The morning call., 1890-11-23
RAILROAD CONSULTATIONS.

The story that great railroad consolida-
ton is about to be formed, embracing the
Southern Pacific, Northern Pacific, Union
Pacific, Atchison, Missouri Pacific, Burling
ton, Alton and connecting lines, probably
rests on foundation of fact. Indeed, there
is nothing new in the project Two years
ago circular letter invited the Presidents
of the leading continental lines to meet at a
New York clearinghouse to consider the
subject of consolidation. Several gentlemen
accepted the invitation and an interchange
of views was had. Nothing further came of
the matter at that time. 1t came to hight
that several of the leading Eastern railroads
were managed and controlled by persons
who held no interest in the properties and
were merely concerned to earn their salaries.
These persons were not eager to adopt a
scheme which would reduce the number of
high priced railroad officials. Partly owing
to their Indifference or opposition the plan
was shclyed for the time.
Since then several informal conferences
have been held in New York, and it was
ascertained that the bulk of the owners of
shares and bonds in the long railroad lines
were in favor of consolidation. on the
ground that it would insure better service,
would diminish the expenses Of the roads
and would PREVENT railroad wars. The par
ties in interest being favorable they seem to
have only waited for a suitable opportunity
TO breach their plan. That opportunity ap-
pears to have come when the Rockefellers
and their associates wrested the Northern
Pacific out of the hands of Willard, and Jay
Gould repurchased the Union Pacific stock
which he sold some years ago. AT least
that is the way the thing looks now. In
deed the New York Tribune, which is
usually well informed on railroad matters,
positively states that it is now quite certain
tim. bafora naanv weeks powerful hi
nation of capitalists will control every indie
pendent road west of Chicago and all the
roads east Of Chicago except the Pennsylya-
MIA and the Lackawanna.
1t Will be time enough to discuss this as
founding operation on its merits when the
negotiation has made more progress and its
probable effects can be more distinctly dis
cerned. In the meantime one or two points
may be noted.
1t is stated that the only continental line
which win not be controlled by the syndi-
cate will be the Canadian Pacific. 1t is not
at all likely that that line could preserve
position of independence in opposition 10
the entire railroad system south of it. The
best paying business of the Canadian road
comes from this country, and could be cut
off in the event of war between it and the
combined American lines. If a consolida-
ton is formed the Canadians will fall in
with il as matter of course.
Next it is stated by Eastern papers that
the first effect of the consolidation would
be an advance in freights and fares 1t is
not certain that such foolish step would
be taken by the managers of the consolida-
ton. 1t would have the effect Of exasper-
ating the whole country. and would proba-
bly, lead to legislation by Congress which
might seriously EN- barrass the roads. Even
without new legislation the common law,
under which the sugar trust has been wound
up in New York, could probably be invoked
with fatal effect against the cons olidation
in case the latter misused its power. 1t is
more likely that the managers Of a railroad
system controlling mileage Of $1,000 miles
of rails. more or less, would learn lesson
from the new railroad legislation of Austro-
Hungary. which is the latest thing in the
science of transportation - the new tariff
having gone into effect just a year ago.
The details are complicated; it may suffice
to say that the reduction in passenger fares
is from 80 to Sc per cent, and that the effect
has been an increase Of about 165 per cent
in the number of passengers, and an in
crease Of passenger earnings equal to IS per
cent.
1t is a demonstrated fact that railroads
make but little profit on passengers in sleep
ing cars or drawing-room cars. The profit
derived from passengers is made on the
earnings of ordinary cars or emigrant cars.
1t would seem to follow that the lower the
charge for transportation on such cars,
within certain limits, the larger would be
the number of passengers, and the larger
the receipts from this branch of business.
A Directory, consisting of the ablest rail-
road operators in the country, handling
their own property, would probably not be
long in discovering this principle.