The morning news. [volume] (Savannah, Ga.) 1887-1900, 1894-12-09
Railroad Pooling.


The discussion in the House OF the bill
permitting railroads to pool their earnings
on certain conditions shows that a change
is going on in the public mind relative to
railroad combinations. At one time the
idea was quite generally entertained that
the more competition there was among
railroads the better it would be for the
people. Legislatures granted all the char
tiers that were asked for. The consequence
was that a great many more railroads
were built than there was any need for.
and more than could make operating ex-
penses and fixed charges. II was often
the case. and is stu. that a road was
projected. and even built. with the view
Of forcing another road whose territory
it invaded to buy it at an enormous ad-
vance upon the cost Of 1t. In this way
solvent railroad properties have been
wrecked. and those who owned its shares
have been reduced to poverty. There is
hardly a state in which this condition Of
affairs has not existed to a greater or
less extent.
Legislatures excuse themselves for thus
making it possible for railroad spectators
TO ruin solvent railroad properties by say
ing that competition is the life of trade,
and that the people are the gamers by
competition. But are the people the gain
ers? That is the question that is now be-
ing seriously asked in congress.
What the people want is sable rates.
It is impossible for a business which de-
ponds largely upon the rateS of freight
on railroads to be condueteds successfully
and proftably II rates are continually cut
and secret rebates given. The favored
few will prosper, but the many will be
forced into bankruptcy or be compelled to
go out of business.
They understand these things in England
better than we do in this country. There
no charter is granted for a railroad until
1t can be shown that the road is needed,
and that it can be made 20 pay dividend
on the money invested in it. Rate cutting
and secret rebates are unknown. The
rates are reasonable and stable. Every
business man knows exactly what freight
rates he will have to pay for long time
in advance. Hence one shipper has no
advantage over another.
On Thursday, in the House. during the
discussion of the pooling bill, Representa-
tive Reed. the leader Of the republicans.
said: Competition is the life of trade,
and it is a great advantage to the people
to a certain extent but when it goes to
the extent of destroying public facilities.
why then it is disadvantage to the pub
lie. What the public want to get is a reg
ulation which will give them suitable
freights and at the same time not destroy
institutions which, as institutions, are
valuable. our experience in Maine has
shown us that it is much more advantage
Gus to have united railroad which fur
nishes transportation at a reasonable rate
and furnishes every facility for IT, than
ii was to have two or three rival railroads
which were competing and cutting each
others threats. In short, the outcome of
consolidation there turned out to be far
better than any of us anticipated. I OPP
posed the consolidation, having at that
time certain ideas upon the subject which
are now quite prevalent in this House;
but watched the result, and l found that
the combination, instead of turning out
to the public disadvantage, resulted in
better stations, better trains, better trans
portation facilities of every kind"
The foregoing is a sample of the views
of some of the leading members of the
House. They show, as already stated.
that change is going on in the public
mind in respect to railroad consolidation.
The change may not be sufficiently great
yet to permit railroads to pool their earn
ings, or railroad consolidation to be re-
garded with favor, but it looks as if it
would be in time. Railroad commissions
must be depended upon for rates that are
fair for both the public and the railroads.