New Britain herald., 1924-09-23
ITTIlRE OF RAILROADS

merce Commission is regarded as serving both the public and the rail- roads efficiently although the oper- alton of the -Cummlns law is open 10 debate. There is a species of railroad officials who sneeringy refer to government cogNgol, yet do Rot consider the Interstate Com merce Commission as detrimental to their interests.
 Instead of strangling the railroads, public regulation through the com mission has strengthened them, at the sG.hhe time protecting the public. Confidence in the future of the rail roads must be following an opti- mlstic tract when the Van Swer- ingcns are able to gain the consent of five or six systems in their great consolidation. .plan, which now only requires the approval of the federal commission to be an actuality. Con- tidence goes even further when 1t is 1 declared that the next move of the Van Sweringcns will be to add'the St. Paul system to their mergered lines. forming the first transcontinental line in the country. Rumors are to | the effect that the Lackawanna also is willing to attach itself to the merger, and some even go so far as to say the New Haven would be a valuable addition to the big system. Consolidation of railroads, under approval of the Interstate Com merce Commission, is not an orgy in watered stock. Not q dollar of ad- ditional stock can be issued without the consent of the commission. In the case of the Van Swcringen con- solidation it is said that capitaliza- ton was actually reduced by S100,- 00O,O 900, which speaks handsomely for the adroitness of the Cleveland brothers.
 This is a different story than in the case of the formation of the U. S, Steel corporation several decades go, when Wall street stories were that $700, ,000,O00 in watered stock were issued Indeed, it was one of the objects of industrial mergers at that time to issue large blocks of additional stock, at the same time claiming that great savings would be effected by such consultations.
 There are two dark clouds upon the horizon of the railroad systems, however. These are composed of the
 development of motor trucks and
 possible attempts to reduce rates in the near future. Motor trucks are eating into the short haul business of the railroads quite extensively, and in no one part of the country are the railroads suffering less than in any other Conditions in this respect tally about alike the country over. , But motor trucks are not menac- ing the long hauls and probably can
 not make them as economically as , the railroads. despite the present f high freight rates. This situation ir D the course of time will stabilize itself and some railroads are going into the truck operating business quite 9 extensively, utilizing them as feeders
 for the through lines and to carry
 loose freight short distances.
 The other menace is the worse O
 the two. Shippers who dislike payin' q the present high freight rates hop' the menace results in tangible re Q duction. At present when bushes is anywhere near normal, the rail e roads can make profits; some 0 r. them handsome profits. Of course when business is below normal, the, I can't make money no matter wha the rates.
 o Some of our political sharpshoot
 CTS promise that they will make al f attempt to reSuce rates through con
 gressional action. The La Follett
 party, for instance, promises to re
 ducc rates and increase railroa
 wages. Nobody in his senses wi
 take such a promise seriously. It
 mere will O the wisp to snare tn
 votes of railroad men. But if th ' third party, were it to gain powe
 as q result Of thf present election 0
 later, were to start a goyernmen " ownership drive, it would be a ne' " menace worse than any of the other
 This IS looking rather far aheat
 however and is in the nature 1t crossing a bridge before it is reach " ed. X