Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1898-01-27
On Broad street.
The National Board of Trade and
Railroad Pooling.


The report Of the National Board Of
Trade on the railroad situation contains
some highly judicious recommendations.
The present Improvement due to better
crops and trade conditions is pointed out
as offering an excellent opportunity 10
place the transportation interests OF thu
country on a more satisfactory basis. The
gain in the gross earnings OF the rail-
roads has been very much greater than
that Of the net earnings because. as the
report points out. rates and charges ars
demoralized and unjust Determinations
between shippers exist to a large extent.
tending TO enrich the few at the expense
Of the many. II Is undoubtedly true that
THE situation demands the best thought
Of the best minds i'm an endeavor TO bring
oIder ont Of chaos. for the Joint benefit
OF shippers carriers. and the general pub
lie" But the difficulty has been TO find
out precisely what the great body Of ship
pers want, and TO obtain a sufficiently
clear idea Of how the interests OF the
general public are 20 the affected by legis-
lation In regard 10 which the Interstate
Commerce Commission and the represen-
tatives of the railroads entertain views
so widely different.
1t is here that the conclusions OF
body like the National Board OF Trade
may exert a reconciling influence. Their
report declares that there Is no good
reason why railroad companies should
not enjoy the same right Of contract that
all other corporations and individuals en-
joy. 1t IS admitted that this fact has
been generally becoming apparent 10
those who advocated the prohibition of
q IT,. t4t..
law was enacted. and that there Is
general consensus Of opinion in favor Of
the Amendment OF the interstate COM
merce act so as TO permit such agree
ments to be made between railroads sub
iect to the supervision and control OF the
Interstate Commerce Commission. II
is az TO the precise form and extent OF
this control that the railroads and the
commission are hopelessly at odds. Some
of the railroad presidents have gone so
far as TO declare that they would prefer
to have no legalized pooling II It is 10 be
accompanied by any control whatever
over rates on the part Of the commission.
But. as far as can be judged. the majority
sentiment OF railroad managers Is In
favor Of giving the commission at least
as much control over the rates fixed
under "A pooling contract as rs provided
for in the measure known az the Foraker
bill. AS the report OF the National Board
Of Trade points out. all Of the bills 10 per-
nit pooling which have been introduced
in Congress require the approval OF the
Interstate Commerce Commission, tho
chief difference being that some OF them
require the approval Of the commission
before pooling agreements become opera
tive. and others permit them TO become
operative without such previous approval
but subject TO the dsapproval or veto
power OF the commission I'm the event 81
the working Of such agreements result
ing in unreasonable rates. unjust dis
elimination. or insufficient service 10 tho
public. or the former type is the Patter-
son bill. which is supposed to have the
approval OF a majority Of the commits
sion; of the latter is the bill approved by
most Of the railroad managers which
bears the name Of Senator Foraker.
The committee which reported on this
question 10 the National Board OF Trade
take the ground that the public interest
would be sufficiently safeguarded by in
vesting the Interstate Commerce COM
mission with the power OF vetoing any
agreement which might be found UNI
reasonable in it's operation. They regard
any attempt TO invest the commission
with an original rate-making power as
both mpracticable and inexpedient while
the necessity for the exercise
Of supervisory power over the rates
fixed by the railroads. The committee
evidently do not share the opinion ~
the Interstate Commerce Commission
that by the legalizing Of pooling. that the
public would lose the only protection Il
has now against the unreasonable exac-
tons Of transportation agencies on the
contrary, they are impressed with the re-
fact that rates for Transporting
fctl.f a.. -
more than two thirds in thirty years;
that they are now lower than those o. the
other commercial nations by nearly one
half. and that there Is no longer any fear
Of the establishment Of excessive rates
for transportation. In their Judgment.
the one danger 10 be guarded against ~
that by the legalibing OF pooling the
sons and localities. For the rest. they
declare that, as a rule cast-iron trade
are detrimental TO commerce.
and that TO suit its constantly varying
conditions. they should be reasonably
elastic.
Obviously. the position in regard 70
abroad pooling assumed by the commit
ee of the National Board OF Trade. and
apparently concurred In by the oTganiza-
ion as a whole, inclines rather TO the
position Of the representatives OF the
Commerce Commission. But II IL be one
which other commercial bodies are pre-
pared to accept and sustain. II presents
a sufficiently promising middle ground on
which both parties may meet and agree.
Il Is plain TO ordinary apprehension mat
The railroad managers exaggerate the mn
Dortance OF the control over rates de-
manded on the part Of the commission
as much as the commission itself eN-
aggerates the importance OF tho power
sought TO be conferred on the railroads
BY iegallzing pooling contracts. Rates be-
tween terminal points are determined py
influences as much beyond the power OF
he railroads as they are outside OF ne
sphere OF influence Of the commission. II
$ nonsense to assume that pooling means
ieath TO competition. since combine as
they may, the railroads must adjuSs
heir charges between the great shipping
points OF this country to the commerce"
competition OF the world. no lc<s than 10
he rates established by the competition
II canal lake. and river transportation
Railroad managers insist very strongly
IN that fact. but some OF them entirely
tail to perceive that Il removes me force
n their objections 10 the control over
ates demanded by the Interstate Com
nerce Commission. What seems 10 be-
most needed An this controversy Is ht-
lie more frankness and moderation on
both sides. and the report OF the National
Board OF Trade has the especial value
II possessing In a high degree both "
hese qualities.