The St. Louis Republic., 1901-11-27
First Federal Action Against
Trusts May Be Aimed at Har-
MILL Merger.
PROVISIONS OF THE LAW.
Federal Officials Say Nothing Can
Be Done Until Combination Is
an Accomplished Fact
Vanderbilt Boards Meet.

Washington. Nov. a.-Government Off
| cials high in authority are watching with
increased interest the gigantic railroad COM
\ binaton in the Northwest. and it is not un-
| ikeiy that the first important Federal ac-
| ton against trusts may be aimed at the
/ Hill-Harriman combination.
| being largely State creations. It has been
| u matter Of no little difficulty for the gen.
| eral government to find a way OF dealing
with the big Industrial combinations Fed
eraI authority Is interstate only. Congress
mas jurisdiction over the whole question of
interstate commerce. and. to the extent that
the Big combinations are engaged in inter-
state traffic. both the executive and legisla.
i've branches OF the Government have pow
| er to pass and execute laws that affect that
branch of business. on this point there is
| no difference of opinion between officials
| and the heads of trusts
lhe railroads are engaged in interstate
traffic. and it is held that any combination
that snail have any bearing on commerce
between the States comes directly under tbs
supervision of Federal authorities Conver-
sations had with officials OF the Interstate
Commerce Commission has developed the
fact that members of the board have been
Watching the negotiations going on in the
Northwest
Ihe attention OF the commission has not
yet been called to the railroad trust Off
cially, and IL Is not held that there is any
thing In the interstate commerce act that
applies to the formation of the combine
Itself. 1t Is only through the section of the
law relating to pools that the Government
can take any action against the trust
through the Interstate Commerce Commis-
sion.
Section OF the law provides:
Ihat ~ shall be unlawful for any COM
mon carrier subject TO the provisions of
this act. 10 enter into any contract or COM
blnation with any other common carrier or
carriers. for the pooling of freights of diff
terent and competing railroads. or to di-
vide between them the aggregate or net
proceeds Of the earnings of either railroads
or any portion thereof; and, in any case OF
an agreement for the pooling of freights
as aforesaid, each day of its continuance
SNAIL De deemed a separate offense.'
Provision Of the Law.
1t is held by some officials that the great
Northwest combination of railroads Is a
direct violation OF this section of the in
terstate commerce act, inasmuch as it pro-
Vides for pooling and division of freights.
Again. the commission might exercise its
powers or Investigation and look into the
affairs of the trust under section Il, which
provides: That the commission shall have
authority TO inquire into the management
OF the business Of all common carriers SUBJ
lect TO the provisions of this act. and shall
keep itself informed as to the manner and
method In which the same is conducted and
carriers full and complete Information nee
sssary 10 enable the commission to perform
the duties and carry out the objects for
which IL was created"
Under this provision the commission
might make a thorough investigation and
decide whether the public is benefited or
harmed by the combination and then take
whatever action the circumstances of the
case might require. Any railroad pool pre-
supposes combination OF Individual in
terests. and such an association It is said,
would thus come directly under the turis-
diction of the commission.
Asked to-day whether any steps, even of
a preliminary nature. had been taken In the
matter of the Hill-Harriman deal, an official
OF the commission said that nothing had vet
been done, and no official notice had been
taken. 1t was also said that nothing could
be done until the combination had become
an accomplished fact and was in opera
ton under one general head. II was not
bers of the board were watching the deyel-
opmeHtS with considerable interest