Sacramento daily record-union., 1883-09-26
WHAT Is A POOL -?
COLONEL FIEK's EXPLANATION OF RAIL
ROAD POOLS.
Why They are Made-Their Bench. to the
Pubic-American Rates ths
Lowest Known

| ana hducaHony slttlng In new YORK, tnere
appeared last week Colonel Albert Fink,
the father of the railroad pooling system
and the present Commissioner of the trunk
line pool. He gave an interesting account
of the cauBss which led to the formation
of the combinations of railroads commonly
known as pools, the methods in which
they are managed, the effects such combi-
nations have on tariffs, and other details
THE OBJECTS
Leading to the combination of the rail-
roads. he said, were largely the same as
those which compelled the Government of
this country to regulate affairs between the
States. Underlying the organization was,
too, the same principle which prompted
the formation of trades-unions -self-pro-
lection. Tae latter organizations could
therefore be no more justly attacked when
they adhered 20 the principles than toe
former. He said :" / nm az the head of
bureau i'll which there are number of
railrosds-perhaps for5y-that are endeav-
oIing to work together in matters in which
! they require cO-operaEi0u-for example,
1 and particularly, the establishment and
maintenance of uniform tariffs. The rail
road system ia so extended, and there is
SO much competition, that it mas become
necessary that there should be some organ
lied connection between them. IL would
not do, with so many railroads. to have
each one operating upon its own hook, and
MAKING IT'S OWN TARIFF
OF charges without regard to the tariffs of
others, and so they combined together and
! agreed upon uniform TARIFF and connections
| between their lines, so That the public has
the advantage OF dealing with one road
instead of twelve hundred. In the ar
rangement these are the FIVE trunk lines
| the Grand Trunk of Canada, the n Y Cen
trail, New York Lake Erie and Western
Pennsylvania, and the Baltimore and Ohio
they are the main lines, and all their con-
necsions are in the combination-Lake
| Shore. Michigan Central, Pennsylvania
and Ohio, and all the roads as far as the
Mississippi river and Chicago and the Ohio
river at Louisville between she Mississippi
| pi and Missouri rivers there is branch of
the system, comprising all the roads that
run out from Chicago-the Rock Island,
the Chicago, Burlington and Quincy the
ia also the Colorado Association and the
Southern Railway and Steamship Associa-
ton, the latter comprising some twenty
| five roads, and which I was instrumental
in organizing in 1875; this was the frat
organization Of the kind in the country
the whole combination is in the nature OF
a clearinghouse, through which the rail.
roads divide their protirg snd settle their
quarrels, big and little. The chief
WATER CONNECTIONS
Are the lakes, the Erie and Welland
canals, and the Mississippi river. These
secure cheap tariffs-regulate them on
railroads. The rates on water being
cheap, the railroad companies find the
water routes strong competitors, and are
compelled to regulate their charges largely
by what the water routes charge in order !
to secure the business the effect OF the |
water routes is not only at the points of
competition, but throughout the whole
country. 1t is hardly possible for the
water and laod lines TO combine, for it is
easier to put o1 another water route than
to build a rsilroad--so soma one always
breaks up any combination that is at
tempted "
Mr. Fink personally favored
ANY COMBINATION OF CITIZENS
Or corporations which subserved the in. |
terests of the organizers without injury TO
the public at large. The experiences of !
the world has shown the benefits to the |
public Of e combination among railroads |
This was shown in Belgium and France by |
Government control of these properties. |
Combination proved beneficial to shippers |
first, in the establishment of through |
lines and the adoption of through bills of |
lading. Bsfore that the cost of transfer |
from one road to another, and the i'm. |
position of local tsriffs, made it impossible |
for shipper to know what his freightags |
would coat unless he went TO the trouble |
Of making number OF contracts with car
riers and transportation companies. Now |!
rate to any point could be ascertained |
at any point, and when no war was in !
progress that rate WAS unvarying. These |
combinations could not exact unjust or |
undue rates from the people, because of /
the nature OF things, and in fact the rate |
was fixed in a measure not by the line |
having the greatest advantages, but by |
that which could afford to charge
THE LOWEST TARIFF.
tant or more than the traffic would readily |
hear was insured by several facts The in.
Huerce of Waterways as competitors for
traffic, the necessity of fixing rates so that
shippers might be able to make some profit
on the basis of prices established in the |
markets OF the world, and the necessity of
enabling producers to reach markets with
their products so reasonably that they
nrfr-F ktfll - |
other sections or countries. No combina.
tion of water lines similar to the railroads
was had, because rival lines would spring
up and cut the rases. and there was no
possibility of monopoly in this business.
Because of the facility of water communi-
cation with all parts Of the country, the
eagerness of railroads to secure business in
connection with such lines, and the neces-
sities OF carriers enabling producers to
compete in the markets, there could not be,
under any oircumstances, an unreasonable
tariff established. Combination and COM
petition among carriers for the benefit of
the public, Mr.. Fink said, had reached its
highest state of perfection in this country.
In proof of this he stated that the freight
charges in this country were
CHEAPER THAN IN ANY OTHER COUNTRY
In the world In 1880 the average tariff
per ton per mile was 9 10 of l cent in
this State; in Belgium, % cents in
Faance, cents, and in Prussia nearly
2 cents. Iu England it cost as much to
carry dressed beef from Glasgow TO Lon
don as il did to transport it from Chi
caqo to New York-doubls the distance.
The entire railroad system of this coun-
try, including actual outlays, bonds, stocks,
watered stock, rolling stock. plant and
complete equipment. capitalized at 81, ,000,-
600 600, consisting OF ll2. 600 miles, cost
$50 600 mile, and could not be dupli-
lated for that money. as that did not in
cude the money wiped out in bank.
ruptcy proceedings. Itsly's system cost
800, 600 per mile. Germany's from $780,
900 to Sl40. 900. and England's 5000, 600.
The exceptional cost of Enropsan roads is
the additional expense incurred in labor
and eoriDnent and the unnecessary eY. |