New-York tribune., 1908-09-26
RAILWAY POOLS
English Combinations-Need for
State Regulation.
Lcndon, September 16.


.edir, for a similar a1naIganatfon OF the so'nlh-
ern lines by which the Brighton would cohlrol
the Southeastern and the Chatham q Dover anu
the Great Western and South western liiieS De
orerated for common interest. Before 'no
soutLern groups have been definitely I0fin9u
there is & far reaching scheme for the creSA'iol
OF a single northern pool This Is an aeie'
rnent between the Scottish railways anu 'ie
nortfern lines-the North Western. the Midland
the Great Northern, the Great Central ana tLe
Great Eastern. When it is effected the trathc
,or4, Of London In all directions Will be con-
+ro1,e5 for the benefit of the entire body OIL
shareholders. There will be large economies III
expenditures, competition will be minlrnzeu' IL
CENTS win be divided from Interchangeable tl0N-
cts in proportions based upon actual pusiiiesS
for a recent period, and there VIII be d colICeH
tration Of freight traffic at reduced COST he1"
councillors will become close allies, ana ouSi-
ness viii be shared after expenses nave '
c7,t down in every branch Of the service
4. cooling arrangements Of this kind have
bceu made between one company ana 4iio'ile.
80 ra+1veen the two main groups recehuS
formed It is not improbable that the genera
combination will be effected as soon as INC
rronortfons and other practical oe'a4lS
worked out. The Board Of Trade viii lack po'ii
,,ozver and willingness to interfere Win 'i0
e,-sternatized efforts for dispensing Win 0oii1F
tition There will be fewer train SERVICES d" ii--
+erial reduction of railway servants eo-oF
tion in the collection and delivery OF Iiei7n' g,
q more economical management Of general pUs.-
moss Shareholders may be expected 10 Oe
:, 49, s,,e,,er,sfon of excessive compe1luoH' Ds
-. ,,,,arating expenses have been incIedSeU
,.,,,,+ oa5itional traffic of substantial Naluo,
tho convenience Of passengers ana shlpP'7
re rrornoIed by system OF ln'eroii'N- - =,
+5.l,a+s and concentration or ctIIiaso'
tho long run the charges for trainc Oh eNe =
ro likely 10 increase. The Wlthdra"dl VI
,,o+545o, cannot be an unmiXed gam Ni
So, managers are bent upon recolL1lNs
+.relo1ders TO the new arrangement ~
Increased earnings and DIVIDENDS hes =.
.,.t,,o+fo,,s becomes Indispensable wheh Is
o.o ,oo1ed and the bulk of the business "
o1-,a,,o+ad without rivalry and soiely ioi LIN
beneht Of the allied companies ,o,,+
ort,;yy ARRANGEMENT be broushl apou'
-. +,o northern lines and this be loii0
q similar concentration OF nahaseiie''l +,
ro,,+barr counties there viii be t"o s-'"f
oor+rol ~ railway transportation OlllS oiie
ai+ional combination will be required lo4 -
a-,eo1iza-io7, Of the railway interests OF the
l-inodon, outside of Ireland why not H@'
.i,-,o,i,a+irn Of railways an1 he done with II!
-,+o,,,1z- the railways could be managed as q
e ,,,,en+ service as easily in England ann
scotland as IN Germany, France and ltaly; ouI
there would have TO be a purchase schei'ie' WIN
adequate compensation for sharehooers' anu
this would involve. according to Lord brdsseS
estimate an issue Of consols amounting 10
twice as much as the aggregate national oepl-
That is an operation which no Treasury orncldl
will ever be prepared TO recommend SIaue
ownership of railways, if undertaken when the
capitalized value was moderate and the mileage
:nconsderable would not have been difficult
-7rohler1: hut it has ceased to be practicable
The r11rchase Of the Irish railways alone would
add $500 100000 to the national debt, and the
naturalization of the English, Scottish ana
Welsh railways would exhaust the borrowing
mowers of the government and bankrupt the
Treasury The shareholders, whose dividends
have been steadily shrinking for a long period,
would be pleased TO get back the money IN
vested in railways; but the project of state
ownership has passed outside the range Of prac-
teal politics.
The English railways Will be left in private
hands because il Is impossible even for a So
cialist-Labor agitator TO suggest any method
of finding the money for their purchase. The
conflict between shareholders. who want the
best possible return for their investments. and
traders and passengers, who insist upon hav-
ing increased facilities, improved service and
lower tolls, is likely to become more serious
under pooling arrangements than it has ever
been under the conditions Of cutthroat competi-
ton The policy of duplicating lines. struggling
over traffic and increasing expenditures with
out adequate promise of return, has been con-
denned by all railway managers. Live and
let lire." is now the password at every railway
conference. Railways are to be conducted here
after for private profit rather than for public
convenience. The interests Of one corporation
viii not be allowed TO clash with those Of an
other. Expenditures are to be reduced and an
anicable system Of profit sharing IS to be sub
stituted for reckless and Improbable competi-
ton Everything is 10 be done to enable Share
holders to get a better return for their money
than they are new receiving. Tho managers
are 70 deal with traffic not as sharp competi-
tors hut partners, with common stock and
q common plant The earning capacity CT the
shareholders investments is to be increased,
whatever may be the public requirements or
grievances.
Evidently it viii not be long before there is
a conflict between railways, consulting their
own interests exclusively. and the public, which
wants 10 have goods and passengers carried as
cheapy and efficiently IS possible There will
have 10 be more rigorous supervision of rail-
svay management by public authorities. When
the recent struggle arose between the railway
corporations and the representatives OF organ
tied labor Mr.. Lloyd George. in effecting a
lirnely compromise after there had been a
shrinkage Of over SJo.000,000 in the debcnture
stocks and ordinary and preference shares. in
tImated that there were many things which the
managers might accomplish by preconcerted
agreement. They have taken him at his word
and are gradually converting traffic into gen
eral business TO be conducted frankly for private
profit. The Board OF Trade will have to be
armed with larger powers OF supervision over