Evening journal., 1913-07-08
NEW NEWS OF YESTERDAY
How the So-CaIIed Railroad
Pool" Originated
By HOLLAND

Former Governor Jacob d. Cox, Of
Ohio. after his retirement from the
cabinet of President Grant. IN 1870,
became incidentally through his law
practice Interested in a railroad line
now known as the Wabash system.
AS the line was originally planned It
was TO run from Toledo. o., across
Indiana and Illinois, through Peoria.
to the Mississippi Governor Cox
contemplated the extension Of the
system easterly by the way of Detroit
and through the purchase OF rail-
road then under construction along
the northern shore of Lake Erie
through Southern Canada.
Governor Cox took into the exec
utive Offices a young brother Charles
Finney Cox, who afterward became
treasurer of the New York Central
system west Of Buffalo In career
which extended over thirty years
Charles Finney Cox became thor
oughly familiar with the history OF
railroad development in the West.
He often spoke to me Of some of
the traditions and anecdotes which
were related TO him by men who we're
familiar with the development of
early railroadine in the j mid West
and knew something of the be-
ginning OF that Development from the
Mississippi River westwards.
Il have always been Of the opn-
ION said Mr.. Cox. that the United
States. and especially the West, owes
80, I,1,t ~
ton for the railroad development
west of the Allegheny mountains
than TO ane other one man. for Mr..
Forbes not only furnished or found
the capital necessary for the compile
ton of the Michigan Central railroad,
and later for the building of the Chi
cago. Burlington and Quincy railroad
system, but he actually was COM
pelled to work out without any
precedents 10 guide him. some Of the
original schemes created by railroad
construction and management in the
West
- remember hearing my brother.
Governor Cox. once say. that TO
John NJ. Forbes the railroads of the
United States we're indebted for the
invention of "A policy which put an
end TO destructive competition. II
was policy which was hailed with
delight not only by railway man
ayers and stockholders. but by the
people who found that in the long
run they were the chief sufferers Of
-cut-throat competition
My brother told me that just about
the time when the money which Mr..
Forbes and his Boston friends put
into the Michigan Central had com
pleted' the line to within a short dis
tance of Chicago. certain capitalists
of New York began building a rail-
road along the southern shore of
Lake Erie. II is the indentical road. -
said Mr. Cox incidentally, (which is
now known as the Lake Shore.
These two lines became what we
in these days term parallel and COM
peting railroads. Both were using
every strategy and influence to Sc
cure freight from the West to the
East and vice versa. They carried
on a great fight ! think Il was the
first great railroad rate-cutting bat
tie. Both companies were losing
money hand over fist
at last John NJ. Forbes worked
out plan which put an end to
competition He suggested TO the
New Workers that both roads main
tain renumerative rates and that they
put their earnings into common
pool His proposition met with in
stant approval Tho railroad pool
was thereby established. I'm the divvy
the Michigan Central took little
over so per cent Of the earnings and
the Michigan Southern took a little
under so per cent Competition was
ended. both roads prospered and the
railroad pool. invented by John NJ
Forbes. became q national institution
until, ye1rs later. IL was prohibited
as illegal"
Copyright. 1913. by T. ]. Edwards
All rights reserved).
Tomorrow Mr. Edwards will tel