THE TWENTIETH CENTURY LIMITED This photo was made on the six track section of the New York Central & Hudson R. R. near Riverdale, on the Hudson Division. It shows a type of modern track construction, rock ballast, automatic electric signals, electric cables for the transmission of power, third rail for operation of trains, and the latest type of electric locomotive,

the Texas Pacific, to extend from New Nineteenth century and the early Orleans to a union with the Southern years of this, the railroad problem Pacific; and the junction also of the was not one of expansion so much as Southern Pacific with the Galveston, of economical administration — a betHarrisburg and San Antonio road to ter adaptation to the business needs the ports of the Gulf of Mexico. of the generation and a clearer comThese extensions and consolidations, prehension of the mutual interests of all accomplished between 1864 and the public. Much of this problem was 1883, were the precursors of the solved by more intelligent, scientific greater railroad combinations of the and experienced attention to the subgeneration immediately following. ject by those who made it their proThe expansion of the great con

fession. The attitude of the public structive period of railroading, which also became an important factor. The may be considered to have come to feeling against corporate interests, so an end by 1870, was reckless and notable and so powerful in this period, feverish. Capital rushed headlong began in the West in the Granger into this new field of investment, and movement in 1870–73, and it is not too year after year offered transportation much to say that the railroad, as an facilities more rapidly than the busi- economic institution, has thereby been ness of the country warranted. The materially affected in subsequent inevitable result was vicious competi- years. Drastic legislation touching tion and ultimate ruin. Rate wars the railroads was enacted in most of were the conspicuous feature of this the States. Some of this passed away, period, and presently, when energy

but much of it remained and none of had wasted itself in this direction, re- it was without lasting influence. The sort was had to combination of rival theory of government supervision interests. Consolidation on a small State or National — sprang up and scale had been known in years before, persisted so that in the end the railbut now measures were taken to bring roads found it generally impossible to the entire system into a unity of pur- escape from amenability to public aupose by closer combinations and thority. In the States, this control “gentlemen's agreements " regard- was placed in the hands of railroad ing traffic. These measures had only commissions which exercised their temporary effect owing to the strong powers more in the interest of the public feeling which developed against community than of the corporation. In what was considered railroad monop- the National government power was oly and extortion and also because of vested in the Interstate Commerce the difficulty of completely reconciling Commission, whose decisions in many the conflicting corporate interests. instances, especially in the tariff rate

During the last 30 years of the question in 1911, went a long way