New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-15
BRITISH RAILWAYS
Government acknowledgements
Against Combinations.
London, May 3.

railways That is the conclusion reached
by the Departmental Committee on rail-
way agreements and 1t has an important
bearing on controversial legislation in
America. The traditional policy Of the
Cobdenite era involved the multiplication
of corporations and competing lines with
the lowest rates for travellers and
traders Is the result Of reckless individu-
alsm For a long time 1t has been evil
dent that, while systematic state control
has prevented unfair discrimination and
prejudice against private or corporate
interests. or any kind Of traffic, 1t has
not cheapened freight rates as much as
the business interests of the community
have required nor has IT supplied every
section Of the kingdom with adequate
traffic facilities During recent years
the railways have substituted co-opera-
| tive understandings for warfare, ana
when formal agreements and combina-
lions have been forbidden by the Board
Of Trade they have managed their prop
critics tacitly for joint interest. NOW
comes the discovery Of the investigating
experts that it is impossible for the state
to force corporations to compete with one
another against their will.
British railway managers have ascer-
| tanned from practical experience that
rivalry is wasteful and unscientific, and
that higher dividends can he secured by
! the abandonment of blind competition
and the adoption of cooperative rela-
| lions on give and-take principles. BY
the withdrawal Of improbable services
and by the division OF traffic when the
! facilities were redundant working ex-
penses have been reduced. Conferences
! between rival mana gers and superin-
/ tendants have promoted friendly under
standings and working relations. Con-
| centration Of interests is now the COM
mon policy Of railway boards, which in
the past have been engaging In de-
structive warfare. While combinations
| on a large scale have not yet been ef-
fected and powerful monopolies have not
been created, the pressure Of competition
has been relaxed in the interest OF share
holders Instead Of bidding against one
another for Improbable business they
share what business there is on equltapie
terms. Reductions OF passenger fares
and freight rates are no longer prac-
/ ticable and less energy Is shown IN the
Improvement OF facilities for growing
communities The economies or coop
Grafton are tending toward increased
! changes for passengers and traders
The departmental committee of ten
experts after an exhaustive investigation
! has reached the conclusion that the
natural lines Of development OF an I'M
proved and more economical railway sys-
tenn lie in the direction Of closer coop
Grafton between companies. and that the
| growth Of combination and the elimina-
ton of competition are inevitable proc
esses. Instead of resisting tendencies
highly beneficial 10 the companies them
selves. the experts agree that II is the
duty Of the state TO sanction and 10 reg
ulate agreements and in n general way
to control cooperative action for the
benefit of the public. They recommend.
for example. measures Of administration
for compelling companies 10 offer proof
that reductions OF facilities and with
arawal Of services are reasonable ana 10
Justify increased charges for the convey
ance of passengers or freight. They urge
investigation Of the law and practice al
fecting through traffic Of exports and i'm
ports, contend that the publication or
working and pooling agreements must
be made obligatory, and suggest condi-
tions for cooperative arrangements,
amalgamations and combinations. TWO
Of the experts add explanatory notes,
but the ten are virtually agreed on the
necessity for rigorous state control over
railway compacts. leases and agreements
SO that injurious consequences 10 the
public may he averted.
British railway corporations have
never been allowed TO get out of hand.
At the outset costly and solid construc-
ton was required. with thorough inspec-
ton of new work by government ensi-
neers, systematic investigation or accl-
dents bv officials Of the Board of Trade
was provided. adequate safeguards
against negligence and unfair prejudice
were adopted in the management OF
traffic and terminal facilities, and there
was supervision of every detail or the
railway business in an open court where
grievances could be heard. Long before
controversial questions We're raised in
America Parliament had gone much
further than Congress has done i'm estab-
fishing a uniform classification of freight
charges. in regulating rates on a mileage
basis and i'm securing uniform terminal
facilities. There was a railway depart
ment of administration as early as 1910
and the functions OF the commissioners
appointed not long afterward were en-
larged by one legislative act after an
other. The railway corporations have
supervision. and il has been a practical
method of commanding public confidence
and imparting stability to securities and
investments. Consequently, when the
Departmental Committee recommends
increased facilities for working agree
ments among the companies. and addi-
tonal legislation for enabling the state
10 supervise them and to protect public
interests IL Is merely reverting 10 the
time honored principle of public control,
which has been helpful to English rail-
WAYS and has never retarded their prog
ress.
Mr.. Roberts in his explanatory note adj