The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-11-25
RAILROAD NEWS.
Strong Argument i'm Favor of
Pooling by Railways.
Journal of Commerce Insists
That Such Is Necessity.
ROOSEVELT is FOR 1T.
VIII Probably Urge Legislation
on Subject in Message.
Other Items Of Interest to
Railway People.
ROOSEVELT is FOR 1T.

sit has been announced, with some
appearance of authority, that, in the
forthcoming message, President
Roosevelt will advise that legislation
be enacted which will permit agree
ments among the great railroads as to
rates and traffic arrangements, sub
ject to the supervision of the inter-
state Commerce commission" says the
New York Journal of Commerce in an
editorial argument in favor of rail-
road pooling. 1.-THE president has al
READY referred to such legislation as
desirable In his message of December,
1906, and he has since recommended
lit to Congress. The commercial or
ganizations of the country are in sub
stantial agreement as to the advis-
ability of the step suggested. 1t was
discovered long years ago that there
is no example which proves SO for
chilly the non-unfversality of politico-
economical rules as the failure of the
law of competition to apply to, and
beneflcially regulate, railway freight
charges. In other business the sue
cessful competitors continue the bust
ness; the vanquish depart from it. In
railroading the vanquished continue in
the business as before insolvency
freed, however, from the obligation to
pay interest on bonds and dividends
on stocks; and become more formid-
able rivals than they had previously
been. even threatening with bank
ruptcy the solvent roads, as the re-
ceiyer can afford to run his road SIM
ply for operating expenses. Such
situation results in reversing all the
effects of competition in ordinary
trade, and in making competition so
daneerous an expedient to railroads
that they are under constant and
powerful pressure to combine rather |
than to compete 1t was merely |
question of time when either the gov
eminent of the United States, or that |
of the several states, or the railroads 1
themselves, would be compelled to
Il, r11ff Nr1 a nd
the other by combination, to get rid OF
the disastrous consequences of uncer-
tain and f1uctuating rates which gave
to business enterprises a speculative
and gambling character, made the in
come of railroads highly precarious
and placed their treasury not only un-
der the control of the freight depart
ment but substantially under the con-
troll of the fast freight line agents
During the railway contests OF 1871
IL people in the east began to realize
that the low rates Of freight charges,
while desirable in themselves, were
not nearly so desirable as certainty
and equality OF rates. The mercan-
file classes were largely interested in
having freight charges equalized so
as to take out of business transactions /
of a legitimate nature the gambling
and personal element of the freight
rates. even though this certainty and
equality were purchased at the ex-
pense OF higher charges.
$50 the judicial verdict on railroad
pooling has been essentially dinerent
from that on Industrial or commercial
AS the supreme court
Of New Hampshire put the case: When
pooling contracts prevent an UNI
healthy competition and furnish the
public with adequate facilities at fixed
and reasonable rates. they are bene-
actal and in accord with sound princi-
pies of public policy. The .
public interest Is not subserved by
-
IF transportation below the standpoint
Of fair compensation. Ar
rangements and contracts between
competing railroads, by which UNI
competition is prevented
10 not contravene public policy, But (
4 a railroad pool be simply an agree I
nent between rival railways to appor- 7
ion the tonnage or earnings of COM
oetitfve traffic carried at like rates y
previously published, the question T
Uses whv cannot such rates be t
adhered to without pools? The answer =
8 that rival routes differ in their
facilities to gather. carry and dis
ribute traffic; that different localities
,trfye for special advantages; that
arre shippers are persistent pleaders /,
orr preferences, and that some rail-
way managers may yield to them and
% establish reduced rates for other
weaker lines of traffic they will not II
preserve these rates, and strong lines t
will retaliate for the diversion of traf- C
ic and so esta blish vicious system of o
.ebates OF course the favorite re- II
.eiyers of illegal rebates receive bene- Il
its to which they are not entitled to c.
he injury of the shippers who are o.
against. G
"Rut the question recurs, will not
cooling stop all competition in trans
,orta tion? IT has been truly said that
abroad competition differs from s
VERY other kind of competition in u
he world because the railroad buys o
Iothine of the producer: sells nothing a
4 Gin nralrr ar-s.f< IL L