Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-12-02

iishc" 'I''"' . 81 #'9 ~ -
FKlDAN EVENING. DECEMF Err 2, 1921.
NOT A TYPICAL CASE.
Walker D.. Hines. former director general OF
railroads, and at one time chairman of the board OF
the Santa Fc road, in a statement just issued makes
some pertinent observations concerning the railroad
activities of Henry Ford as they bear on thc rail-
read situation in general. In introducing his state
lnent he says that it is contrary to public interest
for a large shipper like Mr.. Ford to own and op-
crate a railroad by means OF which he has a power
full leverage for obtaining special consideration
from the common carriers Of the country. How
ever, says Mr.. Hines. SO long, las this is permitted
by law, we can at least congratulate ourselves that
the Ford railroad is i'll the hands of a genius to
turn his property into a laboratory for the making
of experiments which his resoureefu'ness suggests.
This observation by Mr.. Hines suggests an
analogy between the case of Mr.. Ford and some
other cases which have been rather widely dis
cussed. We have the case of the coal owning rail
roads, in which the situation is reversed, although
the principles. arc practically identical. 1t has
been very concllsively demonstrated that the rela-
tons involved in the ownership Of coal mines by
railroad companies were decidedly contrary to pub
lie interest, and it is not many years since we had
a great volume of evidence showing that this dou-
bic relationship Of producer and carrier stit1ed COM
petition and resulted in all sorts of undesirable
practices. the effect OF which, was ultimately realiz-
cd in cNorbitant prices for coal, which prices came
out of"the pockets of the consumers. More recent
~ IT mas DceT decided TO De contrary 10 PUBIC IN
tcrcst, I and unlawful. for the meat packing COM
panics to own the stockyards which served one OF
the purposes of d common carrier in the handling
OF live stock destined for the packing houses. This
practice has been ordered discontinued, and the re-
organization of the business on a basis which will
eliminate this form OF ownership is not in progress.
The Ford railroad is a short belt line whose
local traffic IS negligible. Until the recent change
of ownership its entire business was small. Under
the new management it's local traffic has not in
craoeoJ 80, ,,~r 80 Il .1;1-oIs 4c r> e~ pr+
having become. as it now is. a part Of the great
Ford manufacturing plant, it is used as an agency
Tor the distribution of the Ford products to the
other railroads which arc to carry them to their
destination, and for the handling of incoming ship
mcnts destined for the central plant. Those train
loads of supplies and OF finished product constitute
d class OF freight which is very desirable. and the
possession of that bit of railroad makes Mr.. Ford
able to offer his freight business to the best bidder.
as he can now deliver his cars, by means of a short
haul over his own line. to any one Of a number of
great trunk railroads.
- ~~z Freight rates are fixed by law, but there are
MANY W other things in connection with the handling
of freight which arc not SO fixed. The, division OF
charges between the little Ford road and those to
whichSthe shipments are turned over is largely a
matter OF private, agreement. and the Ford road has
demanded, and is receiving a larger slice of the total
than under its former ownership. Conditions of
service, too, are elastic. Mr.. Ford has said that his
shipments are now handled in from seven to four
teen days less time than formerly, a fact which calls
for some S3O,0 600. 900 less capital tied up in termin-
;ls and on sidings. That saving in time is not cf-
tectcd on the Ford road. where there are few trans
icrs. and where the haul averages only from so to
100 miles. The better time is made on the other
roads, and it is made because Mr.. Ford is now in a
position to insist that it shall be made or his bust
ness will go to some other road. That better time
is made at the expense of other shipments by per
sons who are not SO fortunate as to own their OWE
roads, and are not able to dictate. When there is
a question between a trainload Of Ford freight ant
q carload Of automobiles of some other factory, thu
carload will have to wait. This gives the owner
Of the belt road a decided advantage over competi
tors. It also gives him undue preference over mis-
cellaneous shippers, SO that the savings of which
Mr.. Ford boast& arc effected in part at the expense
OF his competitors. and in part at the expense of thu
general shipper. 1t is probably true that some par
of it is due, also, to superior methods employed b,
the Ford management.
The more the Ford railroad enterprise is
studied the more apparent does it become that
while it is an experiment full of interest, and out o
which may come much that is OF real value to thu
railroad business in general, it is not a typical enter
prise, and the profits derived from it and the man
ner in which its innovations work are to be con
sidered in the. light Of the peculiar conditions sur
rounding them.
NO INTERFERENCE WITH-THE LEAGUE
An authoritative statement comes from Wash
ington to the. effect that ii. suggesting an "associa
S4tion" in which the nations genera1lysshai be invit
Gh = PaI ueipdte, ana WHICH snaI meet perhaps. an
nually for the discussion of subjects-of information
al concern, President Harding does not c%ontemplat
any competition with or antagonism toward til,
League of Nations. As a matter Of fact, there i
no reason why such an association should not b
made to work in harmony with the League Of Ma
tons, and to contribute greatly to its success.
The League Of Nations is an organized body
with a fixed constitution and rules Of procedure. I
represents at least the beginnings Of effective ane
mandatory control of International affairs. 1T
constitution is admittedly imperfect. But imper