Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1882-01-06
A Railroad Pool

A Railroad Pool.
Mr.. Z. P. Alexander. vice president
of the Louisville and Nashville rail
road, in recent argument before a
committee of the Alabama legislature,
gave the following explanation of a
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 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. 1t is hard to explain how such
an effort to prevent determinations and
fluctuations should become so general
ly misunderstood.
mo 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.
In 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 seldomrcare
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 be-
tween the upper and the neither mill
stone. The public cry out, and Justly,
against fluctuations, rebates and unjust
determinations. There il 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 equiruleR
to what is called a pool; but against
the pool, the large shippers have an
especial antipathy. The pool cuts of
their rebates and special rates. No
law conld 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 Il general law by congress can be
evaded in hundred wa s.
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 paratively high us contiasted
with the rates 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 tbs rates
between twelve competing markets It
IS, IN fact, to my mind, rather doubt
full question whether there is any such
thing as justice in settling such ques-
ton. To illustrate by an example away
from home, III which none of us have
any interest or feeling:
tSEpcto,, for g..
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 Bost.n would be so
much higher than the rate from Chicago
t. New York that all the foreign trade
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 elther 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 thai 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 ottainable, is uni
versally recognized AMI adopted; and
if either the state or the national gov
ernments would provide such tribunals
the railroad managers would be only
too glad 10 avail themselves of their
| ser rices."