Evening star., 1923-07-01
ny G.. GOULD LINCOLN.

u ERGER of the railroad sys-
M TENS Of the United States
!VN into a score or more great
L ' systems for greater eff
cheney and economy is the adminis-
tration's proposal for solution of the
transportation problem. President
Harding, in his Kansas City address
last week, stated his belief in the
efficacy of this proposed cure. and an
administration bill, probably pre-
pared by Senator Cummins of Iowa.
chairman of the Senate interstate
commerce committee. will be Offered
when Congress assemblies.
In his address the President re-
ferred to the consolidation plan
adopted by Great Britain. where, as
in the United States. the railroads.
except for the period of the world
war. have been in private operation.
with many Of the same problems as
in this country.
British Railway Merger.
Under the railways act Of 1921. to-
day, July 1, the railways Of Great
Britain begin officially their opera
ton in four great amalgamated
groups. The British law made the
merger-amalgamat as 1t Is termed
in England-into four groups COM
pulsory. The companies had until
December 81. 1922. to frame volun-
tary combinations along the lines Of
the four groups provided for in the
act Of parliament At the close of
last year the work Of amalgamation
had proceeded almost to it's conclu-
sion. In fact. there was compare
lively little for the amalgamation
tribunal set up by the act to do. The
fact that the railways themselves
were able to reach such agreements
is regarded as a tribute to the abil-
ity Of the British to reach sensible
compromises.
The fact was recognized in Great
Britain, as here. that in order to
bring about the consolidation of
strong railway companies with the
weaker a compulsory law was neces-
sary. The British were not ham,
pered in framing such a law by GER
tain constitutional provisions found
in this country which may make 1t
! impossible to compel mergers Of
privately owned railroad companies
, without the government first con-
demning and taking over the rail-
! road properties in question. So the
British. believing that amalgamation
| of the roads would result in benefit
| to the people, went ahead and passed
a compulsory law. And that is what
| the administration will attempt at
the next session of Congress here
Tried Government Operation.
| The railways in Great Britain in
the last decade have had an expe.
| rience not unlike that of the roads
| in this country. For seven years, be-
ginning with the war in 1914, they
! were operated by the government
The government paid to the owners
! of the roads the net income which
! they received in 1913, during the Pc
riod Of government operation.
After the armistice the wages and
| prices paid by the roads in England
| scared. Rates for freight and pas
! senEer service, however, were
tardily Increased until 1920, when
there were drastic increases in rates
! But then business fell off. 1t was too
! late to put the roads on their feet
| again, so to speak.
The plan for the merger Of the
, roads in Great Britain was ad-
vanced by the ministry of transpor-
| tation, with Sir Eric Geddes at its
head. The principal idea of the ad-
| vocates of the plan was that it would
bring about great efficiency and saw
ings in the cost of operation. Sir
Eric estimated that the annual saw
ing would run as high as 2o.o00,0o0
pounds. or approximately $780,
100000.
Possibilities OF Saving.
When it is recalled that the rail-
road mileage in Great Britain is
about one-tenth Of what 1t is in the
United States. the $1o0.00o.oo0 saving
would, If the saving per mile of road
were the same here as estimated for
! Great Britain. result in the saving
/ Of q billion dollars annually in the
operation Of American roads under
merger plan. OF course, there are
those who contend the amalgamation
of the British roads into four groups
| is not going to result In any such
great saving as Sir Eric has hoped
for, and the saving has been esti-
mated by more conservative judges
at $2o,00o,ooo annually, instead OF
| $1oo,000.0e0.
( In Great Britain, which does not
include Ireland. there were 2lA
separate railroad properties at the
close of 1921. The act Of parliament
provided for the combination of 121