The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-10-04
EQUITABLE RATES TO ALL
SUCH WILL BE THE RESULT OF THE
UNITY OF RAILWAY CONTROL.
He OF Local Lines i'm Septenber-
Coal Business of the Lake Erie
4 Western increasing.

A transportation Official who keeps in
close touch with railway matters said in
conversation yesterday: The extent TO
which the community of ownership has
been carried and the results therefrom
which are TO benefit the shippers can best
be demonstrated by drawing a line from
San Francisco to Newport News. passing
through St. Louis. and another line north
and south from the lakes, through Chicago
and St. Louis. to Galveston. This divides
the country into four parts. which may be
designated respectively northeast. south.
northwest and southwest. The northeast
section contains what are generally known
as the trunk lines and their immediate con-
nections. Outside of the Wabash, Glover
Leaf. New York, Ontario & Western and a
few minor lines of road the railways are
controlled by the Observation-Disclosures
bilt-Morgan companies. The Pennsylvania
group consists of the Pennsylvania sys-
TENS owned and controlled roads, Balti-
more &c Ohio, Chesapeake & Ohio and Nor
folk & Western; the Vanderbilt Morgan
group of the New York Central system,
owned and controlled roads, Erie. Lehigh
Valley, Lackawanna, Reading. Big Four
and Lake Erie & Western. While the re-
suit has HOl DGCU all that the pIOJCClOIS
had reason TO hope for, there has been
less cause among shippers for complaint
of unstable and dis~criminative rates than
for some years past, and the curtailment
of the practice of making secret rebates TO
the large shippers has left more net reve-
nue. in the treasures of the carriers.
Whether or not there will be as much
success in maintaining rates in lines of
lean traffic is yet to be determined.
I'm the northwest section James Hill, of
the Great Northern, and some of his friends
in 1875 acquired over a quarter of a million
OF shares OF Northern Pacific stock at S6
a share. Some disputes caused a severance
of relation between the properties, but in
1900 it became evident that Mr.. Morgan
and Mr.. Hill were cooperating. Their
plans looking to an outlet for their lumber
led them 10 try to secure the Chicago,
Milwaukee & St. Paul in the interest of
the Great Northern and Northern Pacific,
but the price asked by large holders OF
St. Paul being too high they abandoned
the attempt. About the middle of Febru-
airy of this year, when Burlington stock was
selling at about 40, Morgan and Hill COM
weeks had secured control, the stock in the
meantime having risen TO 100. For this
stock the Northern Pacific and Great
Northern jointly guaranteed bonds issued
at double the par value or the stock. The
Burlington is a competitor of the Union Pa
ciic, which had just before acquired the
southern racine company : properties. To
protect itself the Union Pacific undertook
TO purchase a majority of the Northern
Pacific stock, and this resulted in the
Northern Pacific corner, when the stock
sold at the fabulous price. of $1,000 a share.
The result of the fight was a comprehen-
sive agreement dealing will all the i'm
pOrtant interests between the Mississippi
river and the Pacific coast, including the
Great Northern, Northern Pacific, Union
and Southern Pacific, Milwaukee e. st.
Paul, Chicago 81 Northwestern, owning and
controlling about 40, 600 miles of road and
earning some $500, 900, 600 annually. Thus all
the ranscontinenta roads except the Atch-
ison are brought into close relationship,
controlled by Morgan, Hill, Hartman and
Kuhn. Loeb q Co, acting for themselves
and those whose interests are in their
charge. These men realized that the SAL
walton of the railroads and the best in
~terests of the territory they serve required
harmonious cooperation i'm the carrying
out OF a conservative yet progressive and
enlightened policy, i~nsuring fair, -equable
and stable rates TO all. of which there was
no nope since the transmissouri decision.
except by unity OF control. This, after
many strategic moves. some bloodletting
and notwithstanding financial transactions,
they have apparently secured"