New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-08-07
THE POOLING OF PROFITS.
pFrrIJAR ORGANIZATIONS AMONG BUSI
NESS MEN.
ruprp ATTORNEY THEIR ARDITRATOE-L,wS
WHICH CHANGE NOT-A CODE OF
-ENI-JUDICIAL PROCEDURE.

., ,rover where travelling men for com
peng houses every corner oil the country com
retton is death. OF the various hu'chp'eu H'u"'S
n, avoiding competition the trust Is the beSt Known
but II is not the most effective IL mas the diSi'
yant,g. Of being exposed to attack from the power
., ,h ctat The common method generally in
,,oc, 20 an extent little dreamed Of by the average
citizen IS bv the formation OF pools.
THE machinery by which these great pools are
maintained and controlled Is really curiosity In
self government Based only on the intelligent sell
interest Of the parties. they yet rule nearly all the
large manufacturing enterprises OF thiS country "lth
rods Of iron.
These pools have also given rise TO special occupa-
ton that ~ shaping and forming them and arbtrnng
their many disputes There are several prosperous
firms of LAWYERS who devote their Whole ume TO TINS
business Usually there Is one member WHO travels
all the time and does the outside wmR lie gets
the firms together where the pool Is IN formation, ana
he travels ahOut "A species OF specmi policeman
TO prevent violations OF the pool agreement Another
member remains In the ortee, and is always at the
cou ~ tho members Of the pool 10 pass on knOtty
nolnts IIe presides over meetings OF the pool, and
his decision is final. In fact the government OF pool
might be described IS II despotisn tempered BY dis
cussOn.
The sole object Of the pool. with lis complicated
rules agreements Zines and fofeits, is simply to Keep
nrIces At nm agreed figure The first thing that the
AT
81 900 each for expenses. They receive large annual
retainer or salary for their services, and when one
firm has half dozen large combinations among Its
clients the resultant income Is large, but the amount
OF hard work that has to be done Is well worth the
money 1t IS worse than teaching school or running
a nursery II Is continual process OF soothing, Win
occasional applications OF more heroic Treatment
Each party to the pool arrangement Is required 10
put ND 10000 AZ pledge or bond that II will
rrties
When A violation Of that agreement is proved the
guilty party IS fined - 600 The question u the
alleged violation IT tiled In open court the attorney
sitting US judge. The prosecuting member presents
his proofs and Witnesses The accused MAKES his w
fence and the attorney decides Ills decision Is nhH'
MASS Of presidents has accumhi'tN IN oihoes "hee
this class Of business has been carried for years and
these precedcnts are cited and applied with al the
accuteness and ncetes Of legal distinction characters
tic Of genuine court OF Justice OF course, the pracucc l.
largely on the lines OF equity Jurisprudence The Ne"
York courts have decided In certain cases wh'h D"'e
ieen brought before Them that. under The II" "i "'
trat,on the decisions Of this tribunal upon questions
arising under tho pool agreement arr Oiiulne "p'"
the parties they having chosen II n their arpl'"'or'
Instead OF bringing n charge In open court 'h','
IS used A species OF "stsr chamber proceeding III
Which the accusation Is made In writing under OATH
IN. accuser being known only the presiding onc"r
This method Is preferred, u IT leaves ir"rr hea'
burnings. Of course, the crime oil hlgh rHSo" 90"
ts In selling below the established price. and many
are the subtrrfuges invented to accomplish this aud
stu keep within the letter Of the agreement.
Beside the maintaining OF standard price me
pooling agreement also includes the division OF profits
upon a certain agreed percentage. The fixing OF
This percentage Is the rock which many al
tempted pools split II IS based on sworn statements
Of the various firms TO The amount oil buSih'S'
they have done for IA certain nuinl"r OF years Do
fore the formation Of the pool. The sworn stA"
mets Of the parties taken In place OF the reports
Of "a chartered accountant on The theory that no
ono Is eligible to membership IN pool who cannot
be believed under oath. IL they cannot be- relied
upon to that extent there is 10 Us" OF botherng
with them.
Each pool has a stated scries Of meetings once II
month usually The doprs S'hod and The at
torney occuplc, the chair. The proceeding at thes'
meetings are usually VI tho lveEost Character ana
sometimes have been known 10 last sixteen hour
without recess or adjournment until somebody tired
out and gave mp ms sdc Of the controversy. or until
the hours of struggling resulted IN an acceptable com
promise.
Sometime said experienced attorney Who
has presided over hundreds of meeting, Of this naiur"
when an obstinate and Influential member o.
tho pod get ny ia meeting ard taN~. Gentle
men, | have done thus. ana ~ ! intend 70 continue
that policy come what may there Will h. -ilenc"
Of ten minute, without word spoken The ton-O ~
-. ~, 7 ,., ,.rsly lean ,r,c, hmm
o'''"o' -" 1''"' -, - - a.. ,r
ing ont OF hiN ohiI' f''"'''''' '' ~
whole concern Is Oh the vcrgs Of dissolution set no
, ,,u ,Jv. a., inch II a. a battle Of N. giants
""o wiz - A., -, IT, M, f,.,uontly
The dangers 10 when th'>" ppl' mus '''"
slccumb are Internal friction and external cohp'u
49,, pn.r.,c,d managers 81 these associations arr
quick dissolve them when they see "A sciiVus UNIV
enc. Of opinion arising Then n few mOn.Ls Of REX
" -, .t.t..,, cha u.hoi. crowd 10
less cu'ohs VI P'I'S wiz ~ 49,, a., !, =.
thoroughly mat they VIII gAuN '""'o "'' "'' WV
agnin Whereas II the struggle Is allowed tn 60 on
100 far ,,i,, th un.s f IN, "A -soc laon such bitter
~ " ~ va ~, - ,h. ,r.,l ao.s
feeling may BE- "hsehucf'n '."l N"rn w ', ,r
come there are wounds ,la WI MN nv n , ,er, ,nn
pool can never DE Icoi fIhou ui ~, ~, $500, 81,
OF managers "ris,s hcir mr. t,' ,, 49, ,,i,,r
inns moment Wllcn a,w on"r,r'e Ms nsni.r mr..
oio ,l -, ,,ln ,.t,h ~. e,c.utInn N the oldest