The sun. [volume] (New York [N.Y.]) 1833-1916, 1909-05-12
NOTES ON ENGLIsR RAILWAYS
Beneficial Consolidation OF Rasatiea and
Competing Lines.
From Moody's Magazine.

From Moody's Magazine.
The most notable recent consolidation u
that OF the London, Chatham and Dover
and tho London and Southeastern lines
which operated to merge two theretofors
independent. parallel and competing lines
and TO aliot the whole southeastern section
of England to the amalsAmated COMPANY
This, a. Is usual In that country. was &C.
oomplished through special Parliamentary
powers, which In this case were sought and
obtained without arousipE q great oppo.
sitioI, ohsendsrinE any ~uonsiderabis neat
or provoking any defamation about .
sacrifice of the rights Of the public. In point
Of fact nothing but good seems to nave
flowed from II.
Previous to 1909 both these railways had
i~nadequacy, slowness and unpunctuality
of their services. for the d~ilapidated con-
ditIon of their stations and rolling stock.
and generally for the back ward state OF
their accommodation. In the case OF the
Chatham company tho financial position
was also precarious, n though the south
eastern at one time was noninauy muoh
stronger in this respect 1t too had lost much
ground In the preceding i've years. aud for
1901 It's ordinary dividend at tho rsts OF
only Q Der cent. was the worst In its history.
Composition Of the worst kind between the
Southeastern m and Chatham companies wa
q normal state OF affairs. and as the result
both railways spent vast sums Of capital
and revenue for which there IL at the present
time little to shew except duplicate lines and
stations and inadequate provision for tramo
where extended accommodation was most
required. Many times q fusion OF tnteresta
had been urged upon the two companies,
but without result. Negotiations for anal
gamation were entered upon several times,
but they always broke dow at the crucial
moment. At last In 1898 an agreement
between tho two companies was come to,
not for a complete ~amalgamAtion but for
the pooling Of gross revenue and working
expenses and the division Of not profits on
a fired percentage basis. with additional
arrangements for the joint contribution OF
capital required.
It was not the intention OF tho two COM
panies to seek Parliamentary authority
for this arrangement. as they were not
bound to secure the sanction OF any other
body than their shareholders; but the
Government virtually intimated that the
new arrangement wss 80 important and
far reaching In It's bearing on the interests
OF the public that the terms Of agreement
ought to be embodied in q bill. This bill
was introduced in Parlismen n In the session
OF 1899 and received the royal assent on
August 1 following, and seven months there
after the new arrangement came into opera
ton. The preamble TO the working union
act OF 1899 recites that with . view to avoid
Ing undue competition and unnecessary
expense and delays and other %inconven-
fences arising from diversity Of interests.
and 10 turning to the best account the re-
s~pective powers and Of the "
It is expedient and will be for
the public advantage that subject to the
provisions and enactments In this act con-
tanned the undertakings OF tho two COM
panies should be used. worked. managed,
and improved from and after the
passing Of this act as one undertaking."