The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1901-11-22
Next Congress Will Probably
Tackle R. R. Question.
TIME RIPE FOR THIS
Democratic and Some Republican
Leaders for Control.
EXISTING FEDERAL ACTS FAIL
McCIeary of Minnesota the Best
Equipped Congressman to Deal
With This Subject.

rrena THs Je.rn~t Bure@m. Roe1s 40, Pess
SUttGfHg, W1s5si1sEtOn-
Washington, Nov. 22-Government own
ership of railways is a subject which is
likely to command larger share of at
tention from this congress than was anti
cipated by the leaders of either party.
Recent developments in the line of rail-
way consolidation, and more particularly
the organization of the Northern Securi-
ties company, have convinced democratic
leaders here and also some republican
leaders that there must be some legisIa-
tion looking to the federal control of rail-
roads.
Inc entire country has taken note of
the fact that the new consolidation in the
northwest has had the effect of sitting
competition or the possibility of compe-
tition, between the two great trunk lines
connecting the shippers of the middle
west with the Pacific seaboard. The ulti-
mate end and purpose of the consolida ton
is to raise the freight rates. The only
redress for the shippers is in congress.
The states through which the two rail-
ways pass have local laws which it is
claimed have been violated. There are
constitutional and statutory prohibitions
in all the states against one competing
railway acquiring another competitive
line. In 1895 J. J. Hill tried to acquire
the Northern Pacific; an action was
brought to prevent and the case went to
the United States supreme court and was
Cd yolr- al
device of a corporation to absorb the Sc
eurities of the two lines is only another
way to accomplish what he then tried to
do. The action of Governor Van SAINT Of
Minnesota, who promises to do all in his
power to enforce the local laws, has at
large, and the proceedings will be watched
with the greatest interest.
Federal Laws Useless.
In addition to being a violation of the
state laws, the consolidation has called
attention to the uselessness of the federal
acts which are supposed to govern in
such cases. There is supposed to be an
anti-pooling law for the protection of the
shipper. There is supposed to be an in
terstate commerce commission with power
to prevent abuses of this kind. AS a mat
ter of fact the pooling law is a dead let
ter, and the interstate commerce commits
sion is a deader thing than the pooling
law. Its vitality is exhausted when it's
members have drawn their salaries and
uttered feeble wall of protest at the i'm
potence of the commission.
Whatever may be the outcome of local
actions at law, the fact has been brought
home to wise men in both parties that
the time is rapidly approaching when fed
eral control of the railroads must be dis
cussed by congress. Politicians believe it
will be good politics; some fnanciers
think it will be good economics. Several
New York railroad owners have said that
they would not object to the government
taking over the railroad properties on a.
basis which will correspond to the bond
purchasing which is now being done bv
the secretary of the treasury. They saw if
they can be assured of interest returns on
their railroad holdings which will be
equivalent to the interest on the govern
meDt securities, and have their returns