The herald., 1895-02-01
THE POOLING BILL.

The railroad companies first resorted
tition and to maintain rates. The object
of course was to enhance the profits to
capital. Experience disclosed the fact
to be that parties TO traffic arrangements
did not keep faith with each other, and
that rates were surreptitiously cut
through granting rebates and in other
ways whenever road could thereby take
business from a competitor. Pooling OF
earnings was resorted to as bribe to
keep faith. This enabled the roads to
exact just such rates from the people as
they pleased, go they were not above the
maximum prescribed in the statutes of
the several states. The exorbitsnce OF
the railroads induced congress, in the
interstate commerce law. to prohibit
pooling, and since which time the rail-
roads have been compelled to rely on
traffic agreements to maintain rates.
The same punic faith has been expert.
encsd as before, and rates have been
cut as roads have been disposed, in
ment OF competitors.
They have coolly asked congress to le-
galize pooling, or to sanction q practice
that has resulted in oppression to the
people-to authorize that which is now
prohibited as contra bonos mores. 1t
would be more in accord with what the
public welfare demands for congress to
amend the interstate commerce law so
as to authorize the interstate commerce
commission to make the rates upon all
interstate traffic, and il the pooling bill
should become a law. such power on the
part OF the commission will be nscessa-
ny to protect the people from extortion.
Ia 1898 the capitalization OF the rail-
roads of the country was s11 800 900, 900.
and the gross earnings were 81, 900, 00O,'
600. The estimated expense Of operat-
ing the roads lie 80 per cent, leaving 40
per cent for the holders OF tho bonds
and stocks. The earnings OF 1898 we're
when pooling was prohibited in inter-
state traffic, and there was considerable
cutting of rates. Hence if pooling is
authorized the earnings will certainly
be increased, Railroads for years have
refused recognition OF the principle of
competition whenever they could. All
roads are hostile to it as it inserieres
with their earnings. The pooling bill
contemplates the utter destruction OF
the competitive principle in interstate
traffic, and it enables the railroads to
exact more from the people. The only
argument for it is it will tend to pre-.
serve stability OF rates.
No doubt, under a pooling law, the
roads in the entire country will ulti-
mately pool their earnings from inter-
state business. and prescribe rates that
are more advantageous to themselves
than now exist or have heretofore ex.
isted. A pooling law is a step towards
consolidation OF business. if not OF
properties. 1t ia in the line of system
ization that has been in progress for
many years, and which has accom-
plished the placing OF the bulk of the
roads in about seventeen systems. So
far az pooling tends to produce consol-
idation it will be of value, but it places
in the hands of grssping and over-cap-
itaized corporations power which
threatens the people with inordinate
demands, and that is destructive of
public prosperity. To empower the in
terstate commerce commission to make
rates that will pay expenses Of operst-
ing and maintenance and fair COM
pensation to capital, to be determined
upon the basis of present worth of the
property. would be just to capital and a
relief to the people.
Pooling OF earnings will tend to com.
bination in other respects and it may
be apprehended that il will extend to
making scales of wages, and, should the
roads com bine in this matter nearly a
million working men would be affected.
The COM petitive principle will dissp-
pear in rail way rates and in wages.