Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-02-22
COLONEL WALKER ON POOLS.
Chairman of Santa Fe Com
mittee Talks Freely on This
Subject.

The subject of railway pooling is very lit
tie understood and the following definition
of pools, by Colonel Aldace +. Walker.
chairman of the executive committee of the
Santa Fe. is of interest:
"Pooling. is not an agency for the fixing
of rates, but for maintaining rates" says
Colonel Walker, mot maintaining the
standard of rates but maintaining the act
ual rates. which necessarily fluctuate from
time TO time in accordance with COMPETE
tive and business conditions. Rates may
vary every day and yet be strictly main
tanned
I'm their best estate associations agree
upon rates. by mutual consent. if possible,
but preserving to members the right of in
dependent action. Every change is made in
view of competition and business condi-
~fected-perhaps more frequently without
than within: the competition can never
cease. and the establishment of rates will
inevitably and always be dominated by nat
ural forces, which may be depended upon
10 keep the rudder true. but which if inter
fered with will inevitable precipitate dis
tress and disaster. In their other aspect as
sociations. by apportioning the business
carried under rates SO controlled. enable the
rates to be steadily and uniformly applied
to all shippers alike, whether the figures
fixed go up or down
Rates are fixed tor the amount thereof
determined under conditions beyond the
control of the carriers. The figures must
be fought out and registered in meetings
held held for that ruTPose; Arbitrations are
'A' s1Ni Ihotl III
the only result possible is a series of rate
wars ruinous to all interests and the ulti-
mate 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 traffic to the same
market.
Rates are not fixed by pools. and they
never were. On the contrary. while pools
We're formerly in vogue. from 1865 to 1SSS.
the rate per ton per mile or six leading
Eastern roads decreased from $500 to 500.
and on six leading Western roads from 3.642
to .!34. The function of pools is simply to
assist in assuring the public that each car
rier Will stand by the fixed rate until
changes are made through methods which
will disturb business the least possible.
1T Is. of course. possible that rates may
occasionally be fixed on a higher basis
than would he adopted If their maintenance
was not 10 he supported by n pooling agree
ment: but this will rarely. if ever. be done.
except in cases where unreasonable reduce
tons have previously occurred and where
the results of excessive competition de-
mand correction. stability in rates is of
infinitely more Importance to the public
than too low rates: and as 81 practical mat
ter extortiondte rate charges cannot be
maintained in the face of present correct
i've influences and agencies. Pooling can
never be the panacea for all existing ills of
the railway service which some of its adj
vocates seem to expect. but II will undoubt-
edly ameiiorate the vices of excessive COM
petition which its prohibition induces, and
almost compelS.'