc
mile, the rate from Chicago to Boston
would be so much higher than the rat,
from Chicago to New York that al
the foreign trade now going through
to the former port would be divertec
to the latter. This of course, woulc
be an enormous injury to every inter
est Of Boston. In fact, no such prin
ciple ever could be enforced, for tn,
lines injuriously affected by it wouiC
never submit to it, but would work a
rates far below the cost of transporta
ton for years rather than give up thei
luIOuBu DuSlu6SS forever.
"But whatever criticisms may b
made upon either the purpose of tn,
railroad pools, or upon the practica
operations which have taken place un
der them at any point, they have beer
resorted to by railroad managers a,
the only solution which their expert
ence in these matters has been able t,
suggest; and that any imperfection
or abuses have been the result of Meth
er carelessness nor indifference, but O
the inherent difficulties of the problem
itself"
"And as an earnest of their homes
intent to correct the abuses, and to ar
rive at just and fair solutions of cues
lions between conflicting interests. tn,
principle of arbitration of such cues
lions, by the most disinterested aut
competent tribunals obtainable. is uni
versally recognized and adopted: an(
IL either the State or the National gov
ernments would provide such tribun
ais the railroad managers would onl,
be too glad to avail themselves of theiI
services"
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