Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-10
MERGERS OF RAILROADS.

SIdIeS III Ills annual IlGoodSS
to congress takes opportunity to
advise congress that it is for the
interests Of the nation that all the
property of railroads in freight
cars be pooled as they would be
if we had one vast consolidated
railroad SYSTEM merger OF all
the railroads of the country. We
had that during the war when
Uncle Sam operated practically all
the railroads of the country under
one management. The shippers
did not like their experience at
that time and they were very anx-
ious that the railroads be taken
out of government management
and turned back to their stock
holders. Besides the government
operated them at a tremendous
loss, and the deficit vas taken out
Of the government treasury-paid
by the general taxpayer along with
other war expenses.
However, it should not be for
gotten that the government moved
far more tons Of freight while it
was in control of the railroads
than the individually controlled
roads could ever have done.
Uncle Sam took I'VE an made
quate equipment and made it do
the business of the country after
a fashion and the tremendous addi-
tional war traffic besides. It did
the latter efficiently. War bust
ness had the right of way. Other
business came in for secondary
consideration. It did not like play
ing second fiddle and yelped a
good deal, especially after the ar
mistice. However, general bust
ness got along after a fashion and
did not suffer very badly at that
when we look back on the war
years with their big profits.
The people of the United States
and the government of the United
States learned something during
those years of war operation Of
the railroads. They learned, for in
stance, that if there were big prof
Its in rail transportation, Uncle
Sam could not find them. The cost
Of production was higher than the
market price. Uncle Sam lost
money-big money-in producing
rail transportation and selling it
to the shippers of the nation. The
government found out another
thing, and that was that there was
economy in railroad consolidation,
and that the merging of railroads
operating in the same territory
and under like conditions was in
the interest of both the stockhold-
ers and the public who paid the
rates. That is why a president Of
the United States in his annual
message tells congress today that
competition Of truck freight lines
with a railroad track beside them
should be eliminated, and that
truck lines should be feeders in
stead Of competitors. The presi-
.-L ali. CO. ~~ar~Ar ~F pferH an
terests as being in the public in
terest.
A score of years ago a declara-
ton from the president to con-
gress that competition with rail-
roads should be eliminated and
mergers formed so as to %consoli-
date competing interests into one
corporation would have almost
provoked impeachment proceed
ings against him. Now it does not
provoke dissent in any important
quarter. Even the ~anti-railroad
demagog is silent about it, though
he may become vocal about meth
DDS of carrying out such merger.
Yet it is not SO long ago that
the late James J. Hill sought TO
merge the Great Northern, the
Northern Pacific and the Burling-
ton railroads and their subsidiaries
in one system. He accomplished
it, too, and united them all under
the control of the Northern Sc
curities company. And then the
United States department of jus
tice arose in its wrath and declared
that this merger was in violation
Of the Sherman antitrust law be-
rause it stifled competition, and
the supreme court upheld this con-
tention, and Mr.. Hill was con-
PEELED to unscranble the onelet
he had made as best he could under
The direction Of the court, SO as to
"preserve competition" between
them.
Competition God save the
~~,~yr1 TLarn 5ac haAr ,,o rnrra-