Rate skirmishing finally developed into open war in 1876, when fourth-class rates between Chicago and the Atlantic fell as low as 16 cents per hundred. This rate, however, was eclipsed in July, 1878, when wheat was carried from Chicago to New York for 10 cents per hundred. The existing conditions left no doubt in the minds of those familiar with railroad tactics that this war was simply the precursor of a gigantic combination between the trunk lines. An unsuccessful attempt to effect such a combination had been made before. In 1874 the managers of the Erie, Pennsylvania and New York Central met at Saratoga for the purpose of devising means for the suppression of competition in the trunk line traffic. This meeting, however, known in railroad history as the Saratoga Conference, was the first step toward the organization of a trunk line pool, although the conference did not lead to any immediate results, the Grand Trunk and the Baltimore and Ohio refusing to be bound by its decision. It was certainly no easy task to devise means to bring about an effective and permanent combination among five large through lines with greatly conflicting interests. So far pools had never failed to suppress competition wherever they were organized. But in the past pools had, almost without exception, only attempted to control rates between common points. They accomplished their object by a division of the entire traffic or earnings from the traffic between common points. The schedule rates remained the same for all. But the traffic of the trunk lines brought a new factor into the problem. Here the rival routes did not terminate at the same points. It was contended by the Baltimore and Ohio that, whatever might be the facilities of Baltimore for exporting agricultural products, that port was at a disadvantage as compared with the more northern ports on account of the longer voyage and higher ocean rates to Liverpool, and that it could therefore not enter into a combination with the roads leading directly to New York and Philadelphia upon equal terms, since this would divert its legitimate share of the through business to those ports. The Grand Trunk, on the other hand, refused to enter the combination because, not having any direct Chicago connection, it feared that the enforcement of pool rates would materially diminish the volume of its business. As yet the railroad wiseacres did not seem to be equal to the emergency, and matters drifted along in the old channel. The rate war of 1876 gradually brought about an understanding among the belligerents. The competing roads accepted the terms offered, and with this a new principle entered into the science of pooling. Rates between Chicago and Baltimore were fixed somewhat lower than those between Chicago and Philadelphia, and in turn Philadelphia was allowed a small advantage over New York. This concession was made to equalize the difference in the ocean rates of the competing ports. These equalizing