New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-09
Lord Kitchener S
Approval

"The railway companies" said
Lord Kitchener, three weeks after
the outbreak of the war, Gin the all
important matter of transport ia
cilities have more than justified the
complete confidence reposed in them
by the War Office, all grades Of rail-
way service having labored with I'M
firing energy and patience"
Under the terms on which the rail-
ways were taken over for the period
of the war the government guar
arteed TO the proprietors Of the rail
ways that their net revenue should
be the same as in 1918, except when
the net receipts for the first half of
1914 were less than the first half of
1913; in that case the sum payable
was 10 be reduced in the same pro-
portion. The entire government traf-
fc-men and freight-was to be car
ried without any direct charge being
made for it or any accounts rem
dered. This plan was considered
satisfactory by both sides. In the
majority Of cases there had been a
reduction of earnings in the first half
CT 1914 over the previous half year,
and companies were contemplating a
still further reduction. The inter-
ests of their shareholders being as
sured, they we're able to devote them
selves to the work Of economical and
efficient distribution, quite apart
from the usual financial problems.
The one weak side of this agreement
was that it made no allowance to
cover increased interest payments on
account of new investments and new
capital expenditure since the war be-
gan. This point was afterward met
by an arrangement that the govern
ment should pay interest at A per
cent on all new capital invested by
the railways since August 4, 1914,
On new lines, branches, terminals,
equipment or other facilities put into
use since January /, 1913.
The conclusion of the financial
agreement between the government
and the companies automatically
brought about a great economy in
the system of railway accounts.
Hundreds Of clerks had been en-
ployed at the Railway Clearing
House at Euston, London, in
Gissecting payments covering diff
ferent lines, so that each line should
have its proper share. This work
was no longer required. The vast
amount of competition maintained
before the war for traffic at once
ceased. British railways, particu-
larly those competing with others for
the business Of particular towns, had
maintained stats of canvassers not
only for freight but even for passen-
ger traffic. Their competition went
so far that in some cases if it was
announced that visitor was coming
t. one of the Midland towns he would
promptly receive at his home address
callers on behalf of rival railways
asking him to buy his ticket by their
line. There was still more acute can
wasting for goods traffic. All the
great companies had extensive pub
Lefty departments, which by posters,
Pamphlets and newspaper articles
sought 70 bring home to people gen.
orally the attractions of their lines
In the years before the war this pub
lefty had tended 10 grow more and
more elaborate and more and more
costly. Now il was swept away at a
stroke. The weekly traffic returns
Of the different lines were no longer
REQUIRED and so ceased TO be pub
lished.
The reports Of the companies were