The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-19
AMERICAN RAILROAD POOLS.
rl"cidation OF Business Factor of
Nastfmportance to Whole Country.
rouRrH PAPER.

|
Pools usually mean the sales of shares
In ventures which are To be decided 10y
chance or fraud, while railway pooling
means certainties Of which the public has
iuii fore knowledge, and only the rail.
ways incur the possible hazards Rail.
way pools do not specify rates. because
ihey cover fixed terms during which
changes In rates may De made necessary
Dy law, by altered tradc. conditions by
rates at other points, etc. The rate
making function and agreement Is,
therefore, entirely distinct and separate
from the pooling agreement
Senator Platt OF Connecticut, SAID in
1887; What is pools 1t Is simply an
agreement between competing railways
TO apportion the competitive business
that, and nothing more.
This being.tr legalized pool agree
| ment would read substantially as follows,
| III all respects which touch public interest (:
We agree To report to joint officer
ana always at the tariff rates, weights
ana classiiications applicable thereto, AS
| from time 70 time legally published, filed
and approved. all tonnage carried by us
between the specified points.
AFTER each company shall have re-
tained 90 per cent OF It's gross receipts on
its own tonnage the sum of the re-
mainders shall bo divided between them
monthly In proportions agreed or arbi-
trated.
"All questions of difference hereunder
except those OF law, shall be decided by
arbitration. /"
Two unassailable Transportation prin-
ciplos uphold such agreements, and at
tention should bc drawn thereto at the
outset
Some standards Of rates must be reason.
able and, being SO flxed approved by the
Interstate commerce. commission legally
announced To forwarders before ship
ments and uniformly collected from con
signees, the railways then challenge proof
of any possible public wrong from the
division of such legal proceeds between
them as they may agree Only rates affect
the public interest Their apportionment
Is not just public concern any more
than sharing the cost of constructing and
operating joint double tracks, union
depots, belt lines etc.
Pools are moreover for the public well
fare, because they stop solicitations for
rebates and the payments thereof they
transfer unconsigned or assenting tonnage
first or, II not that, money, 60 the car
riers III deficit from the acknowledged
overplus oi their associates, who are there
fore the only parties who can bo injured
they account for all the included traffic
at the tariff rates, and If rebates are never
theless paid which produce an excess of
any carrier's due tonnage, the company
thus unworthily securing such excess
must pay not only tho rebates, but the
excess tonnage or money balances TO its
associates.
Pooling stops Rebates.
Pooling stops rebates. because each
party thereto shares the proceeds of OBJ
served rates and the comforts of manage
ment and peace with law and conscience
which good faith, thus reinforced, brings
TO both associates and rivals.
The agreeing carriers also share the
included competitive traffic in substan-
italy the proportions of their previous
carvings, while shippers continue TO
choose their routes because only the traffic |
OF asserting forwarders is used tor ton
mage equalization. Pooling com bines the |
facilities Of the agreeing lines as II they |
We're one company organized to carry the |
tonnage of a community as impartially as |
they would that of one. great firm. II one |
railway charges all the members of one |
firm alike, 10 is also the best corporation |
and national policy for all companies To |
charge like rates between the same points |
to all firms.
Pooling secures stable rates for all. not
only at traffic centers, but those local
points which depend thereon, whereas
small shippers at both central and tribu-
tary points now incur two disadvantages
they can neither sell Co or compete with |
the large shippers mt large points, nor can
they ship against them with equal profits
from small points where the rates are
usually held firmly.
Pooling gives the public the united
facilities of ali lines at times of casualty
Or emergency.
Proper emulations are stronger under
pools which assure equal rates because
only improved facilities, speed. courtesy
and promptness attract and retain busl-
ness Hereunder. whereas rebates are now
more relied upon.
Pooling simply seeks To conduct COM
petitive business upon the impartial rates
and rules observed at local points, where
applications for preferential cut rates are
not entertained, but where applications
Tor public reductions of rates are con
'idered and decided after conferences and
usually upon the merits of the causes.
Pooling Prevents Frauds.
Pooling secures uniform inspections for
5he detectiCn Of false weights, misdescrip-
ions, etc, by which honorable merchants
nay be defrauded by Others who are not
md thereby further tends TO put all
patrons upon equal shipping conditions.
There were l35, 600 cases of misdescription
BY forwardcrs detected by the railways
It three seahoard cities last year on west
pound through freights.
The following facts sustain the fore
going averments:
Former pooling actually diminished re
bates, and would have stopped them be-
orc now had IL been so LOCALIZED ~ to
Justify long gterm agreements. III honesty
vas not always observed under pools, it
= no argument aqainst them. They did
rot cause bau faith, but checked it. and
determinations would have increased
Without them.
No laws have stopped conquests repris-
us or crimes among nations or persons, |
therefore, union and laws are the more
necessary. IL would be as proper to allcge
hat the customs laws have failed because
lndervaluations, dcfalcations and snug
,llng continue. Importers who under
'alue goods To evade customs laws will |
nisdescribe their wares To railroads TO |
ubvert uniform and just transportation
harges. The government uses all its
,ower to stop such frauds upon its rules
nd revenues, but the railways can rely
My upon their voluntary and separate