CHAPTER XIV

THE REGIONAL RAILROAD OVERSEAS

The beginnings of the railroad across the Atlantic were so very slightly

in advance of our own that they may be regarded as contemporaneous. In

Great Britain, where the railroad as we know it to-day was born, the

conditions of its infancy were much the same as in the United States. In

Continental Europe they were considerably different. There military

necessity quite overbalanced immediate commercial needs. There the first

railroads were dictated by the international strategists. From that day to

this their expansion has been directed by the same necessity.

Yet granting at the outset that the needs and opportunities of the

European railways are in many ways different from those of ours, there

remains the fact that to-day there is much over there that our railroaders

of the United States might and should learn. There is also a good deal

that the European railroad men might and should learn from some of our big

operators and traffic experts--but that phase of the problem is not

germane to this book.

It was to study some of the features of European railway operation that

might be applicable directly to our railroads of the United States that I

journeyed not many months ago across the Atlantic and down the westerly

nations of Europe. Central and Eastern Europe still were in transport

chaos and so could be expected to give little or nothing to one who wished

to see their railways under anything even faintly approaching normal

conditions. But in Great Britain, in France, in Spain, and in Italy, the

railways were functioning well--extremely well, when one came to consider

the very great burden so recently put upon them. The last two of these

four nations may, however, be dismissed immediately from present

consideration. Neither the density of population nor the traffic

conditions of either Spain or Italy makes their transport problems of

great interest or value to the United States. But Great Britain or France

may hold the key to a real solution of our most vexing transportation

problem of the moment.

In area these two closely built and industrial nations are not far apart.

Ireland is not included in the comparison; in this chapter, however, we

are not going to give consideration to the Irish railways. They too are

not germane to the discussion, even if conditions in Ireland were even

approximately normal to-day, which decidedly they are not.

The area of France is roughly speaking about equal to that of our five

great industrial States reaching from New York to Chicago--New York,

Pennsylvania, Ohio, Indiana, and Illinois. This section of the United

States contains but about thirty-five millions of people, as compared with

forty millions of French, yet it has approximately twice the railway

mileage. The French have buttered their area pretty evenly with their

railway transport. We have not. In these five industrial States of ours

there is not only in many cases gross duplication and excess of plant--in

most cases due to the effects of overstimulated competition--but in other

cases considerable territories even to-day inadequately provided with

railroad facilities. Our bread is by no means buttered evenly.

Neither is Great Britain's. Like ourselves she built her transport plans

to meet the exigencies of actual conditions from year to year. Add to this

her very irregularity of conformation; her chief city, and forever her

traffic hub, situated nowhere near the center of the congested island, but

almost in an extreme southeastern corner of it; her other great cities,

seaport and inland industrial centers, scattered here and there and

everywhere as the chance fortune of long centuries dictated and separated

by high ridges of mountainous hills. Take conditions such as these and you

have the beginnings of a transport problem that even at the outset would

bewilder the wisest of traffic experts, given the rare opportunity of

devising an entire new railway system for the United Kingdom.

Of course, no such wise or scientific scheme of planning her railways was

ever possible. They grew, as I have just said, out of necessity. From the

crude beginnings of the Stockton and Darlington and the Liverpool and

Manchester, almost an even century ago, they advanced clumsily until

nearly twenty years ago, when the last of the trunk-lines forced its way

into London and the competitive development of the British railway system

was virtually ended. The strategy of thrusting a new line here, of

building a connection there, of piercing into this town or that so as to

get the business away from the other road, then became history. Thereafter

the chief problem of the British railway manager, like that of his fellow

executive in the United States, became that of supplying proper transport

to a nation that refused to "stay put," but insisted upon growing, even to

an unthinkable size. In the years of its railway development the

population of Great Britain has increased from fifteen or sixteen millions

to well over forty-two. In a single one of her cities more than seven

million people are now resident.

Yet, as might have been expected the clumsy competitive system of building

railroads has not given her a really adequate rail transport plant. Her

bread also is extremely badly buttered. Great industrial sections as those

around London or Birmingham or Liverpool or Manchester or Sheffield, her

coal districts, are ofttimes much more than adequately provided with

railways. And there still are sections of the small island--to traverse

its extreme length one goes a distance roughly equal to that from New York

to Buffalo--which are not even to-day properly provided with rail

transport. These are, it is true, rather thin pickings. The competitive

system has wotted not of them. It never spreads the butter evenly. The

butter goes where it is worth the most, and nowhere else. Too much butter

goes in certain localities. England has begun to learn that lesson.

In France the development of the railroad proceeded far more slowly. Such

ever was the way of the French. From the beginning their Government took a

firm hand in the matter. It saw that French railways were planned,

primarily from the military necessities of the country but also from its

many peaceful ones. If all of this at first had the effect of retarding

railroad construction it also has resulted in giving France the best

national plan of rail transport in the entire world. In 1842, sixteen

years after the beginnings of railway development in Great Britain, it was

still possible in France to determine in what definite direction her

principal lines should be put down. In that year a statute was passed

settling this vital question in so comprehensive and generally

satisfactory a fashion that the uneconomical duplication of the rail

systems of both the United States and Great Britain was almost entirely

avoided; while within the next three or four years definite beginnings

were made in the regional allotment of the land to the several railway

systems, or _reseaux_, which have continued with but one or two important

changes down to the present day.

In contrast to England and Scotland, France presents an almost ideal field

to the primary planner of railroad lines. If Paris, forever her chief

commercial and social hub, is not in the precise center of the republic,

it is at least near enough to permit the devising of a railway plan in

which most of the chief lines form roughly the spokes of a great wheel

radiating out from Paris as a hub. Five of the regional systems of France,

her _reseaux_--the Nord, the Est, the Paris, Lyons, and Mediterranean, the

Paris-Orleans, and the Etat--operate these great spokes. The Nord takes

the segment of the wheel which touches upon the English Channel, from Le

Treport-Mers all the way east to Dunkirk and the Belgian line. To the east

of it lies the Est, touching the Nord at Soissons and Laon and after also

touching the newly-acquired lines of Alsace-Lorraine reaching as far into

the southeast as Belfort.

The Paris, Lyons, and Mediterranean has but two spokes of the wheel into

the Paris hub but it is the largest of the privately owned French

railways, reaching from Belfort to Cette upon the Mediterranean shore and

serving between the Swiss and the Italian gateways to say nothing of the

Rhone valley and the Riviera. Immediately next to it in turn is the

Paris-Orleans, with Toulouse and Bordeaux as its chief southerly

terminals. At these cities it joins the southerly Midi system, which also

meets the P.-L.-M. at Cette.

The Etat or State railway with its lines from Paris to the west and the

southwest of France completes the great railway wheel. A little more than

a decade ago it absorbed the fairly important but always unprofitable

Ouest system. Up to that time the government railway had been the least

important of all the French properties. Its lines, reaching down chiefly

into the rather poor districts of the Vendee and the Charente, were

distinctly unprofitable. In 1908 a French gentleman by the name of Georges

Clemenceau succeeded in extending the beneficent influence of the state to

the almost equally unfortunate Ouest system. Since then the State railway

of France has become distinctly important, geographically and politically,

but not particularly so in any other way. Its annual deficit has never

been overcome. Matters have now come to a point where it is proposed that

system be leased to a private corporation for operation. The government

can no longer carry on with it. Its suburban service alone sustained a

deficit of 100,000,000 francs in 1921.

At the present moment, however, all the French railways are operating at a

loss variously figured at from a million francs a day upward. Since the

beginning of the World War, a total deficit of something considerably more

than a billion dollars has been achieved. Yet the roads themselves are

still paying their dividends--the privately owned and operated properties

of course. These are guaranteed by the Government under special

legislation that goes as far back as 1857. In the early days of the recent

war, when even the formerly profitable Nord, Est, and P.-L.-M. began to

run toward heavy deficits, special legislation was hurried through by the

Government to insure continued interest in the proper operation of the

essential lines of rail transport by the simple and entirely human process

of maintaining the dividends, even though the taxpayer paid the

difference. The difference steadily grew greater. Wages increased 327 per

cent. in six years, the staff--due chiefly to France's very literal

interpretation of her new eight-hour law--from 355,000 to nearly 500,000,

about 41 per cent. And despite an increase of 25 per cent. in freight and

passenger-rates--afterwards increased to a total of 70 or 80 per cent. for

passenger and 140 for freight--the operating ratio of her railways swung

from 57 per cent. in 1913 to the ridiculous and impossible figure of 125

per cent. in 1920.

* * * * *

Important and vital as these things are, however, to the Frenchman, they

have no great concern with the phase of the international railroad

situation that is under our immediate scrutiny--competition, and with it

the inevitable and wasteful duplication of lines and other features of any

national transport plant. If the French railway system had been burdened

with these wastefulnesses, one shudders even to think of the consequences.

The French railways would not then be close to bankruptcy, they would be

entirely involved in it and so completely broken that all France would be

prostrated--the bitter tragedy of Russia repeated along the west coast of

Continental Europe.

In my opinion it is because of the simple and entirely economic placing of

her railways that they have been enabled to withstand at all the terrible

and multiplied burdens that have been placed upon them in the last seven

years. The judgment of the men who first planned their general locations

has been completely vindicated again and again in the really supurb way in

which they bore their all but overwhelming war burdens, and more latterly

in the way that they have handled the almost equally important and vexing

problems of the after-the-war period. Both speak volumes for the inherent

morale of the French railways, to say nothing of the grit and the

endurance of the Frenchman himself.

We started a moment ago to show how these regional and generally

non-competitive railways of France were laid down upon her map. We likened

the main lines of the Nord, the Est, the P.-L.-M., the Paris-Orleans, and

the Etat to the spokes of a great wheel with Paris as their hub. Outside

of these five greatest regions there lie the two others--the Midi and the

recently acquired lines in Alsace-Lorraine. The first of these, as we have

just seen, occupies important territory just north of the Pyrenees; the

second is indicated by its name. It has not yet been determined what shall

be the ultimate operating plan of the lines in Alsace and in Lorraine.

They may be parceled between the Est and the P.-L.-M., but it is more than

likely that they will continue to be operated as a separate system. France

long ago saw the viciousness of bringing too large a railway property

under a single operating direction.

The plan is almost perfectly regional. The only important exceptions are

where a long arm of the Paris-Orleans goes at right angles to the parent

stem and up into the heart of the Etat territory (to Nantes and to Brest),

and where the Etat in turn has a rather roundabout line from Paris to

Bordeaux, the chief external point of the Orleans system. (It is possible

that in the contemplated return of the Etat to private operation this line

may be handed over to the Paris-Orleans. It would be a logical step in the

French regional plan.) Still one almost always goes to Nantes upon the

P.-O. and rarely ever to Bordeaux upon the Etat, while to Marseilles or to

Lyons there is absolutely no alternative to the P.-L.-M. To go to Rheims

or to Strasbourg one must use the Est, to Boulogne or to Calais the Nord.

There is no choice other than the Etat for reaching Rouen or Le Havre from

Paris.

Here then is regional railway operation brought to almost perfect

operation, with competition all but eliminated. For remember, if you

please, that it never is completely eliminated. Even if one were to go to

the final degree of consolidation and centralization, competition would

not be entirely gone. In France, even if the Paris-Orleans no longer

reached Nantes or the Etat Bordeaux, even if every mile of rail were

brought under a single autocratic and absolute head, there would remain

the competition of her unified railway with those outside the republic,

and within it the natural competition, let us say, of towns north of Paris

with towns south for the traffic of that metropolis; east would forever be

pitted against west. You can no more entirely remove competition in

business than you can the risings and the settings of the great sun. But

you can remove the absurd phases, the obvious extravagances of

competition--particularly in transport. Remember always, if you will--I

purposely reiterate the point--that some fine day you can cease to regard

the motor-truck, the inland waterway barge, the interurban trolley, and

the steam railroad train as competitors, but rather in the proper sense,

each as agents of that great function of life, transportation, and so in

some time or place properly correlated. And you can begin by regarding the

railroads together as at least a single efficient one of these agents, and

not as a lot of quarreling small boys dissipating much of their energy

through their trivial disputes. This is the lesson that the railways of

France bring to the rest of the great world of transport.

Their division into seven great operating units--but always carefully

correlated units--is only for the purposes of proper supervision. We have

seen in a previous chapter how easily the efficiency of a single railroad

may be thwarted by permitting it to grow to an untoward size. And before I

am entirely done I shall hope to show you that even in a regional railway

scheme, which applied to the United States might contemplate as many as

forty different railroads--different in name and in operating

organization--there must be a distinct effort toward a strong

centralization of certain functions; notably financing, traffic

solicitation and control, and the staff study of advanced operating

methods of every sort. Along the first two of these lines the _reseaux_

of France have as yet accomplished but little. There has been up to the

present time but little centralization of their control, although steps

now are being taken toward that end. In the opinion of some of the wisest

of Frenchmen to-day, such steps are not only the next in their railway

development but certain to come to a successful head. Only the confusing

problem of a single state-owned and operated system has prevented their

being accomplished this long while.

But in the standardization of operating methods and practices much already

has been done in France. Four companies, the Etat, the Midi, the Paris,

Lyons, and Mediterranean, and the Alsace-Lorraine have formed an

organization with the rather formidable title of _L'Office Central

d'Etudes du Materiel de Chemins de Fer_ for this purpose. This extremely

active organization is divided into four departments, one in charge of

tests, one for locomotive design, a third for car design, and the fourth

to handle railway electrification.

Progress already has been made too in drawing up plans for various types

of standard locomotives. A study has also been made of standard designs

for freight-cars of special types, such as tank-cars, steel-cars, and the

like. Some very interesting tests have been made of refrigerator-cars for

the movement of fish and of fruits. Incidentally it may be said that

before the coming of the World War there was little or no refrigerator-car

movement in France or anywhere else in Europe, and this despite the

remarkable advances made in the United States in this form of traffic for

at least twelve or fifteen years before. To move safely certain low-test

materials for the manufacturer of explosives across tropical seas it was

necessary for two French manufacturers to produce ships equipped with

elaborate refrigerating devices. The technical knowledge which these men

so gained in the manufacture of ice-making machinery they are now prepared

to turn to good account in the production of refrigerator-cars, while the

rapid development of France's wonderful new territory south of the

Mediterranean promises a growing area sufficient to produce a plenty of

fresh fruit and vegetables not only for her cities, but for those of a

large part of the rest of western Europe as well.

Perhaps the most interesting work, however, done up to the present time by

the central study office of the French railways has been upon the

development of electricity as a practical working power for their lines.

(I made passing reference to this in an earlier chapter.) As yet they have

lagged in this work. The Etat operates a dozen miles of electric standard

railway between Paris and Versailles. The comparatively new Paris terminal

of the P.-O. has electric operation for perhaps another dozen miles

outside of the Gare d'Orsay. There are a very few isolated electric

high-speed lines here and there across the face of the land. In these

things the French do move slowly. But they generally move pretty

thoroughly, and to-day they have developed a very marvelous plan for the

electrification of at least one third of their entire railway mileage.

As a beginning a bill was passed in May, 1921, authorizing a company to

develop the vast potentialities of the Rhone water-power--so vast as to be

estimated to save France six millions of tons of coal a year, which is

quite a factor in a country that does not in the average year consume more

than sixty million tons.

This new scheme will mean the immediate construction of eighteen great

power-houses along the upper reaches of the river, with a total

development of 1,100,000 horse-power. The chief users of this huge supply

of clean and inexhaustible power will be the City of Paris, and the Paris,

Lyons, and Mediterranean railway. It is proposed that all the rail-lines

in the huge quadrilateral between Bellegrade, Lyons, Marseilles, and

Vintimille shall be completely electrified.

In the opinion of distinguished French engineers this single enterprise

will be far the greatest, from an economic point of view, ever undertaken

in France. Yet this is but the beginning. The Paris-Orleans has also

ambitious plans under which it expects to bring electric energy,

water-generated, to more than one-half of its 3250 miles of line. The

Midi, running for miles along the base of the Pyrenees, has abundant

opportunities for this cheap motive-power. Its management is unusually

progressive and it may be expected to take advantage of these in the not

distant future.

The net result of this great national economy will be the annual saving of

many millions of tons of coal in a land which has no fuel to spare, which

is indeed dependent upon coal importations for her very existence, let

alone the development of her industries.

Yet great as this huge economic step will yet prove itself for France, it

still will remain secondary to her wisdom of the long-ago in the

simplification of her entire operating system by means of the sensible and

logical regional railway plan, with its consequent huge basic economies.

France at the beginning started right. She is even to-day reaping the

benefit of them. To-morrow when her other economic conditions shall have

readjusted themselves she will reap a far greater benefit. The largest

achievements of her regional plan are still in the future.

* * * * *

England has long since taken note of the situation in her neighbor just

across the Channel. She has seen her own salvation in the French solution

of the extravagant luxury of railway duplication. And even a traditional

British prejudice against borrowing an idea from another nation has

finally been broken down--in this particular instance very much broken

down. Yet it is entirely probable that, had it not been for the coming of

the World War, the Briton still would be enjoying the wasteful luxury of

the excess service which his extravagant competitive system--very much

like our own--had given him for many years. For it was extravagance,

nothing more, nothing less, that led each of the three railways binding

the cities of Liverpool and Manchester, about thirty miles apart, to run

an hourly service between those cities. The trains might run two thirds

or three quarters empty, and frequently did, but the pride of the London

and Northwestern, the Lancashire and Yorkshire, and the Cheshire lines was

upheld. Competition is a great upholder of pride.

Along came the World War, and England from the beginning very much in it.

The burden placed upon her railways was huge. To meet it they were placed

under governmental control at the very outset and their services, aside

from the military ones, bared to the bone. Such luxuries as three trains

to the hour in each direction between Liverpool and Manchester were

immediately abolished. Under a cooperative plan the trains between those

two great English cities were, to use the phrase of the engineer,

"staggered"--placed in a triple alternation, which gave virtually the same

headway between them but with an operation of a little less than one third

the former number of trains. The passenger was merely asked to show enough

ordinary intelligence to study the time-tables and find from which of

three passenger terminals his train of a given hour would start.

The astonishing feature of the entire thing was the lack of complaint from

the traveling public which followed this wholesale reduction of train

service. Everywhere throughout Great Britain it was the same. Competing

trains between many of her busiest centers, arriving and departing at

virtually the same hours but traversing separate routes, were

consolidated, due regard being given to the necessities of intermediate

towns which might happen to be served by but a single one of the road; and

a war-time service was given for five years that was astonishingly good.

Not perfect, of course. The Englishman traveling was forced to sit a

little closer in his seat, sometimes compelled to wait in queues at the

wickets to buy his ticket, occasionally, in the absence of porters, to

handle at least some of his own luggage at the terminals. But there was

very little hardship about all of this, and a tremendous resultant

economy.

Great Britain will never go back to her old extravagances of the days of

unbridled transport competition. True it is that since the signing of the

Armistice her railway service, both passenger and freight, has been

radically increased, but to nowhere near the point that it had reached in

1913. Fine frills, like the running of fast non-stop expresses between

London and the ocean landing at Fishguard, in South Wales, to cite a

single instance out of many, have been abandoned; never to be taken up

again in your day or mine. The harsh necessities of vast economies born of

a great war, the huge increases in labor and fuel and raw material costs

that followed in its wake, do not encourage frills. Out of them came the

demand for permanent sweeping economies that resulted in the passage of

the important Railways Bill by Parliament in August, 1921, after many hard

weeks of exhaustive study.

To bring fifty-four almost entirely competitive railways into four almost

non-competitive ones and insure a governmental control of rates and other

charges sufficient to bring the constituent roads a rate of return equal

to that which they were receiving in 1913--here in brief is the chief

purpose of the extremely lengthy Railways Act, supplanting all transport

legislation that had gone before. It is the most drastic business move

that England has accomplished in many and many a day. Upon it are pinned

the hopes of a thinking people. And because, following in the steps of the

long-established regional systems of France it has become a high hope for

our extremely muddled rail transport situation in the United States, it is

well worth at least a little detailed study.

The south coast of England runs at a distance from London of from sixty

miles upward, as it extends both east and west of Brighton, the nearest

point to that great city. Three separate systems connect it with London:

to the extreme east the affiliated Southern and Chatham railways, made

familiar to thousands of Americans who have used them as an essential link

between Victoria Station and the beginning of the Channel crossing at

Dover; the London, Brighton, and South Coast; and the London and

Southwestern, this last line reaching as far west as Plymouth, down in

Cornwall. In a sense it may be said that these three railways are

regional railways within a region. Each has fairly definite and

non-competitive territory. Each serves its own principality, and serves it

admirably. To make a region out of these three railways is no problem at

all. It is solved, almost before it is begun.

Nor is the east coast of England to the north of London and right up to

and beyond the old Scottish border difficult to bring into a single

region. Three more or less parallel railways--the Great Central, the Great

Northern, and the Great Eastern--occupy the eastern counties all the way

up to York, 188 miles north of London, where the Northeastern has its real

beginning and occupies the extreme northeastern corner of England as an

absolute monopoly. This last line reaches within fifty-eight miles of

Edinburgh. As a matter of operating convenience, however, its locomotives

run all the way through to that ancient Scottish capital, traversing the

final fifty-eight miles upon the rails of the North British company.

Perhaps no better instance may be shown of the absurdly small typical

English railway of to-day than to realize that within the 392 miles that

lie between London and Edinburgh--no distance at all upon our American

railroad map--the through fast expresses run upon three separate railways.

The only condition we have that parallels and exceeds this is the

operation of the Baltimore and Ohio's through trains from New York to

Philadelphia, which traverse the rails of three roads--the Pennsylvania,

the Lehigh Valley, and the Philadelphia and Reading--in the short ninety

miles that intervene between Manhattan Island and the entrance to the B. &

O.'s own rails.

The British railroaders have long recognized the absurdity of the railway

that is too short just as they are able to point the finger of fine scorn

at our many railroads that are entirely too long. More than a decade ago

these four roads of the eastern counties of England sought to anticipate

the present grouping principle of the Railways Act by an amalgamation of

their properties into a single, succinct regional railway property. The

proposal was bitterly fought in Parliament and then defeated. Great

Britain had not then become convinced of the extravagance of the

competition principle in transportation. It was necessary to have a war to

teach her that important economic lesson.

* * * * *

Almost as the northeastern corner of England is the undisputed

principality of a single system so does a single railway, the Great

Western, stretch alone directly west from London and almost completely

dominates its territory. To bring it into regional grouping with any of

the other important British railway systems has been well-nigh impossible.

After a number of futile attempts the professional and amateur railroaders

who have been attempting the solution of the regional plan for Great

Britain have given up the idea. They have found that they could only

combine the Great Western with the Cambrian and some other less important

Welsh roads, and now they have let it go at that--a single well-developed

region of some 3650 miles, well contained and, with the exception of a

single long arm thrust up into Liverpool, fairly compact.

* * * * *

In the center of England rested the difficult part of the entire problem

of working out a rational and economic regional plan. In the succeeding

and final chapters of this book I shall show how in the two inner

industrial centers of America, the one just east and the other just west

of the Mississippi River, we shall come to two territories where the

working out of a pure regional plan is virtually impossible. So it is in

central England. Two great railways, possibly the two greatest in all

Britain, the London and Northwestern and the Midland--occupy that

industrial area with a perfect interlacing of lines, and at every corner

of it fight energetically for its traffic. Other railways enter slightly

upon it; as we have just seen, the Great Western with its line through

Birmingham up to Liverpool, the Great Central and, in its northerly

reaches, the cross-country Lancashire and Yorkshire. This last line has

however recently been absorbed by the London and Northwestern. It too

anticipated the decisions of the Railways Act and comes into any grouping

the largest single system in Great Britain, with considerably more than

four thousand miles of line, a system roughly comparable in size and

volume of traffic with our own Baltimore and Ohio, although in its

history, as well as in the traditions of its personnel, more closely

analogous to the Pennsylvania railroad.

To have attempted to separate the important London and Northwestern and

Midland systems would have been to break down completely the whole spirit

and plan of the British regional system. Therefore they have been brought

into a single grouping, and with them the Lancashire and Yorkshire of

course, the North Staffordshire, the Furness, the Caledonian, the Glasgow

and Southwestern, and the Highland companies--the last of these, as their

names indicate, Scottish lines.

Here then are four railways created out of fifty-four--some 24,500 miles

of line as compared with the 27,000 miles of French railway. The groupings

have followed the lines that I have just shown and take the names of the

Southern; the Northeastern, the Eastern, and the East Scottish; the

Western; and the Northwestern, Midland, and West Scottish groups

respectively. The smaller and comparatively unimportant lines of the

United Kingdom fall easily into some one of these four great regions. For

a time Scotland itself represented a rather perplexing problem. The

energetic young British minister of transport, Sir Eric Geddes, stood

stoutly for the retention of all the Scottish railways in a separate,

distinct, and strongly unified group. In this he was opposed. The old-time

competitive idea that there should be at least two separate and rival

routes from London up into Scotland--the one on the east coast and the

other on the west coast of Britain--would not down. Geddes gave up. Then

for a time he proposed a generous compromise in the form of two separate

Scotch groups, one upon each side of the island and connecting with the

Eastern (English) and the Northwestern and Midland groups at York and

Carlisle respectively. But even in this he was beaten. Scotland lost her

railway autonomy. Her lines will be merged and as entities forever lost in

the sweep of the two larger groups of the entire kingdom.

Geddes has stood in his position in regard to the Scottish railways for

the regional plan in its purest form. His theory was excellent. But it had

to give way to hard-headed practice. It often so happens. Remember always,

if you will, that railroad competition has been a great god in Britain as

well as in the United States. Yet competition is not to be too hardly

judged, even by the loftiest of idealists. It has its good points, and

they are many. Most of the fine excellences of our railroad service in

this country were built up in its hottest competitive period. That is

irrefutable. It is entirely probable that if we had not had that

competitive period we should not have had a service even comparable with

the high standard of excellence that we reached a decade ago. The point is

that within the last generation genuine competition has ceased to exist

between our railroads; the sham of it that remains is a fearful drag upon

any really economical operation of them to-day.

Only a few years ago Lord Monkswell, the distinguished British student of

railway problems, said:

"At sight it would appear that it [competition] has possessed certain

advantages. It is found that in Great Britain, the only European

country where different routes between the same important centers

exist to any great extent under separate management, the train service

is more complete than anywhere else _except France_ [the italics are

my own] and the passenger-fares are by no means particularly high. But

when we remember that Great Britain was the first country to develop

railways and so got a long start of the rest of the world, and that

the population of Great Britain for each unit of area is much greater

than that of any other big country--more than twice as great as that

of France, and half as great again as that of Germany--we see that

there are other causes to which these effects may be ascribed.

"No conditions of this kind, however, tend in any way to show that

competition, if attainable, is incapable of producing good results on

railways at the present time. Far from it; railways present so many

possibilities of improvement that if any really effective means could

be discovered of inducing their managers to make bold experiments, it

is more than likely that the best results would ensue. As has just

been remarked the facilities offered to passengers are certainly on

the whole greater in Great Britain than elsewhere, and in conjunction

with--probably in consequence of--this, it is found that the passenger

receipts per head of the population are approximately twice as large

as they are in France or Germany.

"On the face of it then there is a very good reason for supposing that

the receipts increase with the facilities offered. Now the two things

above all others that passengers may be expected to care for are

reduced third-class fares and increased speeds. If railway managers,

animated by some real spirit of competition, were to offer these

advantages, it is possible and even probable that travel would

increase so much that the railways, besides conferring a great boon on

their customers, would themselves secure large benefits.

"As regards the goods traffic, the definite elimination of all

competition would be likely to have the result of doing away with

several unsatisfactory features of this traffic. Even though there is

ostensibly no competition in rates between the different companies

serving the same points, there can be no doubt that the fear of losing

traffic has frequently induced railways to make concessions of various

kinds to traders, the results of which have been to give more or less

secret rebates to the traders in whose favor the concessions were

made."

I have quoted Lord Monkswell in some detail because his remarks, made upon

the British railway situation eight years ago, are so pertinent and

applicable to our American railroad situation of this moment. He has seen

the rise and the decline of competition upon his home island. And we too

have seen its rise and its decline, upon the North American continent.

* * * * *

Return for a final moment to the British regional grouping plan as it has

finally been effected by Parliament; some of the many details are vital to

us because they are details that before long we shall be compelled to face

in the remaking of our own national railroad structure. The Railways Act

over there, after outlining rather precisely the geography of the regional

grouping, sets up an Amalgamation Tribunal, consisting of three

commissioners, who will approve and confirm the amalgamation schemes

submitted to them. This tribunal is to be a court of record and is to have

an official seal. Its decisions are subject to a review by the Court of

Appeal, whose decision is to be final, unless it gives leave to carry it

up to the House of Lords itself.

It is expected that the work of this tribunal will be finished early in

1923, so that the new groups may begin active operations upon July 1 of

that year. At one time it was suggested that the entire scheme be made

operative upon July 1, 1921; the whole thing was suggested by the minister

of transport as early as June, 1920. But that was obviously far too short

a time. The railway companies would have none of it. They wanted it to

begin not before January 1, 1924, and have nearly had their own way in the

matter.

For it need not be supposed that the bill was adopted without contentions.

These were many and some of them were bitter. The Scottish question was

but one of several vexing sub-problems. A good many of the British railway

men looked upon the rate return to come from the proper fixing of the

tariff charges in each of the groupings as quite too low. The fact that it

was the equal of 1913 has meant little or nothing to them. That year

returned but 3.64 per cent. to the average British railway share, and some

large holders of these securities felt that they should have a much

bigger return upon their investments.

Yet to go further into this vexing point would involve an intricate study

of British railway capitalization. It is enough for our point now to say

that it is large, extremely large, per mile as compared with our American

capitalization. Those people who have made it their particular business to

shout upon watered stock and bonds of our roads will have interesting food

for thought if they will study the capitalization of railways overseas;

particularly so if they will consider that the preliminary valuation

reports of the Interstate Commerce Commission show many of our carriers as

possessing an actual property value well in excess of the combined

securities issued against it.

* * * * *

The entire field of British railway operation offers many valuable and

suggestive hints, even to a nation as supposedly expert in railroad

operation as this. It is not possible in the limits of a single chapter to

go into all of these. Among them is the development of electrification

upon the standard lines of Great Britain; despite a seemingly slow

progress in this great work (but 365 miles out of 24,500 being operated by

electricity at the moment) it is known that a group of distinguished

American electrical engineers has been engaged for some time past in

devising a scheme for the operation of every mile of British railway by

electric power. Others are the exquisite simplification and economy of her

terminal operation and the facility of her small goods-wagons for

short-haul traffic. These are all interesting. Yet, the single phase of

her regional development so far outranks even these as to demand an almost

exclusive attention.

France has led the way, has proved almost beyond doubt the value of the

regional system; Great Britain now falls in line. The United States will

be next in turn. Because the possibilities of the extension of this, the

greatest of immediate railway economies, are so vast in this land of huge

railroad development I shall leave their description until later. Then I

shall endeavor to show how as a nation we can all benefit--railroad

patron, railroad shareholder, railroad employee alike--by the extension to

our national transport machine of a plan which is so ingenious, so

genuinely economic, and yet withal so simple as to make it a bewildering

wonder that our biggest railroaders did not come to it long ago. That they

did not is rather a sad commentary upon their vision--or lack of it.

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