Railroad pools in the United States were associations of competing
railroad
Rail transport (also known as train transport) is a means of transport that transfers passengers and goods on wheeled vehicles running on rails, which are incorporated in tracks. In contrast to road transport, where the vehicles run on a pre ...
s "for the purpose of a proper division of the traffic at competitive points and the maintenance of equitable rates that may be agreed upon."
Louis Boisot Jr., of the Chicago Bar, wrote an article about Railroad Pools. He said “Railroad Pools are contracts between rival railway companies whereby, in order to prevent competition, their business is united in one common total, from which the business or the money received therefor is divided among the combining companies in fixed percentages."
History
In 1885,
William H. Vanderbilt
William Henry Vanderbilt (May 8, 1821 – December 8, 1885) was an American businessman and philanthropist. He was the eldest son of Commodore Cornelius Vanderbilt, an heir to his fortune and a prominent member of the Vanderbilt family. Vanderbi ...
the railroad magnate, and
Hugh J. Jewett
Hugh Judge Jewett (July 1, 1817 – March 6, 1898) was an American railroader and politician. He served as the United States representative from Ohio's 12th congressional district in the 43rd United States Congress.
Early life
Jewett was bo ...
defined railroad pooling in a letter to the
Hepburn Committee of the
New York legislature
The New York State Legislature consists of the two houses that act as the state legislature of the U.S. state of New York: The New York State Senate and the New York State Assembly. The Constitution of New York does not designate an official t ...
, as "a successful plan for preventing railway wars and securing uniformity of rates." During this time, pools were making their way towards legal recognition. In Europe they were encouraged. In Belgium and Prussia the government owned part of the railroads.
In 1887,
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
prohibited pooling agreements between railroads with the enactment of the
Interstate Commerce Act of 1887
The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopoly, monopolistic practices. The Act required that railroad rates be "reasonable and just," but did no ...
.
Interstate Commerce Act of 1887
ch. 104, 24 Stat. 379. 1887-02-04. Section 5.
See also
*History of rail transport in the United States
History (derived ) is the systematic study and the documentation of the human activity. The time period of event before the invention of writing systems is considered prehistory. "History" is an umbrella term comprising past events as well ...
References
*
History of rail transportation in the United States
United States railroad regulation
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