Evening journal., 1915-11-13
New News Of Yesterday
When Pooling Methods
Were Beneficial
By Holland

The late Charles c. Clarke, who was
for fifty years associated much OF the
fine as vice president of the Wander
bilt svstem Of railroads with the Van
derbilt family. said TO me, shortly
after he retired from that manage
ment. in 1900. that it was one ot the
straugest of all the features assoclaleu
with railroad development IN the
United states that methods that were
wears ago adopted so as TO prevent
,utthroat competition and ruinous
traffic war were. many years later
declared by law to be illegal.
81 remember WELL" said Mr.. Clarke
when the Michigan Central Company
and the Lake Shore Railroad Company
we're in a desperate competitive battle
for business between Chicago and New
York The struggle had reached the
point where one certainly. and per
hapg both companies, would be ruined
I was at that time assistant treasurer
Of New York State. John NJ. Forbes,
ot Boston. who had taken up the in
complete Michigan Central and hnish-
ed it, with Chicago as the terminal
came forward with the proposition
that the two railroad companies should
organize a pool so that. instead oil
fighting. each would receive ITS pro-
portionatc share of business. IL was
regarded as q wonderful suggestion
II nut an end TO the battle, and after
that both roads prospered for many
years.
~Now il a pool is organized the
organizers are liable TO criminal pro.
secution. | don't mean to say tha'
Congress in this day did not act wise
~ when IL prohibited pools Perhaps
conditions have greatly changed, but
II was the pool which saved the rall
road situation in parts OF the united
states in the early titties.'
Several years later, l mentioned tC
common friend this conversation
with Mr.. Clarke. and he said that Ger
tain agreements which we're made mt!
and sixty years ago with manuiaolur
ers in the valley of the Housalon''
river resulted in creating one oil th'
greatest brass manufacturing indus
,ries in the world, certainly the great
fegt in the United States. Today AT
agreement of that kind would haN'
~endered those who made It haol
"a criminal prosecution IN the Onite'
States courts.
In explanation of this statement n
said: "In the early years OF the pas
century. about 1910. there were
number of manufacturers in SINAI
vav Of brass in that district ot Con
necticut Of which Waterbury IS nov
the center. The competition hetWee
them was intense The CHIEF copper
smelling plant in the lniteo Sla,e
was at that time located near halt
more. The brass manufacturers We'
accustomed to go to Baltimore one
M. twice a year 10 buy copper. Inc
discovered that the competition whic
Ihev thought justified their underbic
ling one another or overbidding "a
conner was harmful TO all. Inc
therefore came to an agreement ths
they would not appear II Baltimore
competition. but would fix upon
common price which they would one
for the copper. This agreement worl
ID extremely we'll. although IT. did M
stop-aud was not intended to-con
petition in the markets where bra'
was sold. Today an agreement
that kind would-be unlawful. Then
made the brass industry, which III
attained immense proportions, 20
sible
AT about the same time the bra
manufacturers discovered that exec
sive competition OF the kind wou
ruin a weaker or smaller man
facturer of brass always reacted harr
fully. There was therefore an agre
ment to pool the brass output. tn
saved small concerns. steadied q
business and increased the prosperi
Of the industry. Yet today a pool
that kind is forbidden by our FEEDER