South Branch intelligencer. [volume] (Romney, Va. [W. Va.]) 1830-1896, 1889-07-12

.ou anu uegen 10 control the transpor.
talon business OF the country, it was
soon discovered that these laws, alone
or together, we're entirely unable TO
secure the just and equal service 70
which the public had looked forward.
and it wns also shown that Governor
Davis had no experience, and cosss.
quently no foresight. as to the hard
riding to which monopoly always sub.
jects the people If once Il can mount
into the. saddle.
Especially was it developed that
the natural law Of composition, on
which 90 much was risked, ha6 but
limited and very often . disastrous
application.
RAILROAD WARS AND POOLS.
At the railroad centers, where COM
petition had. free play, rates we're
ruinously low; at all other points
they might be, and frequently were,.
ruinously high. Moreover the growth
Of the railways and the union Of sep.
arate links into large trunk lines ush-
cred in an era of railroad wars, or
wars of rates, which disordered bust.
ness, made stocks and securities
worthless. and produced for the time
being q code OF railway morals in
which low cunning and treachery to
pltghted faith were ruling principles.
10 escape the fearful losses incur
red by these wars to save the prop.
erty OF solvent roads, aud to protect
honorable managers from the rival.
~ of bankrupt roads and the treacb.
cry OF dishonorable managers, aud 10
give some stability TO the transport
tation system, it became q matter of
necessity. and almost Of public policy.
for the companies to agree among
themselves upon some terms by
which they could conduct their bus
iness as successive or competing
carriers. This led at 6rst TO secret
agreements, usually between the gen.
eral freight agents, whereby territory
was divided, earnings apportioned
or traffic distributed. In this way
grew up the well.known pooling
system. which came into almost uni.
versal use, and b ad perhaps its mos,
successful development in the South.
ern Railway and Steamship ascot
alton. formed by some thirty caryi-
ers in 1875, which established cen.
trail bureau, or clearing house, for the
transaction and adjustment of all
business in which its members wero
jointly concerned, and which, under
the superintendent Of Col. Albert
Fink, seems to have worked satisfac-
torily to lis members, although an
effort to establish q 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 suc-
cessful in other occupations than
railroad transportation. but the rail
way pool was imn ediately seized up.
on as model, and the public began
to hear of the anthracite pool the
oil pool, the steel-rsil pool aad
many similar combinations in other
branches Of business. l might
probably stop here to examine some
OF these pools for they were fore
shadowings OF the trusts but must
pursue the subject Of railway man
agement still further, not only for
the light it throws on these latter or.
CARNATIONS, but as being historically
more IN the order of their real line
age.
AMERICAN RAILWAY MANAGEMENT.
do not know how much Ameri-
lean railway managers Learned from
the managers of other countries.
The railroads Of England, France.
Belgium and Germany we're built al
most simultaneously with our roads,
but none of them 80 entirely free
from public supervision or control
as our own. 1t is safe, no viewer, 10
assert that in the construction and
earlier operation of American rail
roads, the capabilities OF the corpo-
rate structure were developed and
exploited in richness and variety no.
before known or imagined. The
marks Of corporation, so far as it
is necessary to state them here,
which distinguish it from a partner.
ship or like association are, first,
that it is neither dissolved nor nee.
essarily affected by the death or
bankruptcy of stockholder. nor, as
rule, does it's own bankruptcy i'm.
pose any further liability on q stock
holder who has paid for his stock
and secondly, the important fact that
the same person may be q member of
any number of corporations, and
thus in effect deal with himself in
many capacities. The railway MAN.
ayers were familiar with all these
facts, especially with the last named.
and speedily used them for their
own advantage. Moneys for build
ing tie roads came from stock sub
scribed. the sale of bonds, and occa-
sionally from public subscriptions in
some form. AS the roads grew 10
magnitude the stockholders, and the
bondholders, who frequently lived
abroad, had less immediate oversight
and control over them, and the man-
sgernent became more secret and
autocra,ic. The boards Of directors,
or, more accurately, the immediate
managers, thus controlled great sums
OF money and great railroad proper-
ties, as also great volumes OF traffic,
Teallv in a daubIe lrusl-Hrat for