New-York tribune., 1901-02-21
WHY RAILROADS COMBINE.
WITNESS SAYS THAT REGULATING
LAWS HAVE DRIVEN THEM TO 1T.

Thomas L. Greene ,ioe-president Of the Audi'
COMPANY Was tho first witness yesterday before
she Subcommittee Transportation ~ the In
dustrisl Commission. Charles J. Harris presided IN
the absence Of Chairman Phillips
Mr. Greene said he had been connected win
rairoa ds for twelve wears. and had been repre-
sentative Of anthracite interests. he said the hard
oosl regions comprising only four hundred square
miles were naturally monopoly. He said the
railroads did not work for the public good. but
rather for their own interests. and IN scramble
for tonnage a railroad powerful enough 20 do 50
would invade = region already provided with rail-
roads He gave the NeN-Jersey Central ana
Iehigh Valley roads running parallel for one hun
6red miles as an example. while many parts he
said. were poorly provided with railroad communi-
cations
Mr.. Greene said that with proper organization
end economy of management hard coal ought TO
sell for s. ton less than now. Government or
State ownership of railroads was the 'onlN
radical remedy" We said that the State of Penn
sylvania ought least 10 compel the roads 20
ship coal by the shortest and quickest route. even
10 give some of the business 20 rival
roads
Mr. Greene said ~ believed In the principle ~
srhitration But n would he a mistake, he added,
90 have everything ruled by trades unions as in
England. where result. Improvement IN
labor saving machinery has been almost stopped
In answer 70 the question what law in his opinion
should he enacted 20 protect stockholders, the
witness gave tho following answer; There Is
great deal more prote -tion IN the conservatism of
Wall Street than safeguards that could
be enacted into law You could not to-day ind
banking house in Wall Street that would noat
an uncertain security
we have pending In the financial world the
formation ~ the so-caned Steel Trust said Mr..
Conger In your opinion should that he sub
jcct for pubic inquiry
Il think publicity IN this ease would not hurt.
The central facts al least. ought 20 be investi-
gated"
Thomas r. Woodlock. railroad editor of The
wall Street Journal was the hrst witness in the
afternoon. The witness said IL was clear that the
railroads were preparing 10 purchase all the lnde-
render, interests so as 10 command practically all
the anthracite coal and thus regulate the price as
we'll as control the tonnage. He estimated the
amount now owned by the railroads as about 80
Ter cent ~ the total output The Pennsylvania Coal
Company had received when II sold out 70 the
FrIe Railroad between s2S 0oo and 500 oooeN Part
OF this had gone commission 10 j. + Morgan
90 who arranged the deal 1t the highest
rrice ever paid for coal lands said the witness.
He declared that both the Erie and the Reading
we're overcapitalized He understood that J. Pier
pont Morgan was interested m the Lehish NalieN'
the Reading and tho Erie.
DO you think the Federal Government could
regulate the financial operations Of railroad so as
20 protect the purchaser or stockholder from over
capitaIizaton?" the witness asked.
''No" ne replied. Il believe Il would he imprac-
trouble. The Government might well try 10 stop
gambling on Wall Street The purchaser OF stock
always believes ne is the who is goins to make
the money out az the transaction. II is the spirit
Of speculation. II he loses II Is his own lookout
''Nha, IN your opinion, has heen the potent n
nuenca fhat has brought about these combinations
among he railroads" asked MI henneos,, -, .,,,
Well replied the witness. II goes hack 70 me
Interstate Commerce Commission The rallFosiuS
saw every pn being knocked from under them
Their protection, the pooung OF thelI htetesls'
creme Court IN the trans Missouri case ana the
.,ouhinst ton Of interests the only way Out OF
their difficulties. The late {. L. huntington Is
credited with being the inventor or originator o1
the combination idea, i believe.
. L can understand how this community OF inter-
ssts among the roads can in theory, be a nad
thing hut in practice should say that, unless
there we're stability Of rates. economy or man
neement and efficiency Of service the roads them
seVes would be the sufferers.
What have YOU 10 say regarding the Govern
rnent ownership cf railroads
1t is not good for the railroads and not good
for the people. The Government might as well 30
into Federal Steel or run newspaper or any
thing else
steel trust Just Formed.
Il think the organization ~ that trust Is simply
the result of the carefully laid plans OF Carnegie
20 make somebody buy him out" He said he
thought Carnegie had come 10 that determination
az the time OF the trouble with Frick few
months ago and had been shreWd enough 20 catch
the TOP of the market In disposng Of his steel hold
ings,
Al 5 o'clock the committee adjourned until this
morning Up 20 the time of adjournment no mes
sage had been received from J. Pierpont Morgan
who has promised 10 appear before the committee
and who was let Il know by Wednesday after
ne would he present. EN-Presdent Mcleod of the
Reading Railroad testify this morning