New-York tribune., 1920-03-05
New Law Permits Abolition
of Competition on Certain
Lines and Also Allows
for the Pooling of Cars
Advantages to Service
Owners Probably Will Aban-
don Rival Trains and
Improve the Connections
By Stanley Frost

the way from sending cars for repairs
to the nearest shop, instead of to the
distant shops of their owning road, to
improving the connections between
trains. Heads of the big roads are
now earnestly considering how many
of these changes are worth saving and
how many can be saved under private
control.
Even the things which are admitted
to have permanent value may not all
be retained. Private control has dis
advantages as we'll as advantages. and
one of these is that competition, which
stimulates good service. also stimulates
while the government was entirely free
from restraints prescribed by the IN
terstate Commerce Commission, the
roads now are held in at every turn,
and not only by the Interstate Com
merce Commission, but by forty-eight
state commissions as we'll. Finally, the
private shipper had almost no rights
thas the government was bound to re-
spect, while the railroads, both under
the law and because of their need of
the shippers good will, must cater to
May Retain Important Reforms
The new transportat ton act, however,
makes possible the use of far more of
these reforms than did the old law. 1t
permits the roads to abolish competi-
ton along specified lines, and it per-
mits the Commission to force them to
stop competing along other lines. The
railroad men themselves in general
have a changed idea as to the value
of working for the country as a whole,
instead Of exclusively for their own
lines. So many of the most important
reforms will be saved in some shape.
Chief of these is the pooling of cars.
1t has been possible for the government
to send cars where they were most
needed, regardless of what line owned
them, or had possession. This has
equalized traffic, has gone far toward
supplying empties to coal, wheat and
fruit men when and where they were
needed. 1t would have been impossible
to handle the nations business in the
face of the tremendous car shortage
without this power
The railroads are planning to con-
tinue this. A car service commission
is being organized to take over the
not have quite such power, but it will
be able to call on the Interstate Com
merce Commission for help if any road
lets it's selfish interest stand in the
way of the general need. At the same
time charge of 80 cents day
will be made against each road for all
foreign cars it may have on it's lines,
and it is hoped that this will drive the
cars back to their home lines, where
they naturally are better cared for than
when wandering around
Embargo Evils Unlikely
A reform along the same line, which
is less likely 20 be saved, is that which
is known as the permit system" 1t has
been used in place of embargoes, and
has been of great value. Under the
embargo system cars were stopped at
the edges of congested district, and
this simply spread the congestion,
blocked the rails and tied up cars that
were badly needed elsewhere. The
permit system" requires the shipper
to have permit showing that his car
can go clear through before he can
load it, thus obviating these evils. But
this involves a hardship to shippers,
which the roads themselves hardly dare
to inf1ict. Stong efforts have been made
by them to find some method o. saving
the plan but they have failed so far.
The Interstate Commerce Commission,
however, has power to order the sys
TEN into use in case of emergency, 80
that the worst evils of the old embar-
goes are not likely to reappear.
The joint use of terminals, both
freight and passenger, has generally
been recognized as good for the coun-
try, but it is bad for the roads owning
the terminals so pooled. There is little
profit in a road building an expensive
terminal, in the hope of outdistancing
a rival line, if that rival can step in
and use the terminal the moment it is
finished. There have peen some objec-
tions, too, from shippers who had built
factories convenient to terminals which
were abandoned under the pooling sys-
TEN. So the pooled terminals are likely
to be broken up slowly, though the
Interstate Commerce Commission has
power to force such pools when it sees
fit.
Consolidated Offices to Go
The consolidated ticket Offices, too,
are likely to break up slowly. They
have been convenience in many ways,
but they do not pull" business for
any, particular line. Also. they have
tended to concentrate passenger traffic
on certain lines, and overcrowd them,
while other lines have suffered. So
first one and then another of these
lines that have lost traffic will reopen
its own Offices.
Two reforms which the roads will
save II they can are the abolition Of
competing tram service between big
cities and the improved connections
between trains. Both of these changes
are distinctly to their advantage. If
they can be handled in such a way that
each road involved gets fair deal. It
VIII result. too, in better service to
the public, If trains on rival roads
ieave city at spaced intervals, in>
stead of at the same time Agree
ments providing for this are permitted
under the new law, and many of them
are expected.
The short routing and diversion Of
trafiic under the government have been
necessary and valuable, but private
interests find much to condemn in
both. They take support from weak
or roundabout routes and congest
Others If these evils could be elimi-
mated, it would be great saving for
the roads to continue the reforms,
Plans for this are under consideration. |
but have not been carried far.
Freight Pools Encouraged
Under the new law freight pools"
previously forbidden, are encouraged.
Such pool would permit the diversion
# traffic, while distributing the profit
IN the business more or less equitably.
md, in fact, such pools were handed
~ a "gentlemen's agreement" even
While under the ban of the law. They
Will be revived, and probably increased
n number and enlarged in scope.
Ehs, tx<r r.