Shepherdstown register. [volume] (Shepherdstown, Va. [W. Va.]) 1849-1955, 1889-07-12

same succession of periods
In the first period the dominant
idea everywhere was TO build or TO
secure as many railroads as possible.
Charters were freely granted, capital
stock or bonds subscribed for, public
credits loaned, public moneys pledged
and public lands donated. There
seemed little forethought as TO conse-
quences, and the general feeling with
which the public in the United States
welcomed the new system of trans
portation is we'll illustrated by toast,
givenby an Ex-Governor of Massachu-
setts at the celebration Of the opening
of the Boston and Worcester Road,
July, 1885: The railroads, We are
willing TO be rode hard bv such mo-
nopolies."
Ii was generally supposed that the
law of the common carrier and of the
public highway, cooperating with
the natural law of competition, would
amply protect the public. But when
our railroad lines were fairly COM
pleted and began TO control the trans
portation business OF the country, II
was soon discovered that these laws,
alone or together, were entirely una
BILE TO secure the just and equal ser
vice to which the public had looked
forward, and il was also shown that
Governor Davis had no experience,
and consequently no foresight, as to
the hard riding to which monopoly
always subjects the people If once 1t
can mount into the saddle.
Especially was it developed that
the natural law of competition, on
which so much was risked, had but
limited and very often disastrous
application.
RAILROAD WARS AND POOLS.
At the railroad centers, where COM
petition had free play, rates were
ruinously low, at all other points they
might be, and frequently were, ruin
ously high. Moreover the growth OF
the railways and the union OF sepa-
rate links into large trunk lines
ushered in an era OF roadroad wars,
or wars of rates, which disordered
business, made stocks and securities
worthless, and produced for the time
being code OF railway morals in
which low cunning and treachery 10
plighted faith were ruling principles.
To escape the fearful losses incurred
by these wars to save the property
of solvent roads, and TO protect hon
orable managers from the rivalry of
bankrupt roads and the treachery OF
dishonorable managers, and to give
some stability TO the transportation
system, il became Il matter OF necessity
and almost OF public policy, for the
companies to agree among themselves
upon some terms by which they
could conduct their business as sue
cessive or competing carriers. This
led at first to secret agreements, usu-
ally between the general freight
agents, whereby territory was divided
earnings apportioned or traffic distrIp-
uted. In this way grew up the we'll
known pooling system" which came
into almost universal use, and mad
perhaps its most successful develop
ment in the Southern Railway and
Steamship Association" formed by
some thirty carriers in 1875, which
established a central bureau, or clear
ing house. for the transaction and
the adjustment OF all business In
which its members were jointly con
cerned, and which, under the superin-
tendence Of Col. Albert Fink, seems
to have worked satisfactorily to its
members, although al effort TO estab-
lish like association in the North
west proved failure. Undoubtedly
similar efforts to reach common
basis OF business dealing were ire
auent. and more or less successful In
other occupations than railroad trans
portation, but the railway pool"
was Immediately seized upon as
model, and the public began TO hear
of the anthracite pool, the oil
pool" the steel-rail pool" and
many similar combinations in other
branches OF business. ] might profit
ably stop here TO examine some OF
these pools" for they were the fore
shadowing Of the trusts" " but j must
pursue the subject Of railway man
agement still further, not only for the
light it throws OH these latter organi-
cations, but as being historically more
i'm the order Of their real lineage.
AMERICAN RAILWAY MANAGEMENT.
do not know how much American
railway managers learned from the
managers OF other countries. The
railroads OF England, France, Bel
gium and Germany were built almost
simultaneously with our roads, but
none OF them so entirely free from
public supervision or control a. our
own. 1t is safe, however, TO assert
that in the construction and earlier
operation OF American railroads, the
capabilities OF the corporate structure
were developed and exploited in a
richness and variety not before known
or imagined. The marks Of corpora
ton, so far as it is necessary TO state
them here, which distinguish il from
a partnership or like association are,
first, that IL is neither dissolved nor
necessarily affected by the death or
bankruptcy Of a stockhoider, nor, as
a rule, does its own bankruptcy i'm
pose any further liability on a stock
holder who has paid for his stock;