Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1882-01-12
A Railroad Pool.


Mr.. E. ?. Alexander. vice president
of the Louisville and Nashville rail
road, in a recent argument before a
committee of the Alabama legislature,
gave the following explanation of a
pool, as it is understood by railroad
men:
ga pool is really an agreement BE-
tween competing line 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 compet-
ing markets, in which each has had all
the benefit of its geographical position
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. It's hard to explain how such
IN effort to prevent determinations and
fluctuations should become so general
ly misunderstood.
"No man can study the railroad
problem intimetely without becoming
convinced that by far the greatest good
Of the greatest number would result
from what the railroad managers at
tempt in their pools. The misrep-
reservations of their policy and efforts
doubtless come from individuals who
had been able to turn railroad
wars to their individual advantage.
IL such wars large shippers
always have an advantage over
small ones. Their business is sought
by rebates and private concessions,
while small shippers are disregarded
The large shippers in those markets
where railroad wars have been common
are therefore often 10th to see any ar
rangement by which rates will be main
tanned, however low those rates may
be. In fact, large shippers seldom 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
OIAO Viz pOOIs kOO TIE DCSlUIOu
Of the railroad managers is that be-
tween the upper and the neither mill
stone. The public cry out, and Justly,
against fluctuations, rebates and unjust
determinations. There is no power on
earth to prevent fluctuations, rebates
unjust determinations but to remove
the temptation to commit them. The
only way to remove the temptation is
to make some arrangement equivalent
to what is called a pool; but against
the pool, the large shippers have an
especial antipathy. The pool cuts off
their rebates and special rates. No
law could cut them off, because they
can 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 a general law by congress can be
evaded in q 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 contrasted
with the rares from some other places.
"Questions of this sort are of the
greatest delicacy and difficulty of ad-
justment. The twelve apostles them
selves could probably never give salts
faction if they had to adjust the rates
between twelve competing markets. 1t
is, in fact, to my mind, rather doubt
full question whether there is any such
thing as justice in settling such a ques-
ton. To illustrate by an example away
from home, in which none of us have
any interest or feeling:
"Boston, for instance, is further from
Chicago than New York is. Now, should
the principle ever be adopted of making
all rates a pro rata per mile, the rate
from Chicago to Bosten would be so
much higher than the rate from Chicago
to New York that all the foreign alade
now going through the former port
would be diverted to the latter. This,
of course, would be an enormous injury
to every interest of Boston. In fact, no
such principle ever could be enforced,
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
give up their through business for
ever.
"But whatever criticisms may be
made upon either the purposes of the
railroad pools, or upon the practical
operations which have taken place
under them at any point, they have
been resorted to by the railroad man
ayers as the only solution which their
experience IN these matters has been
able to suggest; and that any imperfec-
tions or abuses have been the result of
neither carelessness 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 ar
rive at just and fair solutions of ques-
tions, by the most disinterested and
competent tribunals obtainable, is uni
versally recognized and adopted; and
if either the state or the national gov
ernments would provide such tribunals
the railroad managers would be only
too glad to avail themselves of their
services"