New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-30

NAMES so much that according to some man
ayers. the property is virtually confiscated Yet
the lowest and least remunerative rates re-
ouired by any State enactment or board are
not as low as several Of these same managers
made in their reckless competition with each
other last year The worst peril nearly all
admit. comes from the construction of too many
competing railroads in partially settled North
western States and Territories, but each OF
these same managers has had hand in that
work, and no one seems to have carefully con-
sidered how far the Interstate Act ITSELF with
its enforced revolution in modes OF business
and channels of transportation, operates as a
cause of excessive railroad building.
II is probable that clear headed railroad man.
ayers will not consent to expose their COM
panies to more severe legislation by engaging
in a trust. If combinations or consultations
become inevitable, common prudence will prob
ably dictate some other form than that. The
earnest arguments in favor of repeal OF the
clause prohibiting railroad pools, however
strongly they appeal to the interests OF stock
and bond holders, do not seem likely to Affect
the public mind at the West, or to remove the
feeling to which that prohibition was due.
II has been and is the prevailing Western be-
lief that competition between railroads did
secure a great reduction in the charges for
transportation which reduction the railroad
pools arrested. The Western farmer or legis-
lator thinks the railroads can be trusted not to
ruin themselves by excessive competition or
by doing business at less than cost, and when
he observes the prices OF stocks and bonds IN
Wall Street, and the glowing statements OF
railroad managers respecting the prosperity
and the prospects of their companies, it is not
strange that the Western opinion is exceeding
ly persistent
WHY have the great corporations invested
enormous sums, partly borrowed at high rates
of interest in building new competing lines
and pushing branches and extensions across
sparsey settled States and Territories, II there
is no profit in the transporting business? Inc
Western people know that large part OF the
additional mileage recently built has been con-
structed directly by the powerful corporations
or with their aid, and for the purpose OF Sc
curing for them a larger share in the Trans
portation of the future. If this policy mas NOT
been utterly senseless and criminally waSteful'
the corporations at least expect rich returns III
the future-returns so rich that they are willing
to take heavy risks and forego much or all OF
their profits for the present Watching this
policy, the Western man not unnaturally ln1eS
that the railroad managers know what they
are about, and are in fact tightening Their
grasp upon enormous wealth in the 1uture even
while they are talking glComily OF possible
bankruptcy. The railroad managers them-
selves have thus done a great deal to promote
hostility to their corporations and to impair
Western confidence in their statements ana
their latest talk about trusts, combinations ana
leealized pools is peculiarly calculated to make
their situation still less satisfactory.