The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1889-10-15

only the ch1ef erVan OF modern III
dustry, but in its own history aptly
illustrates the growth of that indus
try. The development of our gigantic
system has been marked by
three well-known stages: First the
era of rapid and speculative construc-
ton: then a period of sharp compe-
and lastly a period of steady
accelerating combination or consoli-
dation. In all this it has but moved
in advance of, and to a large extent
made possible, a like development OF
modern industry. There, too, Ill
many lines of production we have cen
more or less clearly defined the same
succession of periods.
In the first period the dominant
idea everywhere was to build or to
secure as many railroads as possible.
Charters we're 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 transpor
tation is we'll illustrated by a toast,
given by an Ex-Governor of Massa-
chusetts at the celebration of the
Boston and Worcester Road, July,
1885. "The railroads We are will,
ling to be rode hard by such monopo,
les"
1t was generally supposed that the
law of the common carrier and of the
public highwoy, cooperating with the
natural law of competition, would
amply protect the public. But when
u railroad lines were fairly com
pleted and began to control the trans
p~ortation business of the country, it
was soon discovered that these laws,
alone or together, entirely un-
able to secure the just and equal ser.
vice to which the public had looked
forward, and it 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 it
can mount into the saddle.
Especially was it developed that the
natural law of competition, on which so
much was risked, had but a limited
and very often a disastrous applica-
ton.
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 separate
links into large trunk lines ushered in
an era of railroad wars, or wars of
rates, which disordered business, made
stocks and securities worthless, and
produced for the time being a code of
railway morals in which low cunning
and treachery to plighted faith were
ruling principles.
To escape the fearful losses incurred
by these wars" to save the property
of solvent roads, and to protect honor
able managers from the rivalry of
bankrupt roads and the treachery of
dishonorable managers, and to give
some stability to the transportation
system, it became a matter of neces-
sity, and almost of public policy, for
the companies to agree among them
selves upon some terms by which they
could conduct their business as sue
cessive or competing carriers. This
led at first to secret agreements,
usually between the general freight
agents, whereby territory was divided,
earnings apportioned Or traffic distri-
buted. In this way grew up the well
known "pooling system" which came
into almost universal use, and had
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 ad-
justment of all business in which its
members were jointly concerned, and
which, under the superintendent OF
Col. Albert Fink, seems to have worked
satisfactorily to its members, although
an effort to establish a like association
in the Northwest proved a failure.
Undoubtedly similar efforts to reach
a common basis of business dealing
were frequent, and more or less sue.
cessful in other occupations than rail
road transportation, but the railway
"pool" vas Immediately seized upon
as a model, and the public began tc
hear of the anthracite "pool," the. oil
spool" the steel-rail spool" and
many similar combinations in other
branches of business. 1 might profit
ably stop here to examine some Of
these "pools," for they were the fore
shadowings of the "trusts," but ]
must pursue the subject of railway
management still further, not only
for the light it throws on these latter