The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1900-11-19
ERIE AND WABASH ROADS
MAY SOON BE ABSORBED
Reported Plans Make Them Parts of the New York
trail System-Great Railway Trust in Prospect

competing line. such as the Erie. There is
nothing. however, In the law to prevent the
Nanderhilts from buying into the Erie and
Wabash. They might. as individuals, even
purchase control of these properties. and
this probably is the plan they have in view.
The truth of the matter Is that the gi-
gantic deals" about which so much IS be-
ing printed just now. are but part of u
grand scheme for an Interchangeable own
erShip which Is to embrace every railroad
in the United States The purpose Is to sub
stitute this form of ownership for the old
Joint Traffic Association, which was dis
solved by the Supreme Court last year as
an unlawful body, operating In restraint of
trade.
A pooling association being Illegal, the
railroad magnates Of the country have con-
ceired the plan of exchanging stock and
thus creating an interchangeable ownership
which will be equivalent to- or even an i'm
provement upon. the old Joint Traffic Asso-
ciallof. In effect the plan. when completed
Will be to create n ful-fledged railroad trust
It's development was delayed over the pres
ioentlal election, but now that Mr.. MCkin-
ley has been reelected. the gentlemen IN
terested are going ahead very rapidly. The
presldinS genius in the enterprise is Mr.
}. Pierpont Morgan. 1t was due to his eff
forts that the New York Central and PENN
syivania were brought into close alliance
early in the year. That was the first stem
The Union Pacific-Chicago and Alton deal
followed. Yesterday the plan for the alb
sorptlon of the Northern Pacific by the
Great Northern and other interests was
broached. and now comes the announcement
from London that the Erie and Wabash are
10 De swallowed UP. In a sense these deals
are Independent. but ultimately ard really
they are allied. The same men are inter
ested in each one. either directly or In
directly.
Division of Properties.
me statement that the Wabash system
Is to be cut in twain, the New York Cen
trail retaining the lines east of the Mis-
sissippi. while the lines west of the river
are TO be apportioned to the Atchisou COM
pahS. gives clew to the purpose of the
promoters. Wherever 1t can be done to ad-
vantage the properties acquired by th, Nor
gan pool VIII be divided. If they can be
operated more profitably, however. on tho
Old basis. they viii! be left intact
AS the leaders in this undertaking pIan
merely to buy into the securities of the
railroads marked for acquisition or contro,
the plan seems to be to secure themselves
at the outset by having created at the out
SET voting trust for each property to run
LOT a given number OF years. This Is
equivalent to giving the promoters control
~, thaL iensth OF time: or. to put 1t In an
other way. there will be little Joint traffic
association for each railroad company. with
iiH1""SeHteht ior specified period,
secured by voting trust. 1t will be seen
al a glance that this plan has advantages
over the old Joint Traffic Association, under
Ehlch rates We're Surreptitiously cut and
the business generally thrown out of keller
by bad faith on the part of some members
OF the association. When thoroughly ma
tured the Morgan scheme. which Is the
product of months of thought and con-
sideration by the best legal talent at the
command Of the corporations will reveal it.
seif as he most far-reaching combination
in the United States.
The Incidental deals" which are leaking
out from day TO day are but forerunners
OF what is to come. 1t is impossible to
gain information from the responsible lead
ers in this movement. but the outline given
above is fairly accurate.