The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1915-11-13
HISTORY BUILDERS.
When Pooling Methods Were Bene-
fetal.
written expressly for The Washington HeTahJ
By DR.. E. J. EDWARDS.


The late Charles c. Clarke, who was
for fifty years associated much OF the
time as vice president of the Vanderbilt
system of railroads with the Vanderbilt
family, said to me, shortly after he re-
tired from that management, in 1900, that
it was one of the strangest of all the
features associated with railroad deVel-
opment in the United States that meth
DDS that were years ago adopted so as to
prevent cutthroat competition and ruin
Gus traffic war were, many years later
declared by law to be Illegal
.'I remember we'll" said Mr.. Clarke,
when the Michigan Central Company
and the Lake Shore Railroad Company
were in q desperate competitive battle Tor
business between Chicago and New YORK.
The struggle had reached the point where
one certainly and perhaps both COM
panies, would be ruined. 1 was at that
time assistant treasurer of New York
State John NJ. Forbes. of Boston. who
had taken I'D the incomplete Michigan
Central and finished il, with Chicago as
the terminal, came forward with the
proposition that the two railroad COM
panies should organize pool so that. in
stead of fighting, each would receive Its
proportionate share of business. 1t was
regarded as a wonderful suggestion. II
put an end to the battle, and after that
both roads prospered for many years.
Now if a pool is organized the organ
izers are liable to criminal prosecution
l don't mean to say that Congress IN this
day did not act wisely when it prohib-
tied pools. Perhaps conditions have
greatly changed, but it was the pool
which saved the railroad situation ia
parts of the United States in the carly
ffties."
Several years later, I mentioned to a
common friend this conversation with
Mr.. Clarke, and he said that certain
agreements which were made fifty and
sixty years ago with manufacturers In
the valley of the HousatOnic River re-
suited in creating .one of the greatest
brass manufacturing industries in the
world, certainly the greatest in the Unit |
ed States. Today an agreement of that
kind would have rendered those who
made it liable to criminal prosecution in |
the United States courts.
In explanation of this statement he |
said: In the early years Of the past
century, about 1870 there were num-
Der Of manufacturers in a small way of
brass in that district of Connecticut of
which Waterbury Is now the center. The
competition between them was intense
The chief copper-smelting plant in the
United States was at that time located
near Baltimore The brass manufaCtur-
ers were accustomed TO go to Baltimore
once or twice a year to huN copper. lneN
discovered that the competition which
they thought justified their undertaking
one another or overriding for copper
was harmful TO all. They therefore
came to an agreement that they would
not appear in Baltimore in competition,
but would fix upon common price
which they would offer for the copper.
This agreement worked extremely well,
although it did not stop-and was not in
tended decomposition in the markets
where brass was sold. Today agree
nlent of that kind would be unlawful.
Then it made the brass industry, which
has attained immense proportions. pos
sible
AT about the same time the brass
manufa cturers discovered that excessive
competition of the kind that would ruin
weaker or smaller manufacturer of
brass always reacted harmfully. There
was therefore an agreement to pool the
brass output This saved small concerns,
steadied the business and increased the
prosperity Of the industry. Yet today
pool of that kind is forbidden by our Fed
eral statutes. very likely for good reason. l.
because conditions may have changed.
Copyright I5Ij by Z. J. Edwards. AL Rights Re
1ervedD