Fort Worth daily gazette. (Fort Worth, Tex.) 1882-1891, 1884-05-18


rying 1t on make their case 80 peculiar
that composition necessarily affects
them in n way different to thar In
which 1t affects Others. so different
that IL may he destructive To them
where To Others 1t would only be slim
ulating and wholesome. Some of the
reasons which will be assigned far
this Will be recognized by every one as
possessing force. In most kinds of
business, competition easily and natu.
rally regulates the extent TO which a
business shall lie carried on; persons
engage In 1t only when they think
they see q reasonable opening for profit;
they push the business with men and
money when the promise OF success Is
such as to warrant it, and, when II IL
hot, operations are reduced; some, per
haps, go out Of the business, and capi.
tai seeks other investments. The mer.
chant, when competition becomes too
severe for him, may turn farmer or
manufactures; the manufacturer may
change his line Of production or tenn
porarily reduce IL; and these changes 1t
Is generally possible to make without
serious loss. Very seldom the whole
plant for one business will be useless
for any other. The general results of
CT mpetition will therefore be such
that, while the public will have the
benefit of low prices, general euuili-
brium of demand and supply will he
maintained without bringing disaster
to individuals.
Much of this Is az different, as posi-
BILE In the railroad world. The invest
ment for the purposes of q railroad Is
permanent, and Is available to single
purpose only. If 1t cannot be made
available for the transportation OF per-
sons and property II is a wasted invest
ment; as much so ms if IL had been
cast into the sea. But when the CON
: ruction of railroads is entirely unre.
stricted, there is always a tendency to
build more than are needed, and more
than can be made profitable The rea-
sons for this are numerous. Railroads
are a great local convenience; every
village wants one or more; and II is
easy for plausible men, who see indi-
vidual profit in their construction, to
convince the local community that a
road which will accommodate their
local needs must be profitable. If the
law permits levy OF municipal taxes
IN aid of the local scheme. 1t will not
be difficult to obtain popular vote In
lis favor; If taxation for the purpose is
not allowed, the popular credulity will
be appealed to with assurance of great
increase in property from the building
of road which will give easy access To
market and men will give freely in
the expectation that in one way or an
other they will receive large returns.
Roads have thus in many cases been
constructed at general expense in
which a capitalist for the purpose Of in
vestment would put nothing. But
roads are also built under an expecia-
ton, on the part of those who originate
and push them. that in some way the
originators will he enabled to make
them available for their individual
benefit, regardless of their real value
sometimes through holding the control
and managing them; sometimes by
forcing the owners of other roads Ia
which they would be rivals to buy
them. For these and other reasons
roads are brought into existence fol-
which there is no adequate demand,
and whatever eople have been in'
duced to put in them is Il dead loss. In
some other countries the government
endeavors to provide against such
losses by refusing charters for roads
which seem not to be called for by any
public need, or which can only bt
profitable by rendering worthless some
existing line; but the policy in this
country has always been to leave rail
road building practically unrestricted
and the best and most useful line
| though it may fully accommodate the
| public need, is never secure against
being ruined by the construction OF
rival line which scheming aud unscru
pulous persons induce the credulous tt
furnish the capital for.
| But such roads when constructed re
main, and will be operated so long as
the cost of operating can be paid from
from the hands OF stockholdef,
into those of bondholders, ant
though even then they pay nothing
upon the bonds they will continue u
be operated This is the condition o
yery much of the railroad property o
the country to-day; hundreds OF mil
lions of the capital invested in IL Is ap
solutely sunk, but the plant remaini
and the road will be operated, though
those whose property II represent
neither receive dividends upon thel
investment nor have any reasonable
prospect that they ever Will. III thei
company to which the panKrup
company is rival snail not only en-
deavor to pay operating expenses ant
the interest on its Indebtedness, pu
also to pay dividends to Stockholders
il must do 80 in competition with ON
whose managers expect to pay no ulVl
dends. and no interest except as per
hans they may find IL necessary 10 III
so In order TO retain control. oucb
state of things can exist IN no ouslnes
from which transfer OF capital ]
possible; and the competition IL create
instead of being "the life OF trade,
Is as 10 this business destructive OF IN
canital invested in 1t. 1t becomes
matter of necessity, then, that the com
petition which is SO likely to be &c
structiye should be restrained witnii
limits which will admit OF reasonaoi
and reliable prosperity; and some CON
, mon arrangement between the ROAD
seems TO be the only means yet iouh,
Inv which this can be accomplished
The common arrangement agreed upo,
for the purpose is that of pooiiog;
, hos crown out of the necessities OF 10
case. and, while 1t is necessary 10 Ia
railroad companies, it is uLjust 70 y
one. This, briefly and Imperfect
, stated. is the railroad view OF tn
necessity and propriety OF pooling COZ
pacts. .....,
. II is proper to add to this stateme q,
that the want OF harmony pe." ;,s n, ",