ds, many of which were built
in sections of a few miles in length, have been slowly welded into
continuous trunk lines with many branches. The New York Central
between Albany and Buffalo was a consolidation, by Commodore
Vanderbilt, of sixteen short lines. The Pennsylvania system was formed
link by link from scores of small roads. In the decade of the nineties
the growth of consolidation went on more rapidly than ever before. In
1903 it could be said that 60 per cent of the mileage of the United
States was under the control of five interests; 75 per cent was
controlled by a group of men who could sit about one table. The
country was being divided territorially into great railroad domains,
within each of which one financial interest was dominant. Since that
time the policy of the leading roads has been still further unified
by great financial alliances and by the method known as "community of
interests."

Toward this result strong economic forces have been working.
Consolidation has many technical advantages: it saves time, reduces
the unit cost of administration and of handling goods, gives better
use of the rolling stock and of the terminal facilities of the
railroads, and insures continuous train service. It has the advantage
of other large production and the possible economies of the trusts.
Most important, however, from the point of view of the railroads, is
the prevention of competition and the making possible of higher
rates and larger dividends. The statement that competition is not an
effective regulator of railroads often is misunderstood to mean that
it in no way acts on rates. It is true that competition between roads
does not prevent discrimination and excessive charges between stations
on one line only; but competition usually has acted powerfully at
well-recognized "competing points." The larger the area controlled
by one management, the fewer are the competing points; the larger,
therefore, is the power over the rate and the more completely
the monopoly principle applies. It is a grim jest to say that
consolidation does not change the railroad situation as regards the
question of rates.

Sec. 15. #State railroad commissions.# When it became evident that public
and private interests in the railroads were so divergent, it still was
not easy to determine how the public was to be safeguarded. At first,
some general conditions such as maximum rates were inserted in the
laws and charters; but these were not