The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-05-23

ngeneral proposition ] do favor legislative ac-
kindred and. humanity which reach us from
Cnba, and Hawaii, but who can advance the
Z H0% SSs 81 "n the o %a1l sSS t Saps We peI %Sss ESt
non.partisan, commercially wise commission will
be PIT In charge Of tho subject for future time"
q commission H. good for the tarih, why
not 9 commission to do some Of the appointing
Changes in the offices arc the expressions OF
q Presidential election, and the commission OK.
ISIS IN the Cabinet. II the different Secretaries
mace nn the appointments as was done TIL Clcve-
lahu came here, our business would be advanced,
sentatiyee correspondlngly Followed. The Presi.
conRested It, and how he can emember the facts
and statements made to him on such a variety
Of 81 9sas S, Is a wOn nd m to me; I think the sSmo
ti9ns and applicants around the Presidents
private halls and within his personal rooms
great once, the public Impression Of The Presi.
asnsy, and tRe Prssideht's health and intel;
done with the appointing, and the President 10
What is your Pooling bill
The immediate purpose Of tho bill 10 to
authorize pooling, to enable railroads to mnin-
tain reasonable rates. What the shipper wants
but also that his competitor in business is pay.
INF the same; II one secretly secures from the
an unjust ADVANTAGE sv I, his isA so m%aass SaT The
accomplishing this It will not only benefit the
r ran. but VIII also benefit the whole busi-
Are mot tho railroads prohibited by law from
maaEsh asb di asa min nrmn;s AND giving y, .E rebates Snnttoossr !,
Commerce act passed in 1887. but although so:
we're penalties are provided for the violation Of
that law, yet Its violation Ia constant. Our rail
roads have grown from small beginnings. At
the start they were short and small; finally they
came, into sharp competition with each other
and there was much improvident railroad build.
ing; In consequence some roads could not be.
nn60r natural anndftinn0 nFnnArIv nnarnf ahs
they struggled for business; the stronger and
more favored roads would. however, take the
the business; having al! to gain and nothing to
lose, especially whore they were already ineol.
Of rates, shippers passes. and various other de.
vices to attract business. Tho. solvent roads.
finding their business leaving them and ascer-
to hold what they had and recover what thoy
had lost. These rate wars were frequent, and
lions OF rates disturbed all kinds of commercial
business. Lower rates than were profitable lost
MiV eon ysSae ses to mia sc" proper Of srf bette Gese asS and
others went into the hands Of receivers. and tn;
Gould not the railroads help ,themselvesi"
The aIs. steps taken By the rsilrosd man.
ing lines to enter Into traffic agreements between
competitive, points. Certain .rates for each road
were to DO charged to all alike, and there was
not to be any cutting of rates, giving Of rebates.
or making Of discrimination Of any sort. There
were not at this time any statutory provisions
ct oenmon law. II these agreement had been
Kept they would have accomplished the pur;;
R ESs' chief Gs p par mA of she rn Si shs FSsas sns
act. but unfortunately they wero not kept:
the rivalry Of the roads continued; the weakest
Lines strove to take business from the strongest;
railroad managers, finding that mere trafic
examinations. then resorted to pooling. The first
ieI5. sftsr tho strikes and riots of that year"
petitive points, having first agreed upon their
f fand or Sg poel t al th see earnings MIN po OF al sn' The q ro oS%m snl
tertng into the pool, and then divide that agRre-
ago. which poscentsSe IS based upon the Previous
earnings Of the roads; that is to say. II there be
three roads In 2 pool, and it be found upon ex-
the three roads. that one road has been doing 20
and fia'i third i do only ys e per cent? sne.1 their r. ae gre aeerti
viii b. that after a given time. one year or two
s sss5s, they sycC will divide ,n , their gross r.s or cssr9 asss
reea was I? account to the pool for every pound
ibid these pools work we'll 7"
The motive to cut rates was removed. since
the road that would cut rates or grant o rebate
p p1aae nfTfss s poolIn sAs srr 10 sS se Is W, Mor G%n out snt
the most satisfactory results. were becoming
P 9Sg9 = a. end fnd, we're becoming GomhSrc EXTENDED ts9 !. when hen. II
understood BY tho railroads.. they We're not very
pool they associated i With gambling. sp ~sar
r.. sss'ns in asT aas''' 6 %a% aes s''1 Act was was sef passed Snsn
form th Rates express IF esp RssRiSs' p D5 issfssin Ssoo Hni;
the pooling e!poss SS heavy penalti es:
ment, &C. This law did not say anything about
tratdc agreements, and inasmuch as there was
NO prohibition Of such agreements. upon tho en-
discontinued; but traffic agreements were still
continued without question as to their validity.
was enacted. This law prohibited every kind OF
conspiracy, agreements; contracts,o or combina-
lions In restraint OF trade.
"The question was at once raised that under
this law. traffic arrangements wore invalid; but
me railroads were advised by their counsels that
aess T roVsl lsS did I'D Tho hot 1s sRDly t. t6s% %m thst IIs hs,
and that trafhc aRreemcnts were legal. although
they might restrain trade. SO long as they
%ulations. Pursuant to this advice the railroads
continued traflc agreements after the law OF
the Supreme Court, under what is known as tho
TrSnS,M Missouri Freight Association Cas-"
enjoin the Trans-Missouri Freight Association
from maintaining a trafic agreement which had
supreme Court, by a majority Of one, held that
tho Antitrust law of 1890 prohibited every kind
Of restraint. and that 1t was no defence that the
Trans Missouri Freight Associations agreement
was only a reasonable regulation. It was de-
Slared invalid because prohibited by the Anti.
Of all this prohibition of pooling by the
Interstate. act of 1887 and
q prohibition OF traffic agreements by tho
Supreme. Court decision OF 1897. The re-
suit 10 that, notwithstanding the Interstate
commerce. proytsions. under which 1t was sought
70 bring about the purposes all have been seek
ing to accomplish, the roads are RENTED TO
where they were before any Of these methods
we're applied; There 10 : special, necessity
Tered, or some similar legislation. without It
the roads cannot prosper. neither can there be
any general prosperity, In my Judgment"
IL Is charged that this bill creates trusts"
Trusts arc obnoxious, because thor methods
are secret; because they seek to control the
price OF the products In which they deal: and be-
cause they strive to cut out all competition. A
railroad pool has none of these Objectionable
features as the rates to be adopted must first be
approved by the Interstate Commerce Commits.
sion appointed hy the President and confirmed
6e composed Of men OF high character and a
high order Of ability corresponding to their i'm
portant duties. It is their business to under
stand the subject. as they are commanded by the
statute TO see to IL that only just and
fair rates arc allowed These prices or
rates arc required to DO published and