The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-08-08
New England Railroad Consolidation
Some Arguments Against Uniting With
the Trunk Lines

a controlling interest in the Boston &
Maine railroad, the president of the
New York Central would feel Obliged to
make his investment pay. He would
naturally use the Boston & Maine in
any way which his Judgment might die
tate for the benefit of his entire sys-
tenn. A New England railroad would
be a comparatively small factor in his
calculations and it is too much to eX-
pect that a man outside of New Eng
land would strive to foster and maintain
the manufacturing which we already
have and to add more to it. The presi-
dent of the New York Central system
might treat the Boston 4 Maine rail-
road in such manner as TO build up
New England or he might not; it would
all depend on what, in his Judgment,
would tend to make possible payments
of dividends on his entire system.
b. Restriction of Routes. Beyond
reasonable doubt. the thing that would
interest the New York Central railroad
in the purchase of the Boston & Maine
more than any other one thing would
be the routing of the hiqh-grade freight
produced by MANY of the factories on
the Boston Il Maine railroad to their
western and southern destinations via
the New York Central system and if
this were done it would take away. to
large extent. the routing of this freight
via competitive lines, namely. the Cana
dian Pacific. the Grand Trunk, Erie and
the Lehigh. 1t would thus concentrate
the freight business moving out of New
England more and more through Buffalo.
1t would consequently leave the Cana
dian lines. the Erie and the Lehigh, as
much less competitive factors in our
freight business than they now are and
would tend to decrease their possible
activities and possible helpfulness to
our New England manufacturers 1t
would weaken those roads. particularly
the Canadian roads, at the expense of
the New York Central
G. Loss of Differentials. Such con-
sOlidatiOn would naturally tend toward
the elimination of what il known as the
ditferentials. These mean a reduction
in through rates when shipped via Cana
dian gateways. These amount to five
cents per hundred pounds on high-class
freight and are of material benefit to
our New England manufacturers.
ID. Loss of Competitive Service. 1t
is only very short while ago that the
railroads of our country were badly
congested with too much business and Mt
that time Buffalo was probably in
worse condition than any of the other
of our PRINCIPAL gateways. Freight re-
manned on Buffalo sidings for weeks
and months at time and factories were
forced to close because thew could not
get material in or shin out finished pro-
duct. This was much more noticeable
In the vast yards surrounding Buffalo
through which business flowed much
more smoothly, especially through Can
ada
Who shall say that we are not to re-
turn one of these days to conditions re-
quiring. the full capacity of all of our
railroads?
Is it wise to force very much larger
tonnage through channels or gatewavs
which have already been proved in
sufficient
z. Consolidation of all of our New
England Railroads into one Great sys-
TEN. This was Morgan Mellen plan It
was a woeful failure when tried What
assurance have we that it would be car
ried out successfully again.
F. Financial Outlook. New England
railroads are Just beginning to emerpe
from a tremendous financial strain to
which they have been subjected by gov
eminent management and by panic fol-
lowing the war. The Bangor & Aroos-
took railroad is now earning and paving
dividends. The Main Central reports
net earnings for the month of Nav of
100000 and equally as good business
during June. The Boston & Maine has
shown a splendid Improvement during
1929. emerging gradually from deficit
IN the month of January Of 1913 600 to
q deficit in Nav of only S26, 900 These
figures were made after providing for
all payments in connection with sink
etc. bringing them right UP to divi-
dends."
1t is reported, on good authority.
that the New Haven railroad also has
begun to show better results, although
the writer has not as yet received the
actual figures.
With reduction of wages that took
place July l, the roads should show de-
creased expense, while with the addition
of the higher percentage of the portion
of through freight rates, as decreed by
the Interstate commerce commission,
they must inevitably show larger earn
ings.
Furthermore. all authorities seem to
agree that we are now approaching good
times when there will be more business.
both freight and passenger.
Under these circumstances. would it
not be better to wait to see if the New
England railroads cannot work out their
own salvation, preserving the COMPETE
ton and differentials which we now en-
10Y by having five different outlets. each
competing with the other for business.