New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-18
CAPITAL RESPONSfBLE.

The railroad presidents and bankers, whose
meeting last Thursday resulted in an agree
ment showed great practical sense in one re-
spect They had preserved a stenographic re-
port Of the conference, which has been printed
for the information Of those interested, and
will probably be highly interesting in future.
But the remarks OF President Roberts, Of tho
Pennsylvania Company had an immediate sig
nifcance and produced an immediate result.
After asserting to the proposition Of MIR.
Adams that a thorough enforcement OF the
Interstate law would remove great many
difficulties which are row surrounding the
management Of railroads." and after saying
that the presidents themselves, and not subor-
dinates Of companies, should be held personal
ly responsible for any cutting Of rates, he went
on to speak Of the building of competing
lines, thus:
The construction Of these competitive lines will
cease Just as soon as they unable, through the
financial interests Of the county TO obtain tho capital
necessary to build them All Of The competitive lines
that our system is subject 10 are lnes so far as
can trace them, the capital for which has been fur
nshed largely by tho class OF promoters that has
furnished tho capital 10 build the lines represent
Until end is put TO tho stupidity Of the capital
that seeking investment and directed In this course
We cannot have cessation OF tho building on these
lines You viii pardon me for speaking so PLAINLY
on this subject, but look at IL on broad prncipo'
Unless can have some assurance mat inc cohuhueu
furnishing OF capital and promoting OF enterprises
that will parallel systems already existing VIII cease,
Il Is idle for those who have their money now IN
vested in those systems TO expect It to continue TO
produce.
Mr.. Roberts insisted that it would not do
to say that tho Pennsylvania was not engaged
in building road parallel to another, If MIR.
Roberts himself is engaged in building such
road,v that the pooling system was in his be-
lief responsible for the building of " the Nickel
Plate and the West Shore, two moro worthless
and unnecessary lines l do not know OIL" ana
that the tendency Of pooling was to promote
the construction OF rival and superiiuous roads
These declarations correspond with opinions
often expressed by THE TRIBUNE in discussing
pools and their consequences. They had the
Immediate effect of inducing Mr.. Morgan to
give pledge, on the part Of the bankers inter
ested that they would cease to promote, by the
placing Of securities, the building Of new COM
peting lines in territory occupied by roads par
tcipating in the contemplated agreement.
Mira Roberts went to the root Of the diff
Guilty The evil is not that competing roads
| try to live, after they have been built where
there is no business for them, but that some
body furnishes the money to build such roads.
The promoters and bankers who raise the
money for such lines, and the capitalists who
invest their money, have not considered that
it was any part of their duty to inquire whether
any other railroad would be injured by the
building of line proposed, or whether the
capital Interested therein would be deprived Of
profits or whether the general prosperity of
American railroads and the reputation Of
American securities would be impaired. The
question for them, according to the ordinary
understanding, has been merely whether pro-
posed line could be made to pay. II Mr.. Rob-
erts is right, the promoters are bound to con-
slider whether there is room enough for both
the old and the new line to make living
| 1t might be supposed that this would be the