The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-04-15

to ''get business as basis for e demand for in
creased percentages. 1t is natural that when
this demand has been granted, as with the array
of figures representing actual business it must
be, sooner or later the far sighted manager
should become a virtuous supporter of iron-clad
tariffs This process, so well known to railroad
men, cannot have escaped the observation of SO
shrewd man as Mr.. ingalls,. Now, it happens
not very singularly, that these sharp managers
have educated their competitors and therein lies
one of the difficulties pool-pstchers have to con-
tend with.
Merely in way of illustration let me put a
practical question. The report of freight earn
ings for February in the several pools embraced
in the Chicago and Ohio River pool shows the
G., l., St L. & C. road behind in its percentage
in all, and very considerably in some falling
short between Chicago and Cincinnati one sixth,
and between indianapolis and Cincinnati one
tenth of its allotment Should this ratio of de-
creases exist through the year the other roads
would insist on REIMBURSEMENT of per cents
Knowing this, would the c., l., ST. L. & c. road,
panoplied In the virtue permeating its presi-
dents utterances at Chicago move placidly on
to certain pruning of per cents, or would it
follow precedentsl Not with this road specially
1t is only mentioned illustratively-bu what
would any road doa Until this question is an
swered only in one way. without any peradven-
ture, and history, contrary to her custom, con-
sents not to repeat herself, pools are wind.
The simple fact is that when there is plenty of
business rates are easily maintained when bust
ness is light they are cut-apd principally be-
cause of the incentive pools hold out for efforts
to obtain larger percentages
The FIRST thing railroad managers should-be
taught by stockholders to unlearn is the princi-
pie inculcated by Mr.. ingalls,, that railroad
properties must be managed on different rules
than ordinary business properties. One would
think that theory had been practiced long enough
On no ordinary rules can the anxiety for busl-
ness at non paying rates be accounted for. The
question a business man would natur-
ally ask is, what advantage to carry
freight and passengers when the more
carried, the more money lost2 1t is true,
as Mr. ingalls, says, that when a road becomes
bankrupt, the stronger it becomes in compete
tion with others. but this is not in the least an
argument toward abrogating of rules of ordinary
business. When shoe dealer Ito use the COM
parison in the address, goes into bankruptcy
wipes out all of his debts, and with the money
he has made by the process resumes as agent"
he can easily undersell the conservative, honest
trade. Commerce has its troubles similar to
those OF roads, though perhaps not in the same
degree-and makes its pools and its fights. Only
its fights are local; its ordinary rules, when
partially forgotten pertain SO far that cut on
shoes IL Omaha does not necessitate one in Gin
cinnati.
One bankrupt road can't carry all the business
of even one large city. Besides, if ordinary
business rules were observed-one of the very
chief being to get fair profit on cost-there
wouldn't be SO many bankrupt ropds
Inc truth Is tnat railroads nave been, In way
of superfuous building, allowed to violate the
canons of common sense; and, of themselves, in
almost every particularly their management by
men not thorough business men, in CONNER
cal sense, and not financially interested beyond
their salaries, in the extravaganza of higher of.
ficials, in false economy with employees, in
erratice relations with the public, in dishonesty
with each other-furnish continuous example
of violation of the ordinary business rules which
lead tosuccess So far as the pooling system is a
factor in this abnormal condition--and it GER
tainly is. in its inducement to work for tonnage,
regardless of reyenue--as one railroad man who
believes in applying the ordinary business rrin-
ciples on which dividends depend, with all due
repect for those who think otherwise, / am an
INFIDEL ON THE Pool QUESTION