The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-26
NOVEL CLEARING HOUSE
METHOD BY WHICH ENGLISH RAIL-
WAY COMPANIES ACT TOGETHER.
The System to which Our joint Traf-
hc Association Corresponds
Pooling Of Traffic.
London Letter in New York Post.

for business and in spite of the worldwide
depression. Do they pool their earnings,
and to what extent does Parliament take
hand in regulating railroad traffic?
According to the recent report of our Inter-
state-commerce Commission over $50 roads
In the United States, representing S0475
miles of track, are in the hands of re-
receivers. The railways of the United King
dom. on the other hand, seem to be enjoy
ing period of great prosperity. Moreover,
the very existence of our Joint Traffic AS
ISOLATION is threatened by recent decisions
of the lower courts, and state legislatures
Gas in Nebraska for instance) are trying
still further to cripple the companies.
The largest railroad corporation in Eng
land is the London & Northwestern, which
is capitalized at 100000 and pays a
dividend of w per cent. In round num-
bers its revenue is over 913,OOOOJ0 a year,
or $65. 100000. Although it's mileage is not
nearly so big as that of the Pennsylvania
Railroad, it's capital stock is almost three
times as great.
The Midland comes next in Importance.
with a capital of 9960O0,0 900 and a revenue
in the neighborhood of e12OOO,OOo.
The Great Western is the next largest
line in Great Britain and is capitalized at
GS5, 100000, with a gross revenue of 10000, 900
year.
Dhen in turn come the Northeastern,
with 26S, 100000 capital and 2S 100000 reve-
nue.. and the Great Northern, with $4,000
900 capital and 95,25O,OGO revenue.
1t will readily be seen that the leading
lines of Great Britain are more than making
a living.
One of the most prominent railroad men
of the United Kingdom is Sir Henry Oak
ley, manager Of the Great Northern, He
M i'm he h1
ing served his company for fifty years. q
perhaps ought to say, in passing that
railroad manager in England practically
corresponds to a railroad president in the
United States) Indeed Sir Henry was
knighted by the Queen in recognition Of his
thorough knowledge of railroad and trans
portation questions. so that his views
entitled to great weight.
A VETERAN MANAGER.
I found Sir Henry at his office in the
Kings Cross Station of the Great Northern
Railway and asked him to tell me how the
English roads managed to have peace and
prosperity, although there WIS the sharpest
kind of competition among them. The vet
eran railroad manager politely acceded to
my request for information and kindly per-
mitted me to make a shorthand transcript
of what he had to say.
1--WE have what we call clearinghouse
conference in this country began Sir Hen
ference OF railroad managers who meet at
the clearing house because it is a good CEN
ter.
But the clearing house is only the We
hicle for dividing the receipts from through
traffic. We have a conference of the gen.
eral managers, which is supreme. Then
ther are conferences of goods managers,
who adjust freight matters, and of super
intendents of the line. who look after the
passenger business. Subconferences take
place once a month, with a general confer
ence once a quarter.
THE general managers meet as often
may be required, and have, besides, reg
ular quarterly meeting. They agree on
what the rates to a particular place shall
be, and that no company Will depart from
this tariff. The superintendent and goods
manag rs are dt pu ca u w r1 this la Gu
reporting to the general managers, who de-
eide whether ali the rates proposed shall
be adopted, and who alter them, If they
disapprove of them.
| ard, in the event of any. company depart
ing from it, meeting of managers is i'm
persists in cutting the rates the agreement
is considered at an end, and all parties con-
cerned are left to their own devices. The
effect of this is found to be that prices
rattle down. and after a more or less pro-
longed war of rates the managers again
get together and a new agreement is
formed
Sometimes the contest between the COM
panies is very active. Rates as low as half
a crown have been charged by competing
roads for a distance of two hundred miles.
But all parties soon get tired Of the war.
because a very serious loss is incurred by
every company. The result is a new agree
ment Is made and rates are adhered to.
Then, if through any biunder or willful act
of a subagent dispute arises, it is prompt
ly brought to light and invariably settled.
SO that for the last twenty years or more
we have had no disputes ON a question of
rates.
"Does not Parliament take a hand in say
ing what the railroads shall do?" 1 asked.
"There has been no parliamentary inter
ference in the question of fares,' answered
Sir Henry There was parliamentary in
reference on q question of goods rates.
But this was only on this point: That the
rates originally granted to the companies
were very much in excess of what the COM
panies actually charged. But in cases of
dispute with the traders, the companies be-
ing legally authorized to charge the higher
rate, the traders had no legal ground of
complaint. Therefore, it was that Parlia-
ment revised the whole rates of the coun-
try bringing them nearer to the actual
charges made, and this is the situation al
the present moment.
"Of course, there are lots of cases where
the traders think that the companies charge
too much and where the traders allege
that they render services at their own cost
which are included in the legal rate, and
that, therefore, some allowance should be
made to them. This is notably the case in
places or factories where the trader finds
accommodation for himself which otherwise
would have to be found by the company on
their premises.
I'm such case an allowance is usually
made off the rate by the company. Under
the recent decision of the railroad commits
sioners this allowance is founded upon the
following basis:
1T is assumed that the total rate, includ-
ing terminals, is 20 shillings, and the rate
actually charged 10 shi!lngS; the legal pro-
portion assigned to terminals is only three
quarters of that authorized, and the allow
ance made to the trader is reduced in the
same proportion. that if q terminal of 10
pence is allowed by law, and ~ pence be
included in the rate, The trader has a share
of the ~ pence and not of the 10 pence for
his proportion of the work. This rule is
practically in force throughout the
whole of Great Britain. And, though there
is some little discomfort among the trades
men at the decision of the commissioners.
business has generally settled down and. is
transacted on this basis.
s''What about the legalizaticn of pooling?"
was asked.
ION the question of pooling the law in
England has never been really definitely
settled. But il is the practice, to a very
limited extent, for the companies to divide
the receipts of traffic between particular
places in proportions agreed upon, so as
to avoid the unnecessary duplication of
trains, with their attendant expenses.
NO CUT RATES.
"All companies adhere to the rates set
tied. The gross traffic is then put into a
pool and each company assigned its pro-
portion. Pooling is not done to any great