The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-11-22
THE PROPOSED RAILWAY POOL

NEW YORK, Nov. 2l.-Henry Clews. in
his weekly financial circular, speaking oil
the proposed railway pool, says:
''On Thursday an important new factor
unexpectedly came to light in the form OF
an agreement between the eastern trunk
lines to once more try the policy of pooling
| their earnings. The compact appears to be
almost identical with that abandoned a
few years ago; and, in view of the una
nimity and even enthusiasm with which
it seems to have been agreed upon, it is
| inferred that the managers regard it as
promising remedy for the constant cut
| ting and the low rates now existing. This
harmony of purpose moreover suggests
some promise of the compact being pre-
served To all such hopes, however, there
is the drawback that the interstate COM
mission has emphatically declared against
the legality of the pooling principle. The
managers are of course aware Of this. and
it is to be presumed they have reasons of
some weight for adopting a course in fiat
opposition to the declared purpose of law
OF congress.
"What those reasons may be is best
known to themselves. 1t may be that they
have cause to hope that the supreme court
would not support the decision of the
suppose the new administrat on may prove
less vigilant than the present one in en-
forcing federal interferences. with state
corporations; or that, out OF consideration
of the demoraiized condition of railroad
competition when unchecked by some sort
of legislation, the commissioners may be
trusted to abstain from enforcing the law:
Or it may be that they have reason to hope
that congress can be induced to modify
the law in their favor, which hope is en-
couraged by the fact that the Interstate
| commission are now considering whether
| they shall recommend congress TO author
ize pooling. Perhaps, however, the most
probable and immediate reason is that the
roads desire to avert competition during
| the period of the worlds fair, and deem
| this the best means of doing
I so, leaving the subsequent fate OF
| the "poop' to be determined according to
circumstances. Even should the federal
| commissioners interpose. absolute prohi-
| bition might be STAYED off by legal tactics
until the close of the fair. aud in that way
| the immediate object might be secured
| Probably, therefore, the new compact
means primarily the procurement of this
| transient advantage, and something more
permanent later il it should prove attain
able.
THAT this is the immediate purpose
seems to be more probable from the fact
that the arrangement was made at a meet
| ing held to consider measures for iusurlny
| harmony pending the harvest of the great
fair traffic and TO prevent its profits being
wasted through reckless competition.
There appears to be nothing III The com
pact 10 certainly prevent the outbreak OF
cutting" which has so far brought all
attempts at regulating competion To an
inglorIous end. III any penalties are pro-
vided, they can have little or no force, for
il1.,.l fhay Iva II
law. 1t can be nothing more than "an
agreement between gentlemen; and al
though the gentlemen IN this case have had
experience that should have deeply i'm
pressed them with the Importance of
maintaining good faith, yet the, idea OF
honor" that prevails among this particu-
lar order of gentlemen Is uot worth much
as guarantee of compacis. There Is.
however. one good reason for hoping that
these engagements may be kept for the
transient period here supposed: for all
the roads viii have their full capacity
taxed to the utmost TO provide Tor the
millions going TO Chicago anu for the in
crease in high class freight. there can be
No rational motive for cutting Rates 1t Is
certain that, II the agreement stands any
chance of proving permanent, ii VIII be of
immense value TO the trunk roads for
their freight rates re now cut down to ex-
travagaurly low iiguies, goods coming un-
der the 40 cents rate being extensively
carried at 10 TO 80 cents.
This news. though incomplete in It's
details, had the Immediate effect OF
strength hening railroad stocks and stayed
the selling movement which had arisen
from the reshadowings of the uew tariff
policy. Il remains TO us seen what effect
this action of the eastern roads may have
upon the western. The latter have bceu
deslrous OF reso ing 10 "a pooling arrange
ment, but have act bsd the courage 10 do
80 in opposition TO he adverse decision %
the federal comm sslou. Perhaps the pre-
cedent OF the eastern managers may
siffen their nerve. Ia any event. tie
worlds fair Will be a great boon 10 the
railroads; aud that consideration can
hardly fail to ac, as an important aIfset 10
the unfavorab!e Influences which are ex-
pecied TO prevail auriug tue period o.
transition 10 the new tariff policy.
Iaat Wall street conStra-s the latter