The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-12-16
Railroad Pooling.

Secretary Morton g plan Tor the sOlu-
ton of the railroad problem appears to
be meeting with considerable favor
wherever it has been considered. Our
advices from Washington are to the ef-
feet that men who favor as well as men
who resist government regulation Of
railroads, see much in MIR. Morton g sug-
gestions Of which they can approve.
His proposition that the railroad COM
pany give a bond to guarantee the ship
per against loss in case a rate is de-
clared unreasonable, meets the objee-
tions Of the railroad men 50 completely
that they are compelled to admit it's
value and fairness. When they are
permitted to charge their own rate,
pending hearing by the court as to its
reasonableness, they can make no head
way with complaint Of confscation by
the government thru unfair rates. On
the other hand, the shipper is assured
of his remedy in case it is shown that
the rate to which he takes objection is
unreasonable. The railroad has given
him bond to remit so much of the
rate as may be in excess of an unreason-
able amount.
But the phase Of the Morton plan
which is attracting most attention is
legalized pooling-not that this is new
idea by any means, but that it should
emanate from member Of the cabinet,
and if not having the approval of the
president, at least should be proffered
from his department Of the government
for consideration.
Prior to the enactment of the inter-
state commerce law pooling was the
common condition and arrangement be-
tween the railroads. Arrangements
were made as to rates and the distribu-
tion Of the traffic and territory. But
they were exceedingly difficult to main
tain. Often they were no sooner made
than they were broken. So that there
was no stability Of rates, and insta-
bility Of rates is more detrimental to
Legitimate business than high rates.
| Then the interstate commerce law
abolished pooling and undertook to regu-
late rates. With the failure of the
interstate commerce law to produce the
results expected, there has been fire.
quent revival Of the proposition that
pooling under government supervision
would be not only to the advantage Of
the railroads but beneficial to commerce
generally. The plan has been resisted,
however, up to the present time, perhaps
largely thru prejudice against any ar
rangements which seemed to destroy
competition. The emanation of such a
plan, however, from the executive de.
partment Of the government, and as
something which the president himself
evidently thinks is worthy Of considera.
tion, is calculated to remove much of
the prejudice which has heretofore ex,
listed against it. The president is be.
lieved to be in earnest in his desire fol-
useful and necessary reform in the rail
road service. He will not be accused
by any one Of favoritism or Partially in
this matter. .~.s. ~~
But railroad pooling under govern
ment supervision, and railroad pooling
without that supervision, are very diff
ferent matters. Government super
vision implies, in the first place, that
the established rate will be fair. The
pooling rate will be just as liable tc
investigation and revision as the rate OF
a single road. The creation of ar
earnings pool, and the requirement that
, rates be maintained so that each mem
her Of the mol mist nav into tho ,,oo
the amount of money due for transpor
tation based on the volume of traffic
at the published rate, not only destroys
any inducement to cut rates, but makes
| it impossible to do 50 without direct
: loss. Every incentive to discriminat,
is destroyed.