The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1898-02-22
COLONEL WALKER ON POOLS.
Chairman of Santa Fe Executive Com
mittee Talks Freely on the
Subject

The subject Of railway pooling Is very
little understood and the following
definition of pools, by Col Aldace F.
Walker, chairman of the executive
committee of the Santa Fe, is of in
terest:
Pooling is not an agency for the FIX
ing OF rates, but for maintaining rates.
says Col Walker, mot maintaining the
standard of rates, but maintaining the
actual rates, which necessarily huctu-
ate from-time to time in accordance
with competitivet and business condi-
tons. Rates may vary every day and
yet be strictly maintained
In their best estate associations
agree upon rates, by mutual consent
the right OF Independent action. Every
change is made in view of competition
and business conditions within and
without the territory affected-perhap
more frequently without than within:
the competition can never cease, and
the establishment of rates will inevita-
bly, and always be dominated by nat
ural forces, which may be depended up
on to keep the rudder true, but which
if interfered with, will inevitably pre-
cipitate distress and disaster. In their
other aspect associations, by apportion-
ing the business carried under rates so
controlled, enable the rates to be stead
lily and uniformly applied to all ship
pers alike, whether the figures fixed go
up or down.
Rates are fixed Cor the amount
beyond the control of the carriers. The
figures must be fought out and register
ed in meetings held for that purpose
ArbitFatiOnS are often necessary. With
out such machinery the only result pos
sible is a series of rate wars ruinous to
all interests and the ultimate collapse
of the entire railway system. Each
traffic manager always secures for his
line the lowest rates that can be made
without inducing reductions of the
rates of other lines competing for the
same traffic, or competing for like traf-
fic to the same market
Rates are not fixed by pools, and
they never were. On the contrary while
pools were formerly in vogue, from 1865
to 1888, the rate per ton per mile on six
leading eastern roads decreased from
800 to .609 and on six leading western
roads from 3.642 to 1874. The function
the public that each carrier will stand
by the fixed rate until changes are
made through methods which viii dis
turb business the least possible.
TT is, of course, possible that rates
may occasionally be fixed on a higher
basis than would be adopted if their
maintenance was not to be supported
by a pooling agreement; but this will
rarely, if ever, be done, except in cases
where unreasonable reductions have
previously occurred and where the re-
suits of excessive competition demand
correction. Stability in rates is OF in
dnitely more Importance to the public
than too low rates; and as a practical
matter eXtortiOnate rate charges can
not be maintained in the face Of pres
ent corrective influences and agencies.
Pooling can never be the panacea Tor
all existing ills of the railway service
which some of its advocates seem 20
expect but it will undoubtedly anchor
ete the views of excessive competition
which it's prohibition induces, and al
most cOmpels."