In nearly every foreign country there is either a railroad pool or a division of territory, to prevent this sort of competition, which is only pernicious. A merchant needs to feel assured that rates are stable and uniform to all, and not that he must go shopping for secret rates, in order to be on an equality with his competitor. In the United States the railroads had largely resorted to pools before the Interstate Commerce Law forbade them. The result of this prohibition has generally been very advantageous to the best lines, which, under the pool, really paid a sort of blackmail to the poorer lines to maintain rates. If the penalties of the law can restrain such lines from rebating and under-billing, to be rid of the pool will be a great blessing to the well-located roads. If not, then the roads will be driven into consolidation, for the end of fighting will be bankruptcy and sale. Fortunately consolidation has already gone so far in many sections of the country that the difficulties of abolishing rebates have been greatly reduced. And as far as it has gone it has proved of much advantage both to the public and to the stockholders. Fortunately, too, the other results attendant upon consolidation have been sufficiently demonstrated to remove any intelligent fear of extortion in rates or deterioration of service. Who would to-day desire to undo the consolidations which have built up the Pennsylvania Railroad or the New York Central, and call back to life the numberless small companies which preceded them? The country has outgrown such service as they could render, and the local growth and development along the lines of these consolidated companies certainly indicates improved conditions. In this connection, too, the improvement in cost and character of service is instructive. In 1865 the average rate per ton per mile on the principal Eastern lines was about 2.900 cents; in 1887 it was 0.718 for a service twice as speedy and efficient. There are many other live issues of great interest and importance in transportation suggested by this subject, such as "re-billing" or "milling in transit," and "differentials," but space forbids more than an explanation of the meaning of these two especially prominent ones. A B C -----------------------------