The Vermont watchman. [volume] (Montpelier, Vt.) 1883-1911, 1886-12-29
Interstate Commerce.

commerce bill in the senate is expected
after the holiday recess. Before the
adjournment last week Senator Wilson
of Iowa made lengthy speech in favor
of the bill. He claimed that "pooling"
had demoralized railroad business, and
that losses on through business had
been unoaded on the business of the
intermediate or local points. AS the
bill came from the house, he said, it
authorized by implication railroad COM
panies to charge as much for short as
for long haul. But not so under the
conference report, because it provided
that nothing in the bill should be con-
strued as authorizing a railroad COM
pany to charge and receive as great
compensation for a short as for long
distance. AS an illustration of the in
Justice of the present system, he stated
that on the 10th of this month corn was
selling in western Iowa, where it had
been a good crop, at from twenty to
twenty-five cents bushel, in Chicago
at thirty-six cents bushel, and in
southeastern Iowa, where the crop had
been a failure, at forty to forty-two
cents bushel-so that western Iowa
corn was being sold in Chicago at from
four to six cents bushel less than in
eastern Iowa.
Senator Plat, member of the con-
ference committee, who refused to
sign the report because the bill pro-
hibits "pooling," attributes the in
hibition more to the popular ignorance
of, and the popular cry against, the
pool than to anything else. He says:
The railroad pool is established to get uni
form and reasonable rates between certain
points under similar circumstances of To-
cality, supply and business. This is not
always gained. There are violations of the
pooling agreement, but, as in the cases of
crime reported in the newspapers, there are
one hundred instances of agreements faith
fully kept to one broken. This is what the
people want and what the pool aims to es-
tablish. Professor Hadey in his book points
to the necessity of combination of railroads !;
without these combinations the most natu-
raj thing to result is reckless rate-war.
The rate-war, while perhaps at first osten-
sibly for the benefit of the producer. reacts
severely on him in the end. Railroad rate
wars have been surely followed by periods
of business depression Competition and
the commission can be safely trusted to look
out for any excessive charges. On the
other hand, prohibit pooling and-whether
rate-war follows or not-the absence of
combination tends to the aggrandizing of
the large road and it's ultimate swallowing
of the smaller.
There is much diversity of opinion in
regard to the probable effect of the
measure, should it become a law. A
Washington special says:
Some of the western members who were
among the most earnest supporters of the
bill now say that they are in doubt as to
whether the measure will not injure, rather
than benefit, the farmers and stock-grow-
ers of the West, but that the sentiment in
their districts is so strong in favor of action
by congress that they will be constrained to
vote for the conference report. The truth
is that when the bill passed the house not
one man in three understood its provisions
or cared to. One thing which gives many
of the supporters of the conference report
considerable uneasiness is the suggestion
that the "long-haul and short-haul " pro-
vision, if enforced, will be likely to divert
the transcontinental traffic, as well as q
large part of the grain and meat traffic, from
the United States to Canada. But there
seems to be no reason to expect that any oil
all of the considerations involved will re
ceive weight enough to defeat the confer
ence report.
The press of the country is quite as
} much "at sea" in their views on the
subject. The New York Tribune warns
congress that it must give fair consid
Grafton to the opinions of those wht
: have invested their money in railroads
1t says:
If investors think this measure fatal t,
: their interest, they will make haste to sell
g If they believe that the measure is likely t.
. bankrupt some railroads, though no on
can yet tell which, investors will take tn
precaution to tighten their holdings Sell
ing of securities by large number of in
vestors will have an effect upon prices
5 upon the ability of companies to dispose G
: bonds, and hence upon railroad-buildin
and other industrial undertakings, upon til
demand for iron and many other products
upon the course of gold and of foreign eS
> changes, and thus at last upon the prosper
u ity of the whole country in all its interests
Congressman may believe that investors ar
il foolish That makes no difference. TIL
n sales of exceedingly foolish men affect tn
;, money market and the general prospert
as much as the purchases of the wisest con
- gressmen.
- The Tribune then goes on to say tina
) the point which influences investor
" most is the prohibition of highe
y charges for short than for long hauls-
= a point which appears to cause NOR
- confusion in the consideration of tn
=" subject than any other. The IriJm
continues:
- Many congressman do not seem to unde
stand that there is necessary difference
So noa+ batuaan tba two kinds of SprVipps