WESTERN AND SOUTHWESTERN TRAFFIC ASSOCIATIONS. The Central Traffic Association was succeeded in April, 1896, by the Central Freight Association, which is practically a continuation of the freight department of the Central Traffic Association. WESTERN AND SOUTHWESTERN TRAFFIC ASSOCIATIONS. During the time of the operation of the Joint Committee and the Central Traffic Association, several traffic associations were formed in the West and Southwest. One of them was the Interstate Commerce Railroad Association, of which ex-Interstate Commerce Commissioner Aldace F. Walker was Commissioner. It was formed in 1889, but its existence was short. It was superseded by the Western Traffic Association, which consisted of various railroads extending westward of a meridian drawn from Lake Superior through Chicago to the Gulf. It had several divisions, such as the Lake Division, which extended as far as the Missouri River Line, of which J. W. Midgley was Commissioner; the Texas Division, known as the Southwestern, J. N. Faithorn, Commissioner, which covered the territory from St. Louis to all points in Texas; the Trans-Missouri Division, James Smith, Commissioner, consisting of the Trans-Missouri Lines as far West as and including Colorado; and the Trans-Continental Division, E. P. Vining, Commissioner, which included all traffic to and from the Pacific Slope and terminals on the Coast. Aldace F. Walker was the Chairman of the Western Traffic Association. The organization had an Advisory Board, consisting of the President and one Director of each constituent company; and the Board of Commissioners was empowered to decide all controversies pending their submission to the Advisory Board. WESTERN AND SOUTHWESTERN TRAFFIC ASSOCIATIONS. In 1885 the Trans-Continental Association was organized, with George W. Ristine as Commissioner. It continued until April, 1893, when it was superseded by the Trans-Continental Freight Rate Committee, which, in its turn, was superseded in 1897 by the Trans-Continental Freight Bureau. The Texas Traffic Association was formed in July, 1885, with J. Waldo as first Commissioner. He was succeeded by J. N. Faithorn. The Trans-Missouri Association was first organized in March, 1889; and it was against this organization that suit was commenced which resulted in the decision of the U. S. Supreme Court of March 22, 1897, dissolving the same. In the course of a few years additional traffic associations were formed in different sections of the country, and several changes took place in the older associations. The following is a list of the main traffic associations in operation January 1, 1897, or about a year before the decision in the Joint Traffic Association case. Since that time local freight and statistical bureaus have taken the place of most of the associations: Name of Association. Joint Traffic Association... Trunk Line Association.. Commissioner or Chairman. George R. Blanchard. ..J. F. Goddard. Central Freight Association.... ...J. F. Tucker. Western Freight Association.... J. W. Midgley. tion .. Southeastern Mississippi Valley H. S. Haines. Freight Rate Association... M. P. Washburn. Southern Freight Association..... S. Frink. Associated Railways of Virginia and the Carolinas.... W. H. Fitzgerald. RAILROAD CONSOLIDATIONS. The underlying principle of the traffic associations is the same as that which forms the basis of civil society. Each member voluntarily agrees to refrain from committing any acts that might result in injury to the association, or of any member thereof, and otherwise retaining that free individuality so essential to progress. We have seen that the object of these associations is the establishment and maintenance of tariffs of uniform rates. The methods to attain this object that were adopted by the important associations were very similar: but the organizations themselves varied with the traffic conditions and circumstances prevailing in different sections of the country.* RAILROAD CONSOLIDATIONS. Consolidations have proved a very important factor in rate regulation by the railroads; and their causes and effects will be the subject of one of the most interesting as well as instructive chapters in a future history of the development of railroads, from their modest beginning about seventy years ago with a few isolated, short, local roads, aggregating a few hundred miles in length, to the present network of about 208,000 miles, covering the entire country, and organized into strong systems that give the people the most efficient service and the lowest rates in the world. Most of the railroads in this country were built by private enterprise and capital, and, generally, in anticipation of the needs of the people; so that the traffic necessary to support them had to be created largely through the instrumentality of the roads themselves. But it was soon found that short, local roads did not have sufficient *In concluding the inquiry of this branch of the subject, it may not be amiss to state that I am conscious of having treated the traffic associations and their organizations more fully and in detail than can be agreeable to the average reader. I have thought, however, that this information might prove of historic interest to some future students of the railroad problem. RAILROAD CONSOLIDATIONS. strength to become important factors in the development of the resources of the country; and as these resources did not afford a sufficient volume of traffic to support them, a large number of them, after a struggle for existence, passed into the hands of receivers. From 1876 to 1889, 448 roads (46,700 miles), were sold under foreclosure. On June 30, 1894, 192 roads were in the hands of receivers, having a capital of two and onehalf billions of dollars, or one-fourth the railroad capital of the country, and with a mileage of 40,818 miles. And on June 30, 1895, 169 roads, with a mileage of 37,855 miles, were in the hands of receivers. While these bankruptcies caused enormous losses to investors in railroads, the general public was the gainer; for every reorganization strengthened the railroad systems. Additional capital was furnished for the purchase of the bankrupt railroads, and to put them in good condition; in extending them; and in forming, by consolidations, strong through lines that afforded the public improved facilities, and enabled them to send their products to distant markets. At the beginning of these consolidations, and for some years thereafter, they excited a fear on the part of the public that they might become great transportation monopolies, and prove injurious to the public welfare. But experience has shown that these fears were groundless, and that these consolidations conferred great benefits upon the country without any serious disadvantages. It is not too much to say that the marvelous development of the resources of this country, and the growth of commerce and manufactures during the last fifty years, are due in a great measure to the unparalleled expansion of its railway system, and especially to the consolidation of the weak, short, local lines into strong through lines and railroad systems. And it is highly probable that the same economic conditions which have RAILROAD CONSOLIDATIONS. heretofore resulted in these consolidations, will continue to operate in the future. The natural consequence of the laws prohibiting the regulation of rates by agreement between the carriers, is to stimulate the effort of self-protection by further consolidations; and it may be that instead of single railroads, whole systems of roads will be consolidated, where State and Federal laws place no obstacles in the way. As stated above, the elimination of some of the weaker railroads by consolidation has, to a considerable extent, facilitated the regulation of rates by the railroads themselves. As these weak roads were unable to secure a share of the competitive traffic at rates equal to those made by the stronger lines, they were necessarily compelled to cut rates. The agreements for a division of traffic, while they did not entirely put a stop to ratecutting, had at least a restraining influence; and when that restraint was removed by the prohibition to divide traffic, the weaker roads again became disturbers of the peace. The following statement made by Hon. Martin A. Knapp in 1895 is very interesting as showing what has been the effect of consolidations in the New England States. At that time Mr. Knapp was a member of the Interstate Commerce Commission, of which he is now Chairman: his statement was made in a correspondence with Mr. Chandler, and is printed in Senate Document No. 39, Fifty-fourth Congress: "In the New England States the process of absorption in one way or another, has gone on, until there is now practically no competition in the railway service in that section. So far as I am aware, this consolidation has not resulted in any increase in charges; but, on the contrary, has been attended by a considerable reduction in rates, by improved facilities, and the better accommodation of the public. Fewer complaints come to us from that re |