The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-10-31
RAILWAY POOLS
ARE BENEFICIAL
Thus Declares ChaunCey
M. DepeW.
REVIEWS RECENT DECISION
HE SAYS IT TENDS TO CREATE
MONOPOLY.
With the Traffic Association Dis
solved, Stronger Lines VIII
Force the Weaker to
the Wall.
REVIEWS RECENT DECISION
HE SAYS IT TENDS TO CREATE
MONOPOLY.
Special Dispatch to The Call.

NEW YORK, Oct 3O.-Chauncey NJ.
Depew, having made a study Of the de-
cision by the Supreme Court on traffic
associations, gives his opinion as fol-
lows:
The decision of the Supreme Court ne
cessitates the dissolution of the Joint
Traffic Association as at present consu-
tuted Broadly stated, the decision means
that there shall be no association among
or agreement in regard to either the
maintenance of rates or the prevention OF
rate cutting or the prevention OF dis
examinations against weak shippers IN
favor Of strong ones or against small 10
caNties and those along the lines in favor
of the great terminal cities.
The object of the Joint Traffic Assocla-
ton was, first, to assist the interstate
commerce act; second, to prevent secret
rate cutting, and third, TO prevent the
shipping firms which had been gradually
wiping out intermediate towns and the
small business men.
It is absolutely necessary for the rail-
roads of the country to know the move
ment of traffic and traffic conditions. as
to freight which is torbe moved at the
trated. It is also necessary that they
know whether and why this freight is
securing an outlet, if for export, through
the Gulf of Mexico or by the CANADIAN
route. or by the Atlantic seaboard.
1t will be necessary, therefore, that some
association should exist as statistical
bureau Tor the purpose OF BdLnSIlf6 llA4o
information and presenting it in frequent
reports to the lines which are members.
All that the railways ask is that under
g form OF voluntary agreement or poor
ing law they may be permitted to arrange
among themselves so that there shall be
uniform rates to everybody who ships
over the various lines for the same SerV-
ice. In other words, as the railroads are
semi-public corporations, then the public
should be treated upon lines the same as
the Goyernm ent treats people who use the
treated who use the telegraph lines, viz:
Uniform rates and the same treatment
governing for like service.
The great error OF the people VINO
framed the interstate commerce act IS
supposing that in preventing the rail-
roads agreeing upon rates and having a
pool they are getting lower rates for the
people and preventing determinations.
Their legislation proceeded upon the
thought that there is but one line, for in
stance, between New York and Chicago,
whereas there are eight lines. Now, 1t is
possible for a combination OF capitalists
to take the weak line and ship its product
over that line upon an agreemtn much be-
low the current rates. The weak nneS
may be in the hands Of a receiver and
stock or upon It's bonds-in other words
upon the invested capital which built It,
The other lines cannot afford to go into
bankruptcy by following this rate and so
they let the weaker lines have this traffic,
or they conduct their own traffic upon
reasonable rates.
Inc erect OIL InlS Is very SOUH 6Nl0cul.
The rates which these big shippers get
over this bankrupt line enable them to
make their product so much cheaper than
the people who are situated upon the
other lines, or who send to market from
other places than the terminus Of the
bankrupt line, that they drive them out of
business. Then the antitrust anti-cOr-
poration, anti-combination people by their
own device have created a combination
and a trust. This process has been going
on ever since the interstate commerce
act and the anti-pooling combination
were in force. If the process continues
the present rapid progress of the con-
solidation of every product into the hands
Of one concern or a few men will con-
tinue, until both the producer and con-
sumner of the country would have their
prices fixed by the combination in the
various products Of the people. If the
eight lines, hOwever, were in a position
where they could protect each other and
the public in giving equal opportunities
by all lines, then the enterprises and
energy and natural facilities of inter-
mediate places with smaller expenses and
less capital in their business with the
owners attending to their own affairs
would result in a wide distribution of in
dependent business, in the farmer find
ing many competitors for the produce Of
his farm and the railways having thou
sands of customers instead of a very few
The objection to a pooling law has
always been that the railways would