New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-07-17
RAILRo1p FoREBoDINeS.


While the movements of railroad managers
are watched by stock spectators with reference
to the immediate effect upon narrow and selfish
interests the whole country ought for broader
reasons to watch these mOyem nts with care.
The restoration OF prosperity TO the country
depends largely upon the management OF the
railway interest. A few individuals, as 1t hap
pens, have almost unlimited power over that
interest. II they quarrel general disaster TO
railways follows. If they combine to fleece
the public general injury to business and In
dustry of all kinds must result. The railway
kings ought not 10 quarrel, and they ought
not to combine; it is prejudicial to the public
interest if they wantOnly destroy vast prop
rrty which may be affected by their action,
but not less preiudicial if they cOnspire to use
their power for the plumber OF the public.
Many men are unable to see that any middle
course can be taken. To them it seems neees-
sary that railroads should either conspire OF
fight But neither is necessary.
The Saratoga conference has two phases.
Mr.. Vanderbilt, as chief owner or manager
of certain important roads, brings together Of
ficlals to arrange for more economical con-
duct of their business, and for a division of
the profits. So far, the objects are III har-
mony with public interests. The service
which these great railroads render to the pub
lie it is desirable TO have rendered at as little
cost as possible. Neither Is IL of primary inn
portance whether the saving goes TO the pub
lie or TO stockholders. In either case, the
saving is real, and the result is an increased
capital applicable 10 development of our re-
sources. If some individuals lose employment,
so some are also thrown ont of work by the
substitution OF machine for hand labor. The
more economically road is managed, the bet
ter machine it is, and the greater the saving
in actual cost of transportation to the country.
1t is of considerable moment TO the stock
holders of the Lake Shore Railway whether
they are to be plundered in the division of
earnings. According TO one report, they are
to get only one-third Of the earnings of the
combined Vanderbilt roads west of Buffalo.
This is much less than the road has been
able to secure in sharp competition. In effect,
such an arrangement would be taking part of
the earnings of the Lake Shore to pull the
other companies out Of losses. But this,
again, though injustice to individuals, would
not lessen the saving TO the country, OF add
to the real cost of the service of transporta-
ton; it would only be pernicious as
wrongful distribution of the gains. According
TO other reports, the division is to be unjust
to the Michigan Central interest, but this,
also, is not primarily of public consequence.
But Mr. Vanderbilt next proposes, it is said,
to revive the freight-pOOl. and to force the
other trunk lines to combine with him. If
they refuse to cOnspire, OF do not agree TO the
terms of conspiracy which he offers, he means
to fight until they are compelled to yield.
The conspiracy to maintain high rates means
warfare of the railroads against the public !;
it means, not lower, but higher cost of trans
portation. The bankrupt road, the road most
Overburdened with parasitic corporations and
leases the road on which transportation costs
the most, will, under such conspiracy, fix
the rates to be charged by all companies.
If the companies conspire, the rates can go no
lower than the least economical of the roads
can afford to charge. The public pays more
for the service, and the stockholders Of the
better lines get more for their profits, but the
country as whole loses, because it is COM
PEELED TO keep alive bankrupt concerns, TO
maintain disastrous leases, and to feed vora-
cious parasites
The public thanks viii therefore be due to
the railway manager who defeats any such
new conspiracy to maintain rates. 1t is not
certain that any one will have the courage
indeed, there has been more promise of such
course on the part of Mr.. Vanderbilt him
self than from any other. But his promises.
as New-York merchants are sadly saying to
each other, are not strictly equivalent TO per-
formances. There ia some reason to fear that,
no other road being ia good condition for