St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-12-03
THAT NEUTRALITY-SUSPICIOUS.
mo- the Editor of the Globe,

To the Editor of the Globe.
Is the proposed railroad combination in
tended to be a trust, pool or clearing
house system? In your opinion. could the
railroads effect any combination that would
relieve them from the supervision of the in
terstate commission? Please answer. III.
Duluth. Nov. 80.
If we understand the plan of the pro-
jeeted railroad combination, we do not
think it would come under the head of
trust, pool or a clearing house sys-
tenn. A trust is an agreement whereby
a number of firms OF corporations are
practically merged into one. A pool is
an arrangement by which tariffs are es-
tablished and traffic and receipts distrib-
uted in proportions agreed upon. And
clearing house has nothing to do with
contracts or prices, but is simply an as
ISOLATION formed for the purpose of IA
cilitating the settlement of transactions
already perfected. AS we understand
the plan of the projected railroad COM
bination, its principal objects are as
follows: First, to secure complete re-
ports of all competitive traffic carried
by all parties to the agreement; second,
to prescribe the rates, rules and regu-
lations which shall govern freight
traffic and insure their strict mainte-
nance by aIlmemberS; third, t0prescribe
the character of the service; fourth,
to deprive subordinate officers en-
tirely of the power to prescribe rates,
this power to be delegated to a board OF
managers, composed of one member Of
each corporation represented in the
combination: fifth, to create ap eXecu-
tive board for the decision of questions
upon which there is a disagreement
among the members.
Thus it will be seen that, if the COM
bination is organized on the plan out
lined above, it would not in the ordi-
nary acceptation of the term be either
a trust or pool, or even a clear
ing house system. 1t would be
new thing under the sun, al
though it might ultimately de-
velop into trust. Yet surely, under
the proposed plan of organization, the
combination would be subject to the
supervision of the interstate commits
sion. If 1t were not, still there would be
nothing to hinder congress from extend
ing the powers of the commission so as
to reach the combination. 1t is now a
well-settled principle in the jurispru-
dence of this county that railroad corpo-
rations are of that quasi-public nature
which authorizes the interference Of
the lawmaking power where these
corporations encroach upon the pub-
toto 1@, IL
thing in the projected combination
menacing to the public interest, con-
gress would unquestionably have the
right to interpose the legislative power
of the government in protection OF the
people.
We are of opinion. however, that the
projected combination will never mate
rialize. There are too many natural
forces at work in opposition to it. The
managers of prosperous railroad lines
do not care to surrender their property
into the hands of a few railroad kings
with headquarters in New York. A
strong natural limitation upon the
power of any such combination is sup
Piled by the waterways, which no asso-
citation of railways can eliminate. The
railroads centering at Duluth Or ST.
Paul would not care to have their rates
fixed by an executive board in New
York. The lake and river competition
would be matter which the local man
agement here would alone be capable
of dealing with. What is true of these
two cities is also true of many other
railway centers. So we are inclined to
think that when the railroad managers
from all over the country put their
heads together and talk over these
matters big majority of them will be
of the opinion that the management of
each separate line is most capable of
taking care of its interests. Thus the
GoULD-HUNTINGToN scheme to gobble
up all the railroads of the continent
will probably die a-bornin'.