Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-07-19
RAILWAY CONSIDERATIONS.

RAILWAY CONCENTRATIONS.
The railroads of the country are rapidly
assuming the proportions of giants. One
after another of the smaller and weaker
roads are being absorbed by the more pow
erful organizations, until there are left but
few through lines between the West and
East, and the connections of the great mon
opolies are being purchased and added to
the main trunk. For the past twenty years
it has been the policy of the people of the
West to establish as many competing lines
of railroad to the water routes AZ could be
supported by the country, and by promises
that they would never be consolidated sub
stantial aid has been gwen to them. Towns,
cities and counties have incurred heavy
debts that they might secure railroad COM
munication with the outside world, and
large bonuses in the shape of depot grounds,
grants of land and bonds have been,
made to them. The roads have been con-
struoted. but it has so happened that as soon
as they had been placed upon paying basis
one or another of the great trunk lines has
purchased enough stock to give il con-
trolling interest, and SO, instead Of remain
ing independent organizations they have be-
come simply feeders for the roads run in
the interest of Chicago, Milwaukee and New
York. Two companies now practically con-
troll all the east and west traffic of the North
west, and these are substantially made one
by the poolings of their earnings. These
two roads are appropriating one after another
of our independent branches purchasing
them for mere 1.-THE of their original cost
and leaving the original creditors and bond
holders to whistle for the profit on their in
vestments.
The policy of the two Lake Michigan lines
that reach out into Minnesota is profitable
one to them, but exceedingly Improbable to
those who built the roads they are devouring
80 fast. Few if any of the men who placed
their money in the enterprises ever reap any
profit, and if they secure return of ever so
small an amount of the principal they are
exceedingly fortunate. The managers of
the great railroads understand fully the pro-
cess of "freezing out" stockholders and
bondholders who are inimical to their inter
ests.
1t is very evident that before many years
the railroad system of the entire country
will be controlled by some half dozen
giant corporations. Whether the result will
be beneficial or otherwise to the people at
large remains to be seen. There is no doubt
but competition in the matter of transporta-
ton has been productive of great good in
the past. This advantage will be lost
through the many consultations that are
now going on. Yet 1t Is question whether
the combinations will dare to Cypress the
people by extortionate charges. They will
no doubt find that it is to their interest to
treat their patrons with fairness, and may
pursue more liberal policy than was at
tainable with the roads with limited re-
sources and Indifferent equipment. 1t will
be to the interest of the companies to do all
in their power to develop the country trav-
ersed by their roads, and stimulate trade of
every description. To pursue contrary
course would be simply suicidal.
In our postal system, our revenue tariff
and in many other directions it
has been demonstrated that the
lower taxes have produced the
greatest revenue. We have no doubt the
same principle will hold good as to railroad
tariffs. Low passenger rates will encourage
and increase travel, and low freight rates will
stimulate trade, just as low taxes stimulate
the production of various articles. It will
therefore be to the interest of the railroad
magnates to place their rates of transporta-
ton at reasonable figure, and to afford
every possible facility to the travelling public.
For this reason we do not regard the CONSOLE
dalton of these roads rs an unmixed evil. It
will certainly result in an improvement of
the facilities Oh lines that have hitherto been
poorly managed and indiferently equipped.