St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1889-10-06
A RAILROAD UTOPIA.
Gigantic Pool That Must Re-
suit From the Present
Conditions.
Tendencies of the Times To-
ward a Movement for
Preservation.
Railroad Men Study Hills Cir
eulaP and Guess It's
Meaning.
The Local Offices With Their
Gossip and Personal An
nouneements.

Among President Cleveland's epigram-
matte sayings, which will go ecnOing
down the unexplored corridors of the
future, is one that applies 10 the present
railroad situation: sit is a condition,
not theory. that confrOnts Us" The
railroads have proved themselves so
anxious to get the better of each other
that they have too often lost sight of
the general public. This has resulted
in governmental interference. That
this interference has done mole harm
than good must be apparent to everyone.
The roads have tried 10 govern them
selves by means Of associations Of va
Tious sorts. These associations have
proved themselves unable 10 meet the
difficulties which are constantly arising
They have no existence in the eyes Of
the law, as has been decided III the
case of the "Gentlemen's'' assO-
citation and the Interstate Commerce
Railway association. Hence they
rest for their authority simply upon the
honor of the individual members. As
soon as some road finds it to its interest
to transgress the rules Of the aSsOcia-
ton. OF TO act independently or in OppO-
may have 10 retire from the association,
or the latter may be destroyed by IFS
action. The association has no recourse
a-ainst an offending member. II can
neither sue nor be sued, not being rec
OgniZed as having any corporate exist
e!ce by the highest legal authorities.
These associations are mere voluntary
concerns,
INHERENTLY UNABLE TO COPE
with the problems which must con
stantly arise in the MANAGEMENT of rail-
road affairs. For the protection of the
pu6lic against unscrUpulOus managers
who do not acknowledge that the
public has any rights they are
bound to respect, and equally for
the protection of the railroads from
TapaciOus legislatures formed OF
ignorant demagOgues who consider the
roads a legitimate source Of plunder,
for this mutual protection some scheme
must be devised. OF else the railroads
will become government property. As
Mr.. Beach, railroad attorney of New
York. saws: Railroads without regua-
ton will not be tolerated in this cOun-
try. The railroads must there
fore set about in earnest to devise
remedy or We shall presently be face 10
face with government operation"
The great project which President
Hill. of the Manitoba, has given birth to
is sign of the times. Consolidation is
the tendency of the day. Small lines
are gradually being absorbed by larger
ones. The Northern Pacific and Wis
consin Central consolidated. the Oregon
Short Line, Utah Central, Utah North
ern, and a number of others have con-
Solidated: the Omaha and the Eastern
roads are but a number of consultations
of myTiads of smaller lines; the Manitoba
is now in line with one Of the most gi-
gautic of consultations. The law of
nature, that of the survival Of the it
test. the weaker going to the wall OF
being eaten no by the stronger; applies
equally TO railroads. The near future
will see more and more consolidation OF
roads. and in this alone is to be found
the sOIuEon OF the
PROBLEMS THAT CONFRONT Us.
1t will be slow process, but it is in
evitable. When this has progressed
sufficiently far a gigantic trust may
be formed. 1t may not be called
trust" as the word stinks in the nos
triis of a certain class of people. 1t
must be called an association. 1t must
have no bearing upon the stock market
and must not be of the nature of a
secret society, but must be TO ali intents
and purposes a corporation. 1t will
have many corporate parts. For in
stance, the country could be di-
yided up into territories and all the lines
operating within each Of these terri
tories could be formed into pool with
one central management. The roads
operating between ST. Paul and Chi
cago would form one such pool. between
Chicago and New York another, between
Chicago and st, Louis another. and so
forth. of course. the details of this
partition Of territory would have to be
carefully mapped out, and tits too early
TO begin tc do this now, eXeeptin gen.
eraliZing. broad way. NOn-paying
branch lines would have to cease 10
operate, or be operated on alternate
days or twice a week, according to cir
euiustanceS. All the roads within each
of the different territories would be
operated under one management and
the profits divided pro rata on some ar
ranged basis. which might te the
amount of business done. Such
system of territories would have
TO be under the absolute control of a
central office, which would have abso-
lutte authority over the whole country.
This would form a gigantic pool, of
which every railroad in the country
would be part. 1nterJerrltOr1al buSl-
ess would be figured up at the central
Offices and
THE PROFITS DIVIDED
among the roads on the same basis as
those of the individual territories.
Such pool might be formed on the
basis Of a corporation, with a capital
stock sufficiently large for necessary
purposes. stock could be issued to
stockholders in every road in exchange
for their old stock. All mortgages and
bonded Indebtedness would have to be
redeemed as soon as possible. The
issue of stock would require good deal
of calculation to ascertain how many
shares would be necessary, and in what
proportion to the shares in the present
companies it should be issued. Many
other such details should be figured out
when the time came. but are mere
questions of mathematics.
Such q pool could regulate every
thing for the benefit of its stockholders,
and by judieiOus management could
keep out all internecine warfare, cut
ting of rates would be thing of the
past, charges to the public would be
greatly reduced in proportion 10 the re-
duction in cost of management and
operating expenses. The federal and
state governments would have no more