The midland journal. (Rising Sun, Md.) 1885-1947, 1890-08-15
A Big Trust Proposed.

1t has been announced tnat dozen OF
more of our largest railways East and West
are about to unite themselves into a trust
mainly under the leadership of the Wander
bilts although Mr.. Gould is mentioned in
connection with the plan, as we'll as Messrs.
Drexel, Morgan & Co., Kidder, Peabody &
Co., and the Barring Brothers. However
much truth there may be in the report, ii
does contain sufficient elements of desirable
ity to note the claims.
The roads involved are the Union Pacific;
Chicago and Northwestern Chicago, St.
Paul and Omaha system; Chesapeake and
Ohio; the Big Four, and other important
roads east and southeast of Chicago; and
negotiations are said to be in progress to
include the Santa Fe system; with its newly
acquired S. Louis and San Francisco and
Atlantic and Pacific roads; all of which are
to be allied with the Vanderbilt interests.
Even the Milwaukee and st. Paul is ex-
pected to be brought into this vast union of
interests in the form of trust.
The principles of trust organization are
such as will permit the carrying out Of just
such plan as that proposed, and produce
such results in lis operation as will not only
greatly increase the profits ofthe participant
ing roads, but yield lower rates and better
facilities in many directions, greatly to the
peoples benefit. That such an arrange
ment could not we'll be brought abou! in the
form of single corporation, is due to the
fact that the named Companies would rot
care to part with their charters at the same
time if the general interests Of the whole
could be retained in unity without engen-
dering sectional animosty, the union as one
corporation would prove more beneficial
than that of a trust. But, while this may
be a iealizable condition of harmony in the
near future, to-day the undertaking is con-
sidered too experimental; the different man.
agements interested are not sufficiently
acquainted to trust one another to such an
extent as would justify total surrender Of
existing lights and privileges: nevertheless,
if it could be done the public-as-said-
would be greatly benefited through the
transaction. A trust is another matter;
and it must be conceded that it does contain
exactly the required elements that will pro.
duce large part of a corporations benefit,
without the risk Of loss by later dissolution,
if found a profiless experiment. That it
would be found profitless, few existing facts
sustain; in fact everything points the other
way; and to such a degree that it is safe
prediction to make. if the stockholders and
the public's interests are alone consulted.
the trust, if formed, would at an early day
be merged into a single corporation.
A trust, as is now pretty well understood,
exerts no forcibe control oyer its members;
what is done by it, is the collective voice of
its constituents. In this respect it is emf
nently in accord with Democratic or Repub-
lican sentiments; and because Of this fact,
when it is thoroughly understood, it will be
pronounced by the entire people to be the
greatest stride in the direction of their in
terests, as well as all others concerned, that
has ever been put forward for commercial
recognition. Every man knows the economy
in transac;ing affairs in Wholesale man
ner compared with retail dealings: in this
fact the economy of a trust is at once APP
parent. With railways the advantages are
not limited alone to this particular, which
is only part Of the story equal economies
will be discovered in the increased facilities
of transportation in many directions besides
the several homogeneous or departments in
numerous instances might be consolidated.
In fact, there are so many opportunities for
reducing the costs of traffic by means of a
trust that once under way, there would be
little inducement to renew the existing form
of separated control.
The above is from The Fnancier, New
York;. a specialist publication whose bust
ness il is to look closely into financial econ
omies. No stronger reasons can be found
for uniting the entire railroad systems of the
country under one management, and that
management should be the Government.
This is the way the railroads in Australia
are managed, and greatly to the benefit of
the people. We saw it stated recently that
the railroads of Hungary are all controlled
by the government and fares are equivalent
to about % cents from Rising Sun to Phil
adelr hia.
1t will be observed that The Financier
lauds the economy Of the trust, says that
rates would be much cheaper and the profits
to stockholders be still very satisfactory.
Let the railroads of the country be formed
into one 'trust" and Uncle Sam appointed
trustee, as he is trustee Of the post office
business. Things are moving in that d.
rection and the great popular wave is right
behind them
Our Great National Wealth.