The Birmingham age-herald., 1920-02-26
CONSOLIDATION OF
 RAILROAD LINES

l New York, Feb. Especial )-When | the United States courts decided that the Northern Securities Organization was | in violation of the federal statutes, of course that plan for bringing under uni fled or single control the Great Northern, the Northern Pacific and the Burlington ] Railroad systems, was instantly aban- doned Nevertheless James J. Hill is re- ported to have said at the time that the day would come when both the govern
 nent and the people would approve the CO., ordinating of these three railroad sys- tems so that in that way they would become a unified system.
 Some fifteen years ago the late J. F. Morgan ard others who were interested in l the New Haven Railroad system, were persuaded that it would be better for New England, for her manufacturers and for the people if there were to be unifi- ! cation, so far as possible, of. all the rail road lines in New England. Therefore under the leadership of Charles s. Mellin, then president of the New Haven rail- road system, began to expand. but it ex- banded too rapidly and in too great a 1 field. It secured the steamboat lines
 and the trolley lines and the burden was too excessive at that time to be borne I by the New Haven so that there came at last such collapse as reduced this property from a 10 per cent dividend paying property to non-dvidend payer. Nevertheless now the government itself, speaking through the railroad admins l trator MT Hines, is warmly recommends | ing the creation of g. regoinal or zone | system comprising all New England. ex- | cepting, possibly, one railroad line which i is owned by Canadian corporation. In | this view the government is supporting l by so conservative and yet wise ana | courageous railroad administrator as 1 Howard Elliott. He for some years was
 of ha
 as the successor of President Mellen. He
 is again president of the Northern Pa cific, where he served in that capacity 1 for ten years before resigning to become president of New Haven. MT. Elliott has | frequently in public and more often in ! private advocated the consolidation into
 single unit of the New England railroad system although also advocating an all | liance between this contemplated New | England system and one of the trunk | lines probably the Pennsylvania For the Pennsylvania is now in physical touch with the New Haven system, utilizing the
 great bridge over Hell Gate to perfect
 that union.
 1 Even before congress accepted the
 railroad bill which was perfected in the l Senate and House conference there came abundant evidences that the disposition
 Of railway managers to accept the meas
 ure and also to act favorably upon the | DeTm1SSloE Wilicn It StNeSt NneIcpy ihct | gers of railroads may be made with the consent of the Interstate Commerce Com
 mission.
 4 It has been evident for some time to | those who have been in touch with some 1 of the leaders of the financial district, | ttat something of the highest importance | was under consideration by our leading 1 railroad managers. Now the announce 1 ment that the very merger which was planned by MT. Hill and Mir. Morgan and l V hich the courts prevented is to be per l fected. And very likely this purpose was l known to some of the financial leaders. It is true that the method is different | from the one identified by the Northern Securities Corporation. For that corpora- tion was simply financial sponsor, an ov over-controlling organization which had lauthority over each of the systems, all 1 though each was to remain an independ- ent organization. Now the method pro- posed is actual unification. Probably if accomplished it will be along the lines suggested by the unification Of the va rious railroad systems into the New York l Central or by some of the railroad sys- 1 tems that were taken over by the Penn | sylvania At all events 1t is to be d I unit not merely an alliance but actually 1 a unti. The benefits which would follow | in the view held eighteen years ago by | MT Morgan and Mir. Hill, consequent ! upon unlllCdtloU or SlUSlc SVnlIoi VIII pc
 so great as to command the approval of
 the public. The elimination of duplicate costs a common utilization of terminals competent direction of traffic over the most economic route and various other lconsderatoins, all of which had economy | in view and the most slSillfu railroad direction would be possible if the Great l Northern. the Northern Pacific and the Burlington system were merged into one | family.
 '! But the public twenty years ago had no understanding of the economic l principle which was the base of the | proposition of railroad consolidation. | There was still apprehension that if competition were eliminated. the pub lie would be overcharged in the traffic rates and, furthermore, a dangerous political power controlling legislature and even Congress would be in that way created. There was not realiza- - ton of the fact that if the government
 acted through a properly constistuted
 commission. having power of regula-
 tion and supervision. then the public X Is not in danger.
 l The experience, through which the country has passed since the Euro
 pean war began and the imperative
 lneed of coordination notification and
 l single control after the government
 took over the railroads is regarded as
 hacing changed the attitude of the
 public toward the railroad situation
 Furthermore, there is realization oi F the fact that unless the transportation
 system of the United States becomes
 adequate to handle the enormous 'traf fic which is sure to be offered there , will follow congestion, business em barrassment and possibly business de
 moralization.
 l