The New York herald., 1872-03-18
RAILROAD NONOPCLIES In FRANCE
Evil Effects and the Necessity of
Legislative Interference.
How Public Good May Be Transformed Into
Positive Evil-Disastrous Effects OF Railroad
Monopolies-Powers Given to Railway
Companies -Amalgamahon-Ho In
dustry and Enterprise is Crippled
and Checked-Prussian Treat
msnt Of Public Carriers.

AAeus VI xuUlC ldTrlorA
VERSAILLES. Feb. "a. 1872
A lesson OF deep interest may be drawn from tho
present condition of railroad enterprise in various
european countries. The conflict existing between
the general public and railroad managers while
exciting intense interest among the mercantile
world OF Europe. invites tho serious attention of
American legislators. A discussion In the House OF
Assembly some time since has brought to light facts
which, 30 far as concerns France prove the neces-
sity for tnstituting q searching investigation.
committee composed OF thirty members, was ap-
pointed for the purpose of conducting the INQUIRY
The measure, 1t Is tobe hoped, VIII bring us nearer
solution OF the vexed question and furnish ele.
ments whereby to determine the issue whether 1t is
desirable 10 expose the vitality OF country to the
caprices OF railroad monopoltes
INCREASING THE MEANS RAILROAD rRANsPoR
TATION.
From all that has transplred 1t Is quite evident
snat railroad managers In France are not awake to
the necessity OF increasing their means Of transpor-
tation concurrently with the growth OF commerce.
In order to keep the performance Of the business
well up to the standard OF public requirement.
duty devolved On the managers to provide marked
increase in the rolling stOck-notably freight cars
under pain or mourning the risk of finhctng serious
INJURY. The performance OF that duty has been ne
giected. and the consequences arising therefrOm
are threatening to ruin important branches OF
french Industry. To Judge from the general aspect
OF railroad enterprises there Is nothing whicn need
nave deferred the managers from according to the
public facilities as great ana tariffs as favor
able as those enjoyed, for Instance Dy the
people OF England AS one Of tho speak
ers-tne Baron J0uvenal-pertlnently remarked,
merchandise is transported In England from one
end OF the country to the other less time tnan 1t
would take TO traverse 100 miles in France The IN
fnwod nf
secondary consideration and far French ran
road directors have hau no other object in view,
and, probably with perfect proprety. were merely
anxious to labor IN earning gool dividends.
SH EVILS OF LARGE MONoPOLIEs
When. IN the year 1857, the great railroad mono-
poles were created in France J was argued that
by amalgamation and consolidation the companies
could effect great reductions IN their working ex
penses; but it has by no means been shOwn that The
public has gained the benefit OF this reduction On
the contrary, has been proved beyond DOUBT that
the stockholders have always the first claim on the
consideration OF the Board OF Management Their
nrst and foremost duty seems naturally to be to
earn good dividends. IT, in their opinion that OBJ
1ect can ce attained by refraning from extending
their raf1lc into new districts or by keeping
up high rates OF tariff, the managers are bound to
act upon that conviction regardless Of any amount
OF suffering to which the trade ana industry of the
co untry may he subjected by their course OF &C on
In this connection 1t must not be forgotten tnat
there is wide distinction betw cen the monopoly Of
a selfsupporting service and the monopoly Of a
power created for the purpose OF earning dividends
In the case OF the French companies 1t is evident
tnat they do not cOnstder they would be doing
tarlis or by increasing the extent OF accommodation
1,r IN regard M 70 ireisnt or passenger traIllc.
THE ORGANIC LAW OF FRENCH RAILROAD coMPA-
The organic law under which French railroad
States as weli as England possessed areaay n re-
ever, was conjecture and speculation IN regard to
The future importance OF railroads. and the
subject, has evidently been led to torc commit
serious errors; It Is nign tmo to correct these
panies have been Incorporated, accorded conces-
sion which. as rule, extended over space OF fifty
treasury engaging in most Instances to the extent
OF twohirds 81 the requisite capital. With the view
OF regulating the transportation or freight and pas
.sengers, the government IMPOSED upon the COM
panles certain police rules, and undertook likewise
warded by grande r,tesse-, e. transportation by
fast tralns-was limited tariff rate OF thlrty-sX
to small fraction over eleven cents per ton per
mile For the transportation OF freight by ordinary
trans the tarin admitted q classification OF goods
che rates being fixed as Iollows:-
First classic centlmes per ton per kiometer.
THIRD classic centfmes per ton per Kilomeire.
This Is equal to 400, $50 and a07 cents per ton per
mile.
THE IMAGINATION MANIA.
Subject to the foregoing regulations, all the com.
panies continued TO WORK until the year 1851. At
tnat period mania sprung up which favored
amagamatiOn, and o new era was inaugurated.
The smaller companies were gobbled up by more
French railroads WAS consolidated into gigantic
monopoly by the creation OF SIX grand compaaies-
the Eastern Western, Northern, Southern, the
Paris, Lyons and Marselles anu the Tours Orleans
companies. There is no doubt in my mind that
Just appointed going far to show that the creation
of the existing mCnopolies has seriously interiered
with the prosperity Ol france. In the meantime the
mischief Is done. The new charler, granted In
1857, under. the amalgamation act extended the
tarins, above mentioned, was 50 far modified
existing general tariff other and additional rates,
known to-day as the especial tariir;'' then differ
International tarin-were established. II is conve-
nient TO add that under the general Railroad
cnarter OF 1912 the companies were held TO maxi
mum rate OF speed Of 125 kilometres seventy eight
mles) for every twenty.tour hours travel Of
freight train The present obligation stipuates 200
kIometres-i. e., l25 miles for twentyfour hours
travel.
The question Immediately before the public refers
to vexatl0us delays and detention OF freight by
reason OF insufficient means OF transpcrtation. Nj.
Le Roger, the Deputy who brought the subject be.
fore the Assembly, stated, that since the day he had
to the mater h nSd eceve o. over @
dred letters and messages all teemlng With indgna.
Gicted ty the arbitrary proceedings Of raiiwaj auto
Gratis. The facts revealed are most appalling All
tends to show that unless the government takes the
matter III hand
RUIN AND DESOLATrON
will cnsuc TO many prosperous branches of trade
and industry In the nrst place, M. Lie Roger and
other speakers graphically depicted the iucOn.
venlence prevalent IN the wIne-growing districts.
they had no facilities In moving the crop. Fav0rs
had been shown to some CT the prominent mer-
chants and aeaIers In forwarding the stock OF wine
on hand but there was an apparent Willingness
ON the part Of the respective companies 10 bring
empty packages by return trains. The emptie3
pay, as may be imagined, the lowest scale of
freight, and as sufhcient goods are Oilerng paying
a more Temunerative rate, the casks are left behind.
10 the vntner, however, It Is OF the greatest i'm.
nOrtancp tO nOssess ADEQUATE supply OF empty