New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-12-23
RAILWAY POOLS AND LEGISLATION.


The prohibition of rail way pools in the Inter
state Commerce bill is not likely to be very
effective for good or evil "An honorable I'M
derstanding between gentlemen" such as the
anthracite coal companies made some time
ago. respecting which the auth rites OF Penn
sylvania are trying to get satisfactory tesfl-
mony, is difficult thing to prove. If it were
prohIb ited by National Legislation, the dihl-
Guilty would be much increased; railroad mana
gers who would then agree at all would take
care to do it in manner 80 informal as 10
evade the law, its penalties and its inqusltions.
But the apparent impractica of fully en-
forcing the measure, if enacted, is not conclu-
sive reason against its adoption. Though i'm
perfectly observed, it might do some good.
The broader question is raised by the railway
opponents of the Interstate COmme ce bill,
whether the formation of pools ought to be
checked whether these agreements are In
any respect opposed to the public interest,
and whether they should not be encouraged
and by law rendered binding. MIR. Charles
Francis Adams whose services on the Massa-
chusetts Railway Commission entitle his opin-
ion to weight, has for some time advocated the
legaz,tion of pooling contracts, and main
tanned that they are beneficial to the public.
IL is evident that the railroad managers gen.
orally believe that the organization of pools if
not in all respects successful, has at least saved
the companies from severe loss. and served
their interests materially. They urge, also,
that scarcely any other thing has been cheap
ened so much as the transporting of freight,
since the railroads began to combine for the
suppression of unregulated and destructive
competition among themselves. The public
sees that rates are marvellously reduced, and is
told that this is a consequence of the pooling
system, or at least is not retarded thereby.
The popular impression that railroad pools
are merely conspiraces against the public well
fare is not sustained by the history of transpor
tatio, in this country. The object is to check
a competition which. if unchecked. proves
ruinous TO Che company and harmful In the long
run to the public. The aim is therefore not In
itself hos lie to the public good, although the
companies might, by agreement to MAINTAIN
excessive rates. do injustice to the people. But
it is also true that the railroads have not been
able to agree upon excessive or unreasonable
rates They have been able at times to MAIN
tain rates so far as to secure handsome profits.
But as direct consequence honest investors,
dishonest blackmailers and desperate rivals
have been encouraged to build new railroads.
The era of pools is the parent of the era OF par
allel railroad building. The trunk lines are
beginning to realize that the sort of competition
which they have thus brought into existence is
more dams ging to them than the sort OF com
petition against which they sought protection.
The new roads fight for division of the traffic
Until they succeed the pooling companies have
to face losses. As soon as the division OF
traffic has been made, and rates are restored
with profits for all, other new roads are pro-
iected, and the end no one has yet been able to
discover.
Prohibition of pooling, therefore, would be
by no means an unmxed injury to the rail-
roads, if it could be enforced Nor is the build
ing of too many railroads a blessing to the
people. The sinking in the work of transporta-
ton of more capital than can be proftably
| employed therein is the reverse of blessing.
| The disturbance of values, even in old and
| well-settled States, is not blessing. In short,
1t is not at all clear that the railroads are not
making great mistake in clnging to the pool
ing system, and the prohibition, although not
fully effective, might do more good than harm
to the railroads themselves, if it should dis
courage combinations to which they are prone
to resort, but which really injure them more
than the public.