The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-28

Lord Bramwel said of this, in 1892: ct
does seem strange that to enforce free
dom of trade, of action, the law should
punish those who make a perfectly honest
agreement with a belief that it is fairly
required for their protection"
Hon. Thomas Nj. Cooley, the first chair
man of the Interstate Commission said,
Jan. s, 1887: Pooling arrangements have
been sustained in Great Britain. One of the
cases passed upon was q pooling arrange
ment between stevedores; another was be-
tween competing railroads. Vice Chancellor
w. Page Wood said among other things:
1t is a mistaken notion that the public is
benefited by putting two railroad companies
against each other until one is ruined. -
EUROPEAN POOLS.
Professor Hadley, of Yale College, testi-
fled. in 1885, before the Senate select COM
mittee on interstate commerce, as follows:
1T is a noticeable fact that at the time
when the first series of attempts was made
to check discrimination in England the first
pools were arranged" He more compre-
hensively testified: 1T may be stated as a
fact of history that no nation has sue
ceoded in prohibiting discrimination anG
pooling at the same time. ] should be will
ing to go further and say that, as far as
know, no law has been permanently eifec
tive in prohibiting or discouraging either
discrimination or pooling except in so far
as it at the same time indirectly or directly
encouraged the other. On the continent of
Europe the worst forms of discrimination.
the worst abuses from which we suffer, are,
in general, efficiently prohibited, but it is
generally by an organized system of pools.
of whose completeness we have no concep-
ton in this country, pools that are not
merely recognized by law, but enforced by
law. The State itself enters into such pool
ing contracts on account of it's own lines
with private lines
Senator Platt, of Connecticut-To what
countries do your remarks apply?
Mr.. Hadley-Chiefy to France Belgium
and Austria. also, to less extent, to
Switzerland and Italy. In France they have
never recognized railroad competition as
principle, and scarcely have had it in prac-
tice at any time, but in Belgium and Ger
many they have tried railroad competition,
and, what is all the more striking, have
given it up as producing determinations
and only to be avoided by pools. About the
year 1860 the railroad system of Belgium
was partly in government hands and partly
in the hands of special private companies.
The private companies had longer lines, but
the government had unity of management
and had the chance of first laying out it's
railroads and choosing the best routes. The
result was an extremely even system of
competition. Competition produced the
same effects 1t has produced in America
good and bad. 1t tended to the rapid devel-
opment of the country. 1t caused railroad
rates to become lower in Belgium than
they were or had been in any part of Eu-
rope or any other country, except the
United States. On the other hand, it caused
all sorts of oppressive preferences. special
rates, special contracts with private ndi-
viduals, the government itself in spite of
worse sinner than any of the private lines
in the matter of giving special rates to in
dividuals. The people would not stand that
the government road should not make mon
ey. while a private road apparently not
quite so we'll situated, should make money.
They tried TO prohibit the competition of
private lines by law. 1t was partly ended
by the absorption of the competing lines
and partly by pooling arrangements. There
is one large private company-the Belgium
Grand Central-that has most infiexible
pooling contract with the government.
I'm Germany, also, about the year 1870
there was a tolerable equality. in Prussia
particularly, between the state railroads
and the competing private lines and there
was also a system of determinations. just
in so far the state either consolidated
with private railroads or entered into pool
ing contracts with them, the discrmina-
tons were abolished, but not until then.
They never had discrimination so badly in
Germany as we have in America, or as bad
ly as they had in Belgium even, but they
had some. and it was only abolished by
consolidation and pooling.
''At present the Prussian government
owns practically all it's railroads but there
was time when it had large pooling ar
rangements with private lines
THE Austrian government and the pri-
Vate railroad men have come to the conclu-
sion that the only way they can possibly
abolish discrimination is by systems of
pooling. The two main cities, Vienna and
BUDAPEST the capitals of Austria and
Hungary, are connected by two railroads
and the river Danube, one of these railA
roads having been built by the
state. AS soon as the second raj
road was made there was this d.
vision made which included the state
road and second road and the water route
each carrying its percentage. although the
water route was a natural water course
and so anybody who said ne would
not go into a pool would be considered 10
be a very strange man and man VINO was
making trouble.
"A still stronger instance. perhaps. is the
Arlberg tunnel. Before they had opened
that road they made a percentage division
h0tu hot ~ nd roads l.
y,ding the traffic at each end OF the tunnel.
The parties to this division were the Aus
trian state railroads. Austrian private rail-
roads Eavarian railroads two or three
Swiss private companies. railroads in other
south German states. and several French
companies that formed remote connections.
They state themselves in all that is written
on the subject that the only way of avoid
ing discrimination between competing
points is by such percentage divisions with
the authority of the government.
POOLS SHOULD BE LOCALIZED.
Professor Hadley said later in his work
on Railroad Transportation" GSS6): with
all the police power which the German gov
eminent controls, a power q hundred fold
greater than any thing we have in this
country. and with all its dread of ire
sponsible combinations. it seems that pools
are not a thing which can be prevented,
and that the only way 10 control them Is
to recognize them legal and then hold
them responsible for any evils which may
arise under their management.
Speaking of the governments OF central
Europe, he said; To secure obedience 70