Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-05-08

Washington, D. c., May 6.-Differ-
ence of opinion regarding the advis-
ability Of consolidating the railway
| systems Of the United States in &C.
cordance with the provisions Of the
transportation act is making itself
felt. This plan was devised BY con-
gress, with the aid Of experts, as one
Of the most feasible solution to the
American railroad tangle. Senator
Cummins of Iowa il one Of the cham
pions Of the plan and expresses the
opinion that unless the railroad sys-
tens are consolidated. the nation can
not escape government ownership and
operation.
The general plan is to consolidate
into 10 or z main systems the hum
Grating 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 & Ohio and the Southern
are nothing more than consultations
of a number Of smaller lines. These
consultations have been the result of
acquisition of additional mileage by
lines which desired to extend their
scope. 1t was a natural development
with no statutory dictatiOn behind it.
The transportation act plan would
merge about 500 lines into 20 or 80
general systems and the consolidation
would not be ss the companies want it
particularly, but a the interstate COM
merce commission, charged with en-
forcing the laws governing railroad
transportation, wants it.
The GENERALIZATION xhnou~ ~~A nI~n
have had careful study by many ex-
perts. The latest study to be made
is that of DR.. Jean Paul Muller. an
attorney and economist of Washing
ton, who -specializes in railroad and in
dustrial investigation. DIR. Muller's
study has caused him to oppose the
consolidation plan because Of the
method adopted for putting it into
effect.
He declares that the plan will not
reduce, but is more likely to increase
them to even more burdensome levels.
He does not oppose the general prin-
cipl of consolidation, but contends that
it should be a natural development on
the initiative Of the owners.
Muller Combats Cummins
One of the chief arguments advanced
by Senator Cummins and his adherents
in favor of the government consolida-
ton 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, proportionately, among
20 OF 30 systems as between 800 rail-
road companies. The result will be
that some of the big systems will grow
! ufrpu0 op1 nthnrc y-ooD i,tcf &C nrnpn0
the separate 500 railroads. Such a
development would bring about in the
course of q few years the same situa-
ton that now obtains and there would
have to be another consolidation sc
that the weak roads could be absorbed.
This process would 60 on, DR.. Muller
thinks. until ultimately there would
be but one great railroad system. OBJ
viously the result of this would be the
total destruction Of competition, the
element in business of all kinds which
experience shows is the i~nstigator 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 rail-
road to six per cent. He points out
that railroads. like all other enter
| prises, must pass through periods of
prosperity and depression. He says
that in the natural course of business