THE DECLINE IN RAILWAY CHARGES. 193 



rect one, as may reasonably be assumed from the history of rail- 

 way transportation, as well as from a consideration of the com- 

 petition to which rail carriers are everywhere subject, not only 

 among themselves but from common carriers operating via our 

 rivers and lakes, and of the recent impetus which has been given 

 to the construction of artificial waterways by the completion of 

 the Manchester Canal, it is necessary to discover means for fur- 

 ther reducing charges without at the same time decreasing net 

 revenue so as to ultimately result in deterioration and bankruptcy 

 of the railways. Obviously, the return to capital must not be 

 much further reduced. With a large portion of the railways of 

 the country in the hands of receivers, the securities of nearly 

 all selling lower than ever before, and being returned in larger 

 quantities from European exchanges, it is evident that the door 

 to further reductions at the expense of capital is closed. Railway 

 transportation, then, must become cheaper by reducing its cost to 

 the corporations conducting it ; and as it has been shown that 

 operating expenses per mile of line have increased during the 

 past decade, while gross revenue has remained practically station- 

 ary, it is apparent that this can only be accomplished through the 

 introduction of economies not now practiced. 



These economies, the nature of which is evident to every ex- 

 perienced railway manager and every intelligent student of trans- 

 portation, can be effected by the actual or tacit consolidation of 

 railway properties, and their extent and importance will be in 

 direct ratio to the thoroughness of the consolidation and the 

 degree in which the conflicting interests are brought into subjec- 

 tion. The wastes of competition are nowhere more evident nor 

 their detrimental effect upon society as a whole more clearly 

 apparent than in railway transportation. 



The legislative restraints upon consolidation should be re- 

 moved, agreements and contracts between common carriers where 

 not in contravention of public policy should be given legal sanc- 

 tion, in order that the products of farms and factories may be 

 distributed and exchanged at lower cost and with greater free- 

 dom. If necessary, the means of governmental regulation should 

 be strengthened, and the operation of the consolidated properties 

 brought more in harmony with public interests. If, as a final 

 result, it should appear that absolute government ownership is 

 safe, practicable, and likely to be productive of much good, it 

 is not unduly optimistic confidently to expect that our institu- 

 tions will be found perfectly adequate for the new task, and 

 it will certainly be found much easier to deal with a few large 

 corporations than with the multitude of smaller ones now in 

 existence. 



VOL. XLVII. 17 



