Omaha daily bee., 1888-03-29
A Railroad Trust.
San Francisco Chronicle.


A movement has been made to con-
solidate in one trust all the railroads
between Chicago and the Rocky noun
tains and between the British boundary
and Indian territory. The outline of
the plan is to elect q chairman for the
trust and board of control, consisting
of one representative from each of the
members of the trust, this board of con-
troll to have entire supervision of the in
terests of the various roads. The rate
making power is to be lodged with this
board of control, and all changes in
rates and all questions pertaining to
competition business are to be adjudi-
Gated by this committee. The capitali-
zation of the trust, if it is carried out,
will mount up to the total OF fully 81 ,5OO,-
0O0, 900.
A contemporary doubts if so heavy an
aggregation of capital and corporate
interests could hold together, and
thinks that in the event of its holding
together it would have to settle with the
law and the interstate commission. 1t
is to be feared that they would be found
but broken reed for the support of
popular rights against such an enor-
pOWCI 40 phcoS o66iS5"oSU iuil-
roads could WELD.
In the first place, there is no law at
present in existence which would be di-
rectly violated by such a combination,
or to which an appeal could be had. In
many of the states there are express
provisions permitting the consolidation
of railroad corporations, and TO prevent
the formation of such trust these laws
would have to be repealed and prohibi-
tory legislation adopted, which would
be matter of difficulty to say the
least.
AS to the conflict with the inte rstate
commission, ii state of affairs can be cas-
lily imagined in which such conflict
would not be probable, and perhaps not
even possible, Up to the present time
majority of the cases which have come
before that commission have been based
on the proposition that injustice was
being done by certain railroad corpo-
ration, but this was predicated on the
allegation that the corporation
complained of was doing
corporation. For instance, If the A g.
b railroad established certain rates, and
the G & ID railroad, under similar cir
cumstances and conditions, charged
more for a like service, cause OF action
arose against the G & ID. But suppose
that trust controlled both the A & B
and the G & d. What would set the
discretion and jurisdiction OF the inter-
state commission in motionr
Nor would such trust conflict, in
terms, with section 5 OF the interstate
commission act That section makes il
unlawful for any common carrier to
enter into any contract, agreement or
combination with any other common
carrier for the pooling of freights of
different and competing railroads, or to
divide between them the aggregate or
net proceeds of the earnings Of such
railroads; but it does not provide against
the absorption Of any number of com
peting railroads by trust, nor does
the act anywhere limit the schedule OF
fares and freights, except TO say that
they shall be just and reasonable. The
whole act is framed upon the theory OF
regulation by competition, and OF help
ing the people TO make sttngy, close
listed railroad do as we'll for them as a
generous, liberal one, but if all the