The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1895-08-08
The Consolidation Of Great
Business Interests and
RAILROAD COMPANIES ARE
Seeking to Cut Down Expenses by
Amalgamation of Lines and
Lessening Of Pay Rolls.

CONSOLIDATION, amalgamauon and the
union of large interests tn aM lines OF
business seem to be the order of the day,
articu,arly in railroad circles. Under
present conditions Of business unity oi
interest and economy of management are
absolutely necessary. There is, however
a ldmit TO which great corporations cal
go, beyond which the rights of the public
are jeopardized and must be protected
phe constellation of parallel and com.
peting lines OF railroad is contrary tc
pub4dc interest and publ9c policy, when by
sudh consolidation proper competition ant
DnAance of power are wiped out OF exist,
ence. On the other hand, the joining OF col
lectSng tines into one system ortranspor.
tat.on whereby better service and cheap
er rates are furnished is legitimate ant
commendable. Two great projects, illus
trading both kinds of combination, are
now ON THE carpet. The one, the cons6ii
datlon of the Grent Northern and North.
ern P~csfiC, about which much has been
said, stems not to be for the best inter
esas of the public, and 1t is very doubt,
ful If 1T wlll suscsed
Mr.. j. PierponG Morgan, who is the ad
visor of I0he Vanderbilt interests is sale
TO hold The key to the situation just now,
and he is reported TO be not at adj in ac-
cord with MIR. Hill. Mr.. Hills proposition
10 the reorganization committee was prac-
Ideally that If he could control the sys-
tenn, he was willing Ito agree to pay the
bondIolders under his reorganization
scheme the sum of $5,225,OOO per annum.
But just about the time the "details of his
proposition became generaly known, the
Northern Pacific people found that their
net earnings for the past fiscal year had,
in spite OF the hard times, run up to the
handsome figure of nearly $6,OOO,OOO. And
when the general revival of the times was
"a great wheat crop being har-
vested in THE northwest, making a big
tonnage for the road ito haul, the resump-
tion of mining activity In Montana, of the |
lumber and slhlngle industry In Washing
ton and oregon, of other industries, and |
the Improvement of the passenger busi-
ness, the Northern Pacific officials felt
safe dn assuring the receivers that the
net earnings for the next fiscal year would
be at least $7,OOO,OOO. OF course, Mr.. Hills
offer OF s5,225.OOO or $5,5OOOOO could not be
considered after this earning statement
had been presented.
Mr.. Hills first project for overcoming
the Minnesota statute mentioned, 1t ls |
currently believed, was to organize !
new company to build short north and
south road connecting alt some point on
the main line of the Great Northern with |
THAT of the Northern Pacific. Then
Through this company dle would simulta-
neously purchase in the name of the
company controlling interest In both
roads.
There is a BIZ. of Interesting history
connected with that Minnesota rallorad
statute which has not yet been told in
prit The law was drawn many years
ago by ex-senator Spooner, of Wiscon-
sin, who is now special counsel for the
receivers of the Northern Pacific. Spooner
was then attorney for the Northwestern
Tee Northwestern had gotten possession
of the old Winona and st. Peter railroad
and wanted to consolidate 1t legally with
its own system, 50 Spooner was sent to
st. Paul to procure the necessary legisla-
tion. He drew a bill in two sections.
The first section permitted any railroad
to consolidate with any other road which |
was AN extension of dts own line. In
order TO get this through the legislature
without amy trouble, Mr.. 5pooner added |
The second section, prohibiting any road
from constituting with any parallel oi
road. The bill went through !
and now, after 20 years, 1t
turns up to block the way of Mr.. Hills
embition.
OF the other class Of railroad combina-
tion is the proposed traffic union between
the Pennsylvania Company and the Chi
cago. Burlington and Quincy Railroad.
The most prominenet railroad men In
Chicago think there Is good reason foi
the report OF an amalgamation OF the
Pennsylvania and Quincy systems though |
on greatly modified plan. The physical
situations and commercial interests OF
these systems justify such report and 4
statements of president Roberts. of tho
two years ago. seem to
confirm II. In his annual report for tn.