The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-01-25
NO LONGER NEEDED

would be no effort made to push the
bill permitting railways to form pools
to maintain or regulate rates and di-
vide earnings, one has to recall the
vigorous efforts made to secure the
passage Of the bill in the previous sit
ting and In preceding congresses. That
it was matter of large public interest
and that the. popular sentiment was
hostile to the measure was sufficiently
indicated both by the press comments
and the action of congress. There is a
deep-seated popular distrust Of all COM
binations restrictive Of competition.
whether they are in the field of trans
portation or Of trade, indicating the te-
nacity with which the feeling expressed
In the old saw, Competition is the life
of trade is still held by the mass. No
one who observes at all the world ten
denotes Of trade and commerce but
overturn this idea, working either with
or without sanction Of law and usually
in defiance of it. Whether this is an
evolutionary step in the direction Of
progress or one Of those retrograde
movements humanity occasionally in
dulges in is a question that may
be left to the present consideration of
the philosophic and the developments
Of the future.
The significance of the news item IS
readily seen in a brief review of rail-
way history 1t will be recalled that.
While the pooling bill was pending in
congress and wher it's adverse fate
was clearly foreshadowed, there was
formed joint traffic association by
the trunk lines Of the Eastern states.
Which we discussed at the time It's
purpose was to practically consolidate
the management Of the lines for the
declared purpose of securing reasonable
rates for traffic and such distribution
OF the business as would insure to each
an equitable share. Each line was rep
resented in the board or managers and
IN the supervisory executive committee.
whose decisions were to be final. What
We're reasonable rates" was TO he
nxed oy the managers or committee,
the public who paid them not being
represented or heard either by the in
terstate commerce commission or bv
unofficial representatives OF boards ne
trade or chambers of commerce.
The agreement was promptly and
vigorously attacked in the press as
being virtually a combination of rail-
ways with absolute and arbitrary
powers over rates and traffic, and
plainly violative of the Interstate COM
merce act The interstate commission
brought suit in the federal court TO an
null the compact on the ground that If
lhIrlhged on that act and that it was
against public policy. Judge Wheeler
held that the agreement was legal: that
1t did not lessen the number Of carriers
nor their facilities for serving the pub
lie, nor provide for raising rates ha-
yond those that were reasonable and
therefore, legal, and seemed to decide
that the commission could only prose-
cute for violations committed. having
no authority to bring suits In eo1,itv
TO restrain agreemnts that might bring
about violations. He held further that
reasonable, although equal or nronor-
tlonal rates for each carrier. or q nro-
portIonal division of traffic among them
was not pooling of their traffic or
Irelghts or division Of net earnings.
The example Of the Eastern lines was
Followed by the Southwestern Traffic
association, forming under a similar
agreement, and the Western Traffic as
soclat1on, reorganized on the same
lines. The decision Of Judge Wheeler
IL sustained in the appeal taken TO
the supreme court, will unquestionably
lead to similar organizations over tho
country, and what has never yet been
successfully done, to their maintenance
and permanency. One can now Under
stand why the railways lost interest in
the pooling bill in congress. If the CON
tract of the Joint Traffic association il
held TO be legal by the court Of last
resort, and the companies evidently are
confident it will be, there is no need Of
having congressional sanction. What
ultimate effect this will have on the
relations of the railways to the govern
ment and to politics, it can be verv
clearly seen now, will depend upon the
use the traffic associations make Of
their power.