Hostname: page-component-cd9895bd7-p9bg8 Total loading time: 0 Render date: 2024-12-26T09:03:22.512Z Has data issue: false hasContentIssue false
  • English
  • Français

Albert Fink and the Pooling System

Published online by Cambridge University Press:  24 July 2012

D. T. Gilchrist
D. T. Gilchrist
Affiliation:
Lincoln Educational Foundation Fellow atJohns Hopkins University
Get access Rights & Permissions [Opens in a new window]

Abstract

In the energetic attempt to control destructive competition through pooling, Albert Fink occupied a position of prominence analogous to that enjoyed by Morgan in the consolidation movement that was to follow. Fink's rational advocacy did much to dispel the notion that the railroads were exercising irresponsible censorship over the affairs of the business community. His rate-making ideas and techniques were a lasting contribution to scientific railroad management.

Type
Research Article
Information
Business History Review , Volume 34 , Issue 1 , Spring 1960 , pp. 24 - 49
Copyright
Copyright © The President and Fellows of Harvard College 1960

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 Adams, Henry, The Education of Henry Adams (New York, 1931), p. 240Google Scholar.

2 U.S. Department of Commerce, Bureau of the Census, Historical Statistics of the United States - 1789–1945 (Washington, 1949), p. 200Google Scholar.

3 Report of the Select Committee on Interstate Commerce, 49th Cong., 1st Sess., Senate Report No. 46, Part I (Jan., 1886), pp. 9, 15.

4 Taylor, George Rogers and Neu, Irene D., The American Railway Network, 1858–1890 (Cambridge, 1956)Google Scholar. Maps following the text show the railway network in 1861.

5 Buck, Solon J., The Granger Movement (Cambridge, 1913), pp. 9–19Google Scholar. Also Larson, Henrietta M., The Wheat Market and the Farmer in Minnesota, 1858–1900 (New York, 1926), pp. 74–93Google Scholar.

6 Buck, The Granger Movement, p. 7 and map opp. p. 61 show the extent of the movement. Pages 123–237 describe Granger railroad legislation in detail.

7 Ripley, William Z., Railroads Rates and Regulation (New York, 1912), p. 22Google Scholar.

8 Larson, The Wheat Market, pp. 122–123. Significant reductions in through rates began first. On the local lines the decline was slower but continuous after 1875.

9 Adams, Charles Francis Jr., “The Granger Movement” in North American Review, Vol. 120 (April, 1875), p. 395Google Scholar.

10 First Annual Report on the Internal Commerce of the United States, House Exec. Doc, 44th Cong., 2d Sess., No. 45, Part 2 (June 30, 1877), p. 19.

11 Taylor and Neu, Railroad Network, pp. 19, 30–32, 83.

12 First Annual Report Internal Commerce, p. 175.

13 Ibid., p. 8.

14 Ibid., p. 78.

15 Transactions of American Society of Civil Engineers, Vol. XLI (June, 1899), pp. 626–638Google Scholar. Memoir prepared by O. Chanute, Rudolf Fink and H. G. Prout, pp. 626–627. Rudolf Fink, brother of Albert Fink, became president of the Norfolk & Western Railroad. Another brother, Henry, worked for the L. & N.

16 Ibid., p. 627. Also “American Engineering as Illustrated at the Paris Exhibition — The American Bridge Building” in Railway World, Vol. V (June 7, 1879), p. 533Google Scholar.

17 Clark, Thomas D., The Beginnings of the L. & N. (Louisville, 1933), p. 47Google Scholar.

18 Parmelee, Julius H., “Fink, Albert (Oct. 27, 1827–April 3, 1897),” Typewritten manuscript of an article for Dictionary of American Biography in Bureau of Railway Economics Library, Washington, D.CGoogle Scholar.

19 A.S.C.E., Transactions, Vol. XLI, p. 629Google Scholar.

20 Joseph G. Kerr, Historical Development of the Louisville and Nashville Railroad (n.p., 1926), pp. 20–43.

21 Keith, Jean E., “The Role of the Louisville and Nashville Railroad in the Early Development of Alabama Coal and Iron,” Bulletin of the Business Historical Society, Vol. XXVI (Sept., 1952), p. 167Google Scholar.

22 Kerr, Historical Development of the L. & N., p. 63.

23 Herr, Kincaid A., The Louisville and Nashville Railroad, 1850–1952 (Louisville, 1943), p. 24Google Scholar.

24 Ripley, Railroads Rates and Regulation, p. 44.

25 Louisville and Nashville Railroad, Annual Report, 1873–4 (Louisville, 1875), “Report of the Vice-President and General Superintendent,” pp. 21–67, plus tablesGoogle Scholar.

26 Ibid., p. 39.

27 Ibid., p. 32.

28 Ibid., p. 59.

29 Ibid., p. 57.

30 Ibid., p. 58.

31 Hudson, Henry, “The Southern Railway and Steamship Association,” Railway Problems, Ripley, William Z., ed. (Boston, 1907), p. 99Google Scholar.

32 Proceedings of the Convention of the Southern Railway and Steamship Association held at Atlanta, Georgia, September 16 and 17, 1875 and October 13, 1875 (Atlanta, 1875)Google Scholar.

33 Ibid., pp. 10–16. Fink's letter was dated Sept. 14, 1875.

34 Ibid., p. 10.

35 Ibid., p. 14.

36 First Annual Report Internal Commerce (appendix pages 16–19 describe the agreement and organization), p. 18.

37 Joubert, William H., Southern Freight Rates in Transition (Gainesville, Florida, 1949)Google Scholar. Joubert's book contains the most extensive estimate of the pool's accomplishments. See pp. 51–63.

38 Ibid., p. 62.

39 Ibid., p. 45.

40 Ibid., p. 63.

41 First Annual Report Internal Commerce (appendix pages 1–16), p. 12. Letter dated Louisville, May 1, 1876.

42 Ibid., p. 7.

43 Ibid., pp. 9–10.

44 Benson, Lee, Merchants, Farmers and Railroads (Cambridge, 1955), p. 39CrossRefGoogle Scholar.

45 First Annual Report on Internal Commerce, p. 62.

46 Benson, Merchants, Farmers and Railroads, pp. 49–50.

47 Daish, John B., The Atlantic Port Differentials (Washington, 1918)Google Scholar. Text of the agreement is found on pp. 2–3.

48 Ibid., pp. xiv–xv.

49 Benson, Merchants, Farmers and Railroads, p. 47.

50 Ibid., p. 46. A.S.C.E., Transactions, p. 634.

51 Ripley, Railroads Rates and Regulation, p. 101.

52 Ibid., p. 363.

53 Ibid., opposite p. 364.

54 Ibid., p. 367.

55 Joint Executive Committee, Proceedings of the Railway Convention held at Saratoga, August 20–24, 1878 (New York, 1880)Google Scholar. Pamphlet bound with the Proceedings and Circulars of the Joint Executive Committee, 1878, p. 77.

56 Joint Executive Committee, Proceedings, Meeting, Nov. 8, 1878, p. 7.

57 J.E.C., Proceedings, 1878. Proceedings of a Convention of Officers of Eastern and Western Railroads held at the Grand Pacific Hotel, Chicago, December 18 and 19, 1878 (Chicago, 1878), see especially pp. 5–8Google Scholar.

58 Ibid., p. 7.

59 Report on the Internal Commerce of the United States, 45th Cong., 3d sess., House Exec. Doc. No. 32, Part 3 (Dec. 1, 1879), p. 168.

60 Ibid., p. 170.

61 Benson, Merchants, Farmers and Railroads is the best study of the origin of the Hepburn Investigation. See especially Chap. VI.

62 New York Assembly, Proceedings of the Special Committee on Railroads (Albany, 1879), Vol. I, pp. 481–541, 556–636Google Scholar.

63 Ibid., p. 563.

64 Ibid., p. 575.

65 Ibid., pp. 570–571.

66 Ibid., p. 565.

67 Ibid., Vol. IV, pp. 106–119, Exhibit No. 1 for June 21, 1879.

68 Closing argument of Simon Sterne on behalf of the Chamber of Commerce and the Board of Trade and Transportation (New York, 1880), p. 29Google Scholar. Part of Hepburn Comm. Proceedings.

69 New York Assembly, Report of the Special Committee on Railroads (Albany, 1879), p. 75Google Scholar.

70 Fink, Albert, Argument Before the Committee on Commerce of the Senate of the United States on the Reagan Bill (New York, 1879), p. 28Google Scholar.

71 Ibid., p. 5.

72 Ibid., p. 7.

73 Ibid., Reagan Bill is found on pp. 23–28.

74 Ibid., p. 12.

75 Fink, Albert, The Railroad Problem and its Solution (New York, 1880) is a reprint of his testimonyGoogle Scholar.

76 Ibid., p. 24.

77 Campbell, Edward G., The Reorganization of the American Railroad System (New York, 1938), p. 12Google Scholar.

78 Daggett, Stuart, Railroad Reorganization (Boston, 1908), pp. 341–342CrossRefGoogle Scholar.

79 J.E.C, Proceedings, 1880, p. 117.

80 Fink, Railroad Problem, p. 64.

81 J.E.C, Proceedings, 1880, pp. 151–152.

82 Trunk Line Association, Freight Department, Proceedings and Circulars of the … Association, 1880, pp. 47–48.

83 J.E.c., Proceedings, 1881, p. 29.

84 T.L.A., Freight Dept., Proceedings, 1881, p. 157.

85 J.E.C., Proceedings, 1881, pp. 76–77.

86 Ibid., p. 87.

87 Ibid., p. 96.

88 Ibid., 1882, pp. 22–24.

89 Fink, Albert, Argument … before the Committee on Commerce of the United States House of Representatives, Washington, March 17 and 18, 1882 (Washington, 1882), p. 4Google Scholar.

90 Benson, Merchants, Farmers & Railroads, p. 226.

91 Fink, Argument March 17 and 18, 1882, p. 3.

92 Ibid., p. 7.

93 Ibid., p. 29.

94 Grodinsky, Julius, Jay Gould, 1867–1892, His Business Career (Philadelphia, 1957), pp. 364, 366–368Google Scholar.

95 Ibid., pp. 209–223, 355–376.

96 Ibid., p. 221.

97 Burgess, George H. and Kennedy, Miles C., Centennial History of the Pennsylvania Railroad (Philadelphia, 1949), pp. 408–412Google Scholar.

98 Satterlee, Herbert L., J. Pierpont Morgan (New York, 1940), p. 220Google Scholar.

99 Grodinsky, Gould, pp. 371–372.

100 J.E.C, Proceedings, 1884, pp. 8–11.

101 Evening Post, Jan. 12, 1884. Reprinted in J.E.C., Proceedings, 1884, p. 23.

102 Ibid., p. 30.

103 Satterlee, Morgan, pp. 221–222.

104 Report of the Senate Select Committee on Interstate Commerce, 49th Cong., 1st Sess., Senate Report No. 46, Part 2 (Jan. 18, 1886), pp. 1,207–1,208. (This report is usually called the Cullom Report.) Quoted in Grodinsky, Gould, p. 504.

105 Cullom Report, Part 2, p. 104.

106 Satterlee, Morgan, pp. 223–227.

107 Grodinsky, Gould, p. 508.

108 T.L.A., Proceedings, 1885, pp. 70–73. The agreement and a description of the organization in Cullom Report, appendix pp. 237–244.

109 Signers of the new agreement were the Grand Trunk of Canada, New York Central, Delaware, Lackawanna & Western, Erie, Pennsylvania, West Shore and Baltimore & Ohio.

110 Cullom Report, Part 1, p. 1.

111 Other members were Orville H. Platt, Conn.; Arthur P. Gorman, Md.; W. Miller, N.Y.; and Isham G. Harris, Tenn.

112 Cullom Report, Part 2, p. 72.

113 Ibid., p. 202.

114 Ibid., p. 1,204.

115 Ibid., p. 1,240.

116 Larson, The Wheat Market, p. 122.

117 Ibid., p. 147.

118 Cullom Report, Part 2, p. 126.

119 Ibid., Part 2, p. 114.

120 Ibid., Part 2, p. 126.

121 Cullom Report, Part 1, p. 201.

122 Cullom, Shelby M., Fifty Years of Public Service (Chicago, 1911), pp. 321–322Google Scholar.

123 Ibid., p. 322.