Evening star., 1899-03-30
TENDING TO COMBINATION
The Railroads of the Country Following Ex-
ample of Manufacturers,
Alleged BENEFITS to the Public Result
ing From Such a COurse-PrOs-
pective Changes.

Speaking of the prevailing tendency, in
almost all branches of commercial and
manufacturing business to form combina-
tions, and the apparent intention of many
of the railway companies throughout the
Union to adopt a similar course, a promi-
nent railway man said to a Star reporter:
within the next ten years one may ex-
pect to see a general absorption by the
big railroad companies of most of the
weaker lines, where the latter are in any
sense competitors of the larger properties.
In bringing about these conditions two de-
sirable results will have been accomplished.
The first of these relates to passenger and
freight rates.
Since the dissolution of the Joint Traf-
hc Association and other similar organl-
cations, the standard lines have endeayored
to make permanent established tariffs, but
a full realization of this commendable pur-
pose has not been possible, owing to certain
disturbing elements directly traceable to
number of weaker roads. Rate wars having
in view a clearing of the situation might be
maugurated, yet these are expensive un-
dertakings, and often fail in making perma-
nent the desired reforms. 1t is, therefore,
likely that within the time / have men
toned many remarkable changes will he
effected in the relationship of the various
railroad properties.
Condition of Weak Lines.
''The second consideration has to do more
particularly with the fiscal condition of
these weaker lines. By bringing them un-
der the management of one great company
many economies are possible, of which the
public usually gets the benefit. What
mean is illustrated in the absorption of
hundreds of railroads in the past ten and
twenty years by strong corporations, which
were merged into one system, aliordlnS
more comforts, faster time and surer con-
nections to the traveller, and better serV-
ice at lower rates for freight.
This is accomplished by marked i'm
provement in road bed and equipment
made possible by supplanting securities of
doubtful value with those having a recog-
nized value in the markets of the world.
In all these cases the patrons of the roads
have certainly been benefited, the stock
holders are better off, and the general pub
lie has not suffered. There will always be
plenty of competition in railroading in this
country because of its geographical outline
and large area of seacoast.
Combinations at this particular time
have even a wider significance than those
to which l have already referred. 1t is
section against section now. Down through
the great Mississippi valley pour the prod
uctS of this vast area into the ships in
waiting al New Orleans and Mobile. Across
the vast territory of the southwest rush the
cotton and the grain of its rich acreage to
Galveston. Newport News. Baltimore and
Philadelphia drain the middle west. Out of
the northwest comes the gol en- harvest to
San Francisco, Portland. Boston and New
1ork increase OF traffic in one section
means loss to another.
Unity of Interests Essential.
ut is. therefore. essential that there
should be unity of interests with a view
of minimizing the cost of operation and
maintaining hold upon that already in
hand. 1t is a fight to a finish. and as by
combination the resources of war are made
most effective, so is it in commercial lines.
We are now entering the worlds mar
kets with nearly all classes of manufac-
tured goods. 1t is only possible to do this
with large capital and immense resources,
and here We have no fear of lack of COM
petition. 1t will be a fight of giants in the
world 5 markets, and the Yankee will win
out every time. Our drummers are now
booking orders in every corner of the earth,
ana, as a consequence, instead of using
England as clearing house for our vast
trade and shipping, will establish our
own lines upon the seas that will in time
grow to superiority as have our railway
lines