The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1926-10-08

Los AukeIeS, OCt. o.~-VVD MS 10
an era Of "justifiable consolidation
Of railroads, a special committees Of
bankers declared in . detailed re.
port on RAILROAD consolidation sub.
mittcd to tho American LGEktrs As
Sociation convention.
SHOW comes the time," the report
says, "when the railr0a1s n.ust re-
sumo their processes Of logical en-
larrcmcnt that the nation may Keep
step with its heritage Of progress
Let US call it the era Of justifiablc
consolidation, or the, adaptation TO
our common carriers Of Americas ef-
fcctive principle IF massed proGuc.
ton, or more correctly, transp3rta-
ton is in evolution toward hlnssed
distribution to care for the .rcmend-
Gus production developed by the uni.
fled industrial growth Of this still
young nation
SHOULD Not Br Compslsory
Consolidation, the report says.
should be based on natural traffic
and should not be compulsory.
ut is doubtful whether sufficient
economics will result from console
dation to warrant my general rcdUc-
ton in freight or passenger rates.
the report states, ''but natural al
liances. il wholesome competition is
preserved, will be beneficial to the
country in providing . more adequate
service. which is generally regarded
more important to its welfare than
rates."
Warning that in the process Of rail
notification no one section Of the
country should be permitted to ga n
IN advantage over another. the rerort
continues:
.Nature and her products seem to
be the real key to the situation; NJ
filiation of routes endowed with q
balanced proportion Ut raw materials
and manufactured products, or ally
balanced exchange that supplies both.
ways traffic; III the coordination OF
lines Of reciprocal rather than idcnti-
cal needs. minimizing. through 9
diversity Of traffic, the hazards Of
sectional or crop blights.
consolidation. then. should be con.
sidercd from the standpoint Of the
natural flow of traffic. because no
one railroad, nor any single railroad
system in existence at this time, can
prosper on the traffic which both
originates and ends on the roads Of
-
made SO strong and sclf-reliant rs to
be able to withstand tho vicissitudes
resulting from all forms Of deprcs.
sion.
A Deliberate Task
Qualification brooks no disregard
of economic laws, SO that merging
should be . deliberate, though deli
cate task. Any railroad gcrrymand-
efing would interfere decidedly with
our common prosperity.
ANY one-sided relationship, or the
unwise assumption by the strong
roads Of the burdens Of the weak
only leads to the breakdowns Of
credit in which the public must even
tualy foot the bill. In this c0nnec
ton il is estimated that there ar
some sixty 20 seventy thousand mile.
OF railroad in The United States thai
cannot make nvihg.P
The report recommends either tha1
such lines be abandoned Or that
where unification Of the strong will
the weak seems imperative to pre-
vent hardships 10 dependent com
munities. their capital obligation,
should be reasonably adjusted =
their earning capacity.
Net Oenosed Or Demanded
The committee says it encounters!
from the public no general opposition
20 or demand for consolidation.
sin its present FORM" the repOr
says. ut 10 properly matter Of mo
ment to rail exeeutives, stockholders
forward-looking business men, econ
omists, statesuaen snd financiers. Tn
shippers are not voicing their con
cern II they have any, for the practi