The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-25
IN SUPPORT OF POOLING
A LONG LIST OF EMINENT AUTHORI.
TIES WHO INDORsE 1T.
It's Adoption Urged-PrOf. Atwater
and Others Contend that 1t Will
Solve the Railway Problem.
Q the Editor of the indianapolis Journal:

and the changes in the opinions of i'm
portant persons and commercial bodies,
constitute important testimony in the rail-
way behalf.
The Cullom committee of 1886 especially
considered pooling, and of 149 persons
whom it questioned, forty-two favored
pooling generally, twenty7siX favored le-
galized pooling, forty-one pools with legal
and other restrictions, and no witness Of
fered any acceptable substitute. For these
reasons that committee reported in 1886:
ut would seem wiser to permit such
agreements rather than by prohibiting
them to render the enforcement and main
tenance of agreed rates impractcable."
Further: THE committee does not deem
it prudent to recommend the prohibition of
pooling" and THE ostensible object of
pooling is in harmony with the spirit of
regulative legislation"
Still further: 1.-THE majority OF the COM
mittee are not disposed to endanger the
success of the methods of regulation pro-
posed for the prevention of unjust dis
examinations by recommending the prohi-
bftion of pooling"
The law that committee first submitted
therefore provided:
said Interstate Commission shall espe-
W
management or combination known as
pooling, and report to Congress what, if
any, legislation is advisable and expedent
upon the subject
Senator Cullom says that Judge Reagan,
of Texas, then chairman of the House
committee of commerce, mainly defeated
this majority of witnesses, the conclusions
of his committee and the legalization of
pools proposed in the act reported. Judge
Reagan went thence to the United States
Senate, and having thereafter become a
railway commissioner of Texas he frankly
said
Further study has caused me to believe
that the 0ifth) section may be amended SO
people by allowing the railroads to enter
into traffic arrangements with one an
other"
Among other prominent men who have
as frankly changed their views are Hon.
Charles S Smith, late. president of the
New York Chamber of Commerce; Hon.
Simon Sterne, the counsel of the New York
Board of Transportation against the rail-
ways Of New York and others.
some good points for shareholders and the
public; it does prevent to some extent UNI
Just determinations; it aims to treat all
Mr.. Sterne said of POOLS "They have
brought about change for the better
from that which prevailed before the pool
ing arrangements were made.
PROF. ATWATERS ENDORSEMENT.
Prof Atwater of Princeton, described
pools as agreements among railways "for
each to accept as it's share of the COM
petitive business at a moderately remuner-
atiVe rate common to all what shall be
judged to be its just proportion by an UNI
pire or board selected by them to make the
apportionment.'
The attention of the first Interstate-com-
merce Commission was promptly directed
to this subject, and their first annual re-
port said: THE scheme of pooling rates
or the earnings from traffic was devised
by steadiness in rates might be main
tanned" The same report further said:
The scheme was one which was made use
of in other countries and had been found
of service to the roads," and go the
absolute sum of the money charges exacted
for transportation, If not clearly beyond
the bounds of reason. was of inferior i'm
portance in. comparison with the obtaining
Of rates that should be open, equal, rela-
lively just as between places and as steady
as in the nature of things was practicable"
In 1885 the railway commissioners of Kan
Since the violent confictions of rates
consequent on rate wars between rival
lines result usually in discriminative ben
efits to a few at the ultimate expense of
the public, means should be taken to at
least moderate this disturbing element to
the business interests of the country. AS
that contracts or agreements between rival
companies to carry on Interstate traffic
are reasonable and just, should be invested
with a legal status and be enforceable with
appropriate sanctions.
The average rate for freight in that year
was 1.036 cent per ton per mile. 1t was
.S39 of 1 cent in 1885, or but 80 per cent as
much.
Judge Cooley said: 1.-THE avowed purpose
in pooling is to avoid ruinOuS competition
between the several roads represented and
the unjust discriminatory between Shippers
which Is found invariably to attend such
competition. 1t may therefore be
taken as agreed that, so far as pooling ar
rangements have the correction of this sub
iect in view the purpose is commendable."
He said further: without the aid of the
law to enforce pooling arrangements it is
devised whereby the cutting of rates can be
effectually prevented" He said in an adj
dress delivered to the Boston PISTON Merchants
was never so harmful as some persons sup
posed, and was probably condemned by law
would become or might become than be-
cause of what it was" He also said to a
convention Ito of state Re ra u isSo COMMISSION
ut may seem altogether proper that the
government should make, or permit to be
made. some provision whereby the compar-
atively feeble road may be supported, not
entirely by the resources of the district
which 1t serves. but to some extent, also
by tax upon the business or resources of
other roads A provision to this end is not
uncommon.
INDORSED BY MR.. ADAMS.
Charles Francis Adams said: THE prac-
tice known as pooling which the inter-
state-commerce act inhibits was merely
method through which the weaker railroad
corporations We're kept alive. To prevent
excessive and unequal competition business
divided that the less favored corpora
ton had some share of traffic assigned it,
Reconnaissance Walker said, June, 1893:
THE pooling of freights or of earnings is
the only practice ever known in the his
tory of the world short of common owner
ship, by which such a reSolute mainte-
for the prevention of unjust discrimination
can be secured. In other words, 1t is seen
at last that a fair division OF competitive
traffic would be an aid and support to the
regulative statute
The Minneapolis Board of Trade, in its
appeal to Congress in 1892, said: The rail-
road pool honestly administered is the ma
tural balance wheel of interstate COM
merce."
Prof Hadley said to the Commercial
better administered in 1880 than in 1877, and
better in 1886 than in 1880"
In 1893 the United States Senate referred
the subject TO the Interstate-commerce
Commission for reconsideration, Whereupon
the latter asked commercial bodies and
others as to the advisability of amending
the Interstate act as to legalize pool
ing contracts which would tend TO diminish
unlawful determinations.
Eighty-nine answers favored that propo-
stion or the entire repeal of the interstate
act.
In June 1894 a conference of commercial
interests in Washington, representing twen-
ty-three states and eighty-seven trade