The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-05

4
ferences OF opinion regarding thu
advisability of consolidating tht
railway systems of the Unites
States in accordance with the pro
visions OF the transportation act IL
making itself felt This plan wa.
devised by congress. with the aif
of experts. as one of the most fea
sibIe solutions to the American
railroad tangle Senator Cummini
of Iowa is one of the chief cham
pions of the plan and expresses
the opinion that unless the rail
road systems are consolidated, tht
nation cannot escape government
ownership and operation.
The general plan Is to consol.
idate into 20 or 80 main systems
the hundreds OF railroad com,
panies now operating in the United
States. The American railroad
system developed as the result Of
independent projects of individuals
or small companies. In fact the
railroad systems that now exist
such as the Pennsylvania. the
Baltimore and Ohio and the South
ern are nothing more than consolE
dations OF q number of smaller
lines. These cancellations have
been the result OF acquisition OF
additional mileage by lines which
desired to extend their scope II
was a natural development with nc
statutory dictation behind il
The transportation act plan
would merge about eight hundred
lines into 20 or 80 systems and the
consolidation would not be as the
companies want it particularly, but
as the interstate commerce com
mission, charged with enforcing
the laws governing railroad trans
portation, wants it.
The consolidation theory and
plan have had careful study by
many experts. The latest study to
be made is that of DR.. Jean Paul
Muller. an attorney and economist
of Washington, who specializes in
railroad and industrial investiga-
ton. DR.. Muller's study has caus-
ed him to oppose the consolidation
plan because of the method adopted
for putting it into effect.
He declares that the plan VIII
not reduce the rates but is more
likely to increase them to even
more burdensome levels. He does
not oppose the general prin ciple
of consolidation but contends that
it should be natural development
On the initiative of the owners.
Muller Combats CumminA.
One of the chief arguments sd-
vanced by Senator Cummins and
his adherents in favor of the gov
eminent consolidation plan is that
it will unity railroad rates and
place the whole country on the
same operating basis. DR.. Muller
denies this. He declares that there
will be just as much difference of
quality in management, proper
tionately, among 20 or so systems
as between 500 railroad companies.
The result will be that some of the
big systems will grow strong and
others weak, just as among the
separate 500 railroads. Such a de-
veloprnent would bring about in the
course of a few years the same
situation that now obtains and
there would have to be another
consolidation SO that the weak
roads could be absorbed. This pro-
cess would go on. DR.. Muller
thinks. until ultimately there would
be but one great railroad system.
Obviously the result of this would
be the total destruction of compe-
tition. the element in business of
all kinds which experience shows
is the instigator of progress and
service.
DR.. Muller's analysis persuades
him that the principal weakness
in the American railroad system
today is the restriction in the
transportation act which limits the
earnings of a railroad to per