Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1901-11-22
President Roosevelt Said to Be
Against the Combination
Of Big Roads.
His Message will Suggest Need
Of More Stringent Anti
Trust Legislation.
Close Friend Of Morgan Gives
Him Warning That Schemes
May Fail.


Roosevelt's message has strong chap
ter on trusts and another on interstate
commerce. Without attempting to sug-
gest the power OF legislation the presi-
dent calls the attention of congress to
the danger of the former and the in
I adequacy of thu interstate commerce
law. The presidents position on both
! questions is in Lire with the sentiment
of the west and against the attempt to
merge the control of the grea. trans
/ continental railroads.
1t has not been fully determined
! whether the federal government will
take any action against the control OF
the Northern Pacific and Great North
ern railroads, by the purchase OF e ma
jority of stock in each. by the Northern
| Securities company organized under
| the laws of New Jersey. 1t is believed
by attorneys in the department of JUS
| tice that the anti trust law coultl be ap-
Piled because a practical conso lidation
of the two roads TO prevent competition
| would be violation of the federal stat
ute In that it would interfere with in
terstate commerce..
The action of Governor Van SAINT, of
Minnesota, in calling conference of
the governors of the states most inter-
ested is generally approved by the at
torneys in the department of justice,
and it is their hope that the executives
of those states will be able to defeat
this combination.
The organization OF the Northern Sc
curities company Is like that of the
American Steel corporation. 1t does not
propose to operate railroads but to own
the stock in thest. railroads The con-
tention OF the organizers of this new
railroad trust is that. like thu. steel
trust, it violates no federal or state law,
but the department. of justice sees
great difference in, owning and control-
ing all the steel companies in the coun-
try, and owning and controlling the
railroads, which are quasi-public COR
porations, with charters from the state
1t Is known by government officials
that the Northern Securities company
owning all stocks In the Northern Pa.
cific, Great Northern, Union Pacific. and
Chicago. Burlington & Quincy railroads,
is only the beginning of the scheme
which Morgan ana Hill have in mind
Morgan's ambition is to control the
transportation lines of this country, not
only the railroads but the steamship
lines Should he be successful in the
plan to consolidate the railroads in the
northwest, he will organize other COM
panies under the laws of New Jersey to-
own and control the stock Of other rail-
roads until as the directing power be-
hind all, he can practically control the
transportation facilities of the Uni.eo
States and also those between this
country and Europe. Those who hay,
talked with Morgan say that he regards
himself as benefactor in trying to res
cue the railroad properties of the coun
try from ruinous competition. and tina
he believes such consolidation of rail-
road stock will be beneficial to the
whole country.
A close friend of President Roosevelt,
who discussed this question with Nor
gan only yesterday, pointed out TO him
that he was taking the greatest step
that had ever been made toward gov
ernment control of railroads.
You may be sincere, Morgan said
this gentleman. and you might succeed
il you were God. But no human agency
except the government of the United
States win ever be allowed to own and
control the railroads of the United
States. There are just two alternatives
to this question of transporation--com
petition or government control. When
the people are convinced or have good
grounds to suspect that railroad compe-
tition is ended. they will insist on gov
eminent control. The people will sub
nit to great injustice from the railroads
while there Is competition, but they will
not submit to the slightest injustice
from railroads under one general man
agement, which destroys competition, but
will be ever suspicious and find injustice
in what may appear to you as absolute
justice in rates. You are on most dan
gerous grounds, and If you go forward
in this gigantic scheme you Will precip-
itate the greatest political question OF
the age, and bring the federal govern
ment face to face with the necessity for
government control"
This statement made to Morgan rep
resents the sentiment of some of the
ablest men in the presidents cabinet |
They see no other alternative than gov
eminent control, should Morgan and
Hill succeed in their plans for the con-
solidation OF present competing rail-
roads by forming a new corporation for
the ownership of all or majority of the |
stocks of these roads.
The president is not an alarmist, and
he has been induced to think that pub
licity would cure the greatest evil of the
trusts, but he and his advisers have
been alarmed over the dangers present
ed by this gigantic railroad combina- |
ton, and he will speak out plainly re-
garding the necessity for legislation to
the antitrust law and the
commerce act.