The daily morning journal and courier. [volume] (New Haven, Conn.) 1894-1907, 1899-08-07
RAILROAD CONSOLIDATION
PIETTS OF SENATOR CHANDLER ON
THE SITUITION.
The Rise in Boston and Maine Stock
and the Probable Absorption of the
Canadian Pacific Needs 1t.

| '-'NsOi SlltilldlNi, lieNf lis iiifo etltCil
ton called to the rise in Boston ant
Maine railroad stock, and the rumor
about the absorption of the Boston an(
Maine railroad by some other system
was asked what he thought as to tn,
probabilities of such absorption.
He replied 1.-The rise in Boston anC
Maine railroad stock is not remarkable
Inc lines of that company are exceed
ingly valuable Their business is great
ana lucrative. 1t will be remembered
that when that company was authorized
by the New Hampshire Legislature to
issue five millions of stock at par to its
stockholders l denounced the permis-
sion on the ground that it was water
ing OF stock to the extent of nearly one
half of five millions. Less than three
millions of stock judiciously sold would
have brought into the treasury of the
company the five millions of dollars
which 1t received, and possibly two mil
lions and a half of stock would have
produced the five million dollars. In
! stead of requiring the new stock to be
| sold at the market rate, the legislature
unWisely authorized its sale to the
stockholders at par, and it is now worth
two hundred dollars. the annual in
crease of it's profitable business with
revived good times having brought the
stock up to two hundred dollars.
Now as to the absorption of the Bos-
ton and Maine lines by some new sys-
tenn, there is no reasonable doubt that
such absorption will take place within
short time. The New York Central
railroad, having made up it's mind to
take possession of the Boston and AL
bany, will not fail to look upon the
Boston and Maine as desirable for sez-
ure. 1T is characteristic of the railroad
consultations now taking place that no
small line has any power of resistance
against a large system whose owners
make up their mind to grasp the small
line. They are absolutely helpless i'll
the presence of the huge capital and
powerful lines of the great company
AS the Concord railroad with its ten
million dollars capital, had no power of
resistance against the Boston and
Maine railroad with its ninety million
dollars capital, so the Boston and Maine
with its one hundred million dollars
has no chance against the New York
Central with its six hundred million
dollars. The greater globe of water
will absorb the smaller globe of water
as soon as their circumstances come in
contact. 1t is only question whether
the New York Central will desire the
Boston and Maine after it has obtained
the Boston and Albany. If So the Bos-
ton and Maine will be swallowed up by
the great New York combination.
1T is more proba BILE, however, that
the Canadian Pacific will seize the Bos-
ton and Maine lines. The Canadian Pa
cific has greater need Of those lines than
the New York Central will have, after
it obtains access to Boston, through AL
bany. The Canadian Pacific must have
access to more important seaports than
those of the Dominion of Canada. 1t
must have access to the ocean. through
New England, and it not only needs
that access at Portland. but also at
Boston. The Canadian Pacific mana
gers have Of late largely dominated the
Boston and Maine, and doubtless will
soon make a move toward the possess
sion of the latters lines. The Canadi-
an Pacific will not indeed, dare much
longer hereafter to run the risk of see
ing the Boston and Maine go into the
hands of the New York Central. We
may therefore expect to see for little
while lively competition between the
Canadian Pacific anG, the New York
Central for the acquisition of the Bos-
ton and Maine railroad, and shortly the
surrender Of the latter to the ownership
and control of one of the great combi-
nations. 1t is impossible now to tell ex-
actly which, but the Canadian Pacific
has the most at stake, and will make
the highest bid, therefore quite likely
will be the winner.
"The effect of these consultations
will not, in my judgment, be for the
benefit of the people, for reasons appli-
cable to all the huge trusts that are
now in formation in this country Up
to a certain point, consolidation, con-
trolled by honest men, may be made to
result In economical management, and
prices to the public may therefore be
kept low or reduced, but there is a wise
limit to all growth. When the combi-
nations become so big, embracing vast
capital, many interests. and innumera-
BILE employees, their power, politically
and otherwise becomes so great that
the managers become wilful and head
strong. They also demand big salaries
for themselves and great profits for
their friends, and find 1t so much easier
to secure iuordinate profits by overtax-
ing the public than TO enforce econo-
mics. and reduce their taxation of the |
public, that they inevitably adopt the |
former plan. Prices go up. This is the |
process that is now going on in con- !
nection with every trust from that in |
baking powder to that in iron aqueduct |
pipes. So 1t will be with the larger |
when they get firmly |
fixed in power. Fares and freghts have |
been very low during late |
years, otherwise the railroad consolda-
tons which have already taken place
would not have been tolerated; but
hereafter, as the consolidation becomes |
frmer and stronger, fares and freights
are sure to be raised.
THE true interests of the public, |
therefore, require that consolidation, |
beyond a certain point, should be resis- I
ted, both by the state and national leg
slatures. This it is easy to do, if these |
huge aggrega lions of capital can be |
prevented from capturing, by corrup-
11A tat