The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-10
AMERICAN RAILROAD POOLS.
Eiucidation of a Business Factor of
Vast Importance to Whole Country.
1sT - ApER

scN'H 'iiHes Sfthtcr. l&RltliHutc uiu 80
called watered railway stocks were roundly
$J,OOO, ODO, OU0 moro, at par The annual
interest on the national debt is about
so. 0OO. 600 and about S252, OO0 900 on
the railway bonds.
President Mckinley told Congress.
March ID, 1897, that the government
gross receipts for its fiscal years lS94-5-6,
were VI, 012, 65l, 900 and that they were
sl3S OOO, 900 less than its expenses. The
railway receipts in the same period were
~, 40S 200, 900, over three times as much.
The Interstate Commerce Commissions
report for 1898 stated that $500, coo, OO0 OF
railway bonds were in default Of interest.
being Si3, 0OO, 600 more than the outstand-
ing national bonds These defaults in
creased in 1896 Ii the interest payable
thereon averaged B per cent and 1t was
three years in default such defaults
would aggregate sl33. t00, 600, or about the
same as the government deficits in the
same period. During the same three
years railway dividends decreased S22,-
900. 600 more.
The president specially convened an
association OF the states, called Congress,
20 tell them that business confidence and
the public credit required Increased import
tariffs. The House concurred In his
opinion by 81 majority. Almost stimuli
taneously the Supreme Court declared, by
one majority, that an association OF rail-
ways, which had reduced transportation
tariffs, should not agree even TO that
end or 70 aid their credits, or TO secure
the uniformity of charges which the gov
ernmcnt maintains intits import postage,
internal tax. land and consular tariffs.
and which is required In the collection Of
all national, state and municipal taxes.
should this decision cause serious de-
plotions of railway earnings, interest and
dividends IL would Involve greater actual
loss than To pass the interest on govern
hnnHs
impair the national credit because pros
perity cannot return To the nation while
increased disasters assail It's largest
material and financial interest. The rc.
ductions of American railway values in
the markets of the world prove this,
despite reassuring national election.
The prevention or correction of that rail-
way condition lies as fully within the
power and duty of Congress as to restore
general business confidence by increased
Import rates, and when rightly understood
~ will secure public approval because
the railways desire legislative aid only to
the end that their impartial published
tariffs, which are the lowest of the world,
NAV be observed
If the Supreme Court opinion was
soundly based upon the laws those laws
must have been enacted through public
misappreheDsious which it seems essential
To remove, ara such amendments Of law
should be made instead as will secure
reasonable, impartial, public ana stable
transportation charges by the means found
wise ana neces sary to determine. collect,
apporsion and disburse the governmental
incomes which, being smaller touch
fewer people.
How the Government Acts.
The government pays Uniform railway
compensation Tor the like carriage of its
muffs. and stipulated prices for the trans
ortation OF its troops and supplies, and
it does not plead that competition" is
lessencd, trade restrained" or its cx-
penses are increased because 1t does not
receive concealed rebates from those
charges. IL governmental officers accepted
them they would be dismissed. Nor
do its officers say that as the rates they
ask for are for the government they will
exercise its power 10 compel open or
secret cut rates, or that they will divert
their large business If railways do not
corcede for the state some or all OF the
irregular things done under private guses
called competition. As the govern
ment is the largest patron OF the railways,
it, legal aid should be given, to put and
keep all other patrons upon the same
honorable plane on which IL conducts its
own business with the same carriers.
If the United States purchased the rail
ways they would continue 10 so act rs to
tier own traffic, and would fix and en-
force against all Others the transportation
lie. Conferences among parallel govern
mental lines would also DO as essential
then as now to decide and announce
their Intricate rates, and the changes IN
them required by law, by new and con
trolling trade conditions and by lcglti-
mate competitive forces.
Hallway competition as now misunder-
stood, would then cease between parallel
governmental carriers as 1t has between
government custom houses, and, after the
railway receipts had gone into one ma
tional purse they would he assigned TO
the proper departmental revenues. These
analogics represent not only present rail-
way conferences or associations, hut also
the quality and firmncss of rates intended
To be secured hy pooling.
The legal, unifying and police powers
of the government would then promptly
remove all obstacles to uniform charges
over It's lines, as in its postal management
confront tho railways are vastly greater
and increase instead of diminish, because
due power 10 regulate them Is being les
sened and withheld. New railway lines,
consultations and ombinations, carriers
antagonism, mans faults, the rivalries
of states, cities and districts the ceaseless
competition of water routes and rival
foreign countries and markets, the wrong
full depletlons of reasonable rates 10y weak
carriers and strong shippers and the strug-
giles which ensue compel diverse corporate
policies and create recurring distur-
Dances, which are not only uncorrected,
but increase Tho pooling plan of rail
way cooperation is therefore necdfnl To
secure the best public and railway accord,
and IL Is but the counterpart and cquiva-
lent of what governmental management
would be, vet IL is forbidden BY law ana
decisions, and situation easily made
better grows worse.
II government purchased only Tho
Union Pacific railway unucr the pending
foreclosure, So could Culv announce itsrates
upun the large cOfnpntltiye trallic OF that
great syStcm after the conferences auu
the methods that company now avail ot.
WITH all its power government could not
maintain indaIendcnt rates on that one
line and secure rival .raIlc for it unless
is plivbte competitor made tDe same
rates and maintained them with equal
honor and lnflexibility, nor eau that rail
way do 50 now.
such purchase might therefore be de-
sirable as a stop to Congressional theoriz-
ing upon competition, hy bringing sena-
tors representatives and governmental