The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-19


time pooled, while Boston. Philadelphia
and Baltimore We're not, the New York
tonnage Indicated the greater relative In
crease. Nor have pools restricted any just
competition created by the laws OF trade,
| the rivalries Of seas, lakes and rivers, or
those bettermeuts of transportation condi-
tions which cheaper rates and more
| attract traffic to the lines bettered. Under
pools each company preserves or increases
It's individuai strength, which Is the true
railway competition.
Then, upon what defensible grounds has
pooling been antagonizod? It Is idly
averred that pooling will stop competition
| ana II meant 10 secure dividends for
waterod stocks 1t has even been recently
said In the National Senate that 1t will
| consolidate American railways into one
gigantic corporation, having about
sl2, 600, 600, 0OJ Of bond and share capital,
which will advance rates.
| IL is difficult To discuss such creeds
seriously. To assume that Oregon and
| Florida railways will pool with eauh
other; those in Florida with one or more
In New Hampshire; that the Philadelphia
and Reading Railway Company will pool
| with the Mexican Central. or tho Boston
and Maine with Los Angeles line, may
| be used in hostile heat, but Ii Is not intel
| ligent, because no such instance Is on
| record, or is contemplated or possible.
As 10 avoiding competition, the rail
ways could contract To divide money or
| tonnage. or both, and to maintain rates,
| until 1887, yet none Of these things now
held up to public fear and execration
ever transpired. Why, with all their
power and higher rates, did they not then
stop parallel construction then 'estab-
lish monopolies, and then increase, or at
least resist the stop, the annual tendency
OF rates downward? The enormous In
crease OF railway mileage OF the United
states ana the constant and voluntary
rate reductions are among the incontro,
vertible answers. They did not attempt
70 do IL and could not. The unceasing
forces of the great factors of true compe-
tltion produced annual reductions in rates
and VIII keep them low permanently
AN additional strong reason, as forceful
today rs then, Is that railways sought to
build up large local and through tratiics
at low rates rather than to carry less busi-
ness at higher rates, policy which devel-
oped local traffic as well as the national
tonnage. There was no water route, for
example, from Pittsburg to Baltimore,
but those points were given the benefit Of
rates rs low as the rail rates from Buffalo |
To New York, which were made against |
the canal rates. In other words, due COM |
petition and enlightened self-interest pre- |
vailed. Pools did not even preserve |
former dividends on any stock. Every |
company in the union which has increased |
its stock has reduced its average rates |
Ii the New York Central Company should |
double its bonds and shares this year it |
could not, with all its powers, plus those |
Of It's proprietors and allies, Increase its |
average rate In the slightest degree. be- |
cause the lines competing with Ii would |
not increase their capitalizations, and the
Erie Canal Hudson ST Lawrence and
Mississippi rivers and the competitions of |
Galveston, Baltimore, Montreal and Lon
don would prevent it.
The Telegraph Lines
he, - h.. -. A.
charges To railway pooling 10 strong and
convincing. simultaneously with the
earlier construction OF railways. parallel
telegraphs were built tho one To trans
port persons and property the other in
telligence Tho telegraph entered into
competition, in which they had rate
contests lost money, struggled for capital
and became involved with Legislatures. |
They increased their stocks and entangled
Interested railway companies. Finally
the wires were substantially consolidated.
The railways could only amalgamate
lines but the telegraph COM
pnnies combined parallel lines. When
MIR. Gould made his telegraph combina-
tions, il was widely alleged by those who
now deem railway pooling eually mon
strous, that he might use the information
derived from inspected messages To create
syndcates and fortunes which would
threaten the Republic On the contrary,
its stock was increased, the
Western Union Company proceeded,
through desirable economies, To reduce
its rates, extend its lines, increase its
facilities, achieve greater celerity in the
and delivery of messages and
made them so inviolate that ii resisted
even the government demand To pro-
duce them. Aside from special tele-
graphic charges TO government and the
press aud for night message, the charges
m "a ara m fhn |
users of its facilities not only no longer
conn lain of determinations bat applaud
It's reduced, well-known and unreDated
charges, because they are uniform. No
man believes his rival pays less to that
com pany than he does for "a like service.
Substantially, railways seek correspond
ing rights to agree legally with parallel
In order that they also may
those sound principles and
charges, to he guarded, however, in the
railway instance, by due national regu-
ation. The telegraph results clearly rep
resent better commercial aud public con-
iltlons without law than the disturbing
railway under tho Interstate commerce
and ANTITRUST acts and decisions
AS these facts cannot be controverted,
the railways desire these distinctive grants
)f authority from legal organization
which will remove business and legal
loubt, and which are as practicable,
effective and necessary in railway admin
as To organize and conduct
,ham bers of commerce, stock, maritime
)r produce exchanges and boards of trade.
The same principle requires the union
md concert OF counties In the estate and
,f the state In congress. The New York
clearing house, with annual clearances
fifty times the gross yearly railway re-
,eipts. mas proven n national bulwark of
inance, and assists all right fiscal pur-
poses and doors. That one or more of |
such bodies sometimes do wrong Is an ar
for them, because their princi.
lles and deeds show high averages of
and public benefit, and they cor
'ect these wrongs
When, however, railways seek to adopt
ike sound business methods to enable
hem TO practically and publicly exercise
,hese tried principles, law denounces leg
station condemns and decisions hamper
hem, and have done SO for too many
,ears.
1t is time this was changed. and that
more consideration be now given TO the