The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-04-18
THE RAILROAD TRUST
Pierpont Morgan Wants to Con-
troll Every Road From the
Potomac to Mississippi.
TO DESTROY COMPATlTlON
HAS BEEN SEEKING THE L. AND
N, AND s, A. l.. SYSTEMS.
THEY BLOCK HIS DOMINATION

THEY BLOCK HIS DOMINATION
But the Man Who Made Twenty Mil
lion Dollars in the Bond Deal Will
Stop at Nothing to Make the
South His Own Exclusive
Property.
The people of the South are deeply
interested in the maintenance Of more
than one strong railroad organization.
It would be a calamity here in North
Carolina if either of the four systems
we have should be swallowed up or
converted into one. The capacious NAV
Of the J. Pierpont Morgan syndicate hun-
gers for as complete railroad trust rs
it had perfect sway in the scandalous
bond deals. Talking a few days ago
with a well informed gentleman upon che
railroad situation in the South and the
evils that would follow the loss OF com
petition he gave review of recent at
tempts to make a railroad trust in the
South, which fellows. 1t is history that
will make interesting reading.
A WE'LL INFORMED CITIZEN
TALKS.
This gentleman said:
'"rhe fight which is being made by j.
Pierpont Morgan Of bond syndicate fame
to complete his railroad trust in the South
has been renewed in North Carolina and
Georgia. The scheme which this manlp-
ulator of Wall Street has planned is one
Of the most remarkable in his remarka-
BILE career. Though he has made an en-
envy of the State Of North Carolina,
whose Governor is fighting him,
he seeks through the United
Estates Courts, to array the Fed
eral Judges against the Supreme
Court of North Carolina and has even
secured the services Of ex-Secretary Car
Isle, who was with him in the bond deal,
to accomplish his ends in this Latest
scheme.
To accomplish this, Morgan and his
syndicate have made use of the govern
ment machinery and found the Federal
representatives very friendly to his inter-
est. Not only Carlisle, but others have
been utilized when necessary. Francis
Lynde Stetson, general counsel for Nor
gains railroad. formerly Cleveland's law
partner. during the last administration
was hand in glove with the heads OF the
departments at Washington and found
| his old associates influence so valuable
that Mr.. Cleveland always had an elegant
Southern Railway private car at his
disposal when he wanted to make duck
hunting trip South by rail.
At present J. Pierpont Morgan 4 Co.
undoubtedly dictate the policy of the
Chesapeake and Ohio, Norfolk and Wes-
tern and Southern Railways, three Of the
| most extensive systems entering the
South. While the latter is by far the lar
gest of the three, the combined mileage
| OF the three aggregate 1900 miles.
This single firm controls two thirds Of the
mileage Of Virginia, West Virginia, North
and South Carolina and Georgia, in addi-
ton to large proportion in Alabama,
and Mississippi, and several Of the prin-
cipal cities Of the South. including Knox
vile, Tenn, Asheville, N. c., and Macon,
Ca, ere bottled up by its roads, with
no competitive lines. 1t has also absorb
ed branch railroads leading to fully one
hundred of the largest cotton mills in the
Carolinas and Georgia and can shut
| up these or keep them running, according
| to the terms of the freight rates it cares
to make. This may be termed sort OF
cotton mill trust which Morgan and his
associates can manipulate for the bene-
fit of rival Northern factories, if there is
enough money in it for them.
Excepting the Chesapeake and Ohio
and Norfolk and Western, this process
of railroad accumulation has been going
on since the reorganization of the old
Richmond and Danville and East Ten
lnessee systems into the Southern in June,
1854. While this represented about
1000 originally. it has been increased by
purchases and leases to fully 5000 miles.
Among the lines which have come into
their possession since the reorganization,
are the Central of Georgia, Georgia,
Southern and Florida, Alabama Great
Southern. Louisville Southern, Elberton
Air line, Port Royal and Western Caro-
lima, Knoxville and Ohio, and Chatba-
nooga Railroad. Most or these lines are
apparently operated separately from the
Southern. In reality they are manipu-
lated by such agents of Morgan 81 Co. as
Samuel Thomas and Thomas +. Ryan,
who sold the PORT Royal and Western
Carolina, and II. IT. Conner, president of
the Central Of Georgia. While none of
the other directors appear in connection
with the Central of Georgia, or Georgia
Southern and Florida, President Spencer,
of the Southern, is director in the for
mer and President of the latter No con-
cealment is made of the ownership Of the
Louisville Southern or Knoxville and
Ohio roads.
In the territory Of the yirginias, Nor
gan & Co., controlling the two main lines
to the seacoast. master the bulk Of the
soft coal and mineual production in these
States and meet little opposition in GER
rying ont their schemes. Their South
earn Railroad. however, has mot with
stubborn opposition in their efforts 10
crush opposition. Among the railroads
which block their plans for q monopoly,
Gre The Louisville and NASHVILLE. Seabaarl