The Dalles times-mountaineer. [volume] (The Dalles, Or.) 1882-1904, 1897-04-17
RAILROAD POOLING.

A strong effort will be brought to
bear upon the present congress TO
adopt some measure that will permit
transportation companies to take
necessary steps to prevent disastrous
rate cutting, which it is feared will
result, if some substitute is not
provided for the methods that we're
declared illegal by the supreme court
in its decision in the Missouri Traffic
Association case. One of the methods
that is being urged by the railroad in-
terests is to instruct the interstate
commission to regulate freight rates
and fairs, the other is to legalize pool
ing among transportation companies.
Neither of these propositions are
likely to be seriously considered by
congress, for no good reason can be
offered why competition should not be
encouraged, rather than prevented,
between competing lines.
Since the supreme court S decision
in the Missouri Traffic Association
case much has been written regarding
the probable effect it will have upon
transportation companies, and the
most that has been said has been on
the side that is inimical to general in
terest, for it has been by special plead
ers for corporations. 1t is urged that
vast sum of money is invested in
American railroads, amounting to
some eleven or twelve billion dollars,
and that it would be extremely dlsas-
trous to the investors in the bonds
and stocks of these railroads to per-
NIT unrestricted competition which
would result in loss to all holding Sc
curities of transportation companies,
since rate war, which is liable to
occur at any time If pooling is not
legalized or rates regulated. would
bring ruin by cutting off dividents OF
stockholders and make the payment OF
interest on bonds uncertain.
1t may be conceded that such re-
suit would be undesirable, still such
argument may as well be employed by
the managers of all other trusts. and
were congress at this time to concede
the demands of the railroads, all anti
trust legislation would, on the same
ground be made imperative. They
can demonstrate that any interference
with their methods would result un-
favorably to investors and decrease
their profits.
When the matter is brought seriously
before congress, it will no doubt be
urged that the general government
should interest itself to secure fair re-
turns on all the capital invested in
American railroads, by permitting
such agreements to be entered into
that will result in every road being
able TO pay reasonable dividents upon
said capital. However it will not be
difficult to demonstrate that all the
roads have. been over capitalized, and
that they could be built today for one
hell tho present worth oftheir- stcehs.
Then it will be urged that the in
nocent purchasers of railroad stocks
will be made to suffer if pooling is not
permitted, and that tits incumbent
upon the government to protect their
interests. But the government can
not protect the interests of all, hence
the holder of railroad stocks should
stand whatever loss may occur from
competition. The government does
not reimburse the merchant who is
found with a stock of goods on his
hands that have deprecated in value,
nor does it aid the farmer who has
bought land'years ago at high prices
but whose value has diminished one
half. The government cannot relieve
all who have made bad investments,
nor can it afford to pass laws to favor
railroads, laws that will prevent
healthy competition. Could it do this,
it could legalize pooling in every in
dustry, 1t could say that there should
be no competition amoug grocers,
elothiers or mechanics, whereby con-
sumers would be made to pay exorbit-
ant prices. Pooling in railroads can
not be 1egalized any more than it
could be enforced in any other branch
of business.