Evening star., 1922-11-19

this doctrine Is not palatable either to
the railroad managements or labor.
as whole.
There has been a proposal also to
reorganize the Railroad Labor Board; !;
to do away with the three groups
the railroad, labor and public groups
and to have the President appoint
, board to represent the entire public
without having nominations made by
these various groups.
If Senator Cummins has his way the
I railroad legislation program undoubt-
edly will contain an amendment to
the transportation act which would
make compulsory the provisions of
the act looking to combinations Of
the railway systems Of the country
into groups. The Iowa senator be-
| lieves that combination Of the rail-
roads into groups would result in q
far more economical and efficient
transportation system. He expressed
the opinion that these combinations.
II entered into, would save between
s2o0. 100000 and 100000. 900 annually
to the railroads, money which eventu-
ally would have to be taken out of
the pockets OF the American shippers
and travellers.
1t is expected that the President
will get behind this proposed amend
ment to the transportation act.
Combination and Competition,
The transportation act provides that
the Interstate Commerce Commission
shall make a study of the matter of
combinations of the railroads into
groups for more economical opera
tion. but with the proviso that 1t
should bear In mind competition be-
tween the system as a desideratum.
This study has been going on for
some time. Prof. William z. Ripley
OF Harvard University. prepared
plan for the commission, which looks
to the combination Of the roads into
nineteen systems. The commission
Is now holding hearings on the plan.
When the transportation act first
passed the Senate 1t contained a pro-
vision that the combinations Of the
railroads into groups. after the Inter-
state Commerce Commission had
passed on the matter, must be effect
ed by the roads within five years. But
this provision was stricken out in
conference, and the matter was left
to voluntary action on the part OF the
roads. Senator Cummins desires to
have the law amended now SO as to
compel action within a definite period,
say. from two to five years.
So far none of the railroads have
the permission to form combinations
granted in the act. To Senator Cum
minis and others it appears clear that
because of selfish interests. these
combinations will not be brought
roads by law.
Want Own Combinations.
Some OF the roads have suggested
they were willing to form combina-
tions. but on their own terms, not, for
instance. such combinations as ad-
vanced by Prof. Ripley. For example,
at a hearing here Friday. before the
Interstate Commerce Commission,
lington and Quincy Railroad Com
pany and the Great Northern ap-
peared and protested at the grouping
proposed by the Interstate Commerce
Commission. The Great Northern,
Northern Pacific. Burlington and
Colorado and Southern announced
they we're prepared to consolidate
their Mhes into one system. But they
opposed the commissions plan which
would divorce the Great Northern
and Colorado and Southern from the
Burlington.
It seems clear, however, that if
combinations such as are desired are
to be effected there must be some
central authority which shall specify
the combination. or else the strong
roads will look to themselves in a
way that in the end will advantage
them, without bringing about the
benefit to the transportation system
as a whole, which is desired.
If the combination can be made,
economies in operation should be
numerous. These economies would
be derived from joint facilities and
terminals: Standardization in con-
struction, inspection and repair Of
equipment, puchase Of fuel and sup
plies. fuel consumption, standardiza-
ton Of traffic regulations. etc.