The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-06-26
RAIL ROADS ONCE
STROVE: HARD
To MERGE
Now Strong Lines Are As
strenuously Opposing
Consolidation.

(Copyrieht, 1929, by star Company and
Distributes by Cosmopoiitan
News Servfce.l
NEW YORK, June 20. -Fress6snt
Harding has come out in favor OF
forced marriages OF railroads.
The proposal will scarcely elicit
enthusiastic support from the dirRc-
tors OF strong and prosperous rail-
roads, who are now IN a strategic
position. Thus far, the weak and
the strong, which the President
would like to see brought together.
have been angling for position.
Meantime, the Interstate Commerce
Commission has taken the initiative,
and. on the basis Of scientific
study made for 1t by Prof. William
z. Ripley Of Harvard, suggested con-
Kerting the hundreds Of roads which
comprise the American rail trans
portation systems into nineteen
families.
New legislation. which the Presi-
dent indicates will be Forthcoming,
would be necessary to make railroad
weddings mandatory instead Of OBJ
tional.
- BeginninEs of Move.
Early IN the century. when prac-
tfcal railroad dreamers said r.. I'll.
Hartman and James II, Hill-were
seeking for their own purposes TO
construct railroad empires through
new aIfgnmerits, public opinion
blocked their attempts The anti
trust laws were applied to the rail-
road field.
In 1920. by permitting what
hitherto has been forbidden. Com
gress almost reversed itself though
the fact that the new mergers were
to be filled in the public interest
and effected under the auspices Of
the Interstate Commerce Commits
sion. were altering circumstances.
The next step may be to force the
roads to do what two decades ago
especially significant that the new
development is sponsored by Presi-
dent Harding, the c0nservator.
The President suggests enforced
marriages as an alternative to gov
eminent ownership to which he is
StrenuOusly opposed. -.
+ Private operation must continue,
he urges.
The student knows that railroads
are only to q limited degree under
private direction at present.
Power Is Limited.
Railroad. owners are no longer
free to fix charges for their serv-
ices. That function rests with a
public body the = &C The roads
cannot even borrow money without
receiving the approval Of the ]. q G.
on proposed new security Offerings.
The carriers are no longer wholly
at liberty in neg0tiating wages with
heir employees. Aside from the lifni-
tations placed by the workers or;
carnations, the railroads are .sWayed
by a public co1fnission-the railroad
labor board. Thus the, public steps
in and directs the income and the
outgo of the carriers.
Now is 1t proposed to take from
the carriers freedom in the mat
ter Of consolidations and mergers.
!, Recalling the abuses in the
nature of charging all the traffic
viii BEAR rebates and discrimina-
tory rates and watered stocks, I
cannot bring myself to tears over
the passing of railroad freedom.
In spite of the disappearing liber-
ties, investors are taking a renewed
interest in railroad securities under
the stimulus Of a growing earning
power. The present guardianship
of the roads this benevolent and,
Il it would continue. investors
would have greater faith In the in
OF sratlfQad securities:
The theory of mergers is that the
strong should and can help the
weak, but the puissant reply that,
unless great care is exercised faulty
consultations might reduce all to
an impoverished state. The advo-
Gates of consultations predict eco
Monies in large scale management.
and no doubt well conceived mer-
gers will make. for; better distri-
buted earnings. Consultations,
however constitute no easy panacea
for ending the railroad problem,
but are a logical step forward.
President Harding wants to give
the tendency a push.band it is I'M
likely that any legislation. that will
stand the acid test I'M the courts
will deprive any Of the parties Of